REGISTERED NUMBER: |
Samsung C&T ECUK Limited |
Strategic Report, Director's Report and |
Financial Statements |
for the Year Ended 31 December 2021 |
REGISTERED NUMBER: |
Samsung C&T ECUK Limited |
Strategic Report, Director's Report and |
Financial Statements |
for the Year Ended 31 December 2021 |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Contents of the Financial Statements |
for the year ended 31 December 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Director's Report | 3 |
Independent Auditors' Report | 5 |
Statement of Profit or Loss and Other Comprehensive Income |
8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Financial Statements | 12 |
Samsung C&T ECUK Limited |
Company Information |
for the year ended 31 December 2021 |
Director: |
Registered office: |
Registered number: |
Auditors: |
Chartered Accountants and Statutory Auditor |
250 Fowler Avenue |
Farnborough |
Hampshire |
GU14 7JP |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Strategic Report |
for the year ended 31 December 2021 |
The director presents his strategic report for the year ended 31 December 2021. |
Review of business |
The company are engineering and construction specialists and work on major infrastructure projects. Having successfully completed the Mersey Link bridge, the company continues to work on the Tees Power Biomass project and is actively looking for new construction contracts. |
Principal risks and uncertainties |
The director considers that the main risk the company is facing is the reliance on Government, Local Authority and EU assistance and approval of projects in which they are involved. Although the funding of the projects are successfully completed, the approval of planning can be an uncertain and lengthy process which can affect the operations of Samsung C&T ECUK Limited. |
The director has considered the effect that the ongoing COVID-19 pandemic may have on the business and consideration of this has been included in the directors' report. |
Financial key performance indicators |
The director considers the key performance indicators of the company to be turnover and profitability, both of which have not met the expectations of the director. However with the new Tees Power Biomass Project, those performance indicators are expected to be improved with its forecasted income and expenses. |
Future developments |
The company is continuously seeking new related businesses from current and potential clients as a prequalified EPC contractor of whom that can manage every step of project development from planning and design to procurement, construction, operations and maintenance. |
On behalf of the board: |
11 August 2023 |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Director's Report |
for the year ended 31 December 2021 |
The director presents his report with the financial statements of the company for the year ended 31 December 2021. |
Dividends |
No dividends will be distributed for the year ended 31 December 2021. |
Events since the end of the year |
Information relating to events since the end of the year is given in the notes to the financial statements. |
Directors |
Risks and uncertainties |
The financial statements have been prepared on a going concern basis. The director has reviewed and considered relevant information, including the future results of the company and the parent. In particular, in response to the COVID-19 pandemic, the director has continued to monitor the cash requirements of the company. Subsequent to the year end the parent entity has been allotted and paid for 72,600,000 £1 ordinary shares in order to strengthen liquidity for debt repayment. The parent company has given support for the liabilities for the following 12 months and at the time of approving the financial statement, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future hence the director has concluded that they can continue to adopt the going concern basis in preparing the financial statements. |
Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the director has concluded that they can continue to adopt the going concern basis in preparing the annual report and financial statements. |
Statement of director's responsibilities |
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the director must not approve the financial statements unless he is 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 director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state that the financial statements comply with IFRS; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Director's Report |
for the year ended 31 December 2021 |
Statement as to disclosure of information to auditors |
So far as the director is 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 he 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. |
On behalf of the board: |
Independent Auditors' Report to the Members of |
Samsung C&T ECUK Limited |
Disclaimer of opinion |
We were engaged to audit the financial statements of Samsung C&T ECUK Limited (the ‘company’) for the year ended 31 December 2021 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows 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 International Financial Reporting Standards (IFRSs) as adopted by the UK. |
