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REGISTERED NUMBER: 05761368 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MEDRANO UK LIMITED

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Statement of Financial Position 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


MEDRANO UK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mr L F Fernandez Jimenez
Mr G Fernandez Jimenez





SECRETARY: Mr G Fernandez Jimenez





REGISTERED OFFICE: Old Station House
Station Approach
Newport Street
Swindon
Wiltshire
SN1 3DU





REGISTERED NUMBER: 05761368 (England and Wales)





AUDITORS: Haines Watts
Chartered Accountants & Statutory Auditors
Old Station House
Station Approach
Swindon
Wiltshire
SN1 3DU

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

PRINCIPAL ACTIVITIES
The principal activity of the Company during the year was refurbishment, handling and distribution of wooden pallets.

RESULTS
The profit for the year and the Company's financial position at the end of the year are shown in the financial statements.

BUSINESS PERFORMANCE
The year in general was different to the previous one in many aspects.

The cost of raw materials stabilised and in certain cases – it actually reduced.

In comparison with previous year – the demand from key customers in production side of business was on a steady level, however the transport division kept fluctuating in demand.

Profits in the year to 31 December 2023 were positively affected by the fact that the Company was granted tariffs increase from our Client for our service (production only).

Another factor contributing to rise in running costs was very high price of electricity, but the Company had secured another year of support in that area from the key customer, in form of an extra tariff increase for certain activities.

The company was affected by partial reduction in routes being planned in transport department.
Since the tariff increase – the Directors of the company look closely on the revenue each month, to determine whether requested tariff increase was sufficient and in line with the expectations.

As in previous year – the element of costs that is monitored the most is the sub-contracted wages ratio as it still is the greatest expense for the Company.

The year of 2023 was another year in which the Company continued to settle the financing obtained in 2020 for the upgrade to the pallet repair line at the Hoddesdon site.

This investment helped (as predicted) to maintain higher volumes of output which in return – helped to secure higher service level, and as a result – to increase income. A further benefit of using the upgraded line was reduction in manhours on the production line while keeping high volumes of repairs in Hoddesdon plant.


MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

KEY PERFORMANCE INDICATORS
The year was no different to previous years in terms of continuously monitoring the performance of all plants, by the Directors. The tools for that are simple, yet effective, namely spreadsheets with (among others) sales and expenses presented the way which allows for quick control over earnings vs spending. This activity is in place regularly not to miss any opportunity to notice any negative trends in performance.

The key indicator here, is the wages. Over many years, the typical % of wages cost in all expenses was establish and now is a benchmark for any comparison month-to-month. This indicator is in the spotlight as it’s the highest cost across all expenses. In short, any deviation from the 'normal' monthly cost of wages is then closely looked at to understand why it happened.

The Directors continue to use both financial and non-financial key performance indicators to manage the business. The business maintains a strong management information function which is focused on real time and accurate reporting. Such reporting sees particular focus on financial/trading performance and cash flow

The key financial performance indicators used to review and monitor the company are shown below:

Metric 2023 2022 2021
Revenue (£) 16,685,043 14,403,032 14,067,819
Gross Profit (£) 3,188,962 1,711,588 2,557,827
Gross Profit % 19.11 11.88 18.18
Wage cost % 51.71 60.01 57.41


MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Directors are getting feedback from the Client regarding any potential changes in their demands, in both – volume and type. Whenever possible – any change (reduction) in volume requested – is addressed with the Plant Managers to redirect, or limit the work force, in order to be able to keep wages cost low when the demand drops down. Other option is adaptation of the processes (at the plants) to meet unique requests from the Client (that could be speedy conversion of repair type, or repair of different product). The Group prides itself for being very adaptive and flexible when it comes to meeting Clients requirements.

At present time, facing the cost of living crisis, we could be put in front of a problem with limitations to the volume demand from the key Clients. In order to prevent that – the Directors, with the help of UK Operations Manager and staying in close contact with the key Clients to make sure that the volumes demanded from us as at least on the level that we can sustain at least minimal profits.

The Directors remain alert to the risks prevalent in a commercial environment and continue to take steps to minimise or mitigate these risks. A process of risk identification is undertaken at Director level.

The identified risks, are regularly reviewed by the Directors to ensure adequate risk mitigation pertinent to each risk is introduced and maintained. Identified risks are highlighted below along with the associated mitigation plan.

