Company registration number 07880672 (England and Wales)
CAT TECH INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CAT TECH INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
K Thew
M C Collis
N R Morris
G Leathers
(Appointed 22 August 2023)
Company number
07880672
Registered office
1 South Park Road
South Park Industrial Estate
Scunthorpe
North Lincolnshire
DN17 2BY
Auditor
BHP LLP
2 Rutland Park
Sheffield
South Yorkshire
S10 2PD
CAT TECH INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 36
CAT TECH INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

 

2023 saw a return in demand for catalyst handling services and a focus effort from the directors on converting potential opportunities into secured projects, which saw revenues increase by 37%, from £8,820,411 in 2022 to £12,056,762. The directors also restructured both the USA and Singapore regions to reduce overhead burden and improve the efficiency to the group as a whole. These efforts have resulted in a return to profitability with EBITDA at £1,197,835 (2022 – loss of £396,724).

The group was able to ensure that all regions were able to service contractual obligations, maintain good relations with the customers, and maintain the company’s high standards of safety, achieving the strategic objectives set out in 2022.

Post year end, the volatility of the catalyst handling market is still prevalent and 2024 has seen a slower first half of the year. This was expected with secured projects heavily weighted to the end of quarter 3 and beginning of quarter 4, 2024. Currently, the secured weighted pipeline, remains on course to achieve positive results as in 2023, with promising opportunities for 2025 already being identified.

The bank overdraft facility was reviewed by the bank in April 2024 and the facility has been extended until March 2025. Cat Tech Europe Ltd’s invoice factoring facility was also renewed by the funders during July 2024 for another year

 

Key performance indicators

Safety is the primary topic in the business, and the group continues to use a range of well established and appropriate key performance indicators, to monitor both quantitative and qualitative perspectives, ensuring a safe working environment is maintained. Continued training and updating of procedures facilitate this and the need for safety is paramount in all that we do. The fully integrated systems ensure timely recording, analysis, and investigation of all matters in the field. The company also monitors the environmental impact of its activities and takes decisions to minimize these wherever possible.

 

The bespoke management system integrates the safety, financial and operational models, allowing management to monitor key performance indicators in a live and continually up-to-date basis. Management also uses tried and trusted key performance indicators to manage the financial affairs of the business. The principal financial KPIs being; gross margin by project which has increased by 1.5%; earnings before interest, depreciation, and amortization (EBITDA), achieving 9.93% for the year.

 

CAT TECH INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The main risk of the business is the dangerous environments and conditions in which services are carried out. Cat Tech regards the health and safety of its staff and contractors as a high priority and continues to assess these risks, update its procedures, and carry out training on a continuous basis. Fully integrated and bespoke systems developed for the business allow for continued monitoring, reporting, and communication of all activity in a timely manner to achieve these high standards and continue the proud safety record it has gained over its history.

 

Skilled employee recruitment, retention and manpower availability remain a risk to the company. Our investment in training, development and continued review of our pay and benefits policies ensures the company stays competitive. By utilizing our access to global manpower resources across all regions, this risk is further mitigated.

 

The Group’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The Group’s policies, approved by the board, provide written principles on the management of these risks.

 

Credit Risk

 

The group’s principal financial assets are trade and other receivables, and the amounts presented in the balance sheet are net of allowances for doubtful receivables. The majority of our customers are international blue-chip companies limiting the credit risk to the receivables. Policies restrict terms for non-blue-chip companies to mitigate credit risk from our smaller customers.

 

Liquidity Risk

 

A mixture of long-term and short-term debt finance is utilized to maintain liquidity, and ensure there is sufficient working capital to service our customers in on-going operations, while providing a base to mobilise from, for future projects.

 

Cash flow risk

 

The group is exposed to foreign currency exchange rates, due to the group’s international footprint. The group uses foreign exchange forward contracts to hedge these exposures, where projects are contracted in a currency foreign to that region. As the group operates in multiple regions, the foreign currency exchange rate risk to the cost of overheads is mitigated as each region generates revenue and pays its cost in local currency. Group wide costs are principally incurred in GBP, reducing exposure to foreign currency exchange rates. There were no contracts in place at year end.

