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Registered number: 02501896










MAGNECO METREL UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MAGNECO METREL UK LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
A Connors 
C Connors 
S Malloy 
C Connors Jr 
G M Connors 




COMPANY SECRETARY
S Malloy



REGISTERED NUMBER
02501896



REGISTERED OFFICE
Hackworth Industrial Park

Shildon

County Durham

DL4 1HG




INDEPENDENT AUDITORS
Waltons Business Advisers Limited
Chartered Accountants & Statutory Auditors

Maritime House

Harbour Walk

The Marina

Hartlepool

Teesside

TS24 0UX





 
MAGNECO METREL UK LIMITED
 

CONTENTS



Page
Directors' report
1 - 2
Strategic report
3
Independent auditors' report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 22


 
MAGNECO METREL UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £535,678 (2022 - £1,720,142).

Dividends have been paid in the period of £4,023,865 (2022 - £Nil).

DIRECTORS

The directors who served during the year were:

C W Connors (deceased 2 April 2023)
A Connors 
C Connors 
S Malloy 
C Connors Jr 
G M Connors 

FUTURE DEVELOPMENTS

Magneco Metrel UK Limited plans to continue being the industry leader in innovation whilst further expanding its manufacture and installation of high-technology ceramic products in markets outside of Iron and Steel including, Glass, Aluminium, Copper, Cement, Sulphuric Acid and various other applications.

Page 1

 
MAGNECO METREL UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

BRANCHES OUTSIDE THE UNITED KINGDOM

The company holds the majority of its stock at a warehouse in the Netherlands.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditorsWaltons Business Advisers Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





C Connors Jr
Director

Date: 22 August 2024

Page 2

 
MAGNECO METREL UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
Magneco Metrel UK is a private limited company, incorporated in the UK and registered in England and Wales. The company's principal activity during the year was the manufacture and installation of high-technology ceramic products.

BUSINESS REVIEW
 
Magneco Metrel UK Limited is colloidal silica bonded refractory company dedicated to the creation of value to our customers, suppliers, employees and shareholders.  Our commitment is to provide the best products that our research department can develop and that our manufacturing department can produce, coupled with the best equipment and technical service personnel to ensure that those products are used and installed properly. 
The company operated under its planned forecast and approach during the year, realising comparable earnings from operations as in the year ended 31 December 2022. The earnings from operations were reduced due to a receivable settlement and not a regular occurence in the day to day operations. 

PRINCIPAL RISKS AND UNCERTAINTIES
 
As with any company with open receivables Magneco Metrel UK Limited does have some exposure to bad debt risk. We feel that these risks are nominal at this time and that our general reserves are large enough to cover any current risk.

FINANCIAL KEY PERFORMANCE INDICATORS
 
Sales in 2023 continued to recover from the 2020 drop caused by Covid increasing by £206k compare to last year. They were still £513k (3.7%) lower than 2019 sales. Gross profit increased to 37.95% and net profit was reduced at £536k due to the impact of the exceptional item for the settlement of debt with a customer.
Key performance indicator          2023             2022            2021            2020
Total sales    £13,217k £13,011k £12,577k £11,346k 
Sales growth    1.6%  3.4%  10.9%  -17.4%   
GP margin     38.0%  31.6%  33.8%  36.8%  
Net profit    £536k    £1,720k £1,407k £1,546k

OTHER KEY PERFORMANCE INDICATORS
 
Magneco Metrel UK Limited made significant inroads in aluminium and glass whilst maintaining the ironmaking casthouse business and growing the furnace lining cyclical projects through its innovative technology and solutions.


This report was approved by the board on 22 August 2024 and signed on its behalf.



C Connors Jr
Director

Page 3

 
MAGNECO METREL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED
 

UNQUALIFIED OPINION


We have audited the financial statements of Magneco Metrel UK Limited (the 'company') for the year ended 31 December 2023, which comprise the statement of income and retained earnings, the balance sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


BASIS FOR OPINION


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 4

 
MAGNECO METREL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED (CONTINUED)


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the directors' responsibilities statement set out on page 1, 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.


Page 5

 
MAGNECO METREL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED (CONTINUED)


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 area in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, transfer mark ups and the posting of unusual journals. We discussed these risks with management and designed audit procedures to:
• test the timing and existence of revenue, 
• vouch a sample of expenditure for authorisation and to invoices to confirm a genuine expense,
• review journals posted to key control accounts or posted around the year end, to look for potential     "window dressing" as well as looking at a sample throughout the year,
• test the accuracy of the transfer mark up calculation.


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.


Page 6

 
MAGNECO METREL UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED (CONTINUED)


USE OF OUR REPORT
 

This report is made solely to the company's shareholders, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's shareholders 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 shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.