We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. |
Basis for disclaimer of opinion |
The company was party to a joint venture arrangement with two other partners, in respect of a project to construct a bridge across the river Mersey, known as Merseylink Civil Contractors Joint Venture (MCCJV), which was completed in October 2017. As a result of a dispute between the joint venture partners, access to the accounting records was limited, and as a result, we were unable to obtain sufficient appropriate audit evidence in respect of the joint venture loss or financial position. Insofar as the activities of the joint venture impact on the financial statements as a whole, we were unable to determine whether any material adjustment may have been required had full access been available. |
The company was party to a joint venture arrangement with two other partners, in respect of a project to construct a biomass-fired combination heat and power plant in Teesport, known as Técnias Reunidas, S.A. - Samsung C&T ECUK Limited, which is nearing completion. As a result of the stage of completion of the project, access to the accounting records was limited, and as a result, we were unable to obtain sufficient appropriate audit evidence in respect of the joint venture loss or financial position. Insofar as the activities of the joint venture impact on the financial statements as a whole, we were unable to determine whether any material adjustment may have been required had full access been available. |
We have also been unable to satisfy ourselves regarding the validity of certain liabilities, provisions and transactions as a result of information not be able to be made available to us, largely due to the scaling down of the company's operations as the main contracts it operated have come to completion. |
As a result of these matters, we were unable to determine whether any adjustments might have been found necessary in respect of the elements making up the statement of comprehensive income, statement of changes in equity and statement of cash flows. |
. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Director's Report, but does not include the financial statements and our Auditors' 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 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. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the results for the year in respect of the unincorporated joint arrangements, Merseylink Civil Contractors Joint Venture (MCCJV) and JV Tecnicas Reunidas, S.A. - Samsung C&T ECUK (Samsung-TR JJoint Venture). We have concluded that where the other information refers to the MCCJV and Samsung-TR Joint Venture it may be materiality misstated for the same reason. |
Opinions on other matters prescribed by the Companies Act 2006 |
Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit: |
- the information given in the Strategic Report and the Director's Report for the financial year for which the financial |
statements are prepared is consistent with the financial statements; and |
- the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Samsung C&T ECUK Limited |
Matters on which we are required to report by exception |
Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Strategic Report or the Director's Report. |
Arising from the limitation of our work referred to above: |
- | we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- | we were unable to determine whether adequate accounting records have been kept. |
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: |
- | returns adequate for our audit have not been received from joint arrangements; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
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 an Auditors' 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the group and company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. |
Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation. |
Independent Auditors' Report to the Members of |
Samsung C&T ECUK Limited |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Auditors' Report. |
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 an Auditors' 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
250 Fowler Avenue |
Farnborough |
Hampshire |
GU14 7JP |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Statement of Profit or Loss and Other Comprehensive Income |
for the year ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
Continuing operations |
Revenue | 4 |
Cost of sales | ( |
) | ( |
) |
Gross loss | ( |
) | ( |
) |
Administrative expenses | ( |
) |
Operating loss | ( |
) | ( |
) |
Finance costs | 6 | (1,258,058 | ) | (1,049,304 | ) |
Finance income | 6 | 138 | 364 |
Loss before income tax | 7 | ( |
) | ( |
) |
Income tax | 9 |
Loss for the year | ( |
) | ( |
) |
Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
) |
Prior year adjustment | ( |
) |
Total comprehensive income since last annual report |
( |
) |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Statement of Financial Position |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
Assets |
Current assets |
Trade and other receivables | 11 |
Cash and cash equivalents | 12 |
Total assets |
Equity |
