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REGISTERED NUMBER: 00922735 (England and Wales)











Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Corrosion Technology Services Europe Ltd

Corrosion Technology Services Europe Ltd (Registered number: 00922735)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2024




Page

Company Information 1

Report of the Directors 2

Report of the Independent Auditors 4

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Notes to the Consolidated Financial Statements 14


Corrosion Technology Services Europe Ltd

Company Information
for the Year Ended 31 December 2024







DIRECTORS: P R Viswanathan
S P Wroe
R M Callon





REGISTERED OFFICE: Unit 12 Merlin Park
Fred Dannatt Road
Mildenhall
Bury St Edmunds
Suffolk
IP28 7RD





REGISTERED NUMBER: 00922735 (England and Wales)





AUDITORS: Knights Lowe Limited
Eldo House
Kempson Way
Suffolk Business Park
Bury St Edmunds
Suffolk
IP32 7AR

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Report of the Directors
for the Year Ended 31 December 2024

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

P R Viswanathan
S P Wroe

Other changes in directors holding office are as follows:

R M Callon - appointed 23 March 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Knights Lowe Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.


Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Report of the Directors
for the Year Ended 31 December 2024

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:




S P Wroe - Director


8 April 2025

Report of the Independent Auditors to the Members of
Corrosion Technology Services Europe Ltd

Opinion
We have audited the financial statements of Corrosion Technology Services Europe Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity and 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Corrosion Technology Services Europe Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Corrosion Technology Services Europe Ltd


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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the companies operating sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation ;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
- investigated the rationale behind significant or unusual transactions; and

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures in line with our responsibilities above to detect material misstatement in respect of irregularities including fraud, which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HMRC and the company's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


Report of the Independent Auditors to the Members of
Corrosion Technology Services Europe Ltd

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




James Knights BSc ACA (Senior Statutory Auditor)
for and on behalf of Knights Lowe Limited
Eldo House
Kempson Way
Suffolk Business Park
Bury St Edmunds
Suffolk
IP32 7AR

14 April 2025

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Consolidated
Income Statement
for the Year Ended 31 December 2024

2024 2023
Notes £    £    £   

TURNOVER 3,633,004 4,423,875

Cost of sales 2,512,733 3,114,064
GROSS PROFIT 1,120,271 1,309,811

Distribution costs - 9,659
Administrative expenses 701,090 490,544
701,090 500,203
419,181 809,608

Other operating income 1,077 5,026
OPERATING PROFIT 5 420,258 814,634

Interest receivable and similar income 2,132 29
422,390 814,663

Finance costs 26,112 21,401
PROFIT BEFORE TAXATION 396,278 793,262

Tax on profit 6 103,727 170,606
PROFIT FOR THE FINANCIAL YEAR 292,551 622,656
Profit attributable to:
Owners of the parent 292,751 622,656
Non-controlling interests (200 ) -
292,551 622,656

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Consolidated
Other Comprehensive Income
for the Year Ended 31 December 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 292,551 622,656


OTHER COMPREHENSIVE INCOME
Foreign exchange difference (165 ) -
Freehold property revaluation
Deferred tax on revaluation
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

(165

)

-
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

292,386

622,656

Total comprehensive income attributable to:
Owners of the parent 292,586 622,656
Non-controlling interests (200 ) -
292,386 622,656

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Consolidated Balance Sheet
31 December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 414,789 429,353
Investments 10 - -
414,789 429,353

CURRENT ASSETS
Stocks 11 319,963 485,912
Debtors 12 920,986 1,268,547
Cash at bank and in hand 777,786 126,241
2,018,735 1,880,700
CREDITORS
Amounts falling due within one year 13 293,974 480,926
NET CURRENT ASSETS 1,724,761 1,399,774
TOTAL ASSETS LESS CURRENT LIABILITIES 2,139,550 1,829,127

PROVISIONS FOR LIABILITIES 16 20,521 24,864
NET ASSETS 2,119,029 1,804,263

CAPITAL AND RESERVES
Called up share capital 17 4,552 4,552
Revaluation reserve 18 202,742 202,742
Capital redemption reserve 506 506
Translation Reserves (165 ) -
Retained earnings 1,889,214 1,596,463
SHAREHOLDERS' FUNDS 2,096,849 1,804,263

