Company registration number 05688495 (England and Wales)
SINTEC UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
SINTEC UK LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Director's report
4 - 5
Independent auditor's report
6 - 10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Notes to the financial statements
15 - 28
SINTEC UK LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr. D. Roman
Company number
05688495
Registered office
Unit 23, Metro Centre
Britannia Way
Park Royal
London
United Kingdom
NW10 7PA
Auditor
Verallo
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
SINTEC UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents the strategic report for the year ended 31 December 2023.

Fair review of the business

During the year the executive team continued its efforts in turning operational efficiencies and improving internal documentation, mainly around project management and human resources. The most evident limitation to the business’s expansion during the year was attracting additional resources, and fast changing employment and immigration laws internationally.

The business continued to serve its traditional Customers with whom healthy relationships are visible. The company managed to attract new accounts and looks forward to increasing co-operation. The average size of the project has increased, while most projects fall under medium size with a duration of 5-7 months. At the start of 2024, the pipe line of the group was healthy, with project visibility 3-5 months ahead.

Principal risks and uncertainties

 

Foreign Currency Risk

The company operates in a number of jurisdictions, which gives rise to a currency risk. This is mitigated by ensuring customer contracts are in the appropriate company, to reduce the currency risk.

Competitive Risk

The company operates in a competitive environment, to mitigate this risk we ensure that the services provided are in line with our customers’ needs, and that strong relationships are maintained with our customers.

Credit Risk

Credit risk mainly arises from accounts receivables. The company assesses the credit risk and sets credit limits accordingly. The credit history of customers is regularly monitored by the company.

Key performance indicators

The key financial performance indicators for the company remain revenue, gross profit, and net assets.

The Company's revenue over the year saw a decrease from £11,511,122 to £10,398,841. Operating expenses increased, and as a result gross profit for the year dropped. The company declared a loss of £28,615 (2022 - profit £1,044,298) for the 2023 financial year.

Future Developments

The company's sales are expecting to maintain at steady rate during 2024. Increased attention will be paid to geographical flexibility required by key accounts and concentration on larger projects.

SINTEC UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Mr. D. Roman
Director
31 March 2025
SINTEC UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of engineering, mechanical and electrical installation services.

Director

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

Mr. D. Roman
Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £365,503. The director does not recommend payment of a further dividend.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

Auditor
Verallo are deemed to be re-appointed under section 487(2) of the Companies Act 2006
SINTEC UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Statement of disclosure to auditor

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

On behalf of the board
Mr. D. Roman
Director
31 March 2025
SINTEC UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SINTEC UK LIMITED
- 6 -

Qualified opinion

We have audited the financial statements of Sintec UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effect of the matter described in the basis for qualified opinion section of our report:

Basis for qualified opinion

We were unable to observe the counting of physical inventories at the year end. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2023, which are included in the balance sheet at £278,121 by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was 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 Auditor's 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 qualified opinion.

Emphasis of matter

We draw attention to note 21 of the financial statements, which describes the ongoing HMRC enquiry. Our opinion is not modified in this respect.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

SINTEC UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SINTEC UK LIMITED
- 7 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £278,121 held at 31 December 2023. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report,in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 director's report.

 

Arising solely from the limitation of the scope of our work relating to inventory, referred to above:

 

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

 

SINTEC UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SINTEC UK LIMITED
- 8 -
Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SINTEC UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SINTEC UK LIMITED
- 9 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

SINTEC UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SINTEC UK LIMITED
- 10 -
Use of report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michelle Hewitt-Dutton FCCA (Senior Statutory Auditor)
For and on behalf of Verallo
Statutory Auditor
31 March 2025
SINTEC UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
2
10,398,841
11,511,122
Cost of sales
(7,887,462)
(7,272,738)
Gross profit
2,511,379
4,238,384
Administrative expenses
(2,527,816)
(2,662,590)
Other operating income
14,583
-
0
Operating (loss)/profit
4
(1,854)
1,575,794
Interest receivable and similar income
7
8,262
3,458
Interest payable and similar expenses
8
(44,673)
(32,009)
Amounts written off intercompany
9
-
(133,999)
(Loss)/profit before taxation
(38,265)
1,413,244
Tax on (loss)/profit
10
9,650
(368,946)
(Loss)/profit for the financial year
(28,615)
1,044,298

All transactions are derived from continuing operations.

