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REGISTERED NUMBER: 10395957 (England and Wales)







Financial Statements for the Year Ended 31st December 2024

for

HL.SKJONG UK Limited

HL.SKJONG UK Limited (Registered number: 10395957)






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




Page

Company Information 1

Abridged Balance Sheet 2

Notes to the Financial Statements 4


HL.SKJONG UK Limited

Company Information
for the Year Ended 31st December 2024







DIRECTOR: Hans Ludvig Skjong





REGISTERED OFFICE: Unit 4 & 5 Porthouse Business Centre
Tenbury Road
Bromyard
HR7 4FL





REGISTERED NUMBER: 10395957 (England and Wales)





ACCOUNTANTS: The Richards Sandy Partnership
Thorneloe House
25 Barbourne Road
Worcester
Worcestershire
WR1 1RU

HL.SKJONG UK Limited (Registered number: 10395957)

Abridged Balance Sheet
31st December 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 4 400,000 192,734
Tangible assets 5 1,201,180 617,802
1,601,180 810,536

CURRENT ASSETS
Stocks 168,001 317,271
Debtors 378,198 229,551
Cash at bank and in hand 253 5
546,452 546,827
CREDITORS
Amounts falling due within one year 1,235,427 851,495
NET CURRENT LIABILITIES (688,975 ) (304,668 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

912,205

505,868

CREDITORS
Amounts falling due after more than one
year

(897,127

)

(404,334

)

PROVISIONS FOR LIABILITIES (77,757 ) (120,381 )
NET LIABILITIES (62,679 ) (18,847 )

CAPITAL AND RESERVES
Called up share capital 30,000 30,000
Retained earnings (92,679 ) (48,847 )
(62,679 ) (18,847 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2024 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

HL.SKJONG UK Limited (Registered number: 10395957)

Abridged Balance Sheet - continued
31st December 2024


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Balance Sheet for the year ended 31st December 2024 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 13th May 2025 and were signed by:





Hans Ludvig Skjong - Director


HL.SKJONG UK Limited (Registered number: 10395957)

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

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

SIGNIFICANT JUDGEMENTS AND ESTIMATES
The company has acquired a "right of use" intangible fixed asset as consideration for its services provided to a customer accounted for under construction contract accounting principals. The deemed fair value of this intangible fixed asset at date of acquisition has been determined by the director based on the value of the cash consideration paid by a third party for the relating intellectual property.

GOING CONCERN
During the year the company continued to invest heavily in machinery and undertook further product development activities, for which it entered into an agreement with another company who acquired the intellectual property rights of the product in exchange for a right of use of that intellectual property, as well as financial and non-financial support.

Whilst the company currently has negative reserves, when currently ongoing product development activities have been completed the company is expected to manufacture and sell the related products profitably. It is anticipated that future profits from these sales will exceed the total development costs incurred and should commence mid-2025.

The company meets its day-to-day working capital requirements through both its bank facilities and financial support from its parent company Skjong Invest AS. Skjong Invest AS, has confirmed that it will continue to support HL. Skjong UK Ltd for the foreseeable future.

The directors are satisfied that the company is in a position to meet its liabilities as they fall due over the next 12 months from the date of signing of these financial statements and on this basis, the financial statements have been prepared on a going concern basis.

TURNOVER
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has passed to the buyer (usually on dispatch of the goods) and the amount of turnover can be measured reliably.

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable.

Where a contract has only been partially completed at the balance sheet date, turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date.

Rental income is recognised on a straight line basis over the lease term.

INTANGIBLE ASSETS
Development costs that are directly attributable to the design and testing of identifiable and unique products controlled by the company are recognised as intangible assets when the following criteria are met:

-it is technically feasible to complete the product so that it will be available for use;
-management intends to complete the product and use or sell it;
-there is an ability to use or sell the product;
-it can be demonstrated how the product will generate probable future economic benefits;
-adequate technical, financial and other resources to complete the development and to use or sell the product are available; and
-the expenditure attributable to the product during its development can be reliably measured.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred.


HL.SKJONG UK Limited (Registered number: 10395957)

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

2. ACCOUNTING POLICIES - continued
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives. As no reliable estimate of the useful life of development costs can be make, the useful life of development costs is assumed to be 10 years.

Development costs are amortisation begins when it is available for use. No amortisation is provided on ongoing product developments until the related product is ready to be manufactured and sold.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% on cost
Plant and machinery - 25% on reducing balance and 10% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying value of an asset, and is credited or charged to the profit or loss.

STOCKS
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

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.

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

HL.SKJONG UK Limited (Registered number: 10395957)

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

2. ACCOUNTING POLICIES - continued

PENSION COSTS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2023 - 5 ) .

4. INTANGIBLE FIXED ASSETS
Totals
£   
COST
At 1st January 2024 192,734
Additions 705,404
Disposals (32,000 )
Transfer to cost of sales (466,138 )
At 31st December 2024 400,000
NET BOOK VALUE

At 31st December 2024 400,000
At 31st December 2023 192,734

During the year the company entered into an arrangement to transfer the ownership of the intellectual property related to development work that was still ongoing at the time of this agreement.

The company has acquired a "right of use" intangible fixed asset as part consideration for this arrangement. The deemed fair value of the "right of use" as consideration towards the development and sale of the intellectual property currently in the development stage has been determined by the director based on the value of the cash consideration paid by a third party for the relating intellectual property.

5. TANGIBLE FIXED ASSETS
Totals
£   
COST
At 1st January 2024 719,682
Additions 719,920
At 31st December 2024 1,439,602
DEPRECIATION
At 1st January 2024 101,880
Charge for year 136,542
At 31st December 2024 238,422
NET BOOK VALUE
At 31st December 2024 1,201,180
At 31st December 2023 617,802

HL.SKJONG UK Limited (Registered number: 10395957)

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

6. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 171,576 105,921
Between one and five years 627,127 404,334
798,703 510,255

Non-cancellable operating leases
2024 2023
£    £   
Within one year 68,000 33,000
Between one and five years 168,083 99,000
236,083 132,000

7. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 154,592 249,010
Bank loans 300,000 -
Hire purchase contracts 798,703 510,255
1,253,295 759,265

Hire purchases liabilities are secured against the corresponding items of plant and machinery.

Bank loans and overdrafts are secured by way of fixed and floating charges over the trade and assets of the company.

8. ULTIMATE PARENT COMPANY

The ultimate parent company, who is also the parent company of the smallest group for which consolidated financial statements are drawn up in which the company is included, is Skjong Invest AS. The registered office of Skjong Invest AS is Breivika industriveg 48, 6018 Ålesund, Norway.