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REGISTERED NUMBER: 02370079 (England and Wales)







STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

FOR

ENTEC INTERNATIONAL LIMITED

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


ENTEC INTERNATIONAL LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2023







DIRECTORS: P G Carter
A J Gechie
M Robinson
C P Syner
B Walters
O P Syner





REGISTERED OFFICE: Charter House
161 Newhall Street
Birmingham
West Midlands
B3 1SW





REGISTERED NUMBER: 02370079 (England and Wales)





AUDITORS: Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023


The directors present their strategic report for the year ended 31 January 2023.

REVIEW OF BUSINESS
The results for the year and financial position of the company are as shown in the annexed financial statements.

Whilst the consequences of the Coronavirus pandemic were still felt in quarter 1 & 2, they eased as the year progressed. The primary issue in 2022 was the scarcity of foreign currency in many of our markets, particularly Africa. This resulted in a number of clients having a reduced spend as they could not source USD / EUR or GBP. As a result turnover fell by 8% to £17.2 million. 2022 was the first year where our service fee model was in use throughout the year. This is an alternative to a traditional mark up approach, and quarter 4 enjoyed increased service fees. This is now being deployed across a number of our African clients and is being well received.

Gross Profit increased from 20.5% to 25.8%. This is primarily a result of quarters 3 & 4 where more fee business was introduced.

Operating costs increased by £270k to £3.4 million in the year. This was in line with plan and was primarily due to investment in additional staff. Financing costs also rose in line with the increase in interest rates.

Improved GP resulted in an increase in operating margin to 6.1%, returning a pre-tax profit of £1,053k.

The company's cash position has remained strong at £800k due to a combination of strong credit control and good treasury management.

The company has a strong backorder book and expects to return to pre pandemic sales and profit levels in the current year and seeks to expand its customer base as it develops its market share in the world. Costs continue to be closely controlled as supply chains become more costly and challenging.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's activities expose it to a number of financial risks including cash flow risk, credit risk and technology risk.

CASH FLOW RISK
The company's trading currencies are limited to the GBP, USD and Euro, which reduce the financial risks of changes in foreign currency exchange rates. The company uses a variety of exchange control measures to further mitigate the risk. Interest bearing assets and liabilities are held at fixed rate, if considered appropriate, to ensure certainty of cash flows.

CREDIT RISK
The company's principal financial assets are trade and other receivables. The company's credit risk is primary attributable to its trade receivables. The amounts presented in the balance sheets are net of allowances for doubtful receivables.

TECHNOLOGY RISK
The company faces risks in developing markets from the increased availability of product information online and this continues to put pressure on margins. The company is approaching this risk by furthering its adoption of technology and through the continued development of online trading platforms which reduce transactional and processing costs. The company is committed to its pursuit of process automation and technical improvements in the supply chain.The company is investing heavily via partnerships with universities to enhance the use of AI.


ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

POLITICAL RISK
A large proportion of the company's trade is in Africa. The company trades only in political stable countries and with a primarily multi-national blue chip client base. The company further mitigates territory risk by operating under global and regional contracts with its major customers. The company also monitors any changes within region's political and social frameworks and its relations with the United Kingdom Government for any issues which may pose a threat.

ECONOMIC RISK
The Coronavirus pandemic continues to effect supply lines and restrict supply, raising prices and inflation. World Governments have reacted differently to the challenges created by the pandemic which has meant that strong supplier relationships and flexibility to change has proved invaluable.

The company has put procedures in place to enable it to react quickly to any changes in Government regulations or changes in demand and continues to monitor economic and political activity in its main trading markets to ensure protection of its core business.

KEY PERFORMANCE INDICATORS
The main key performance indicator (KPI) for the company is the gross profit margin (being the ratio of gross profit to turnover) which saw a increase of over 5% to 25.8% during the year. With margin pressures in key trading territories and the continued effect of the Coronavirus pandemic, the company continues to monitor its gross profit margin to enable it to assess the effects of its investments for future sales and take decisive action if required.

ON BEHALF OF THE BOARD:





P G Carter - Director


19 October 2023

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2023


The directors present their report with the financial statements of the company for the year ended 31 January 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 January 2023 is £175,240 (2022: £174,940)

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report.

P G Carter
A J Gechie
M Robinson
C P Syner
B Walters

Other changes in directors holding office are as follows:

O P Syner - appointed 1 February 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;
-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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2023


AUDITORS
The auditors, Prime, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





P G Carter - Director


19 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC INTERNATIONAL LIMITED


Opinion
We have audited the financial statements of Entec International Limited (the 'company') for the year ended 31 January 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (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 31 January 2023 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 Auditors' 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, 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.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- 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; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC INTERNATIONAL LIMITED


Matters on which we are required to report by exception
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 Report of the Directors.

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.

Responsibilities of directors
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, and for such internal control as the directors determine 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC INTERNATIONAL LIMITED


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and other relevant parties.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ENTEC INTERNATIONAL LIMITED


Use of our report
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.




