| REGISTERED NUMBER: |
| Financial Statements for the Year Ended 31st December 2024 |
| for |
| HL.SKJONG UK Limited |
| REGISTERED NUMBER: |
| 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: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| ACCOUNTANTS: |
| 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 |
| Tangible assets | 5 |
| CURRENT ASSETS |
| Stocks |
| Debtors |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
| NET LIABILITIES | ( |
) | ( |
) |
| CAPITAL AND RESERVES |
| Called up share capital |
| Retained earnings | ( |
) | ( |
) |
| ( |
) | ( |
) |
| 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 were approved by the director and authorised for issue on |
| 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 |
| 2. | ACCOUNTING POLICIES |
| BASIS OF PREPARING THE FINANCIAL STATEMENTS |
| 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 |
| Improvements to property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| 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 |
| 4. | INTANGIBLE FIXED ASSETS |
| Totals |
| £ |
| COST |
| At 1st January 2024 |
| Additions |
| Disposals | ( |
) |
| Transfer to cost of sales | (466,138 | ) |
| At 31st December 2024 |
| NET BOOK VALUE |
| At 31st December 2024 |
| At 31st December 2023 |
| 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 |
| Additions |
| At 31st December 2024 |
| DEPRECIATION |
| At 1st January 2024 |
| Charge for year |
| At 31st December 2024 |
| NET BOOK VALUE |
| At 31st December 2024 |
| At 31st December 2023 |
| 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 |
| Between one and five years |
| Non-cancellable | operating leases |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| 7. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| £ | £ |
| Bank overdrafts |
| Bank loans |
| Hire purchase contracts | 798,703 | 510,255 |
| 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. |