Heather O'Driscoll FCA (senior statutory auditor)
  
for and on behalf of
Waltons Business Advisers Limited
 
Chartered Accountants
Statutory Auditors
  
Maritime House
Harbour Walk
The Marina
Hartlepool
Teesside
TS24 0UX

28 August 2024
Page 7

 
MAGNECO METREL UK LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
13,216,972
13,010,686

Cost of sales
  
(8,200,878)
(8,900,474)

GROSS PROFIT
  
5,016,094
4,110,212

Distribution costs
  
(2,053,988)
(1,769,622)

Administrative expenses
  
(1,314,258)
(261,107)

Exceptional administrative expenses
 11 
(993,788)
-

Other operating income
 5 
14,937
17,999

OPERATING PROFIT
 6 
668,997
2,097,482

Interest receivable and similar income
  
57,069
15,279

Interest payable and similar expenses
  
(5)
-

PROFIT BEFORE TAX
  
726,061
2,112,761

Tax on profit
 9 
(190,383)
(392,619)

PROFIT AFTER TAX
  
535,678
1,720,142

  

  

Retained earnings at the beginning of the year
  
6,866,480
5,146,338

  
6,866,480
5,146,338

Profit for the year
  
535,678
1,720,142

Dividends declared and paid
  
(4,023,865)
-

RETAINED EARNINGS AT THE END OF THE YEAR
  
3,378,293
6,866,480
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.



The notes on pages 10 to 22 form part of these financial statements.

Page 8

 
MAGNECO METREL UK LIMITED
REGISTERED NUMBER: 02501896

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Tangible assets
 12 
251,394
313,653

  
251,394
313,653

CURRENT ASSETS
  

Stocks
 13 
2,420,833
2,283,574

Debtors: amounts falling due within one year
 14 
1,130,592
3,555,022

Cash at bank and in hand
 15 
4,809,478
4,971,135

  
8,360,903
10,809,731

Creditors: amounts falling due within one year
 16 
(4,714,869)
(3,743,410)

NET CURRENT ASSETS
  
 
 
3,646,034
 
 
7,066,321

TOTAL ASSETS LESS CURRENT LIABILITIES
  
3,897,428
7,379,974

PROVISIONS FOR LIABILITIES
  

Deferred tax
 18 
(39,135)
(33,494)

  
 
 
(39,135)
 
 
(33,494)

NET ASSETS
  
3,858,293
7,346,480


CAPITAL AND RESERVES
  

Called up share capital 
 19 
480,000
480,000

Profit and loss account
 20 
3,378,293
6,866,480

  
3,858,293
7,346,480


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 August 2024.


C Connors Jr
S Malloy
Director
Director

The notes on pages 10 to 22 form part of these financial statements.

Page 9

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

Magneco Metrel UK Limited is a private company limited by share capital, incorporated in the UK and registered in England and Wales at the following address:
Hackworth Industrial Park
Shildon
County Durham
DL4 1HG

2.ACCOUNTING POLICIES

 
2.1

Basis of preparation of the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The company, being a subsidiary undertaking where 90% or more of the voting rights are controlled within the group whose consolidated financial statements are publically available, is exempt from the requirement to draw up a cash flow statement in accordance with FRS 102.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors, having made due and careful enquiry and preparing forecasts, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 10

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Buildings
-
40 years
Plant & machinery
-
5 to 12 years
Motor vehicles
-
3 years
Fixtures & fittings
-
12 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.



 
2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase using a standard pricing schedule to allocate transport and storage costs to stock items.
At each balance sheet date stocks are assessed for impairment. Should the net realisable value be less than cost the impairment loss is recognised immediately in profit or loss.

 
2.6

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.8

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 11

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.9

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.10

Foreign currency translation

Functional and presentation currency
There are numerous transactions in US Dollars, Euros and GB Pounds. However the parent company is in the USA and therefore management accounts are prepared in US Dollars as this is the currency they are familiar with.
On this basis management consider that the company's functional currency is US Dollars. This differs from the presentational currency which is GB Pounds.
Transactions and balances
Foreign currency transactions are translated into the presentational currency using a monthly average exchange rate at the dates of the transactions.
At each period end foreign currency monetary items are translated using the average rate from the previous month. 

 
2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.

 
2.12

Pensions

Defined contribution pension plan
The company contributes to 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 in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 12

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.14

EXCEPTIONAL ITEMS

Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported. These estimates and judgments are continually reviewed and are based on experience and other factors, including of future events that are believed to be reasonable under the circumstances.
The directors believe that the following estimate is critical due to the degree of estimation required and the potential material impact it has on the financial statements: 
In preparing these financial statements the directors have provided £396,262 (2022: £274,050) against the stock value. This is due to the variance between the standard cost prices used and actual prices for storage and transport.

Page 13

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


TURNOVER

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
67,265
332,404

Rest of Europe
7,352,963
8,093,208

Rest of the world
5,796,744
4,585,074

13,216,972
13,010,686



5.


OTHER OPERATING INCOME

2023
2022
£
£

Rental income
14,937
17,999

14,937
17,999



6.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
105,795
(433,185)


7.


AUDITORS' REMUNERATION

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
13,425
12,495

Fees payable to the company's auditors in respect of:

Other services relating to taxation
8,140
7,745

All other services
3,667
3,252

Page 14

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


EMPLOYEES

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
741,501
683,477

Social security costs
75,137
61,340

Cost of defined contribution scheme
21,657
17,572

838,295
762,389


Key management personnel are considered to be the directors, who are not remunerated through this company.