The notes on pages 15 to 28 form part of these financial statements
SINTEC UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
266,371
367,321
Current assets
Stocks
13
278,121
104,106
Debtors
14
4,111,618
3,319,910
Cash at bank and in hand
289,440
1,641,080
4,679,179
5,065,096
Creditors: amounts falling due within one year
15
(2,019,208)
(1,953,992)
Net current assets
2,659,971
3,111,104
Total assets less current liabilities
2,926,342
3,478,425
Creditors: amounts falling due after more than one year
16
(301,494)
(437,509)
Provisions for liabilities
(32,076)
(54,026)
Net assets
2,592,772
2,986,890
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
2,591,772
2,985,890
Total equity
2,592,772
2,986,890
SINTEC UK LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
The financial statements were approved and signed by the director and authorised for issue on 31 March 2025
Mr. D. Roman
Director
Company Registration No. 05688495
The notes on pages 15 to 28 form part of these financial statements
SINTEC UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
2,197,707
2,198,707
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,044,298
1,044,298
Dividends
11
-
(256,115)
(256,115)
Balance at 31 December 2022
1,000
2,985,890
2,986,890
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(28,615)
(28,615)
Dividends
11
-
(365,503)
(365,503)
Balance at 31 December 2023
1,000
2,591,772
2,592,772
The notes on pages 15 to 28 form part of these financial statements
SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Sintec UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 23, Metro Centre, Britannia Way, Park Royal, London, United Kingdom, NW10 7PA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of Sintec Holding Limited. These consolidated financial statements are available from its registered office, Unit 23 Park Royal Metro Centre, Britannia Way, London, NW10 7PA.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Turnover

Turnover represents the value, net of value added tax and discounts, derived from contracts with customers for the provision of goods and services in the ordinary course of the company’s activities. The company recognises turnover in line with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

 

Turnover is recognised when it is probable that economic benefits will flow to the company, and the turnover can be reliably measured. Turnover from the rendering of services is recognised over time using a systematic basis, typically by reference to the stage of completion of the service provided or by billing based on the actual number of billable hours incurred. Turnover is accrued or deferred, as appropriate at the year end.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
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:

Plant and machinery
25% straight line
Fixtures & fittings
25% straight line
Computer equipment
25% straight line
Motor vehicles
25% 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.

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.

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.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

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.

1.11
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.

 

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.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the 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.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
2
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Engineering, mechanical and electrical installation
10,398,841
11,511,122
2023
2022
£
£
Turnover analysed by geographical market
UK
3,616,618
3,882,689
Europe
6,423,605
4,697,203
Rest of World
358,618
2,931,230
10,398,841
11,511,122
2023
2022
£
£
Other revenue
Interest income
8,262
3,458
3
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

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

Stock valuation

The directors estimate the levels of stocks held on site, for each project at the year end, the levels held are based on the stage of completion of the project. At the year end a balance of £278,121 (2022: £104,106), is recognised in stock, in relation to goods on site. This estimation is reviewed on a monthly basis, and updated in the management accounts accordingly.

Deferred income

The Company enters in to long term contracts with its customers. The Company recognises revenue, and therefore profit, on service contracts in progress at the year-end where reasonable confidence can be taken in the profitable completion. At the year-end, professional judgement is applied, by the directors, in reviewing the cost to complete on each project, to determine the revenue that should be recognised in the current year and the amount to be carried forward. The review of the completion and billing continues to be reviewed on a monthly basis, with any variances being released to the profit and loss as they arise.

4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
41,705
(240,547)
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
18,150
Depreciation of owned tangible fixed assets
115,813
87,846
Operating lease charges
162,019
181,287
5
Employees

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

2023
2022
Number
Number
Employees
122
133
SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,367,661
3,527,450
Social security costs
428,344
367,487
3,796,005
3,894,937
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
960
-
0

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2022 - 1).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
8,262
3,458
8
Interest payable and similar expenses
2023
2022
£
£
Other interest
44,673
32,009
9
Amounts written off investments
2023
2022
£
£
Amounts written back to/(written off) current loans
-
(75,000)
Amounts written back to/(written off) investments held at fair value
-
(58,999)
-
(133,999)
SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
13,420
346,600
Adjustments in respect of prior periods
(1,120)
-
0
Total current tax
12,300
346,600
Deferred tax
Origination and reversal of timing differences
(21,950)
22,346
Total tax (credit)/charge
(9,650)
368,946

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(38,265)
1,413,244
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(8,992)
268,516
Tax effect of expenses that are not deductible in determining taxable profit
(288)
86,689
Effect of change in corporation tax rate
-
0
10,450
Under/(over) provided in prior years
(370)
-
0
Deferred tax adjustments in respect of prior years
-
0
1,410
Super-deduction
-
0
1,881
Taxation (credit)/charge for the year
(9,650)
368,946

