Company registration number 04862422 (England and Wales)
TEKNION UK LIMITED
FINANCIAL STATEMENTS
for the year ended
30 NOVEMBER 2024
PAGES FOR FILING WITH REGISTRAR
TEKNION UK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
TEKNION UK LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
404,619
311,760
Current assets
Stocks
5
2,800,776
1,620,904
Debtors
6
5,103,846
10,725,357
Cash at bank and in hand
2,685,137
1,179,119
10,589,759
13,525,380
Creditors: amounts falling due within one year
7
(7,898,509)
(12,323,135)
Net current assets
2,691,250
1,202,245
Total assets less current liabilities
3,095,869
1,514,005
Creditors: amounts falling due after more than one year
8
(2,811,957)
(3,865,756)
Net assets/(liabilities)
283,912
(2,351,751)
Capital and reserves
Called up share capital
9
7,000,000
4,186,383
Equity reserve
193,876
290,077
Profit and loss reserves
(6,909,964)
(6,828,211)
Total equity
283,912
(2,351,751)
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 6 February 2025 and are signed on its behalf by:
E Delgado
Director
Company registration number 04862422 (England and Wales)
TEKNION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
1
Accounting policies
Company information
Teknion UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 11 Bowling Green Lane, Clerkenwell, London, EC1R 0BG.
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 pound.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on the going concern basis which the directors believe to be appropriate for the following reason. The company is dependent for its continued operational existence on support provided by Teknion Corporation, its parent company, which has provided the company with an undertaking that it will, for at least 12 months from the date of approval of these financial statements, continue to make available such funds as are needed by the company, and in particular will not seek repayment of the amounts currently made available. This should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. As with any company placing reliance on other entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although at the date of approval of these financial statements, they have no reason to believe that it will not do so.true
Based on this understanding the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised on delivery of the goods to the customer, or earlier when the customer takes ownership and assumes risk of loss, persuasive evidence of an arrangement exists and the sales price is fixed or determinable.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
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.
TEKNION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 3 -
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:
Land and buildings Leasehold
Over the life of the lease
Fixtures, fittings & equipment
2 - 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
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.
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.
1.6
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
TEKNION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 4 -
1.8
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.
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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
1.9
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.
1.10
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
TEKNION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 5 -
1.12
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.
1.13
Foreign exchange
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the profit and loss account.
1.14
The company applies a market-based transfer pricing approach for all intercompany transactions, setting transfer prices at the prevailing market price for comparable goods or services that would be charged to unrelated parties, ensuring that each related entity reflects profits consistent with the functions performed, assets used, and risks assumed in the transaction, as per applicable tax regulations.
1.15
Related parties
The company has taken advantage of the exemption contained in FRS 102.33.1A 'Related Party Disclosures' not to disclose any transactions with entities that are included in the consolidated financial statements of the parent company, Teknion Corporation.
1.16
Pensions
The company operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
23
22
3
Taxation
On the basis of these financial statements no provision has been made for corporation tax. The company has losses of £7,871,395 (2023 - £7,708,276) available for carry forward against future trading profits.
TEKNION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 December 2023
171,637
314,607
486,244
Additions
249,395
249,395
At 30 November 2024
171,637
564,002
735,639
Depreciation and impairment
At 1 December 2023
31,287
143,197
174,484
Depreciation charged in the year
17,055
139,481
156,536
At 30 November 2024
48,342
282,678
331,020
Carrying amount
At 30 November 2024
123,295
281,324
404,619
At 30 November 2023
140,350
171,410
311,760
5
Stocks
2024
2023
£
£
Stocks
2,800,776
1,620,904
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,358,989
10,570,533
Other debtors
1,744,857
154,824
5,103,846
10,725,357
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
6,790,466
9,609,435
Taxation and social security
126,930
419,213
Other creditors
981,113
2,294,487
7,898,509
12,323,135
TEKNION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
2,811,957
3,865,756
Other creditors is a loan from a subsidiary of the parent company. No interest has been charged on the loan. FRS 102 requires the loan to be restated at amortised cost based on a market rate of interest. In this case 5.5% has been used. The measurement difference has been credited to equity to reflect the parent's contribution to the company by providing a loan at less than market rate.
The loan is secured by a charge over the assets of the company.
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
7,000,000
4,186,383
7,000,000
4,186,383
During the year an additional 2,813,617 ordinary shares were issued by the company, for a nominal value of £1 each.
10
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:
Michael Sparrow FCA
Statutory Auditor:
Fisher Phillips LLP
Date of audit report:
6 February 2025
11
Operating lease commitments
Lessee
At the year end the company had total commitments to third parties under operating leases on its properties of totalling £1,651,008. This amount will be expended over 6.5 years.
TEKNION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
12
Related party transactions
Included in other debtors at the year end is a £1,363,617 receivable from the parent company Teknion Corporation related to group funding arrangements. This loan is interest free and payable on demand.
Also included in other debtors at the year end is a £300,000 loan to Modus Holdings Limited, to fund working capital. Interest is charged on this loan at a commercial rate.
Included in Trade Creditors at the year end is £4,184,568 (2023 - £3,550,632) owed to a subsidiary of the parent company, Teknion Corporation. Relating to purchases of products and services.
During the year the company was charged management fees of £558,452 (2023 - £nil) by Teknion Corporation and a subsidiary of Teknion Corporation, for corporate management expenses and shared services costs.
13
Parent company
The company is a subsidiary undertaking of Teknion Corporation, a company incorporated in Canada. The registered office address is 1150 Flint Road, Toronto, Canada M3J 2J5.
The ultimate controlling party is the Feldberg family.