Going concern

The directors have prepared a comprehensive forecasting model to review the different components of the Group up to December 2025. Consideration has been given to wider economic challenges, including the conflict in the Middle East, demand volatility and inflation. The nature of the business relies on being able to secure large, tendered projects, the timing of which can be difficult to predict, raising an arguable material uncertainty. The directors are satisfied that there is sufficient headroom in the existing facilities to respond to the various realistic downside sensitivities. The directors consider the possibility of more extensive downside scenarios to be remote and are therefore satisfied that it is appropriate to prepare the financial statements on a going concern basis.

Included in liabilities is a loan instrument from Cat Tech’s institutional shareholder, Maven Capital Partners UK LLP. Maven continues to support the company and its growth objectives, and agreed in January 2022, to extend the repayment date of the Secured Loan Note by five years to March 2027. Maven have further provided a letter of support, stating that there is no foreseen situation where the investors would seek to take action in relation to the loan agreement for a period of one year from the date of these statements.

 

CAT TECH INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future Developments

The directors believe that the synergies and support between the regions are a major strength, along with the sharing of resources, including equipment, people and working capital. This gives the group a uniqueness, compared to the competition, and a strategic edge in the markets wherein the group operates.

 

The demand remains high at the time of these statements and is expected to continue to do so into 2025, with many substantial opportunities already being engaged.

 

A number of long term, 3 year plus, contracts with major customers were renewed and signed in 2023, in Asia Pacific, USA and Europe. Cat Tech, having maintained the skilled employment base, is very well positioned to convert much of this increased demand, into growth for the group.

On behalf of the board

G Leathers
Director
25 September 2024
CAT TECH INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company and group continued to be that of catalyst handling, serving both the refining and petrochemical industries.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors

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

K Thew
M C Collis
N R Morris
G Leathers
(Appointed 22 August 2023)

Strategic Report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Group (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CAT TECH INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
G Leathers
Director
25 September 2024
CAT TECH INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAT TECH INTERNATIONAL LIMITED
- 6 -
Opinion

We have audited the financial statements of Cat Tech International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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.

Material uncertainty relating to going concern.

We draw your attention to note 1.3 in the financial statements, which indicates that the group has net current liabilities of £1,066,395 and net liabilities of £2,862,018.

 

As stated in note 1.3 these events or conditions along with the other matters as set forth in note 1.3, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

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.

 

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.

CAT TECH INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAT TECH INTERNATIONAL LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

CAT TECH INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAT TECH INTERNATIONAL LIMITED
- 8 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

 

 

To address the risks of fraud through management bias and override controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

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.

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.

Daniel Varley (Senior Statutory Auditor)
For and on behalf of BHP LLP
25 September 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
South Yorkshire
S10 2PD
CAT TECH INTERNATIONAL LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
12,056,762
8,820,411
Cost of sales
(7,320,515)
(5,924,411)
Gross profit
4,736,247
2,896,000
Administrative expenses
(4,434,648)
(4,372,197)
Other operating income
197,625
421,091
Operating profit/(loss)
4
499,224
(1,055,106)
Interest payable and similar expenses
8
(304,692)
(482,136)
Profit/(loss) before taxation
194,532
(1,537,242)
Tax on profit/(loss)
9
(108,179)
(3,868)
Profit/(loss) for the financial year
86,353
(1,541,110)
Memo note
EBITDA
1,197,835
(396,724)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.

