Company registration number 02672522 (England and Wales)
TECHNICAL TEXTILE SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
TECHNICAL TEXTILE SERVICES LIMITED
COMPANY INFORMATION
Directors
D J Hough
C Thompson
Secretary
D P Lynham
Company number
02672522
Registered office
Winnington Avenue
Northwich
Cheshire
CW8 4DX
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Units 7 & 8
Rhodes Business Park
Silburn Way
Middleton
Manchester
M24 4NE
Bankers
Lloyds TSB Bank plc
P O Box 6
94 Fishergate
Preston
Lancashire
PR1 2JB
Bank of America
2 King Edward Street
London
EC1A 1HQ
TECHNICAL TEXTILE SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 29
TECHNICAL TEXTILE SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Fair review of the business

The directors are satisfied with the results for the financial year.

 

Turnover has decreased from £21,001,198 to £20,665,068 whilst the gross profit margin has increased from 10.1% to 20.6%

 

Rising costs of raw materials and freight charges impacted significantly on the reported gross profit for the previous year. The company has continued to 'streamline' its sales base to concentrate on higher margin products and accounts. The benefits of this strategy have been recognised in the 2023 financial results. Continued investment in new plant and machinery is contributing to the ongoing improvement of efficiencies.

 

Prior to the liquidation of the company's former parent company, Techtex Holdings Limited, a creditor of £1,152,827 owed to that company was released and the loan account balance recognised in full as exceptional income in the current year. On 1 February 2021 the company became a subsidiary of Ecolab Inc. group. Exceptional costs of £637,470 have been incurred in the year as a direct result of this acquisition compared to similar exceptional costs of £1,295,019 in the previous year.

 

After taking account of this exceptional income and expenditure, the company has returned an operating profit for the year of £28,728 (2022: operating loss of £1,928,456). The company continues to control its administrative costs, with minimal exceptional costs being incurred on an ongoing basis.

 

Net assets have increased to £1,389,286.

 

Principal risks and uncertainties

 

The company does not actively use financial instruments as part of its financial risk management. The company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures.

 

The company uses funding provided and guaranteed by a group company to help manage the risk of bad debts and also to help finance working capital. The company takes out forward exchange contracts to minimise its exposure to exchange rate fluctuations.

 

 

 

 

 

On behalf of the board

D J Hough
Director
8 August 2024
TECHNICAL TEXTILE SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company continued to be that of non-woven textile processing and supply.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D J Hough
C Thompson
Results and dividends

The results for the year are set out on page 7.

Interim ordinary dividends were paid amounting to £Nil (2022: £Nil). The directors do not recommend payment of a final dividend.

Auditor
In accordance with section 485 of the Companies Act 2006, a resolution proposing that Pierce C A Limited be reappointed as auditors of the company will be put to the Annual General Meeting.
Statement of disclosure to auditor
(a) so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and

(b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
D J Hough
Director
8 August 2024
TECHNICAL TEXTILE SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

The directors are responsible for preparing the annual report 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). 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:

 

 

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.

TECHNICAL TEXTILE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TECHNICAL TEXTILE SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of Technical Textile Services Limited (the 'company') for the year ended 30 November 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

TECHNICAL TEXTILE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHNICAL TEXTILE SERVICES LIMITED
- 5 -
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 directors' report.

 

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 auditor's 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.

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

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

TECHNICAL TEXTILE SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHNICAL TEXTILE SERVICES LIMITED
- 6 -

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 auditor's 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.

Linda Wilkinson (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
8 August 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
TECHNICAL TEXTILE SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
2
20,665,068
21,001,198
Cost of sales
(16,405,476)
(18,886,583)
Gross profit
4,259,592
2,114,615
Administrative expenses
(4,230,864)
(4,043,071)
Exceptional operating income
3
1,152,827
-
0
Exceptional operating expenditure
3
(637,470)
(1,295,019)
Operating profit/(loss)
4
544,085
(3,223,475)
Interest receivable and similar income
5
313
3,026
Interest payable and similar expenses
7
(275,251)
(122,815)
Amounts written off investments
8
(7)
-
Profit/(loss) before taxation
269,140
(3,343,264)
Taxation
9
(185,205)
163,954
Profit/(loss) for the financial year
83,935
(3,179,310)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TECHNICAL TEXTILE SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
£
£
Profit/(loss) for the year
83,935
(3,179,310)
Other comprehensive income
-
-
Total comprehensive income for the year
83,935
(3,179,310)
TECHNICAL TEXTILE SERVICES LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
813,101
973,160
Other intangible assets
10
2,802
7,577
Total intangible assets
815,903
980,737
Tangible assets
11
3,988,410
3,884,808
Investments
12
-
0
7
4,804,313
4,865,552
Current assets
Stocks
14
3,009,823
4,757,698
Debtors
15
2,903,157
3,818,213
Cash at bank and in hand
122,869
574,416
6,035,849
9,150,327
Creditors: amounts falling due within one year
17
(9,188,290)
(12,622,132)
Net current liabilities
(3,152,441)
(3,471,805)
Total assets less current liabilities
1,651,872
1,393,747
Creditors: amounts falling due after more than one year
18
(21,687)
(32,702)
Provisions for liabilities
Deferred tax liability
21
240,899
55,694
(240,899)
(55,694)
Net assets
1,389,286
1,305,351
Capital and reserves
Called up share capital
22
2
2
Profit and loss reserves
1,389,284
1,305,349
Total equity
1,389,286
1,305,351

