Company registration number 04888290 (England and Wales)
ENGCON (UK) Limited
financial statements
For the year ended 31 December 2023
ENGCON (UK) Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 6
ENGCON (UK) Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
3
88,704
43,679
Current assets
Inventories
1,033,006
1,059,066
Trade and other receivables
4
1,526,149
4,062,960
Cash and cash equivalents
300,000
100,094
2,859,155
5,222,120
Current liabilities
5
(2,637,497)
(4,974,087)
Net current assets
221,658
248,033
Total assets less current liabilities
310,362
291,712
Provisions for liabilities
(14,400)
(8,300)
Net assets
295,962
283,412
Equity
Called up share capital
279,264
279,264
Share premium account
60,200
60,200
Retained earnings
(43,502)
(56,052)
Total equity
295,962
283,412
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
Mr K B Blomgren
Director
Company registration number 04888290 (England and Wales)
ENGCON (UK) Limited
Notes to the financial statements
For the year ended 31 December 2023
- 2 -
1
Accounting policies
Company information
ENGCON (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5 Ashchurch Business Centre, Alexandra Way, Tewkesbury, Gloucestershire, GL20 8NB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
1.2
Going concern
The financial statements have been prepared on a going concern basis. Engcon AB, the immediate parent company has provided a letter of support to the Company and indicated that for at least 12 months from the date of the approval of these financial statements it will make such funds available to the Company as are needed to meet its financial obligations.true
The directors consider that this should enable to Company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. As with any Company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Based on this undertaking the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
ENGCON (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Property, plant and equipment
Property, plant and equipment 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:
Leasehold improvements
10% on cost
Plant and equipment
10% on cost
Fixtures and fittings
20% on cost
Computers
20% on cost
Motor vehicles
20% on cost
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.
1.5
Inventories
Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.
1.6
Financial instruments
Basic financial assets and liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future cash flows discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
1.7
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 income statement 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.
ENGCON (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
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 non-current 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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account on a straight-line basis.
1.11
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
12
11
ENGCON (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 5 -
3
Property, plant and equipment
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
86,272
2,343
35,168
123,783
Additions
29,190
11,618
14,579
1,526
56,913
At 31 December 2023
29,190
11,618
100,851
3,869
35,168
180,696
Depreciation and impairment
At 1 January 2023
68,912
249
10,943
80,104
Depreciation charged in the year
1,459
194
4,616
519
5,100
11,888
At 31 December 2023
1,459
194
73,528
768
16,043
91,992
Carrying amount
At 31 December 2023
27,731
11,424
27,323
3,101
19,125
88,704
At 31 December 2022
17,360
2,094
24,225
43,679
4
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
1,379,857
3,190,108
Amounts owed by group undertakings
18,575
2,925
Other receivables
127,717
869,927
1,526,149
4,062,960
5
Current liabilities
2023
2022
£
£
Trade payables
50,415
52,937
Amounts owed to group undertakings
2,165,881
3,735,692
Taxation and social security
121,058
541,124
Other payables
300,143
644,334
2,637,497
4,974,087
Handelsbanken Plc are the company's bankers and they hold a debenture over the company. The debenture is a fixed and floating charge over the company's assets.
ENGCON (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 6 -
6
Audit report information
The financial statements of the company for the financial year ended 31 December 2022 prepared for members, from which these financial statements have been extracted, were audited by the company's auditors, Kilsby & Williams LLP.
The auditor’s report on those financial statements was unqualified. The report was signed by Simon Tee as senior statutory auditor for and on behalf of Kilsby & Williams LLP on 25 September 2024.
Senior Statutory Auditor:
Simon Tee
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
58,173
58,322
Between two and five years
122,172
146,923
180,345
205,245
8
Parent company
The immediate parent company is Engcon AB, a company incorporated in Sweden which has the registered office Vilohemsgatan 1, SE-833 31 Strömsund, Sweden.
The ultimate controlling party is both Stig Engstrom and Monica Engstrom by virtue of their shareholding in Engcon AB.
Copies of the consolidated accounts for the group can be obtained upon request.
9
Secured Debts
Handelsbanken Plc are the company's bankers and they hold a debenture over the company. The debenture is a fixed and floating charge over the company's assets.