Risk Details Mitigating actions / factors



Customer demand


The company's operations are heavily
reliant on customer demand.
A key focus of the company's
management is to increase efficiency
and continue to be adaptable to changes
in demand.




Cost of labour

Labour costs are a significant cost for
the Company. The key risk is efficiency
to ensure the labour profit contribution
continues to be positive.
Management continuously review the
labour requirements to ensure an
appropriate labour level is maintained.
Manhours are monitored and are
adapted in line with demand.



Cost of living crisis

Weak spending power of the consumers
is driving down the volume requests from
the key Clients.
The Management stays in contact with
the key Clients to make sure the
volumes are not reducing (in spite of the
reduction of consumers’ buying power).

ON BEHALF OF THE BOARD:





Mr G Fernandez Jimenez - Director


14 March 2025

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 is £nil (2022 : £1,730,094).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr L F Fernandez Jimenez
Mr G Fernandez Jimenez

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr G Fernandez Jimenez - Director


14 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MEDRANO UK LIMITED

Opinion
We have audited the financial statements of Medrano UK Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MEDRANO UK LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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 five, 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 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 company or to cease operations, or have no realistic alternative but to do so.

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:

We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:

- making enquires of directors and management as to where they consider there to be a susceptibility to fraud
and whether they have any knowledge or suspicion of fraud;
- obtaining an understanding of the internal controls established to mitigate risks related to fraud or
non-compliance with laws and regulations;
- assessing the design effectiveness of the controls in place to prevent and detect fraud;
- assessing the risk of management override including identifying and testing journal entries;
- challenging the assumptions and judgements made by management in its significant accounting estimates.

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MEDRANO UK LIMITED


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.




Martin Gurney FCA (Senior Statutory Auditor)
for and on behalf of Haines Watts
Chartered Accountants & Statutory Auditors
Old Station House
Station Approach
Swindon
Wiltshire
SN1 3DU

14 March 2025

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 16,685,043 14,403,032

Cost of sales 13,496,081 12,691,444
GROSS PROFIT 3,188,962 1,711,588

Administrative expenses 539,257 503,178
OPERATING PROFIT 4 2,649,705 1,208,410


Interest payable and similar expenses 5 10,859 14,537
PROFIT BEFORE TAXATION 2,638,846 1,193,873

Tax on profit 6 620,027 221,233
PROFIT FOR THE FINANCIAL YEAR 2,018,819 972,640

Retained earnings at beginning of year 5,062,868 5,820,322

Dividends 7 - (1,730,094 )

RETAINED EARNINGS AT END OF
YEAR

7,081,687

5,062,868

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 346,413 461,727

CURRENT ASSETS
Stocks 9 283,292 500,498
Debtors 10 7,333,835 3,427,837
Cash at bank 653,113 3,100,489
8,270,240 7,028,824
CREDITORS
Amounts falling due within one year 11 1,026,661 1,845,486
NET CURRENT ASSETS 7,243,579 5,183,338
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,589,992

5,645,065

CREDITORS
Amounts falling due after more than one
year

12

(473,063

)

(530,721

)

PROVISIONS FOR LIABILITIES 15 (25,242 ) (41,476 )
NET ASSETS 7,091,687 5,072,868

CAPITAL AND RESERVES
Called up share capital 16 10,000 10,000
Retained earnings 17 7,081,687 5,062,868
SHAREHOLDERS' FUNDS 7,091,687 5,072,868

The financial statements were approved by the Board of Directors and authorised for issue on 14 March 2025 and were signed on its behalf by:





Mr G Fernandez Jimenez - Director


MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (1,829,159 ) 365,362
Interest paid (10,859 ) (14,537 )
Tax paid (574,000 ) (251,874 )
Net cash from operating activities (2,414,018 ) 98,951

Cash flows from investing activities
Purchase of tangible fixed assets (840 ) -
Net cash from investing activities (840 ) -

Cash flows from financing activities
Loan repayments in year (57,658 ) (54,980 )
Amount introduced by directors 25,140 22,289
Equity dividends paid - (1,730,094 )
Net cash from financing activities (32,518 ) (1,762,785 )

Decrease in cash and cash equivalents (2,447,376 ) (1,663,834 )
Cash and cash equivalents at
beginning of year