NON-CONTROLLING INTERESTS 19 22,180 -
TOTAL EQUITY 2,119,029 1,804,263

The financial statements have been prepared 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 8 April 2025 and were signed on its behalf by:





S P Wroe - Director


Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Company Balance Sheet
31 December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 414,789 429,353
Investments 10 21,668 -
436,457 429,353

CURRENT ASSETS
Stocks 11 319,963 485,912
Debtors 12 898,606 1,268,547
Cash at bank and in hand 775,764 126,241
1,994,333 1,880,700
CREDITORS
Amounts falling due within one year 13 292,987 480,926
NET CURRENT ASSETS 1,701,346 1,399,774
TOTAL ASSETS LESS CURRENT LIABILITIES 2,137,803 1,829,127

PROVISIONS FOR LIABILITIES 16 20,521 24,864
NET ASSETS 2,117,282 1,804,263

CAPITAL AND RESERVES
Called up share capital 17 4,552 4,552
Revaluation reserve 18 202,742 202,742
Capital redemption reserve 506 506
Retained earnings 1,909,482 1,596,463
SHAREHOLDERS' FUNDS 2,117,282 1,804,263

Company's profit for the financial year 313,019 622,656

The financial statements have been prepared 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 8 April 2025 and were signed on its behalf by:





S P Wroe - Director


Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up Capital
share Retained Revaluation redemption
capital earnings reserve reserve
£    £    £    £   
Balance at 1 January 2023 4,552 1,131,686 202,742 506

Changes in equity
Dividends - (157,879 ) - -
Total comprehensive income - 622,656 - -
Balance at 31 December 2023 4,552 1,596,463 202,742 506

Changes in equity
Total comprehensive income - 292,751 - -
4,552 1,889,214 202,742 506
Non-controlling interest arising on
business combination

-

-

-

-
Balance at 31 December 2024 4,552 1,889,214 202,742 506
Translation Non-controlling Total
Reserves Total interests equity
£    £    £    £   
Balance at 1 January 2023 - 1,339,486 - 1,339,486

Changes in equity
Dividends - (157,879 ) - (157,879 )
Total comprehensive income - 622,656 - 622,656
Balance at 31 December 2023 - 1,804,263 - 1,804,263

Changes in equity
Total comprehensive income (165 ) 292,586 (200 ) 292,386
(165 ) 2,096,849 (200 ) 2,096,649
Non-controlling interest arising on
business combination

-

-

22,380

22,380
Balance at 31 December 2024 (165 ) 2,096,849 22,180 2,119,029

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Company Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 January 2023 4,552 1,131,686 202,742 506 1,339,486

Changes in equity
Dividends - (157,879 ) - - (157,879 )
Total comprehensive income - 622,656 - - 622,656
Balance at 31 December 2023 4,552 1,596,463 202,742 506 1,804,263

Changes in equity
Total comprehensive income - 313,019 - - 313,019
Balance at 31 December 2024 4,552 1,909,482 202,742 506 2,117,282

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2024

1. STATUTORY INFORMATION

Corrosion Technology Services Europe Ltd 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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.

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

There are no critical judgements and key sources of estimation uncertainty to be disclosed.

Turnover
Turnover comprises revenue recognised by the group in respect of goods and services supplied, exclusive of value added tax and trade discounts. Turnover is recognised based on the date of despatch or the date services are provided.

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.

Revenue from long term contracts for the provision of goods and 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 are recoverable.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and machinery - 33% on reducing balance
Fixtures and fittings - 33% on reducing balance
Motor vehicles - 33% on reducing balance

Freehold land and buildings are revalued annually.

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.

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 normal consideration are measured at the lower of replacement cost and 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.

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

3. ACCOUNTING POLICIES - continued

Financial instruments
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loans from banks or other related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the 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.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

3. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

The foreign branches have been consolidated within the financial statements. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the average exchange rate relating to the accounting period.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Impairment
At each reporting date tangible fixed assets are assessed to determine whether there is an indication that the carrying amount of an asset may be more than its recoverable amount and that the asset should be impaired. If there is an indication of possible impairment, the recoverable amount of an asset, which is the higher of its value in use and its net realisable value, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is written down to its estimated recoverable amount and an impairment loss is recognised in profit and loss.

Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and 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 lease asset are consumed.

Cash and cash equivalent
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 32 (2023 - 33 ) .

2024 2023
£    £   
Directors' remuneration 15,000 15,000

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 20,636 23,207
Auditors' remuneration 12,870 7,959
Foreign exchange differences 26,645 (714 )
Entertainment 400 3,476
Pension costs 53,956 45,165
Operating lease charge 97,990 75,884

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 108,070 164,761
Adjustment re: previous years - 274
Total current tax 108,070 165,035

Deferred tax (4,343 ) 5,571
Tax on profit 103,727 170,606

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Foreign exchange difference (165 ) - (165 )
Freehold property revaluation
Deferred tax on revaluation
(165 ) - (165 )

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
2024 2023
£    £   
Interim paid - 157,879

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

9. TANGIBLE FIXED ASSETS

Group
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST OR VALUATION
At 1 January 2024 380,000 385,335 765,335
Additions - 6,678 6,678
Exchange differences - (6,206 ) (6,206 )
At 31 December 2024 380,000 385,807 765,807
DEPRECIATION
At 1 January 2024 - 335,982 335,982
Charge for year - 20,636 20,636
Exchange differences - (5,600 ) (5,600 )
At 31 December 2024 - 351,018 351,018
NET BOOK VALUE
At 31 December 2024 380,000 34,789 414,789
At 31 December 2023 380,000 49,353 429,353

The freehold property was last revalued at 14 January 2022 by chartered surveyors Eddisons based on an open market value for existing use basis. The directors consider that there has been no significant movement in the valuation of the property at the year end.

Cost or valuation at 31 December 2024 is represented by:

Plant and
Land and machinery
buildings etc Totals
£    £    £   
Valuation in 2017 58,188 - 58,188
Valuation in 2021 145,000 - 145,000
Valuation in 2022 176,812 - 176,812
Cost - 385,807 385,807
380,000 385,807 765,807

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

9. TANGIBLE FIXED ASSETS - continued

Company
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST OR VALUATION
At 1 January 2024 380,000 385,335 765,335
Additions - 6,678 6,678
Exchange differences - (6,206 ) (6,206 )
At 31 December 2024 380,000 385,807 765,807
DEPRECIATION
At 1 January 2024 - 335,982 335,982
Charge for year - 20,636 20,636
Exchange differences - (5,600 ) (5,600 )
At 31 December 2024 - 351,018 351,018
NET BOOK VALUE
At 31 December 2024 380,000 34,789 414,789
At 31 December 2023 380,000 49,353 429,353

The freehold property was last revalued at 14 January 2022 by chartered surveyors Eddisons based on an open market value for existing use basis. The directors consider that there has been no significant movement in the valuation of the property at the year end.

Cost or valuation at 31 December 2024 is represented by:

Plant and
Land and machinery
buildings etc Totals
£    £    £   
Valuation in 2017 58,188 - 58,188
Valuation in 2022 145,000 - 145,000
Cost 176,812 385,807 562,619
380,000 385,807 765,807

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

10. FIXED ASSET INVESTMENTS

Company
Interest
in other
participating
interests
£   
COST
Additions 21,668
At 31 December 2024 21,668
NET BOOK VALUE
At 31 December 2024 21,668

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

C T S Trading nd Services LLC
Registered office: Doha, Qatar
Nature of business: Oil field maintenance and supply of equipment
%
Class of shares: holding
Odinary 49.00
2024
£   
Aggregate capital and reserves (23,416 )
Loss for the year (20,042 )

In 2024 Corrosion Technology Services Europe Ltd acquired 49% of the share capital of CTS Trading and Services LLC, a company registered in Qatar. This acquisition was made for commercial reasons, to ensure that the group could continue to trade in Qatar. The Articles of Association of CTS Trading and Services LLC state that Corrosion Technology Services Europe Ltd is entitled to 99% of any profits and has control over the management of the company. Consolidated accounts have therefore been prepared.