Shareholders' equity |
Called up share capital | 13 |
Retained earnings | 14 | ( |
) | ( |
) |
Total equity | ( |
) | ( |
) |
Liabilities |
Current liabilities |
Trade and other payables | 15 |
Borrowings |
Borrowings | 16 |
Provisions | 17 | ( |
) |
Total liabilities |
Total equity and liabilities |
The financial statements were approved by the director and authorised for issue on |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Statement of Changes in Equity |
for the year ended 31 December 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 | ( |
) | ( |
) |
Prior year adjustment | - | ( |
) | ( |
) |
As restated | ( |
) | ( |
) |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2020 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2021 | ( |
) | ( |
) |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Statement of Cash Flows |
for the year ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 | ( |
) | ( |
) |
Interest paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Net movement from loan facilities | 831,638 | 1,204,466 |
Net cash from financing activities |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
24 |
15,065,551 |
Cash and cash equivalents at end of year | 24 |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements |
for the year ended 31 December 2021 |
1. | Statutory information |
Samsung C&T ECUK Limited is a |
2. | Accounting policies |
Accounting convention |
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. |
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
Going concern |
The financial statements have been prepared on a going concern basis. The director has reviewed and considered relevant information, including the future results of the company and the parent. In particular, in response to the COVID-19 pandemic, the director has continued to monitor the cash requirements of the company. Subsequent to the year end the parent entity has been allotted and paid for 72,600,000 £1 ordinary shares in order to strengthen liquidity for debt repayment. The parent company has given support for the liabilities for the following 12 months and at the time of approving the financial statement, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future hence the director has concluded that they can continue to adopt the going concern basis in preparing the financial statements. |
Revenue recognition |
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes and includes the company's share of turnover of the joint operation. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Revenue from construction contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
2. | Accounting policies - continued |
Property, plant and equipment |
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Fixtures and fittings | 45% reducing balance |
Computers | 45% reducing balance |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement. |
Impairment of tangible and intangible assets |
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Fair value measurement |
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the Company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the Company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards. |
Financial assets |
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets. |
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs. |
Loans and receivables |
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. |
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition. |
Impairment of financial assets |
Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
2. | Accounting policies - continued |
Financial liabilities |
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'. |
Other financial liabilities |
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire. |
Equity Instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Taxation |
The tax expense represents the sum of the tax currently payable. |
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Foreign exchange |
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Leases |
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets. |
On review of the current rental agreements held by the company, these are considered to be low value assets and or short term leases and therefore, the exemption to apply the accounting requirements under IFRS 16 have been taken. |
Joint arrangements |
The joint operations have been accounted for as joint operations under IFRS11. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
3. | Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the director is 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 assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. |
Percentage of completion of ongoing projects |
The percentage of completion of the ongoing contracts is assessed as the projects progress and income and costs are recognised in line with this assessment. The director has reviewed the percentage of completion of the ongoing contracts and considers that the income and costs recognised at the year end are reflective of the completion stage of each ongoing project. |
Provisions |
