SILK TECHNOLOGIES UK LTD
Directors: A. Peled
D. Golan
Registered office: 37 Broadhurst Gardens
London
NW6 3QT
Registered No: 9704982 (England & Wales)
Independent Auditors: Levy Cohen & Co.
Registered Auditors
37 Broadhurst Gardens
London NW6 3QT
Annual report and financial statements
For the year ended 31 December 2022
page
Statement of financial position 1
Notes to the financial statements 2-6
SILK TECHNOLOGIES UK LTD
Statement of financial position as at 31 December 2022
31.12.2022 31.12.2021
Notes £ £ £
Fixed assets
Plant & equipment 5 10,290 10,705
Current assets
Debtors 6 1,277,238 1,065,009
Cash at Bank and in hand 43,659 127,686
1,320,897 1,192,695
Creditors: amounts falling due
within one year 7 (240,215) (180,489)
Net current assets 1,080,682 1,012,206
Total assets £ 1,090,972 £1,022,911
Capital and Reserve
31.12.2022 31.12.2018
£ £ £
Called up share capital 9 1 1
Capital fund 328,177 302,202
Profit and loss account 762,794 720,708
Shareholders' fund £ 1,090,972 £1,022,911
The accounts have been prepared and delivered in accordance with special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
_________________________
A. Peled
Director 2 November 2023
Company number: 9704982
SILK TECHNOLOGIES UK LTD
Notes to the financial statements - 31 December 2022
1. Company Information
The company is a private limited company incorporated and domiciled in England & Wales. The address of its registered office is 37 Broadhurst Gardens, London, NW6 3QT.
The company is a wholly owned subsidiary of Silk Technologies Ltd, a company registered in Israel.
2. Accounting Policies
2.1 Basis of accounting
The financial statements have been prepared on a going concern basis, under historical cost convention.
The financial statements have been prepared under FRS 102 Section 1A small entities.
The financial statements are presented in sterling (£).
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
2.2 Financial instruments
The company has chosen to adapt the sections 11 & 12 of FRS 102 in respect of financial instruments:
(i) Financial assets
Basic financial assets including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at present value of the future receipts discounted at the market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method and are assess for objective evidence of impairment at the end of each reporting period.
(ii) Financial liabilities
Basic financial liabilities including trade and other payable are initially recognised at transaction price unless arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts discounted at a market value of interest debt instruments are subsequently carried at amortised costs using the effective interest rate method.
2.3 Going Concern
The company has a positive capital and reserve and positive net current assets.
The company is profitable and will continue to be profitable in the future as according to the group TP policy, the company is entitled to a fixed margin on the services provided to the parent company. The company and the Silk group are both operationally and financially inextricably linked. Having considered the post year trading and financial results of the group and the group's cash reserves, and after making enquiries of the directors of the parent undertaking, the directors have reasonable expectations that the company and the group have adequate resources to continue an operational existence and meet their liabilities for a period of at least 12 months from the date these financial statements were approved.
On the basis of the above, the directors consider it appropriate to prepare the financial statement on a going concern basis.
2.4 Turnover
Turnover represents net invoiced services, excluding VAT.
SILK TECHNOLOGIES UK LTD
Notes to the financial statements - 31 December 2022
2. Accounting Policies (continued)
2.5 Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for services rendered during the year.
2.6 Tangible fixed assets
Plant and equipment:
Fixed assets are disclosed at cost less impairment charge. Depreciation is provided at the following annual rates in order to write off the assets over their estimated useful lives:
Computer - 33% straight line.
Furniture - 6% straight line.
2.7 Debtors
Short term debtors that includes trade and other receivables are measured at transaction price, less any impairment.
2.8 Creditors
Basic financial liabilities including trade and other payable are measured at transaction price.
2.9 Current & deferred taxation
Deferred taxation is provided using the liability method to take into account timing from the inclusion of items of expenditure in taxation computations in periods that differ from those differences arising in which they are included in the financial statements to the extent that it is probably that an or assets will crystallize in the future.
Provision for deferred taxation is set off against debit balance of deferred taxation.
The current income tax charged is calculated on the basis of the tax rate and laws that have been enacted or substantially enacted by the reporting date in the countries where the company operated and generates income.
