Company Registration No. 01712326 (England and Wales)
RESCO PRODUCTS (UK) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
RESCO PRODUCTS (UK) LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
RESCO PRODUCTS (UK) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
395,509
377,863
Current assets
Inventories
849,693
1,181,857
Trade and other receivables
5
13,571,957
7,740,978
Cash and cash equivalents
638,365
663,868
15,060,015
9,586,703
Current liabilities
6
(1,733,193)
(787,287)
Net current assets
13,326,822
8,799,416
Total assets less current liabilities
13,722,331
9,177,279
Equity
Called up share capital
7
100
100
Other reserves
249,981
249,981
Retained earnings
13,472,250
8,927,198
Total equity
13,722,331
9,177,279

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered 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 18 June 2025 and are signed on its behalf by:
S Wilkins
C Robertson
Director
Director
Company Registration No. 01712326
RESCO PRODUCTS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
1
Accounting policies
Company information

Resco Products (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Newbold Works, Melbourne Rd, Ashby-de-la-Zouch, United Kindgom, LE65 1PL.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.2
Going concern

The ultimate parent company and its subsidiaries have sufficient cash resources to enable the company to continue for the foreseeable future. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As such, the directors have continued to adopt the going concern basis in these financial statementstrue.

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account settlement discounts and volume rebates.

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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

1.5
Property, plant and equipment

Property, plant and equipment are stated at cost less depreciation. Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and freehold buildings
Land is not depreciated. Buildings are depreciated at 2-10% straight line
Plant and machinery
5-50% straight line
Fixtures, fittings & equipment
10-50% 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.

The depreciation charge in the financial statements is allocated to cost of sales or administrative expenses depending on whether the property, plant and equipment is used for production or admin services.

RESCO PRODUCTS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

 

Inventories held for distribution at no or nominal 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 inventories 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.

1.8
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 statement of financial position 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 trade and other receivables 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.

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 trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

RESCO PRODUCTS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
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.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 non-current 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
The company operates a defined contribution pension scheme. Contributions payable are charged to the profit and loss account in the period in which they accrue.
1.13
Leases

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.

1.15

Other reserves

Other reserves relate to capital contributed by the parent company in order to strengthen the company's capital base. These reserves are currently considered to be distributable.

RESCO PRODUCTS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
2
Judgements and key sources of estimation uncertainty

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

 

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.

Recoverability of amounts owed by group undertakings

At the year end the company was owed £6,564,852 (2023: £6,199,099) included in amounts owed by group undertakings from its parent company. The directors assess the recoverability of this debtor based on the sufficient cash resources available to the group and its subsidiaries. Furthermore, the Company has a history of declaring dividends to its parent company to clear amounts owed. At the year end the directors consider the amounts owed by group undertakings to be recoverable.

3
Employees

The average monthly number of persons employed by the company during the year was:

2024
2023
Number
Number
Total
27
25
RESCO PRODUCTS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
4
Property, plant and equipment
Land and freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2024
671,686
692,187
32,047
1,395,920
Additions
27,045
26,495
-
0
53,540
Disposals
(2,440)
(6,226)
-
0
(8,666)
At 31 December 2024
696,291
712,456
32,047
1,440,794
Depreciation and impairment
At 1 January 2024
414,861
577,969
25,227
1,018,057
Depreciation charged in the year
16,404
17,446
824
34,674
Eliminated in respect of disposals
(1,220)
(6,226)
-
0
(7,446)
At 31 December 2024
430,045
589,189
26,051
1,045,285
Carrying amount
At 31 December 2024
266,246
123,267
5,996
395,509
At 31 December 2023
256,825
114,218
6,820
377,863
5
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
6,974,139
1,450,493
Amounts owed by group undertakings
6,564,852
6,199,099
Other receivables
-
0
19,642
Prepayments and accrued income
32,966
71,744
13,571,957
7,740,978
6
Current liabilities
2024
2023
£
£
Trade payables
692,350
324,923
Corporation tax
865,611
282,243
Other taxation and social security
35,674
21,801
Other payables
11,087
9,210
Accruals and deferred income
128,471
149,110
1,733,193
787,287
RESCO PRODUCTS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
8
Audit report information

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:

The auditor's report was unqualified.

The senior statutory auditor was Simon Mott-Cowan.
The auditor was HW Fisher Audit.
9
Financial commitments, guarantees and contingent liabilities

During the prior year, charges in favour of the agent and collateral agent which contains a fixed charge, floating charge and negative pledge over all assets of the company have been created, and the company was a guarantor on a loan to the parent company.

 

Following the year-end, the charges have been satisfied.

10
Operating lease commitments
Lessee

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

2024
2023
£
£
101,273
138,570
11
Controlling parties

The company's parent company is Resco Products Inc. During the year the ultimate parent company was Balmoral Fund III Series LLC, a company incorporated in Delaware, USA, whose registered office is 11150 Santa Monica Blvd., Suite 825, Los Angeles, California 90025.

 

Following the year end, the ultimate parent company has become RHI Magnesita N.V, a company incorporated in Netherlands.

 

The results of the company are included in the consolidated financial statements of Thermal Solutions Intermediate Holdings Inc, which are not available to the public. Thermal Solutions Holdings Inc is a company incorporated in the state of Delaware, USA, with registered office of 2711 Centerville Road, Suite 400, Wilmington, County of New Castle, Delaware 19808.

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