As a result of the delays that affected the Unincorporated JV Tecnicas Reunidas, S.A. - Samsung C&T joint venture, arising from the COVID-19 pandemic, the director has reviewed and considered the additional income and costs that have are expected to derive as a result of this and has provided for his best estimate of these costs at the year end. During the completion of the 2020 financial statements, it was expected that the company would generate income as a result of the delays however expectation has since changed. |
4. | Revenue |
An analysis of the company's revenue is as follows: |
2021 | 2020 |
£ | £ |
Revenue analysed by class of business |
Revenue from construction contracts | - | - |
Joint operation turnover | 12,265,945 | - |
12,265,945 | - |
For details of revenue relating to the joint operation, refer to note 28. |
Revenue from contracts with customers |
5. | Employees and directors |
The average monthly number of persons (including directors) employed by the company during the year was: |
2021 | 2020 |
Number | Number |
Administration | 1 | 1 |
Engineers | - | - |
1 | 1 |
The above analysis of the average number of employees, relates solely to the company's employees and not to those persons employed by either the Merseylink Civil Contractors Joint Venture or the Unincorporated JV Tecnicas Reunidas, S.A. - Samsung C&T joint ventures, to which the company is a party of. The below remuneration relates to all employment costs for the company, the Merseylink Civil Contractors Joint Venture and the Unincorporated JV Tecnicas Reunidas, S.A. - Samsung C&T joint venture. The employee costs of those working on the Merseylink Civil Contractors Joint Venture and the Unincorporated JV Tecnicas Reunidas, S.A. - Samsung C&T joint venture are incurred and recharged from the parent to the Samsung C&T ECUK Limited. These inter-company charges are included in the below remuneration value. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
Their aggregate remuneration comprised: |
2021 | 2020 |
£ | £ |
Wages and salaries | 117,397 | 2,449,967 |
Social security costs | - | 3,125 |
117,397 | 2,453,092 |
6. | Net finance costs |
2021 | 2020 |
£ | £ |
Finance income: |
Deposit account interest |
Finance costs: |
Bank loan interest |
Net finance costs |
7. | Loss before income tax |
The loss before income tax is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Foreign exchange differences | ( |
) |
8. | Auditors' remuneration |
2021 | 2020 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
21,815 |
20,453 |
9. | Income tax |
Analysis of tax expense |
No liability to UK corporation tax arose for the year ended 31 December 2021 nor for the year ended 31 December 2020. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
9. | Income tax - continued |
Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Loss before income tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2020 - |
( |
) |
( |
) |
Effects of: |
determining taxable profit |
previously recognised |
Unutilised tax losses carried forward | 495,414 | 724,263 |
prior years |
in excess of depreciation |
Tax expense |
At the balance sheet date there were tax losses available for offset against future taxable profits of the same trade, subject to HMRC approval, of £81,926,086 (2020 - £79,318,646). The tax losses bought forward have been utilised in the year and it is anticipated that group relief will be made available to mitigate any remaining tax liability. |
10. | Property, plant and equipment |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
Cost |
At 1 January 2021 |
and 31 December 2021 |
Depreciation |
At 1 January 2021 |
and 31 December 2021 |
Net book value |
At 31 December 2021 |
At 31 December 2020 |
11. | Trade and other receivables |
2021 | 2020 |
£ | £ |
Current: |
Trade debtors |
Other debtors | 28,223 | 482,572 |
VAT |
Prepayments |
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
12. | Cash and cash equivalents |
2021 | 2020 |
£ | £ |
Bank accounts |
13. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary shares | £1 | 19,033,000 | 19,033,000 |
14. | Reserves |
Retained |
earnings |
£ |
At 1 January 2021 | ( |
) |
Deficit for the year | ( |
) |
At 31 December 2021 | ( |
) |
15. | Trade and other payables |
2021 | 2020 |
£ | £ |
Current: |
Trade creditors |
Social security and other taxes |
Amounts due to connected company | 18,630 | 18,630 |
Accruals and deferred income |
16. | Borrowings |
2021 | 2020 |
£ | £ |
Current: |
Bank loans |
Terms and debt repayment schedule |
1 year or |
less |
£ |
Bank loans |
The above bank loans are made up of revolving finance facilities and are reviewed on a monthly basis. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
17. | Provisions |
2021 | 2020 |
£ | £ |
Other provisions | 509,670 | (1,125,699 | ) |
Analysed as follows: |
Current | ( |
) |
2021 | 2020 |
£ | £ |
Amounts debited/(credited) to the profit and loss account | 1,635,369 | (1,125,699 | ) |
18. | Contingent assets and liabilities |
In respect of the joint operations, a number of instances have occurred resulting in contingent assets and liabilities for the company. All of those contingencies that have been settled at the date of these financial statements have been fully provided for. Contingent assets and liabilities may still exist however, both the timing and the amounts either recoverable or payable respectively are both uncertain. |
