REGISTERED NUMBER: 14707202 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
FOR |
EUROTEK HOLDINGS LIMITED |
REGISTERED NUMBER: 14707202 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
FOR |
EUROTEK HOLDINGS LIMITED |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
EUROTEK HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
First Floor Offices, Unit A4 |
Old Power Way |
Lowfields Business Park |
Elland |
HX5 9DE |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the period 6 March 2023 to 31 December 2023. |
REVIEW OF BUSINESS |
The main business activity remains unchanged and continues to be the production and supply of foundry binder systems and ancillary products. This accounts for over 95 percent of the business. |
In Q2 2023 the business was sold to shareholders in the GIL Investment Group, an independent private owner of small to medium scale businesses, based in Stratford-upon-Avon. The business has continued as normal after the take-over with the same management team in place and no changes to company structure. |
The invasion of Ukraine continues to affect the business to some degree. Russia sales had already stopped in 2022, and Ukraine was affected negatively early in the war. We have seen some return to normality in the region, although not at as high a level as pre-invasion. |
Growth in other areas, particularly deep sea, allowed the business to maintain its recent strong performance, placing Eurotek in a great position for the future. Our £15m of sales turnover are still strongly export orientated with an approximate split 65:35 in favour of exports. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Escalation of the war is obviously a constant threat to market stability, and we do anticipate some slowdown in 2024 due to recessionary fears in Europe. |
Inflation is less of a concern at this time with a decrease through the year. Raw material volatility has steadied somewhat, but the landscape continues to be unpredictable. |
FUTURE DEVELOPMENTS |
The business has a strong foundation on which to build on; potential increases to export territories, product range diversification and new innovations give the management team confidence that the business will continue to thrive under the new ownership. |
India remains an interesting market and we anticipate adding to the business already established there through a JV with a key partner there. Growth in 2024 is expected to be generated in the region and we aspire to take this to a new level 2025 and beyond. |
RESEARCH AND DEVELOPMENT |
We continue to reduce our impact on the environment both in producing the products and in the end use of our systems. Several projects to replace current materials with more environmentally friendly alternatives have taken place and some new technology has been introduced to improve working conditions at customer premises which will be rolled out in 2024. |
ON BEHALF OF THE BOARD: |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the period 6 March 2023 to 31 December 2023. |
INCORPORATION |
The group was incorporated on 6 March 2023 . |
PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was that of a holding company and management consultancy. |
DIVIDENDS |
No dividends will be distributed for the period ended 31 December 2023. |
DIRECTORS |
The directors who have held office during the period from 6 March 2023 to the date of this report are as follows: |
All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting. |
POLITICAL DONATIONS AND EXPENDITURE |
No donations have been made to political parties during the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Walter Dawson & Son, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EUROTEK HOLDINGS LIMITED |
Qualified Opinion |
We have audited the financial statements of Eurotek Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying consolidated financial statements present fairly, in all material respects, (or give a true and fair view of) the financial position of the Group as at 31 December 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs). |
Basis for Qualified Opinion |
The Group’s investment in Eurotek Polska SP. Z O.O. , a foreign subsidiary acquired during the year and accounted for by the equity method, is carried at £619,654 on the consolidated statement of financial position as at 31 December 2023, and Eurotek Holdings Ltd's share of Eurotek Polska SP. Z O.O’s net income of £133,857 is included in Eurotek Holdings Ltd's income for the year then ended. We were unable to obtain sufficient appropriate audit evidence about the carrying amount of Eurotek Holdings Ltd’s investment in Eurotek Polska SP. Z O.O. as at 31 December 2023 and Eurotek Holdings Ltd’s share of Eurotek Polska SP. Z O.O’s net income for the year because the financial information has not been audited by the auditors of Eurotek Polska SP. Z O.O. at the date of this report. Consequently, we were unable to determine whether any adjustments to these amounts were necessary. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EUROTEK HOLDINGS LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EUROTEK HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through dicussions with directors and other management, and form our commercial knowledge and experience of the sector; |