Leigh Dudley FCCA (Senior Statutory Auditor)
for and on behalf of Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

23 October 2023

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 17,177,164 18,689,255

Cost of sales 12,743,103 14,851,373
GROSS PROFIT 4,434,061 3,837,882

Distribution costs 83,699 18,763
Administrative expenses 3,280,735 3,076,694
3,364,434 3,095,457
1,069,627 742,425

Other operating income - 13,284
OPERATING PROFIT 5 1,069,627 755,709


Interest payable and similar expenses 6 16,174 8,910
PROFIT BEFORE TAXATION 1,053,453 746,799

Tax on profit 7 78,831 28,479
PROFIT FOR THE FINANCIAL YEAR 974,622 718,320

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 974,622 718,320


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

974,622

718,320

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

BALANCE SHEET
31 JANUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 90,914 158,145
Investments 11 976 976
91,890 159,121

CURRENT ASSETS
Stocks 12 1,074,934 748,883
Debtors 13 10,117,175 9,579,922
Cash at bank and in hand 795,565 1,420,043
11,987,674 11,748,848
CREDITORS
Amounts falling due within one year 14 5,984,144 6,518,095
NET CURRENT ASSETS 6,003,530 5,230,753
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,095,420

5,389,874

CREDITORS
Amounts falling due after more than one
year

15

(126,167

)

(206,102

)

PROVISIONS FOR LIABILITIES 19 (17,115 ) (31,016 )
NET ASSETS 5,952,138 5,152,756

CAPITAL AND RESERVES
Called up share capital 20 101 101
Share premium 21 94,996 94,996
Retained earnings 21 5,857,041 5,057,659
SHAREHOLDERS' FUNDS 5,952,138 5,152,756

The financial statements were approved by the Board of Directors and authorised for issue on 19 October 2023 and were signed on its behalf by:





P G Carter - Director


ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 February 2021 101 4,514,279 94,996 4,609,376

Changes in equity
Dividends - (174,940 ) - (174,940 )
Total comprehensive income - 718,320 - 718,320
Balance at 31 January 2022 101 5,057,659 94,996 5,152,756

Changes in equity
Dividends - (175,240 ) - (175,240 )
Total comprehensive income - 974,622 - 974,622
Balance at 31 January 2023 101 5,857,041 94,996 5,952,138

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023


1. STATUTORY INFORMATION

Entec International Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

The results of the company are consolidated in the ultimate parent's financial statements and these can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with its parent and wholly owned subsidiaries within the group.

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Leasehold improvements - 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on reducing balance

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


ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


2. ACCOUNTING POLICIES - continued
Current 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 that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that balance sheet date. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid and received under operating leases are charged or credited to profit and 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 and loss in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


3. 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:

2023 2022
£    £   
United Kingdom 51,024 810,028
South America 458,840 2,669,496
Asia 5,414,198 4,050,009
Africa 10,956,443 8,753,400
North America 52,807 75,642
Australia 243,852 2,330,680
17,177,164 18,689,255

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,939,896 1,803,979
Social security costs 180,075 161,110
Other pension costs 92,099 53,863
2,212,070 2,018,952

The average number of employees during the year was as follows:
2023 2022

Management 6 5
Administration and operations 40 41
46 46

2023 2022
£    £   
Directors' remuneration 322,128 247,550
Directors' pension contributions to money purchase schemes 17,446 12,550

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 81,268 82,582
Pension contributions to money purchase schemes 6,000 3,255

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 49,821 55,322
Depreciation - assets on hire purchase contracts 33,300 36,920
Profit on disposal of fixed assets (20,088 ) (1,000 )
Auditors' remuneration 23,000 21,000
Operating lease payments - property 55,000 55,000
Operating lease payments - other 48,365 52,075
Foreign exchange rate (gain)/losses (66,951 ) (14,743 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 11,995 4,260
Hire purchase 4,179 4,650
16,174 8,910

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 92,732 30,579

Deferred tax (13,901 ) (2,100 )
Tax on profit 78,831 28,479

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,053,453 746,799
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

200,156

141,892

Effects of:
Expenses not deductible for tax purposes 1,596 1,051
Depreciation in excess of capital allowances 13,179 9,196
Utilisation of tax losses - (10,788 )
Research and Development enhanced deduction (118,382 ) (110,582 )



Profit on disposal (3,817 ) (190 )
Deferred tax movement (13,901 ) (2,100 )
Total tax charge 78,831 28,479

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 175,240 174,940

9. GOVERNMENT GRANTS

Included within other income is Government Grants totalling £Nil (2022: £13,284) relating to the Job Retention Scheme.