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 8 August 2024 and are signed on its behalf by:
D J Hough
Director
Company registration number 02672522 (England and Wales)
TECHNICAL TEXTILE SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 December 2021
2
4,484,659
4,484,661
Year ended 30 November 2022:
Loss and total comprehensive income
-
(3,179,310)
(3,179,310)
Balance at 30 November 2022
2
1,305,349
1,305,351
Year ended 30 November 2023:
Profit and total comprehensive income
-
83,935
83,935
Balance at 30 November 2023
2
1,389,284
1,389,286
TECHNICAL TEXTILE SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
778,814
(1,736,462)
Interest paid
(275,251)
(122,815)
Net cash inflow/(outflow) from operating activities
503,563
(1,859,277)
Investing activities
Purchase of tangible fixed assets
(883,815)
(1,423,120)
Interest received
313
-
0
Dividends received
-
0
3,026
Net cash used in investing activities
(883,502)
(1,420,094)
Financing activities
Movement on other borrowings
(57,237)
3,472,873
Payment of finance leases obligations
(14,371)
(13,899)
Net cash (used in)/generated from financing activities
(71,608)
3,458,974
Net (decrease)/increase in cash and cash equivalents
(451,547)
179,603
Cash and cash equivalents at beginning of year
574,416
394,813
Cash and cash equivalents at end of year
122,869
574,416
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
1
Accounting policies
Company information

Technical Textile Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Winnington Avenue, Northwich, Cheshire CW8 4DX.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £1 sterling.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

 

The financial statements of the company are consolidated in the financial statements of Ecolab Inc.. These consolidated financial statements are available to the public from Ecolab Inc., Ecolab Center, 370 Wabasha Street North, St Paul, Minnesota 55102, USA.

1.2
Going concern

The truecompany finances its operations through other borrowings and loans guaranteed and provided by the ultimate parent company, Ecolab Inc..

 

The directors are not aware of any reason why this financial support will not be continued to be provided for the foreseeable future.

 

As a result the directors have continued to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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 despatch 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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
33% per annum - straight line
Trademarks
10% per annum - straight line
1.7
Tangible fixed assets

Tangible fixed assets 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:

Land and buildings - Leasehold
Straight line over the lease term
MDR project
Not depreciated
Plant and machinery
9.1% per annum - straight line
Fixtures, fittings & equipment
20% / 33% per annum - straight line

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 credited or charged to profit or loss.

No depreciation is provided in respect of the costs capitalised in the MDR project. The project relates to assets acquired to make the company compliant with medical device regulations. Once the project has been completed and, the assets are brought into use, the capitalised costs will be transferred to either leasehold buildings or plant and machinery and will be depreciated from the date of transfer.

1.8
Fixed asset investments

Fixed asset investments are stated at cost less provision for diminution in value.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Stocks

Stock is valued at the lower of cost and net realisable value.

 

Cost represents all expenditure incurred in bringing stock to its condition and location at the accounting date.

 

Net realisable value is based on estimated selling prices less further costs expected to be incurred to completion and disposal.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and 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 have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.13
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 stock or fixed 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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
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.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
2
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
From principal activity
20,665,068
21,001,198
2023
2022
£
£
Other revenue
Interest income
313
-
Dividends received
-
3,026
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
17,761,101
18,738,162
Europe
2,897,145
2,258,974
Rest of the World
6,822
4,062
20,665,068
21,001,198
3
Exceptional items
2023
2022
£
£
Exceptional operating income
1,152,827
-
Exceptional operating expenditure
(637,430)
(1,295,019)
515,397
(1,295,019)

The previous parent company, Techtex Holdings Limited, was dissolved on 11 March 2024. Prior to that date, the loan creditor of £1,152,827 owed to that company was released from payment. The amount outstanding at the date of release has been credited in full to the profit & loss account in the current year.