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19% as previously enacted). The Finance Bill 2021 had its third reading on 24 May 2021 and is now considered substantively enacted. This means that the 25% main rate of corporation tax and marginal relief will be relevant for any asset sales or timing differences expected to reverse on or after 1 April 2023.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Dividends
2023
2022
£
£
Final paid
365,503
256,115
12
Tangible fixed assets
Plant and machinery
Fixtures & fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
64,601
27,726
45,372
566,980
704,679
Additions
-
0
4,181
10,682
-
0
14,863
At 31 December 2023
64,601
31,907
56,054
566,980
719,542
Depreciation and impairment
At 1 January 2023
57,837
17,295
26,497
235,729
337,358
Depreciation charged in the year
4,274
6,335
8,650
96,554
115,813
At 31 December 2023
62,111
23,630
35,147
332,283
453,171
Carrying amount
At 31 December 2023
2,490
8,277
20,907
234,697
266,371
At 31 December 2022
6,764
10,431
18,875
331,251
367,321

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
227,915
319,589
227,915
319,589
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
278,121
104,106
SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,262,334
1,300,898
Amounts owed by group undertakings
1,503,842
1,799,556
Other debtors
79,986
120,540
Prepayments and accrued income
265,456
98,916
4,111,618
3,319,910
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
96,054
80,000
Obligations under hire purchase agreements
60,686
48,586
Trade creditors
593,498
349,383
Amounts owed to group undertakings
219,984
253,490
Corporation tax
13,420
348,043
Other taxation and social security
511,962
152,119
Other creditors
240,871
212,691
Accruals and deferred income
282,733
509,680
2,019,208
1,953,992
16
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
17
137,277
206,667
Obligations under hire purchase agreements
164,217
230,842
301,494
437,509

A Coronavirus Business Interruption Loan was obtained from HSBC in June 2020. The loan is repayable in instalments by July 2026 and is subject to interest at 3.99% above base rate. The loan is supported by both the government and a personal guarantee by a director totalling £40,000.

 

In addition, HSBC PLC holds a fixed and floating charge over the undertakings, all properties of the company and all assets present and future, as dated 11 April 2011.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Creditors: amounts falling due after more than one year
(Continued)
- 26 -

Hire purchase contracts and finance leases are secured on the assets they were used to acquire. They are repayable on an instalment basis, at interest rates between 3.72% and 6.09%.

17
Loans and overdrafts
2023
2022
£
£
Bank loans
233,331
286,667
Payable within one year
96,054
80,000
Payable after one year
137,277
206,667

A Coronavirus Business Interruption Loan was obtained from HSBC in June 2020. The loan is repayable in instalments by July 2026 and is subject to interest at 3.99% above base rate. The loan is supported by both the government and a personal guarantee by a director totalling £40,000.

 

In addition, HSBC PLC holds a fixed and floating charge over the undertakings, all properties of the company and all assets present and future, as dated 11 April 2011.

18
Finance lease and hire purchase obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
60,686
48,586
In two to five years
164,217
230,842
224,903
279,428

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is between 3 and 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
32,076
54,026
2023
Movements in the year:
£
Liability at 1 January 2023
54,026
Credit to profit or loss
(21,950)
Liability at 31 December 2023
32,076

The deferred tax liability set out above is expected to reverse within the foreseeable future and relates to accelerated capital allowances that are expected to mature within the same period.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
21
Financial commitments, guarantees and contingent liabilities

On 22 September 2023, the director was advised by HMRC, that there would be a full review of accounting and tax records across the whole of the business for all taxes and duties. The HMRC review remains ongoing, and at the date of issuing these financial statements there is uncertainty surrounding both the timing and value of any findings and or penalties, as such no provision has been made in these financial statements.

SINTEC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
22
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
160,946
111,579
Between two and five years
288,981
203,184
In over five years
98,000
140,000
547,927
454,763
23
Related party transactions

The company has taken advantage of the exemption available under FRS 102 Section 33.1A not to disclose transactions with other wholly-owned members of the group.

24
Ultimate controlling party

On 4 November 2021, Sintec Holding Limited became the parent company of Sintec UK, through a share for share exchange.

 

Ultimate control continue to be held by Mr. S. Morozov by virtue of his controlling shareholding in Sintec Holding Limited.

 

The smallest and largest group in which the results of the company are consolidated is that headed by the parent company, Sintec Holding Limited, a company incorporated in England and Wales, with a registered office located at Unit 23 Park Royal Metro Centre, Britannia Way, London, United Kingdom, NW10 7PA. The consolidated financial statements of this group are available to the public and may be obtained from Companies House.

25
Cross guarantee

There is a composite company limited multi lateral guarantee dated 14 March 2016, given by Sintec Properties Limited and Sintec UK Limited to the value of £135,000.

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