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

CAT TECH INTERNATIONAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit/(loss) for the year
86,353
(1,541,110)
Other comprehensive income
Currency translation differences
64,003
328,869
Total comprehensive income for the year
150,356
(1,212,241)
Total comprehensive income for the year is all attributable to the owners of the parent company.
CAT TECH INTERNATIONAL LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
59,749
10,482
Tangible assets
11
985,777
1,656,870
Investments
12
89,736
28,292
1,135,262
1,695,644
Current assets
Stocks
15
139,737
107,242
Debtors
16
1,463,934
1,126,811
Cash at bank and in hand
315,421
354,181
1,919,092
1,588,234
Creditors: amounts falling due within one year
17
(2,984,287)
(2,734,591)
Net current liabilities
(1,065,195)
(1,146,357)
Total assets less current liabilities
70,067
549,287
Creditors: amounts falling due after more than one year
18
(2,752,516)
(3,345,573)
Provisions for liabilities
Provisions
22
151,069
148,988
Deferred tax liability
21
28,500
67,100
(179,569)
(216,088)
Net liabilities
(2,862,018)
(3,012,374)
Capital and reserves
Called up share capital
23
184,473
184,473
Share premium account
926,724
926,724
Revaluation reserve
-
0
217,875
Profit and loss reserves
(3,973,215)
(4,341,446)
Total equity
(2,862,018)
(3,012,374)

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

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
G Leathers
Director
Company registration number 07880672 (England and Wales)
CAT TECH INTERNATIONAL LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
59,749
3,197
Tangible assets
11
123,262
236,311
Investments
12
1,419,334
1,357,890
1,602,345
1,597,398
Current assets
Debtors
16
135,689
106,361
Cash at bank and in hand
2,054
2,117
137,743
108,478
Creditors: amounts falling due within one year
17
(5,938,320)
(7,222,509)
Net current liabilities
(5,800,577)
(7,114,031)
Total assets less current liabilities
(4,198,232)
(5,516,633)
Creditors: amounts falling due after more than one year
18
(2,701,383)
(3,264,375)
Net liabilities
(6,899,615)
(8,781,008)
Capital and reserves
Called up share capital
23
184,473
184,473
Share premium account
926,724
926,724
Profit and loss reserves
(8,010,812)
(9,892,205)
Total equity
(6,899,615)
(8,781,008)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,881,393 (2022 - £9,016,847 loss).

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
G Leathers
Director
Company registration number 07880672 (England and Wales)
CAT TECH INTERNATIONAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
184,473
926,724
217,875
(3,129,205)
(1,800,133)
Year ended 31 December 2022:
Loss for the year
-
-
-
(1,541,110)
(1,541,110)
Other comprehensive income:
Currency translation differences
-
-
-
328,869
328,869
Total comprehensive income
-
-
-
(1,212,241)
(1,212,241)
Balance at 31 December 2022
184,473
926,724
217,875
(4,341,446)
(3,012,374)
Year ended 31 December 2023:
Profit for the year
-
-
-
86,353
86,353
Other comprehensive income:
Currency translation differences
-
-
-
64,003
64,003
Total comprehensive income
-
-
-
150,356
150,356
Transfers
-
-
(217,875)
217,875
-
Balance at 31 December 2023
184,473
926,724
-
0
(3,973,215)
(2,862,018)
CAT TECH INTERNATIONAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
184,473
926,724
(875,359)
235,838
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(9,016,846)
(9,016,846)
Balance at 31 December 2022
184,473
926,724
(9,892,205)
(8,781,008)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,881,393
1,881,393
Balance at 31 December 2023
184,473
926,724
(8,010,812)
(6,899,615)
CAT TECH INTERNATIONAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,002,924
705,620
Interest paid
(304,692)
(482,136)
Income taxes (paid)/refunded
(39,725)
66,196
Net cash inflow from operating activities
658,507
289,680
Investing activities
Purchase of intangible assets
(71,433)
(40,524)
Purchase of tangible fixed assets
(110,752)
(769,376)
Proceeds from disposal of tangible fixed assets
7,596
15,211
Proceeds from disposal of joint ventures
(61,444)
(28,292)
Net cash used in investing activities
(236,033)
(822,981)
Financing activities
Movement in loan balances
(478,580)
271,665
Movement in finance lease obligations
(175,439)
138,543
Net cash (used in)/generated from financing activities
(654,019)
410,208
Net decrease in cash and cash equivalents
(231,545)
(123,093)
Cash and cash equivalents at beginning of year
274,658
397,751
Effect of foreign exchange rates
97,081
-
0
Cash and cash equivalents at end of year
140,194
274,658
Relating to:
Cash at bank and in hand
315,421
354,181
Bank overdrafts included in creditors payable within one year
(175,227)
(79,523)
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Cat Tech International Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 South Park Road, South Park Industrial Estate, Scunthorpe, North Lincolnshire, DN17 2BY.