- we focussed on specific laws and regulations which considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was a susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and overide of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 and where indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
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 directors and other management and the inspection of regulatory and legal correspondence, if any. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EUROTEK HOLDINGS LIMITED |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
First Floor Offices, Unit A4 |
Old Power Way |
Lowfields Business Park |
Elland |
HX5 9DE |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
Notes | £ | £ |
TURNOVER | 15,622,796 |
Cost of sales | 11,300,911 |
GROSS PROFIT | 4,321,885 |
Distribution costs | 684,270 |
Administrative expenses | 2,471,999 |
3,156,269 |
OPERATING PROFIT | 4 | 1,165,616 |
Interest receivable and similar income | 2,411 |
PROFIT BEFORE TAXATION | 1,168,027 |
Tax on profit | 5 | 260,852 |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
907,175 |
Profit attributable to: |
Owners of the parent | 907,175 |
Total comprehensive income attributable to: |
Owners of the parent | 907,175 |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 7 | 711,862 |
Tangible assets | 8 | 124,228 |
Investments | 9 | 200,000 |
1,036,090 |
CURRENT ASSETS |
Stocks | 10 | 1,094,693 |
Debtors | 11 | 3,371,517 |
Cash at bank | 993,217 |
5,459,427 |
CREDITORS |
Amounts falling due within one year | 13 | 5,179,862 |
NET CURRENT ASSETS | 279,565 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,315,655 |
PROVISIONS FOR LIABILITIES | 15 | 8,480 |
NET ASSETS | 1,307,175 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 400,000 |
Profit and loss account | 17 | 907,175 |
SHAREHOLDERS' FUNDS | 1,307,175 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2024 and were signed on its behalf by: |
J Crystal-Black - Director |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
Notes | £ |
CURRENT ASSETS |
Debtors | 11 |
Investments | 12 |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Profit and loss account | 17 | ( |
) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (189,646 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
Called up | Profit |
share | and loss | Total |
capital | account | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | 400,000 | - | 400,000 |
Total comprehensive income | - | 907,175 | 907,175 |
Balance at 31 December 2023 | 400,000 | 907,175 | 1,307,175 |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
Called up | Profit |
share | and loss | Total |
capital | account | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2023 | ( |
) |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
Notes | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (429,436 | ) |
Tax paid | (11,623 | ) |
Net cash from operating activities | (441,059 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (769,882 | ) |
Purchase of tangible fixed assets | (175,070 | ) |
Purchase of fixed asset investments | (200,000 | ) |
Sale of tangible fixed assets | 10,900 |
Interest received | 2,411 |
Net cash from investing activities | (1,131,641 | ) |
Cash flows from financing activities |
New loans in year | 1,202,500 |
Share issue | 400,000 |
Net cash from financing activities | 1,602,500 |
Increase in cash and cash equivalents | 29,800 |
Cash and cash equivalents at beginning of period |
2 |
- |
Cash and cash equivalents at end of period |
2 |
29,800 |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
£ |
Profit before taxation | 1,168,027 |
Depreciation charges | 92,475 |
Loss on disposal of fixed assets | 5,487 |
Finance income | (2,411 | ) |
1,263,578 |
Increase in stocks | (1,094,693 | ) |
Increase in trade and other debtors | (3,371,517 | ) |
Increase in trade and other creditors | 2,773,196 |
Cash generated from operations | (429,436 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 31 December 2023 |
31.12.23 | 6.3.23 |
£ | £ |
Cash and cash equivalents | 993,217 | - |
Bank overdrafts | (963,417 | ) | - |
29,800 | - |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 6.3.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | - | 993,217 | 993,217 |
Bank overdrafts | - | (963,417 | ) | (963,417 | ) |
- | 29,800 | 29,800 |
Debt |
Debts falling due within 1 year | - | (1,202,500 | ) | (1,202,500 | ) |
- | (1,202,500 | ) | (1,202,500 | ) |
Total | - | (1,172,700 | ) | (1,172,700 | ) |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Eurotek Holdings Limited is a |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