2.1 Foreign currencies
Assets and liabilities in foreign currencies are translated into Sterling at the rate of
exchange ruling at the Balance Sheet date. Transaction in Foreign currencies are translated
into Sterling at the rate of exchange ruling at the date of the transaction.
2.11 Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.
(i) Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits are
recognised as an expense in the period in which the service is received.
SILK TECHNOLOGIES UK LTD
Notes to the financial statements - 31 December 2022
2. Accounting Policies (continued)
2.11 Employee benefits (continued)
(ii) Defined contribution pension plans
The company operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
(iii) Bonus plan
The company operates annual bonus plan for employees and expense is recognised in the profit and loss account when the company has a legal or constructive obligation to make payment under and loss account when the company has a legal or constructive obligation to make the plan as a result of passed events and reliable estimation of the obligation can be made.payment under the plan as a result of passed events and reliable estimation of the obligation can be made.
(iv) Share based payments
The company participates in a share based payment arrangement established by its ultimate parent company. The company recognises the share based payment expense based on the relative remuneration cost of the relevant employees. The corresponding credit is recognised as a component of equity.
3. Directors' remuneration
No remunerations were paid to any of the directors during the year.
4. Employees
2022 2021
£ £
Average number of employees 2 2
SILK TECHNOLOGIES UK LTD
Notes to the financial statements - 31 December 2022
5. Tangible fixed assets
Plant & machinery
Computers Furniture Total
£ £ £
Cost:
At 1 January 2022 112,799 14,842 127,641
Additions 2,406 - 2,406
At 31 December 2022 115,205 14,842 130,047
Depreciation:
At 1 January 2022 111,504 5,432 116,936
Charge for the Year 1,929 892 2,821
At 31 December 2022 113,433 6,324 119,757
Net Book Value:
At 31 December 2022 1,772 8,518 10,290
At 31 December 2021 1,295 9,410 10,705
6. Debtors
31.12.2022 31.12.2021
£ £
Parent company 1,196,412 991,949
Other Debtors 0 11
VAT 1,354 0
Deferred tax asset (Note 9) 79,472 73,049
Prepayments 71 -
1,277,238 1,065,009
7. Creditors: amounts falling due
within one year
31.12.2022 31.12.2021
£ £
Trade creditors 7,752 372
Group company 46,286 0
VAT 0 2,417
Corporation tax 15,161 10,867
Pension 4,038 5,719
Other tax and national insurance contributions 13,298 122,922
Accruals 153,680 38,192
240,215 180,489
SILK TECHNOLOGIES UK LTD
Notes to the financial statements - 31 December 2022
8. Deferred tax asset
31.12.2022 31.12.2021
£ £
As at 1 January 2022 73,049 57,000
Transferred from profit and loss account 6,423 16,049
At 31 December 2022 79,472 73,049
The amount of deferred tax asset relates to the following timing differences:-
31.12.2022 31.12.2021
£ £
Excess of capital allowance over depreciation (2,573) (2,501)
Share base payment 82,045 75,550
79,472 73,049
9. Share capital
31.12.2022 31.12.2021
£ £
Allotted, called up and fully paid:
1 ordinary shares at £1 1 1
10. Audit report information
As the income statement has been omitted from the filing of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444 (5B) of the Companies Act 2006. The auditor's report was unqualified.
The senior statutory auditor was Mr. Josef Cohen.
The auditor was Levy Cohen & Co.
Date auditor signed accounts: 2 November 2023
Name of director signing accounts: A. Peled
Date director signed accounts: 2 November 2023
11. Related Party Transactions
Control
The company is a wholly owned subsidiary of Silk Technologies Ltd, a foreign limited company registered in Israel whose address is: Ha-Otsma Street 1, Yokne'am Illit, Israel
Silk Technologies Ltd is the smallest and largest group to prepare consolidated accounts that can be obtained from its registered office.
Transactions
The company is exempt from disclosing transactions with related parties that are wholly owned within the same group in accordance with FRS 102 Section 33(1)A.
12. Commitment
The company does not have any annual commitment as at 31.12.2022 (2021 - Nil).
13. Post Balance Sheet Event
A dividend for the sum of £700,000 was declared and distributed on 6 November 2023.
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