Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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MAGNECO METREL UK LIMITED
COMPANY INFORMATION
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MAGNECO METREL UK LIMITED
CONTENTS
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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.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
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 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.
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).
The directors who served during the year were:
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.
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MAGNECO METREL UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The company holds the majority of its stock at a warehouse in the Netherlands.
The auditors, Waltons Business Advisers Limited, will 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.
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MAGNECO METREL UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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.
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.
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
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.
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MAGNECO METREL UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED
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 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).
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.
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.
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MAGNECO METREL UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED (CONTINUED)
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 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.
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.
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.
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MAGNECO METREL UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED (CONTINUED)
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.
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MAGNECO METREL UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MAGNECO METREL UK LIMITED (CONTINUED)
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 2006. Our 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Maritime House
Harbour Walk
The Marina
Teesside
TS24 0UX
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MAGNECO METREL UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MAGNECO METREL UK LIMITED
REGISTERED NUMBER: 02501896
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 10 to 22 form part of these financial statements.
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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
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:
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.
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
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:
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.
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.
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.
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
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.
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.
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
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.
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of turnover by country of destination:
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
There were no factors that may affect future tax charges.
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Profit & loss account
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MAGNECO METREL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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.
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