 

The group consists of Cat Tech International Limited and all of its subsidiaries.

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 £.

The financial statements have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

The consolidated financial statements incorporate those of Cat Tech International Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

1.3
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group and company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cast doubt on the group and company's ability to continue as a going concern. The group has net current liabilities of £1,066,395 and net liabilities of £2,862,018 at the year end indicating that a material uncertainty exists relating to the availability of working capital that may cast significant doubt on the group and company's ability to continue as a going concern.

 

For the financial year ended 31 December 2023 the group generated total comprehensive income of £150,356 reducing the net liabilites position to £2,862,018 which represents an improvement of 5%. The directors have considered the financial, and cashflow forecasts for the 12 months from the date of these statements.

 

The forward order book and pipeline have been reviewed in detail on a project-by project basis using the weighted probability approach to assess income from future opportunities. Market intelligence on potential impacts on the pipeline and factors that may affect revenue realisation have also been considered in developing the forecasts. Sensitivities have been applied to give confidence to the outlook.

A group and company’s bank overdraft facility will be reviewed in March 2025 and the directors are confident the facilities will be renewed on the same terms.

 

All the above factors, along with the extension of the Secured Loan Note until 2027, have been considered in a full review up to the end of December 2025 for all regions, customers, and respective cost bases. These have been based on an overall set of prudent assumptions and consideration of the downside risk. The directors have a reasonable expectation that after considering all these factors, the liabilities of the group and company will be met.

1.4
Turnover

Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Where contract losses are anticipated these are recognised in full at the time of identification in so far that they can be measured reliably.

 

 

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.5
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:

Patents & licences
1 - 5 years
1.6
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:

Leasehold land and buildings
10% straight line
Plant and equipment
7% - 20% straight line
Fixtures and fittings
14% - 33% straight line
Motor vehicles
8% - 17% 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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

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.

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.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group 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.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 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. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
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.

1.16
Retirement benefits

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

1.17
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 leased asset are consumed.

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.19
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
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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. Actual results may differ from these estimates.

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Turnover is generated from contracts. The group recognises contract revenue and contract costs associated with each contract using the percentage of completion method.

 

The recognition of revenue and profit therefore rely on estimates in relation to the stage of completion and the forecast total costs of each contract.

 

Margin is presented for each contract as it is earned on the specific tasks undertaken in the period. A margin is used based on the job budget form completed at the outset, with variations requiring individual approval. Each project’s outturn is reforecast on a monthly basis, so any changes to expected final outturn are reflected in the accounts promptly. The profit to be recognised monthly is calculated on a cumulative basis so that the overall expected outturn is reflected in the cumulative position each month.

 

The method applied ensures that profit is recognised equally across the life of the project. The calculation of expected outturn is based on the following factors:

 

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Catalyst handling services
11,968,403
8,786,743
Sale of breathing equipment
88,359
33,668
12,056,762
8,820,411
2023
2022
£
£
Turnover analysed by geographical market
UK
2,223,370
905,369
Europe
1,619,309
561,658
Asia
4,556,657
2,473,321
North America
2,400,720
3,057,570
South America
891,806
-
Africa
-
1,380,118
Middle East
364,900
442,375
12,056,762
8,820,411
2023
2022
£
£
Other revenue
Grants received
157,625
117,764
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses
64,726
337,814
Government grants
(157,625)
(117,764)
Depreciation of owned tangible fixed assets
678,581
579,507
Loss on disposal of tangible fixed assets
-
(3,703)
Amortisation of intangible assets
20,030
78,849
Operating lease charges
654,133
559,100
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
26
26
6
7
Operations
77
66
-
-
Total
103
92
6
7

