TEGCO LIMITED
Company registration number 11961274 (England and Wales)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
TEGCO LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
TEGCO LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
684
925
Investments
4
100
100
784
1,025
Current assets
Stocks
3,551,378
3,431,056
Debtors
6
5,738,583
5,268,250
Cash at bank and in hand
79,376
6,397
9,369,337
8,705,703
Creditors: amounts falling due within one year
7
(11,367,480)
(9,566,198)
Net current liabilities
(1,998,143)
(860,495)
Total assets less current liabilities
(1,997,359)
(859,470)
Provisions for liabilities
(811,286)
(811,517)
Net liabilities
(2,808,645)
(1,670,987)
Capital and reserves
Called up share capital
101
101
Profit and loss reserves
(2,808,746)
(1,671,088)
Total equity
(2,808,645)
(1,670,987)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on ......................... and are signed on its behalf by:
2024-10-29
..............................................
Mr G J Mutter
Director
Company registration number 11961274 (England and Wales)
TEGCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Tegco Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o Dyke Yaxley Limited, 1 Brassey Road, Old Potts Way, Shrewsbury, Shropshire, SY3 7FA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Tegco Limited set up a 100% owned subsidiary, Tegco Immingham Limited in order to manage the development of a waste to energy power generation facility (Energy from Waste plant). This is hereby referred to as Project Immingham.
There is a lease in place for 31 years, for the site in which Project Immingham is situated. Planning permission has been obtained for the development of this land.
The directors of the company are engaged in early negotiations to sell the shares in Tegco Immingham Limited. The lease, infrastructure and planning permissions are in place for Project Immingham to be taken through to commissioning and for the development of a Energy from Waste plant, located in Stallingborough, Immingham, North East Lincolnshire, UK.
The ongoing negotiation for the sale of Tegco Immingham Limited is still at an early stage, and there is group support in place for the next 12 months should the sale fall through, that Tegco Limited could continue to meet its liabilities as they fall due.
The directors have confirmed that they have a contingency plan to take the project through to completion with additional external funding and from within the Polytechnik group. If funding cannot be secured to take the project through to completion, the directors are confident that they could sell part of the grid connection, leaving them with sufficient power for the waste to energy plant and the funds for the completion of the energy substation. With the contingency plans in place, the directors believe that Tegco Limited is a going concern.
1.3
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:
Fixtures and fittings
20% 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 credited or charged to profit or loss.
TEGCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises all development costs incurred relating to Project Immingham.
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.
1.7
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TEGCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
TEGCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 and 31 December 2023
1,207
Depreciation and impairment
At 1 January 2023
282
Depreciation charged in the year
241
At 31 December 2023
523
Carrying amount
At 31 December 2023
684
At 31 December 2022
925
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
100
100
5
Subsidiaries
These financial statements are separate company financial statements for Tegco Limited. Separate company financial statements are required to be prepared by law. Consolidated financial statements for the Tegco Group are prepared and publicly available.
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Tegco Immingham Limited
1 Brassey Road, Old Potts Way, Shrewsbury, Shropshire, SY3 7FA
Ordinary
100.00
The subsidiary company Tegco Immingham (company number 12201491) was exempt from audit under section 479a of the Companies Act 2006 for the year ending 31 December 2023.
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
5,599,132
5,140,143
Other debtors
139,451
128,107
5,738,583
5,268,250
TEGCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
64,841
96,294
Amounts owed to group undertakings
8,203,051
6,532,400
Taxation and social security
58,638
14,103
Other creditors
3,040,950
2,923,401
11,367,480
9,566,198
Amounts owed to group companies are repayable on demand however the directors of those companies have confirmed that they are aware that Tegco Limited will only be able to repay the loans if and when the shares in Tegco Immingham Limited or the project are sold.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Elwyn Turner FCA
Statutory Auditor:
Dyke Yaxley Limited
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
3,385
7,448
10
Capital commitments
11
Parent company
The parent company of Tegco Limited is Tegco GmbH (a company registered in Austria) and its registered office is Gaudenzdorfer Gurtel 67, 1120 Wien, Austria.