UIM Services UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Innovation House, Cray Road, Sidcup, Kent, DA14 5DP.
The company was incorporated on 17 July 2023. These financial statements cover the long period from incorporation to 31 December 2024 and have no comparative period.
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 £.
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.
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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
In the application of the company’s accounting policies, the directors are 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.
The average monthly number of persons (including directors) employed by the company during the period was:
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
Kanal Service Holding AG
At the year end, the company owed £16,335,262 to Kanalservice Holding AG, the immediate parent of the company. For the years 2023 and 2024, the interest rate is 9% per annum. Interest is payable at end of each quarter. The loan is payable fully no later than 31 December 2028.
During the year, the company paid interest of £1,574,547 on the loan. During the year, the company also paid management fee of £171,853.
Defluo Plumbing and Drainage Limited
At the year end, the company owed £6,073,753 to Defluo Plumbing and Drainage Limited, the wholly owned subsidiary of the company. For the years 2023 and 2024, the interest rate is 9% per annum. Interest is payable at end of each quarter. The loan is payable fully no later than December 31,2028.
During the year, the company paid interest of £384,493 on the loan. During the year, the company received management fee of £163,854.
As part of the acquisition of Defluo Plumbing and Drainage Limited, the share purchase agreement includes contingent consideration of up to £7,500,000, payable in three equal instalments of £2,500,000 over the financial years 2023, 2024, and 2025.
The contingent consideration is subject to the acquired business achieving minimum adjusted EBITDA targets for FY23, FY24, and FY25.
The EBITDA target for FY23 was met, and the first instalment of £2,500,000 has been paid. However, based on the latest financial performance, the estimated adjusted EBITDA for FY24 falls below the required threshold. As a result, it is currently considered unlikely that the contingent consideration for FY24 and FY25 will become payable.
In accordance with FRS 102, Section 19, no liability has been recognised for the remaining contingent consideration in the financial statements. The arrangement will be reassessed at each reporting date, and if future performance indicates that further payments become probable, a liability will be recognised at that point.