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,557,777
4,838,476
738,806
671,335
Social security costs
384,636
404,506
73,593
71,835
Pension costs
35,799
36,828
11,525
14,780
5,978,212
5,279,810
823,924
757,950
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor
£
£
For audit services
Audit of the financial statements of the group and company
16,510
17,500
Audit of the financial statements of the company's subsidiaries
26,680
32,500
43,190
50,000
For other services
Other taxation services
4,410
5,100
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
273,181
312,590
Company pension contributions to defined contribution schemes
4,000
8,046
277,181
320,636
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 25 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
208,094
195,510
Company pension contributions to defined contribution schemes
4,000
4,046
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
916
Interest on finance leases and hire purchase contracts
26,595
66,466
Other interest
278,097
414,754
Total finance costs
304,692
482,136
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
147,979
-
0
Foreign current tax on profits for the current period
-
0
4,868
Total current tax
147,979
4,868
Deferred tax
Origination and reversal of timing differences
(39,800)
(1,000)
Total tax charge
108,179
3,868
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 26 -

The actual charge 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 tax
194,532
(1,537,242)
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
45,754
(292,076)
Tax effect of expenses that are not deductible in determining taxable profit
5,311
5,791
Losses carried back
-
0
43,879
Group relief
2,967
-
0
Permanent capital allowances in excess of depreciation
3,533
(19,047)
Deferred tax not recognised and change in tax rates
24,742
-
0
Effect of foreign taxation
25,872
262,377
Foreign tax paid
-
0
2,944
Tax expense for the year
108,179
3,868
10
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 January 2023
1,444,559
347,266
1,791,825
Additions
-
0
71,433
71,433
Exchange adjustments
-
0
(2,818)
(2,818)
At 31 December 2023
1,444,559
415,881
1,860,440
Amortisation and impairment
At 1 January 2023
1,444,559
336,784
1,781,343
Amortisation charged for the year
-
0
20,030
20,030
Exchange adjustments
-
0
(682)
(682)
At 31 December 2023
1,444,559
356,132
1,800,691
Carrying amount
At 31 December 2023
-
0
59,749
59,749
At 31 December 2022
-
0
10,482
10,482
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Intangible fixed assets
(Continued)
- 27 -
Company
Patents & licences
£
Cost
At 1 January 2023
326,216
Additions
71,433
At 31 December 2023
397,649
Amortisation and impairment
At 1 January 2023
323,019
Amortisation charged for the year
14,881
At 31 December 2023
337,900
Carrying amount
At 31 December 2023
59,749
At 31 December 2022
3,197
11
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
2,340
4,235,515
829,382
590,255
5,657,492
Additions
-
0
59,904
25,839
25,009
110,752
Disposals
-
0
-
0
(7,596)
-
0
(7,596)
Exchange adjustments
-
0
(75,260)
(1,332)
(50,861)
(127,453)
At 31 December 2023
2,340
4,220,159
846,293
564,403
5,633,195
Depreciation and impairment
At 1 January 2023
1,092
3,116,290
542,414
340,826
4,000,622
Depreciation charged in the year
234
505,275
128,261
44,811
678,581
Exchange adjustments
-
0
(27,583)
(1,858)
(2,344)
(31,785)
At 31 December 2023
1,326
3,593,982
668,817
383,293
4,647,418
Carrying amount
At 31 December 2023
1,014
626,177
177,476
181,110
985,777
At 31 December 2022
1,248
1,119,225
286,968
249,429
1,656,870
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 28 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 January 2023
2,340
753,375
254,402
1,010,117
Additions
-
0
2,835
-
0
2,835
Disposals
-
0
-
0
(7,205)
(7,205)
At 31 December 2023
2,340
756,210
247,197
1,005,747
Depreciation and impairment
At 1 January 2023
1,092
678,664
94,050
773,806
Depreciation charged in the year
234
41,505
66,940
108,679
At 31 December 2023
1,326
720,169
160,990
882,485
Carrying amount
At 31 December 2023
1,014
36,041
86,207
123,262
At 31 December 2022
1,248
74,711
160,352
236,311
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 29 -

The net carrying value of tangible fixed assets in respect of assets held under finance leases or hire purchase contracts is £95,058 (2022: £140,887).