19. | Capital risk management |
The company is not subject to any externally imposed capital requirements. |
20. | Related party transactions |
Included in trade and other payables at the year end is an amount of £21,467,078 (2020 - £18,286,071) owed to Samsung C&T Corporation, parent company. The movement during the year include amounts recharged to the company of £3,181,007 (2020 - £4,737,216) and repayments made of £nil (2020 - £nil). |
Included in trade and other payables at the year end is an amount of £20,654 (2020 - £29,784) owed to Whessoe Engineering Limited, a fellow subsidiary. The movement during the year includes net rental charges of £nil (2020 - £400) and recharged directors fees of £114,854 (2020 - £188,725). |
At the end of the year an amount of £45,612,728 (2020 - £45,612,728) was owed from Merseylink Civil Contractors Joint Venture (MCCJV), a joint operation in which Samsung C&T ECUK Limited is a party. |
At the end of the year an amount of £nil (2020 - £nil) was owed from Unincorporated JV Tecnicas Reuindas, S.A. - Samsung C&T (Samsung-TR Joint Venture), a joint operation in which Samsung C&T ECUK Limited is a party. |
21. | Events after the reporting period |
Subsequent to the year end, the parent entity has been allotted and paid for 72,600,000 £1 Ordinary shares at par. |
22. | Ultimate controlling party |
The company's immediate parent undertaking and controlling party is Samsung C&T Corporation, a company registered in South Korea. Samsung C&T Corporation had a 100% interest in the equity share capital of the company at 31 December 2021. The ultimate parent company is largest group to consolidate these financial statements. Copies of the company's consolidated financial statements may be obtained from 26, 6 Gil Sangil-ro, Gangdong-gu, Seoul, Korea. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
23. | Reconciliation of loss before income tax to cash generated from operations |
2021 | 2020 |
£ | £ |
Loss before income tax | ( |
) | ( |
) |
Depreciation charges |
Movement in provisions | 1,635,369 | (1,125,699 | ) |
Finance costs | 1,258,058 | 1,049,304 |
Finance income | (138 | ) | (364 | ) |
285,849 | (3,888,585 | ) |
(Increase)/decrease in trade and other receivables | ( |
) |
Increase/(decrease) in trade and other payables | ( |
) |
Cash generated from operations | ( |
) | ( |
) |
24. | Cash and cash equivalents |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 13,128,742 | 14,452,780 |
Year ended 31 December 2020 |
31/12/20 | 1/1/20 |
£ | £ |
Cash and cash equivalents | 14,452,780 | 15,065,551 |
25. | Operating lease commitments |
Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities: |
2021 | 2020 |
£ | £ |
Within one year | - | 898 |
Between two and five years | - | - |
- | 898 |
26. | Joint operation arrangement |
During the year Samsung C&T ECUK Limited continued in an unincorporated joint arrangement, Merseylink Civil Contractors Joint Venture (MCCJV). The sole activity of MCCJV is the provision of the Mersey Gateway Bridge and associated infrastructure. The principal place of business is Tan House Lane, Widnes, WA8 0SL. |
During the year Samsung C&T ECUK Limited also continued in an unincorporated joint arrangement, Técnicas Reunidas, S.A. - Samsung C&T ECUK Limited. The sole activity of the joint venture is the provision of a biomass-fired combined heat and power plant in Teesport. The principal place of business is Tees Dock Road, Middlesbrough, TS6 6UD. |
Samsung C&T ECUK Limited (Registered number: 08128064) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
27. | Joint operation |
Samsung C&T ECUK Limited has an ownership interest of 33.33%. MCCJV figures for the year ended 31 December 2021 have been accounted for within these financial statements as a joint operation. |
The following figures have been included in these financial statements as Samsung C&T ECUK Limited's interest in the joint operation: |
2021 | 2020 |
£ | £ |
Revenue | - | - |
Expenses | - | (18 | ) |
Interest income | - | 364 |
Profit or loss for continuing operations | - | 346 |
Non current assets | - | - |
Trade and other receivables | 120,607 | 546,834 |
Cash and cash equivalents | 2,140,459 | 2,405,605 |
Current liabilities | (47,961,158 | ) | (47,406,405 | ) |
Retained profit brought forward | 45,700,092 | 44,454,312 |
- | 346 |
Samsung C&T ECUK Limited also has an ownership interest of 71.24%. Samsung - TR Joint Venture figures for the year ended 31 December 2021 have been accounted for within these financial statements as a joint operation. |
The following figures have been included in these financial statements as Samsung C&T ECUK Limited's interest in the joint operation: |
2021 | 2020 |
£ | £ |
Revenue | 12,265,945 | - |
Expenses | (11,079,136 | ) | 532,197 |
Interest income | 138 | - |
Profit or loss for continuing operations | 1,186,947 | 532,197 |
Non current assets | - | - |
Trade and other receivables | 19.626.171 | 14,413,339 |
Cash and cash equivalents | 10.945.945 | 12,008,739 |
Current liabilities | (17,719,735 | ) | (8,883,957 | ) |
Retained profit brought forward | (11,665,434 | ) | (17,005,924 | ) |
1,186,947 | 532,197 |