2

3,100,489

4,764,323

Cash and cash equivalents at end of
year

2

653,113

3,100,489

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2023 2022
£    £   
Profit before taxation 2,638,846 1,193,873
Depreciation charges 116,154 154,812
Finance costs 10,859 14,537
2,765,859 1,363,222
Decrease in stocks 217,206 71,123
Increase in trade and other debtors (3,905,998 ) (1,431,003 )
(Decrease)/increase in trade and other creditors (906,226 ) 362,020
Cash generated from operations (1,829,159 ) 365,362

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 653,113 3,100,489
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 3,100,489 4,764,323


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank 3,100,489 (2,447,376 ) 653,113
3,100,489 (2,447,376 ) 653,113
Debt
Debts falling due within 1 year (57,674 ) - (57,674 )
Debts falling due after 1 year (530,721 ) 57,658 (473,063 )
(588,395 ) 57,658 (530,737 )
Total 2,512,094 (2,389,718 ) 122,376

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Medrano UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company's functional and presentational currency is GBP.

Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated
useful life.

Plant and machinery - 25% on reducing balance and 50% on straight line
Fixtures and fittings - 20% on reducing balance and 50% straight line
Computer equipment - 33% on reducing balance
Motor vehicles - 25% reducing balance

Stocks & work in progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Costs include all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. An element of profit is included where the outcome of the project may reasonably be determined.

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from related 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 receipts discounted at a market rate of interest.

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

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 year 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.

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2022 - 2).

Medrano UK Limited makes use of agency labour, and therefore has no direct employees, other than the two directors.

Total agency labour costs for the year was £8,627,785 (2022 : £8,150,251).

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 962,651 649,242
Depreciation - owned assets 116,154 154,812
Auditors' remuneration 16,695 15,900

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 10,859 14,537

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 636,261 244,577

Deferred tax (16,234 ) (23,344 )
Tax on profit 620,027 221,233

7. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 1 each
Final - 1,730,094

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 3,317,278 75,679 27,000 3,419,957
Additions - - 840 840
At 31 December 2023 3,317,278 75,679 27,840 3,420,797
DEPRECIATION
At 1 January 2023 2,863,027 74,495 20,708 2,958,230
Charge for year 113,563 237 2,354 116,154
At 31 December 2023 2,976,590 74,732 23,062 3,074,384
NET BOOK VALUE
At 31 December 2023 340,688 947 4,778 346,413
At 31 December 2022 454,251 1,184 6,292 461,727

9. STOCKS
2023 2022
£    £   
Stocks 283,292 500,498

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,873,199 1,386,020
Other debtors 4,350,642 1,423,426
Prepayments 109,994 618,391
7,333,835 3,427,837

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 57,674 57,674
Trade creditors 295,720 1,260,677
Amounts owed to group undertakings - 119,113
Tax 161,570 99,309
VAT 190,539 24,669
Other creditors 4,059 5,168
Directors' current account 73,908 48,768
Accruals and deferred income 243,191 230,108
1,026,661 1,845,486

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 13) 473,063 530,721

MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 57,674 57,674

Amounts falling due between two and five years:
Bank loans - 2-5 years 473,063 530,721

14. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 530,737 588,395

The bank loan is secured against the plant and machinery to which it relates.

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 25,242 41,476

Deferred
tax
£   
Balance at 1 January 2023 41,476
Provided during year (16,234 )
Balance at 31 December 2023 25,242

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary 1 10,000 10,000

17. RESERVES
Retained
earnings
£   

At 1 January 2023 5,062,868
Profit for the year 2,018,819
At 31 December 2023 7,081,687



MEDRANO UK LIMITED (REGISTERED NUMBER: 05761368)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

18. RELATED PARTY DISCLOSURES

Entities with common control

Medrano USA Inc Medrano Spain

Opening balance 119,113 880,359
Loans advanced during the year 2,516,180 1,405,163
Loans repaid during the year - (875,014 )
Closing balance 2,635,293 1,410,508

Other related parties

Everak Solucione

Opening balance 284,841
Loans advanced during the year -
Loans repaid during the year -
Closing balance 284,841

All loans are repayable on demand and are interest free.

19. ULTIMATE CONTROLLING PARTY

The company is owned by two shareholders who each own 50% of the issued share capital of the company.

Accordingly there is no parent entity nor ultimate controlling party.