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


10. TANGIBLE FIXED ASSETS
Fixtures
Leasehold and Motor
improvements fittings vehicles Totals
£    £    £    £   
COST
At 1 February 2022 57,387 598,111 201,434 856,932
Additions 14,510 21,293 - 35,803
Disposals - - (86,890 ) (86,890 )
At 31 January 2023 71,897 619,404 114,544 805,845
DEPRECIATION
At 1 February 2022 49,720 514,935 134,132 698,787
Charge for year 6,141 40,989 35,991 83,121
Eliminated on disposal - - (66,977 ) (66,977 )
At 31 January 2023 55,861 555,924 103,146 714,931
NET BOOK VALUE
At 31 January 2023 16,036 63,480 11,398 90,914
At 31 January 2022 7,667 83,176 67,302 158,145

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 February 2022 147,680
Disposals (86,890 )
At 31 January 2023 60,790
DEPRECIATION
At 1 February 2022 83,070
Charge for year 33,300
Eliminated on disposal (66,977 )
At 31 January 2023 49,393
NET BOOK VALUE
At 31 January 2023 11,397
At 31 January 2022 64,610

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


11. FIXED ASSET INVESTMENTS
Listed
investments
£   
COST
At 1 February 2022
and 31 January 2023 976
NET BOOK VALUE
At 31 January 2023 976
At 31 January 2022 976

Listed investments represent investments in non-puttable ordinary shares. The fair value of listed investments at the year end was £838 (2022: £1,925). These values have been determined with reference to the quoted market price at the reporting date. The costs of the shares on acquisition are stated above.

12. STOCKS
2023 2022
£    £   
Stocks 1,074,934 748,883

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 5,363,126 5,105,808
Amounts owed by group undertakings 4,594,043 4,140,035
Tax 68,443 67,507
VAT 86,511 128,511
Prepayments 5,052 138,061
10,117,175 9,579,922

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 2,778,725 2,837,677
Hire purchase contracts (see note 17) 26,934 58,429
Trade creditors 1,856,214 2,852,075
Amounts owed to group undertakings 592,483 487,875
Social security and other taxes 57,331 46,213
Other creditors 29,039 13,276
Directors' current accounts 3,951 4,286
Accruals and deferred income 639,467 218,264
5,984,144 6,518,095

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 16) 126,167 179,168
Hire purchase contracts (see note 17) - 26,934
126,167 206,102

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 2,327,881 2,235,337
Bank loans 450,844 602,340
2,778,725 2,837,677

Amounts falling due between one and two years:
Bank loans - 1-2 years 50,000 50,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 76,167 129,168

The bank loan falling due in more than five years is repayable by installments and bears an interest rate of 3.99% per annum over the Bank of England Base Rate.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 26,934 58,429
Between one and five years - 26,934
26,934 85,363

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


17. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2023 2022
£    £   
Within one year 92,859 95,019
Between one and five years 71,788 92,776
164,647 187,795

Included in the above are operating lease commitments in respect of land and buildings of £55,000 (2022: £55,000) due within one year and £30,938 (2022: £55,000) due between one and five years.

18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 2,327,881 2,235,337
Bank loans 577,011 781,508
Hire purchase contracts 26,934 85,363
2,931,826 3,102,208

The bank overdrafts and loans are secured by fixed and floating charges over all present and future property and assets of the company.

Hire purchase contracts were secured against the asset to which they relate.

Included within bank loans is a total of £176,167 (2022: £229,167) relating to a Coronavirus Business Interruption Loan, this is secured by the Government and not against the company.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 17,115 31,016

Deferred
tax
£   
Balance at 1 February 2022 31,016
Credit to Income Statement during year (13,901 )
Provided in respect of
accelerated capital allowances
Balance at 31 January 2023 17,115

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary £1 100 100
1 Ordinary A £1 1 1
101 101

The company has two classes of ordinary share that carry no right to fixed income.

Ordinary shares have the right to dividends, voting rights and the right to capital on winding up of the company.

Ordinary A shares have the right to dividends but do not carry any voting rights or a right to capital on the winding up of the company.

21. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 February 2022 5,057,659 94,996 5,152,655
Profit for the year 974,622 - 974,622
Dividends (175,240 ) - (175,240 )
At 31 January 2023 5,857,041 94,996 5,952,037

The company's reserves are as follows:

The retained earnings reserve represent the cumulative profits or losses net of dividends paid.

The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.

22. FINANCIAL COMMITMENTS

The company's bankers have a first fixed charge over all present and future property, book and other debts, chattels and unclaimed capital; and a first floating charge over all present and future assets and undertakings.

An unlimited multilateral guarantee exists between the bank and Entec International Limited, its fellow subsidiary companies, International Cargo Limited, Need2 Limited and its parent company Entec Global Limited. At the year end £1,928,903 (2022: £1,365,419) was due to the company's bankers under this arrangement.

23. RELATED PARTY DISCLOSURES

During the year the company made purchases of £15,000 (2022: £14,352) to Entec International West Africa Limited, a company 90% owned by the ultimate parent, Entec Global Limited. At the year end £296,495 (2022: £311,495) was due from Entec International West Africa Limited.

ENTEC INTERNATIONAL LIMITED (REGISTERED NUMBER: 02370079)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023


24. ULTIMATE PARENT AND CONTROLLING PARTY

The ultimate parent company is Entec Global Limited, a company registered in England & Wales.

There is no ultimate controlling party by virtue of the equal shareholdings in the ultimate parent.

The group financial statements are prepared under Entec Global Limited. Copies of the financial statements can be obtained from the Companies House website, or alternatively, by contacting the company at Charter House, 161 Newhall Street, Birmingham, West Midlands B3 1SW.