 

In February 2021, the company became part of the Ecolab Inc. group.

 

The Ecolab Inc. group has a policy of requiring all of its subsidiaries to conform to a universal set of production and quality control procedures to ensure uniformity and consistency of product supply throughout all its trading subsidiaries.

 

After reimbursements of costs incurred in the process of bringing the company's trading operations 'into line' with such policies, net operating costs of £637,430 (2022: £1,295,019) have been realised in the current year.

 

The total net income disclosed above has been charged in arriving at the operating profit for the year ended 30 November 2023.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange rate gains
(96,785)
(120,698)
Fees payable to the company's auditors for the audit of the company's financial statements
16,030
17,350
Depreciation of owned tangible fixed assets
505,584
269,506
Depreciation of tangible fixed assets held under finance leases
7,589
12,357
Amortisation of intangible assets
164,834
163,229
Operating lease charges
776,605
729,070
5
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
313
-
0
Income from fixed asset investments
Income from shares in group undertakings
-
0
3,026
Total income
313
3,026
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
313
-
0
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
2
2

On 1 October 2021, the employment contracts of all of the company's employees, excluding the directors, were transferred to other companies within the Ecolab group.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
577
860
Other finance costs:
Other interest
274,674
121,955
275,251
122,815
8
Amounts written off investments
2023
2022
£
£
Amounts written off investments
(7)
-
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(163,954)
Deferred tax
Origination and reversal of timing differences
185,205
-
0
Total tax charge/(credit)
185,205
(163,954)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
269,140
(3,343,264)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
61,932
(635,220)
Tax effect of expenses that are not deductible in determining taxable profit
(385)
17,149
Tax effect of income not taxable in determining taxable profit
(265,277)
-
0
Adjustments in respect of prior years
-
0
(163,954)
Group relief
173,491
296,653
Permanent capital allowances in excess of depreciation
84,397
(64,654)
Depreciation on assets not qualifying for tax allowances
78,382
7,133
Amortisation on assets not qualifying for tax allowances
37,930
-
0
Dividend income
-
0
(575)
Losses relievable against future profits
-
0
379,514
Effect of changes in future tax rates
14,735
-
0
Taxation charge/(credit) for the year
185,205
(163,954)
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
10
Intangible fixed assets
Goodwill
Software
Trademarks
Total
£
£
£
£
Cost
At 1 December 2022 and 30 November 2023
1,650,559
3,018
7,729
1,661,306
Amortisation and impairment
At 1 December 2022
677,399
1,360
1,810
680,569
Amortisation charged for the year
160,059
1,658
3,117
164,834
At 30 November 2023
837,458
3,018
4,927
845,403
Carrying amount
At 30 November 2023
813,101
-
0
2,802
815,903
At 30 November 2022
973,160
1,658
5,919
980,737
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
11
Tangible fixed assets
Land and buildings - Leasehold
MDR project
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
£
Cost
At 1 December 2022
138,954
1,256,931
2,628,346
165,772
4,190,003
Additions
39,844
761,665
79,881
2,425
883,815
MDR project costs restated
1,294,118
(1,751,556)
457,438
-
0
-
0
Restatement of costs previously capitalised
-
0
(267,040)
-
0
-
0
(267,040)
At 30 November 2023
1,472,916
-
0
3,165,665
168,197
4,806,778
Depreciation and impairment
At 1 December 2022
51,236
-
0
217,184
36,775
305,195
Depreciation charged in the year
57,954
-
0
418,738
36,481
513,173
At 30 November 2023
109,190
-
0
635,922
73,256
818,368
Carrying amount
At 30 November 2023
1,363,726
-
0
2,529,743
94,941
3,988,410
At 30 November 2022
87,718
1,256,931
2,411,162
128,997
3,884,808

During the year to 30 November 2023 the company reclassified costs previously capitalised as fixed assets to reflect their underlying substance as repairs expenditure.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
32,198
45,338
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
-
0
7
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 December 2022 & 30 November 2023
2,021,743
Impairment
At 1 December 2022
2,021,736
Impairment losses
7
At 30 November 2023
2,021,743
Carrying amount
At 30 November 2023
-
At 30 November 2022
7

In accordance with Section 27 - FRS 102 - 'Impairment of assets', the carrying value of the company's investment in Whitminster International Ltd and Klenzeen Limited has been compared to its recoverable amount, represented by its value in use to the company. This has resulted in a total impairment loss of £2,021,736 being recognised in previous periods. This total impairment loss is equivalent to the balance of the previous unimpaired cost of the investment acquired by the company less the value of the net assets recoverable from the two subsidiaries. Both companies ceased to trade on 31 March 2019. Their tangible fixed assets, stock and trade were transferred to this company and its parent company on the same date.

