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REGISTERED NUMBER: 00922735 (England and Wales)











Financial Statements

for the Year Ended 31 December 2023

for

Corrosion Technology Services Europe Ltd

Corrosion Technology Services Europe Ltd (Registered number: 00922735)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Corrosion Technology Services Europe Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: P R Viswanathan
S P Wroe





REGISTERED OFFICE: Unit 12 Merlin Park
Fred Dannatt Road
Mildenhall
Bury St Edmunds
Suffolk
IP28 7RD





REGISTERED NUMBER: 00922735 (England and Wales)





AUDITORS: Knights Lowe Limited
Eldo House
Kempson Way
Suffolk Business Park
Bury St Edmunds
Suffolk
IP32 7AR

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 429,353 410,087

CURRENT ASSETS
Stocks 5 485,912 537,591
Debtors 6 1,268,547 808,485
Cash at bank and in hand 126,241 89,217
1,880,700 1,435,293
CREDITORS
Amounts falling due within one year 7 480,926 486,601
NET CURRENT ASSETS 1,399,774 948,692
TOTAL ASSETS LESS CURRENT LIABILITIES 1,829,127 1,358,779

PROVISIONS FOR LIABILITIES 10 24,864 19,293
NET ASSETS 1,804,263 1,339,486

CAPITAL AND RESERVES
Called up share capital 11 4,552 4,552
Revaluation reserve 12 202,742 202,742
Capital redemption reserve 506 506
Retained earnings 1,596,463 1,131,686
SHAREHOLDERS' FUNDS 1,804,263 1,339,486

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 March 2024 and were signed on its behalf by:





S P Wroe - Director


Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Corrosion Technology Services Europe Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

There are no critical judgements and key sources of estimation uncertainty to be disclosed.

Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of value added tax and trade discounts. Turnover is recognised based on the date of despatch or the date services are provided.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Revenue from long term contracts for the provision of goods and services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 33% on reducing balance
Fixtures and fittings - 33% on reducing balance
Motor vehicles - 33% on reducing balance

Freehold land and buildings are revalued annually.

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.

Stocks and work in progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or normal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loans from banks or other related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

The foreign branches have been consolidated within the financial statements. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the average exchange rate relating to the accounting period.

Retirement benefit schemes
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment
At each reporting date tangible fixed assets are assessed to determine whether there is an indication that the carrying amount of an asset may be more than its recoverable amount and that the asset should be impaired. If there is an indication of possible impairment, the recoverable amount of an asset, which is the higher of its value in use and its net realisable value, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is written down to its estimated recoverable amount and an impairment loss is recognised in profit and loss.

Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and 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 lease asset are consumed.

Cash and cash equivalent
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 33 (2022 - 33 ) .

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 380,000 341,330 721,330
Additions - 41,966 41,966
Exchange differences - 2,039 2,039
At 31 December 2023 380,000 385,335 765,335
DEPRECIATION
At 1 January 2023 - 311,243 311,243
Charge for year - 23,207 23,207
Exchange differences - 1,532 1,532
At 31 December 2023 - 335,982 335,982
NET BOOK VALUE
At 31 December 2023 380,000 49,353 429,353
At 31 December 2022 380,000 30,087 410,087

The freehold property was last revalued at 14 January 2022 by chartered surveyors Eddisons based on an open market value for existing use basis. The directors consider that there has been no significant movement in the valuation of the property at the year end.

Cost or valuation at 31 December 2023 is represented by:

Plant and
Land and machinery
buildings etc Totals
£    £    £   
Valuation in 2017 58,188 - 58,188
Valuation in 2021 145,000 - 145,000
Cost 176,812 385,335 562,147
380,000 385,335 765,335

5. STOCKS
2023 2022
£    £   
Stocks 215,861 253,325
Work-in-progress 270,051 284,266
485,912 537,591

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 995,996 658,011
Amounts owed by group undertakings 15,710 57,306
Other debtors 256,841 93,168
1,268,547 808,485

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts - 189,888
Trade creditors 66,756 125,821
Amounts owed to group undertakings - 3,787
Taxation and social security 179,402 72,929
Other creditors 234,768 94,176
480,926 486,601

8. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 34,574 74,646
Between one and five years 13,893 11,246
48,467 85,892

9. SECURED DEBTS

The bank hold a debenture including fixed charge over all present freehold and leasehold property and first fixed & floating charge over all assets of the company both present and future. A first legal charge is over freehold property known as Units 11 & 12, Merlin Park, Fred Dannatt Road, Mildenhall, Suffolk, IP28 7RD.

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 12,798 7,227
Deferred tax on revaluations 12,066 12,066
24,864 19,293

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

10. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 19,293
Provided during year 5,571
Deferred tax on revaluation
Balance at 31 December 2023 24,864

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
4,552 Ordinary GBP1 4,552 4,552

12. RESERVES
Revaluation
reserve
£   
At 1 January 2023
and 31 December 2023 202,742

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

James Knights BSc ACA (Senior Statutory Auditor)
for and on behalf of Knights Lowe Limited

14. CONTINGENT LIABILITIES

At 31 December 2023 the company had provided performance bonds to customers of £219,064 (2022 - £194,274). The directors do not feel that it is appropriate to make any provision in respect of the performance bonds in place as they are satisfied the company will complete the relevant contracts to the required standard.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

15. RELATED PARTY TRANSACTIONS

During the year the company entered into the following transactions with wholly owned subsidiaries of the parent company;

Sales
Saudi Cathodic Protection MFG Co Ltd & Saudi Cathodic Protection Co Ltd £20,732 (2022 - £21,840)
Corrosion & Technical Services WLL. £8,381 (2022 - £7,272)
Corrosion Technology Services Middle East LLC £127,957 (2022 - £102,768)
CTS India (PVT) Limited £16,316 (2022 - £210,436)

Purchases
Corrosion Technology Services Middle East LLC £442,267 (2022 - £327,095)
Corrosion & Technical Services WLL £51,771 (2022 - £15,173)

At the year end the following balances were outstanding:

Creditors:
Corrosion Technology Services Middle East LLC £nil (2022 - £3,787)

Debtors:
Saudi Cathodic Protection Manufacturing Company Ltd £nil (2022 - £8,933)
CTS India (PVT) Limited £15,710 (2022 - £48,373)

A company guarantee is given by Corrosion Technology Services LLC to secure all liabilities of Corrosion Technology Services Europe Limited, limited to £800,000.

16. ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Corrosion Technology Services LLC, a company registered in the United Arab Emirates. The ultimate controlling party is Al Nasser Holdings LLC, where the consolidated accounts are held at the companies registered office at 18th Floor Liwa Tower, Capital Centre, Al Khaleej AI Arabi Street, PO Box 46611, Abu Dhabi, United Arab Emirates.