Plant and equipment with a cost of £226,503 was revalued at 31/12/2018 by Equify LLC, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar assets.

 

The assets are now fully depreciated as outlined below and have a NBV of £nil.

If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Group
Cost
241,017
253,583
Accumulated depreciation
(241,017)
(141,596)
Carrying value
-
111,987
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,329,598
1,329,598
Investments in joint ventures
13
89,736
28,292
89,736
28,292
89,736
28,292
1,419,334
1,357,890
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 1 January 2023
28,292
Additions
61,444
At 31 December 2023
89,736
Carrying amount
At 31 December 2023
89,736
At 31 December 2022
28,292
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2023
1,357,890
Additions
61,444
At 31 December 2023
1,419,334
Carrying amount
At 31 December 2023
1,419,334
At 31 December 2022
1,357,890
13
Joint ventures

Details of joint ventures at 31 December 2023 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
CATTRACER UK LIMITED
England and Wales
Ordinary B
50.00

 

14
Subsidiaries
Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Breathe Safe International Limited
England and Wales
Manufacture & service of life support system
Ordinary
100.00
-
Cat Tech (Europe) Limited
England and Wales
Catalyst handling
Ordinary
100.00
-
Cat Tech (Shanghai) Limited
China
Catalyst handling
Ordinary
100.00
-
Cat Tech Asia Pacific Pte Ltd
Singapore
Catalyst handling
Ordinary
100.00
-
Cat Tech Services (Thailand) Limited
Thailand
Catalyst handling
Ordinary
100.00
-
Cat Tech LLC
USA
Catalyst handling
Membership
100.00
-
Breathe Safe International Limited (Company Number 08010152) is exempt from audit under S479A Companies Act 2006.
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
-
6,722
-
-
Finished goods and goods for resale
139,737
100,520
-
0
-
0
139,737
107,242
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
962,261
591,306
-
0
-
0
Corporation tax recoverable
5,195
-
0
-
0
-
0
Other debtors
287,736
314,129
134,489
106,361
Prepayments and accrued income
207,542
221,376
-
0
-
0
1,462,734
1,126,811
134,489
106,361
Deferred tax asset (note 21)
1,200
-
0
1,200
-
0
1,463,934
1,126,811
135,689
106,361

Included within trade debtors are amounts £nil (2022: £66,664) due after one year relating to retentions on contracts.

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
747,804
558,921
562,500
468,750
Obligations under finance leases
19
81,868
236,501
-
0
-
0
Trade creditors
369,210
713,525
176,333
335,115
Amounts owed to group undertakings
-
0
-
0
4,583,855
6,007,725
Corporation tax payable
147,979
34,530
861
-
0
Other taxation and social security
683,918
371,537
-
-
Other creditors
283,580
186,940
-
0
-
0
Accruals and deferred income
669,928
632,637
614,771
410,919
2,984,287
2,734,591
5,938,320
7,222,509
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Debenture loans
20
1,711,500
1,711,500
1,711,500
1,711,500
Bank loans and overdrafts
20
579,867
1,151,626
562,500
1,125,000
Obligations under finance leases
19
33,766
54,572
-
0
-
0
Accruals and deferred income
427,383
427,875
427,383
427,875
2,752,516
3,345,573
2,701,383
3,264,375
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
81,898
236,501
-
0
-
0
In two to five years
33,736
54,572
-
0
-
0
115,634
291,073
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Loan notes
1,711,500
1,711,500
1,711,500
1,711,500
Bank loans
1,152,444
1,631,024
1,125,000
1,593,750
Bank overdrafts
175,227
79,523
-
0
-
0
3,039,171
3,422,047
2,836,500
3,305,250
Payable within one year
747,804
558,921
562,500
468,750
Payable after one year
2,291,367
2,863,126
2,274,000
2,836,500

Loan notes were repayable on 31 March 2022, however, they were deferred for a further 5 years. The loan notes bear interest at 14%. The loan notes are secured by a fixed charge over the assets of the group and its subsidiaries.