11. STOCKS

Group Company
2024 2023 2024 2023
£    £    £    £   
Stocks 234,804 215,861 234,804 215,861
Work-in-progress 85,159 270,051 85,159 270,051
319,963 485,912 319,963 485,912

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade debtors 738,941 995,996 738,941 995,996
Amounts owed by group undertakings 11,993 15,710 11,993 15,710
Other debtors 170,052 256,841 147,672 256,841
920,986 1,268,547 898,606 1,268,547

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade creditors 104,012 66,756 104,012 66,756
Taxation and social security 107,885 179,402 107,885 179,402
Other creditors 82,077 234,768 81,090 234,768
293,974 480,926 292,987 480,926

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 53,469 34,574
Between one and five years 38,792 13,893
92,261 48,467

Company
Non-cancellable operating leases
2024 2023
£    £   
Within one year 53,469 34,574
Between one and five years 38,792 13,893
92,261 48,467

15. SECURED DEBTS

The bank hold a debenture including fixed charge over all present freehold and leasehold property and first fixed & floating charge over all assets of the company both present and future. A first legal charge is over freehold property known as Units 11 & 12, Merlin Park, Fred Dannatt Road, Mildenhall, Suffolk, IP28 7RD.

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

16. PROVISIONS FOR LIABILITIES

Group Company
2024 2023 2024 2023
£    £    £    £   
Deferred tax
Accelerated capital allowances 8,455 12,798 8,455 12,798
Deferred tax on revaluations 12,066 12,066 12,066 12,066
20,521 24,864 20,521 24,864

Group
Deferred
tax
£   
Balance at 1 January 2024 24,864
Provided during year (4,343 )
Balance at 31 December 2024 20,521

Company
Deferred
tax
£   
Balance at 1 January 2024 24,864
Provided during year (4,343 )
Balance at 31 December 2024 20,521

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
4,552 Ordinary GBP1 4,552 4,552

18. RESERVES

Group
Revaluation
reserve
£   
At 1 January 2024
and 31 December 2024 202,742

Corrosion Technology Services Europe Ltd (Registered number: 00922735)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2024

18. RESERVES - continued

Company
Revaluation
reserve
£   
At 1 January 2024
and 31 December 2024 202,742


19. NON-CONTROLLING INTERESTS

In 2024 Corrosion Technology Services Europe Ltd acquired 49% of the share capital of CTS Trading and Services LLC, a company registered in Qatar. This acquisition was made for commercial reasons, to ensure that the group could continue to trade in Qatar. The Articles of Association of CTS Trading and Services LLC state that Corrosion Technology Services Europe Ltd is entitled to 99% of any profits and has control over the management of the company. Consolidated accounts have therefore been prepared.

20. CONTINGENT LIABILITIES

At 31 December 2024 the group had provided performance bonds to customers of £200,874 (2023 - £219,064). The directors do not feel that it is appropriate to make any provision in respect of the performance bonds in place as they are satisfied the company will complete the relevant contracts to the required standard.

21. RELATED PARTY DISCLOSURES

During the year the group entered into the following transactions with wholly owned subsidiaries of the parent company;

Sales
Saudi Cathodic Protection MFG Co Ltd & Saudi Cathodic Protection Co Ltd £92,584 (2023 - £20,732)
Corrosion Technology Services Middle East LLC £220,609 (2023 - £127,957)
Corrosion & Technical Services WLL. £11,044 (2023 - £8,381)
CTS India (PVT) Limited £19,968 (2023 - £16,316)

Purchases
Corrosion Technology Services Middle East LLC £179,809 (2023 - £442,267)
Corrosion & Technical Services WLL £9,462 (2023 - £51,771)

At the year end the following balances were outstanding:

Debtors
CTS India (PVT) Limited £11,993 (2023 - £15,710)

A company guarantee is given by Corrosion Technology Services LLC to secure all liabilities of Corrosion Technology Services Europe Limited, limited to £800,000.

22. ULTIMATE CONTROLLING PARTY

The group is a wholly owned subsidiary of Corrosion Technology Services LLC, a company registered in the United Arab Emirates. The ultimate controlling party is Al Nasser Holdings LLC, where the consolidated accounts are held at the companies registered office at 18th Floor Liwa Tower, Capital Centre, Al Khaleej AI Arabi Street, PO Box 46611, Abu Dhabi, United Arab Emirates.