TURNOVER |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
GOODWILL |
INTANGIBLE ASSETS |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
TANGIBLE FIXED ASSETS |
Plant and machinery | - |
Motor vehicles | - |
Computer Equipment | - |
STOCKS |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
TAXATION |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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 period 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. |
HIRE PURCHASE AND LEASING COMMITMENTS |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
£ |
Wages and salaries | 965,160 |
Social security costs | 87,386 |
Other pension costs | 41,886 |
1,094,432 |
The average number of employees during the period was as follows: |
Average Number of Employees |
The average number of employees by undertakings that were proportionately consolidated during the period was 18 . |
£ |
Directors' remuneration | 205,630 |
Directors' pension contributions to money purchase schemes | 13,227 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 |
Information regarding the highest paid director is as follows: |
£ |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
£ |
Hire of plant and machinery | 19,223 |
Other operating leases | 147,413 |
Depreciation - owned assets | 34,455 |
Loss on disposal of fixed assets | 5,487 |
Goodwill amortisation | 58,020 |
Auditors' remuneration | 23,659 |
Foreign exchange differences | 533 |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
£ |
Current tax: |
UK corporation tax | 268,441 |
CT - Previous year adjustments | (3,304 | ) |
Total current tax | 265,137 |
Deferred tax | (4,285 | ) |
Tax on profit | 260,852 |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
£ |
Profit before tax | 1,168,027 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % |
292,007 |
Effects of: |
Expenses not deductible for tax purposes | 7,347 |
Income not taxable for tax purposes | (546 | ) |
Depreciation in excess of capital allowances | 1,354 |
Adjustments to tax charge in respect of previous periods | (3,304 | ) |
Income from foreign country exempt from UK tax | (19,120 | ) |
Change in corporation tax rate to 25% | (16,886 | ) |
Total tax charge | 260,852 |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
6. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
7. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Additions | 769,882 |
At 31 December 2023 | 769,882 |
AMORTISATION |
Amortisation for period | 58,020 |
At 31 December 2023 | 58,020 |
NET BOOK VALUE |
At 31 December 2023 | 711,862 |
8. | TANGIBLE FIXED ASSETS |
Group |
Plant and | Motor | Computer |
machinery | vehicles | Equipment | Totals |
£ | £ | £ | £ |
COST |
Additions | 4,190 | - | 5,231 | 9,421 |
Disposals | (1,309 | ) | (28,770 | ) | (9,731 | ) | (39,810 | ) |
Transfer to ownership | 64,023 | 68,495 | 33,131 | 165,649 |
At 31 December 2023 | 66,904 | 39,725 | 28,631 | 135,260 |
DEPRECIATION |
Charge for period | 12,769 | 14,131 | 7,555 | 34,455 |
Eliminated on disposal | (553 | ) | (14,226 | ) | (8,644 | ) | (23,423 | ) |
At 31 December 2023 | 12,216 | (95 | ) | (1,089 | ) | 11,032 |
NET BOOK VALUE |
At 31 December 2023 | 54,688 | 39,820 | 29,720 | 124,228 |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
9. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in other |
participating |
interests |
£ |
COST |
Additions | 200,000 |
At 31 December 2023 | 200,000 |
NET BOOK VALUE |
At 31 December 2023 | 200,000 |
10. | STOCKS |
Group |
£ |
Raw materials | 358,628 |
Finished goods | 736,065 |
1,094,693 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
£ | £ |
Trade debtors | 3,247,003 |
Other debtors | 2,100 |
VAT | 77,617 |
Prepayments and accrued income | 44,797 |
3,371,517 |
12. | CURRENT ASSET INVESTMENTS |
Company |
£ |
Shares in group undertakings |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
£ | £ |
Bank loans and overdrafts (see note 14) | 963,417 |
Other loans (see note 14) | 1,202,500 |
Trade creditors | 1,790,455 |
Amounts owed to group undertakings | - |
Tax | 240,749 |
Social security and other taxes | 28,409 |
Other creditors | 721,203 |
Accruals and deferred income | 233,129 |
5,179,862 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 963,417 |
No description | 1,202,500 | 1,202,500 |
2,165,917 |
15. | PROVISIONS FOR LIABILITIES |
Group |
£ |
Deferred tax | 8,480 |
Group |
Deferred |
tax |
£ |
Provided during period | (4,285 | ) |
Balance at 31 December 2023 | (4,285 | ) |
EUROTEK HOLDINGS LIMITED (REGISTERED NUMBER: 14707202) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 6 MARCH 2023 TO 31 DECEMBER 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal |
value: | £ |
Ordinary | £1 | 400,000 |
200,000 Ordinary shares of £1 each were allotted and fully paid for |
17. | RESERVES |
Group |
Profit |
and loss |
account |
£ |
Profit for the period | 907,175 |
At 31 December 2023 | 907,175 |
Company |
Profit |
and loss |
account |
£ |
Deficit for the period | ( |
) |
At 31 December 2023 | ( |
) |