 

 

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
28,500
67,100
-
-
Fixed assets timing differences
-
-
1,200
-
28,500
67,100
1,200
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Fixed assets timing differences
-
-
1,200
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
67,100
-
Credit to profit or loss
(39,800)
(1,200)
Liability/(Asset) at 31 December 2023
27,300
(1,200)

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances.

22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Dilapidations provision
151,069
148,988
-
-
Movements on provisions:
Dilapidations provision
Group
£
At 1 January 2023
148,988
Additional provisions in the year
2,081
At 31 December 2023
151,069
CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
12,320,000
12,320,000
123,201
123,201
Ordinary B shares of 1p each
5,280,000
5,280,000
52,800
52,800
Ordinary C shares of 0.01p each
84,720,000
84,720,000
8,472
8,472
102,320,000
102,320,000
184,473
184,473

 

Ordinary A and B shares have equal voting rights. However, if the company is in material default, a notice may be served on the company by the holders of more than 50% of the B shares so that the B shares shall have 90% of the total voting rights.

 

Dividends are payable on a non-cumulative basis to the holders of the A shares and the B shares as if they constituted one class.

 

Ordinary C shares have no voting rights. If dividends of £1,000,000 per share have been received in respect of A shares and B shares in one accounting period then further profits may be applied to the holders of C shares.

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit and loss in respect of defined contribution schemes
35,799
36,828

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
25
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
512,805
534,587
29,386
6,537
Between two and five years
1,145,364
1,822,945
14,970
20,267
In over five years
1,232,000
975,745
-
-
2,890,169
3,333,277
44,356
26,804

The comparative figures have been restated to correct the operating lease disclosure.

26
Related party transactions

The company has taken exemption conferred by paragraph 33.1.A of FRS 102 not to disclose transactions with its wholly owned subsidiaries.

 

During the year rent of £64,900 has been paid to Catalyst Technicians Ltd, a company controlled by Mr K Thew (2022: £63,400).

 

During the year rent of £181,665 has been paid to Tri-Five (Holdings and Real Estate), a company controlled by Mr K Thew. £122,578 was also paid to Tri-Five (Holdings and Real Estate) in relation to other costs such as services and materials.

 

During the year, Cat Tech International invested £61,444 (2022: £28,292) in to Cat Tacer UK Limited, which is a 50% joint venture.

 

At 31 December 2023 the group owed £2,665,485 (2022: £2,551,371) to Maven Capital Partners (UK) LLP, a company which is related through common directorship.

 

 

 

 

CAT TECH INTERNATIONAL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
27
Cash generated from group operations
2023
2022
£
£
Profit/(loss) for the year after tax
86,353
(1,541,110)
Adjustments for:
Taxation charged
108,179
3,868
Finance costs
304,692
482,136
Gain on disposal of tangible fixed assets
-
(2,955)
Amortisation and impairment of intangible assets
20,030
78,849
Depreciation and impairment of tangible fixed assets
678,581
579,507
Net effect on foreign translation
64,726
339,737
Increase in provisions
2,081
-
Movements in working capital:
Increase in stocks
(32,495)
(10,403)
(Increase)/decrease in debtors
(330,728)
657,715
Increase in creditors
101,505
118,276
Cash generated from operations
1,002,924
705,620
28
Analysis of changes in net debt - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
354,181
(135,841)
97,081
315,421
Bank overdrafts
(79,523)
(95,704)
-
(175,227)
274,658
(231,545)
97,081
140,194
Borrowings excluding overdrafts
(3,342,524)
478,580
-
(2,863,944)
Obligations under finance leases
(291,073)
175,439
-
(115,634)
(3,358,939)
422,474
97,081
(2,839,384)
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