 

All of the company's subsidiaries were dissolved in full on 16 September 2023.

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
13
Subsidiaries
Details of the company's subsidiaries during the year are detailed as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Infiltra Limited
Note 1
Ordinary
100.00
-
Whitminster International Ltd
Note 1
Ordinary
100.00
-
Klenzeen Limited
Note 1
Ordinary
100.00
-
Stafford Chemicals Group Limited
Note 1
Ordinary
-
100.00
Contract Filling (UK) Limited
Note 1
Ordinary
-
100.00
AG Industries (UK) Limited
Note 1
Ordinary
-
100.00

Registered office address:

1
C/O Teneo Financial Advisory Limited, 156 Great Charles Street, Birmingham, B3 3HN
14
Stocks
2023
2022
£
£
Raw materials and consumables
2,774,993
4,593,675
Finished goods and goods for resale
234,830
164,023
3,009,823
4,757,698
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,428,285
3,100,078
Corporation tax recoverable
163,954
163,954
Prepayments and accrued income
310,918
554,181
2,903,157
3,818,213
16
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,428,285
3,100,078
Carrying amount of financial liabilities
Measured at amortised cost
8,901,184
12,539,415
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
19
9,716
13,072
Other borrowings
20
3,415,636
3,472,873
Trade creditors
2,330,022
4,808,272
Amounts owed to group undertakings
2,547,831
3,770,729
Taxation and social security
308,793
115,419
Other creditors
2,497
14,661
Accruals and deferred income
573,795
427,106
9,188,290
12,622,132

 

 

18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
19
21,687
32,702
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
9,716
13,072
In two to five years
21,687
32,702
31,403
45,774

Finance lease payments represent rentals payable by the company for plant and other equipment. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Net obligations under finance leases are secured by fixed charges over the assets concerned.

20
Loans and overdrafts
2023
2022
£
£
Other loans
3,415,636
3,472,873
Payable within one year
3,415,636
3,472,873

Other borrowings relates to moneys advanced to the company by the Bank of America under a notional pooling arrangement provided and guaranteed by the Ecolab Inc. group.

 

The above borrowings are subject to interest and are unsecured.

 

 

 

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
21
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
240,899
64,908
Unrelieved provisions
-
(9,214)
240,899
55,694
2023
Movements in the year:
£
Liability at 1 December 2022
55,694
Charge to profit or loss
185,205
Liability at 30 November 2023
240,899

The deferred tax liability set out above is expected to reverse within ten years and relates to accelerated capital allowances that are expected to mature in the same period and to provisions that will be eligible for tax relief after the balance sheet date.

22
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
176,635
360,959
Between two and five years
392,926
1,181,794
569,561
1,542,753

On 19 July 2021, the company signed a lease for a term of five years for Unit 4, Rhodes Business Park, Middleton. The total annual rent for the property is £25,630.

 

On 20 April 2017, the company signed leases for a term of ten years for Units 10 & 11, Rhodes Business Park, Middleton. The total annual rent for the properties is £112,730.

 

On 20 December 2018, the company signed a lease for a term of ten years for Unit 9, Rhodes Business Park, Middleton. The total annual rent for the property is £38,275.

 

 

24
Ultimate controlling party

The immediate parent company is Ecolab Limited, a company registered in England and Wales.

 

Ecolab Limited is a subsidiary of Ecolab Inc., a listed company incorporated in the United States.

25
Related party transactions
Remuneration of key management personnel

All of the directors of Technical Textile Services Limited are considered to be key management personnel by virtue of their authority and responsibility for planning, directing and controlling the activities of the company. Details of the remuneration paid to the directors are included in Note 6.

Transactions with related parties

The directors have taken advantage of the exemption available under FRS 102, Section 33.1A not to disclose transactions with wholly-owned group companies.

 

TECHNICAL TEXTILE SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
26
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit/(loss) for the year after tax
83,935
(3,179,310)
Adjustments for:
Taxation charged/(credited)
185,205
(163,954)
Finance costs
275,251
122,815
Investment income
(313)
(3,026)
Amortisation and impairment of intangible assets
164,834
163,229
Depreciation and impairment of tangible fixed assets
513,173
281,863
Restatement of MDR project costs previously capitalised as tangible fixed assets
267,040
-
Amounts written off investments
7
-
Movements in working capital:
Decrease in stocks
1,747,875
267,890
Decrease in debtors
915,056
194,219
(Decrease)/increase in creditors
(3,373,249)
579,812
Cash generated from/(absorbed by) operations
778,814
(1,736,462)
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