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Office
5
6



Factory
6
5



Field service operation
7
8



Directors
6
6

24
25

Page 15

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
184,742
405,076


184,742
405,076


TOTAL CURRENT TAX
184,742
405,076

DEFERRED TAX


Origination and reversal of timing differences
5,641
(12,457)

TOTAL DEFERRED TAX
5,641
(12,457)


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
190,383
392,619

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
726,061
2,112,761


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
170,766
401,425

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
530
121

Capital allowances for year in excess of depreciation
13,814
3,530

Short-term timing difference leading to an increase (decrease) in taxation
5,273
(12,457)

TOTAL TAX CHARGE FOR THE YEAR
190,383
392,619


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 16

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


DIVIDENDS

2023
2022
£
£


Dividends paid on equity capital
4,023,865
-

4,023,865
-


11.


EXCEPTIONAL ITEMS

2023
2022
£
£


Settlement agreement with customer - bad debt
993,788
-

993,788
-

Page 17

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


TANGIBLE FIXED ASSETS





Land and buildings
Plant & Machinery
Motor Vehicles
Fixtures & Fittings
Total

£
£
£
£
£



Cost


At 1 January 2023
624,587
1,819,663
143,636
25,126
2,613,012


Additions
-
31,330
-
-
31,330



At 31 December 2023

624,587
1,850,993
143,636
25,126
2,644,342



DEPRECIATION


At 1 January 2023
542,354
1,624,641
107,238
25,126
2,299,359


Charge for the year on owned assets
14,577
57,346
21,666
-
93,589



At 31 December 2023

556,931
1,681,987
128,904
25,126
2,392,948



NET BOOK VALUE



At 31 December 2023
67,656
169,006
14,732
-
251,394



At 31 December 2022
82,233
195,022
36,398
-
313,653

Included in land and buildings is freehold land at a cost of £41,500 (2022 - £41,500) which is not depreciated.

Page 18

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


STOCKS

2023
2022
£
£

Finished goods and goods for resale
2,420,833
2,283,574

2,420,833
2,283,574



14.


DEBTORS

2023
2022
£
£


Trade debtors
902,300
3,533,474

Other debtors
161,211
6,366

Prepayments and accrued income
18,479
15,182

Tax recoverable
48,602
-

1,130,592
3,555,022



15.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
4,809,478
4,971,135

4,809,478
4,971,135



16.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
3,955,872
2,984,930

Amounts owed to group undertakings
6,984
15,127

Corporation tax
-
205,079

Accruals and deferred income
752,013
538,274

4,714,869
3,743,410


Page 19

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


FINANCIAL INSTRUMENTS

2023
2022
£
£

FINANCIAL ASSETS


Financial assets measured at fair value through profit or loss
4,809,478
4,971,135

Financial assets that are debt instruments measured at amortised cost
1,063,511
3,539,840

5,872,989
8,510,975


Financial liabilities


Other financial liabilities measured at amortised cost
(4,714,869)
(3,538,331)


Financial assets measured at fair value through profit or loss comprise bank and cash in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Other financial liabilities measured at amortised cost comprise trade creditors, PAYE, obligations under finance lease and hire purchase contracts, other creditors and accruals.

Page 20

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


DEFERRED TAXATION




2023


£






At beginning of year
33,494


Charged to profit or loss
5,641



At end of year
39,135

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
39,135
34,024

Unpaid pension contributions
-
(530)

39,135
33,494


19.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



480,000 (2022 - 480,000) Ordinary shares of £1 each
480,000
480,000

All shares carry full voting rights and a right to a share in any surplus assets in the event of the company being wound up. 



20.


RESERVES

Profit & loss account

The profit and loss account relates to the retained profits of the company.

Page 21

 
MAGNECO METREL UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


PENSION COMMITMENTS

The company contributes to a defined contributions pension scheme. The assets of the scheme are held
separately from those of the company in an independently administered fund.
The pension cost charge represents contributions payable by the company to the fund and amounted to £21,657 (2022: £17,572).
Contributions totalling £1,285 (2022: £2,866) were payable to the fund at the balance sheet date.


22.


CONTROLLING PARTY

The ultimate parent company and controlling party for which the group accounts are drawn up and of which the company is a member, is Magneco/Metrel, Inc (address: 740 Waukegan Road, Suite 212, Deerfield, Illinois, 60015), a company incorporated in the United States of America.


23.


RELATED PARTY TRANSACTIONS

During the year the company purchased goods to a value of £4,006,967 from Magneco/Metrel Inc and made sales to the company of £7,583.
At 31 December 2023 trade creditors included an amount of £Nil (1 January 2023: £1,293,787) owed to Magneco/Metrel Inc. £Nil (1 January 2023: £15,127) was included in amounts owed to group undertakings.
During the year the company purchased goods to the value of £3,437,890 from Magneco Metrel Tianjin Refractory Co, a wholly owned subsidiary of Magneco/Metrel Inc. 
At 31 December 2023 trade creditors included an amount of £3,399,672 (1 January 2023: £713,230) owed to Magneco Metrel Tianjin Refractory Co.

 
Page 22