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Registered number: 10296542
ERBAY UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ERBAY UK LTD
COMPANY INFORMATION
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ERBAY UK LTD
CONTENTS
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Independent Auditors' Report
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Statement of Income and Retained Earnings
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Statement of Financial Position
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Notes to the Financial Statements
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ERBAY UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents the strategic report for the year ended 31 December 2024.
The period from 2023 to 2024 has marked a deliberate and transformative phase for our company, characterized by strategic repositioning, a focus on long-term growth, and significant achievements despite short-term financial contraction. We have navigated this period with resilience, a clear vision, and a commitment to quality and client satisfaction.
Turnover and Operational Focus
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From 2023 to 2024, our turnover decreased to 49% of the previous year. This reduction was a result of our intentional decision to be more selective with the projects we pursued. We have learned that some of the construction companies dropped down to the financial difficulties after Covid-19 period and we searched about them and refused their collaboration although some of them desired to work with us. Rather than pursuing volume, we prioritized productivity, resource alignment, and operational efficiency. As a result, no new contracts were signed in 2023, and our focus in 2024 remained solely on completing ongoing projects that commenced in 2023 or earlier.
Despite the reduction in turnover, our overall expenditures did not fall proportionally. This was due to continued capital (Capex) and operational (Opex) expenditures necessary to deliver on our existing project commitments. Although Capex did reduce in line with the reduced volume of work, the drop was not equivalent to the turnover decline. Nevertheless, the company maintained financial stability throughout this period.
Principal Risks and Uncertainties
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In common with businesses in the industry, projects include retentions which are due to be paid to the company after completion of the project and satisfactory sign off of the project from the client. Due to the uncertainty of the nature of the projects, the company only recognises retentions on projects that are due to complete in the next 12 months.
The company manages it's cash and borrowings in order to meet its working capital requirements, maximise interest income and minimise interest expense as effectively as possible.
As standard policy, all customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors and other debtors are reviewed on a regular basis and provision is made for doubtful debts as necessary.
Strengthened Financial Position and New Contract Success
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Our strong financial foundation allowed us to continue investing in our pre-contract operations throughout 2024. During this time, our pre-contract team was actively engaged in pursuing new opportunities, applying a disciplined, interest-aligned approach to project selection. This proactive strategy culminated in securing a significant new contract with Ardmore, valued at £17.089 million — the largest contract we have signed with them to date. This milestone not only strengthens our pipeline for the coming years but also serves as a strong endorsement of our performance and reputation.
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ERBAY UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Market Position and Growth Trajectory
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While we focused on operational delivery and strategic project targeting, we simultaneously expanded our network and enhanced our reputation in the UK construction sector. As we move into 2025, we proudly mark our 9th year of active presence in the UK market — a testament to our resilience, professionalism, and commitment to quality.
Milestone Achievement: Cumulative Turnover
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In 2025, our cumulative turnover is projected to exceed £100 million — a critical milestone that reflects the success of our strategy and consistent performance over the past decade. Reaching this figure in under 10 years of operation in the UK is a significant achievement and positions us well for further sustainable growth.
The past two years have been a period of transformation and strategic refinement. Despite short-term revenue contraction, we strengthened our market position, deepened client trust, and prepared the foundation for the next phase of growth. Our achievements — especially the major new contract and cumulative turnover milestone — reinforce our direction and underline our potential for continued success.
On behalf of the board.
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E Karakus
Director
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ERBAY UK LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents his report and the financial statements for the year ended 31 December 2024.
Director's responsibilities statement
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The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the company is that of aluminium cladding services.
The director who served during the year was:
Disclosure of information to auditors
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The director at the time when this Director's Report is approved has confirmed that:
∙so far as is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
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ERBAY UK LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Post balance sheet events
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Subsequent to the year ended 31 December 2024, Erbay UK Limited (“the Company”) entered into a settlement agreement with a customer on 18 August 2025 in relation to a dispute over payments for construction services. The dispute arose following the issuance of a payless notice by the customer on 25 June 2025, which reduced the amount payable under Erbay’s application for payment dated 15 May 2025.
Under the terms of the settlement, the parties agreed that a total amount of £1,000,000 would be payable to the Company, split into two instalments as follows:
• £600,000 (plus VAT) payable within 14 days of the settlement date; and
• £400,000 (plus VAT) payable within 28 days of the settlement date.
As £864,544 of the settlement amount relates to services provided during the year ended 31 December 2024, the Company has adjusted the 2024 financial statements to increase accrued income and turnover by this amount. The remaining balance of £135,456, which relates to services provided in the year ending 31 December 2025, will be recognized in the 2025 financial statements.
£600,000 was received on 29 September 2025, with the remaining amount expected to be received later in 2025.
The auditors, David Howard, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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ERBAY UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERBAY UK LTD
We have audited the financial statements of Erbay UK Ltd for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements and the related notes, including a summary of significant accounting policies.
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its 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.
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
We draw attention to Note 17 to the financial statements, which describes a settlement reached subsequent to the year ended 31 December 2024 between Erbay UK Limited (“the Company”) and a customer in relation to a dispute over payments for construction services. Under the terms of the settlement, a total of £1,000,000 is payable to the Company, split into two instalments of £600,000 (plus VAT) receivable within 14 days of the agreement date and £400,000 (plus VAT) receivable within 28 days of the agreement date.
As disclosed in Note 17, £864,544.46 of the settlement amount relates to services provided during the year ended 31 December 2024 and has been recognized by increasing accrued income and turnover in the 2024 financial statements. The remaining balance of £135,455.54, relating to services provided in the year ending 31 December 2025, will be recognized in the 2025 financial statements. £600,000 was received on 29 September 2025, with the remaining amount expected to be received later in 2025.
Our opinion is not modified in respect of this matter.
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ERBAY UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERBAY UK LTD (CONTINUED)
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the director's 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 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual Report. 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. 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 course of 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director's Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of director remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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ERBAY UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERBAY UK LTD (CONTINUED)
Responsibilities of directors
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As explained more fully in the Director's Responsibility Statement set out on page 3, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal controls as the director determines is 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 director is responsible for assessing the 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 intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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ERBAY UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERBAY UK LTD (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company.
We discussed with management how the compliance with these laws and regulations is monitored and obtained copies of the key policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
In terms of physical fraud, we consider the primary risks to be around misappropriation of cash at bank and the fraudulent obtaining of loan finance from the company. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to the overstatement of profit, either through overstating revenue or through management bias in accounting estimates around the recoverability of debtor balances. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
Based on this understanding we designed our audit procedures to identify irregularities. Our procedures involved the following:
∙Enquiries of those charged with governance, regarding their knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
∙Reviewing board meeting minutes for all meetings taking place throughout the year and indeed up until the date of signature of these financial statements;
∙Challenging assumptions and judgements made by management in its significant accounting estimates;
∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Reviewing draft tax computations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
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ERBAY UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERBAY UK LTD (CONTINUED)
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
∙Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 an Auditors' Report 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk /auditorsresponsibilities. This description forms part of our auditor's report.
Nicola King
Senior Statutory Auditor
For and on behalf of David Howard
Chartered Accountants & Statutory Auditor
1 Park Road
Hampton Wick
Kingston Upon Thames
KT1 4AS
30 September 2025
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ERBAY UK LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Retained earnings at the beginning of the year
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Retained earnings at the end of the year
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The notes on pages 13 to 23 form part of these financial statements.
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ERBAY UK LTD
REGISTERED NUMBER: 10296542
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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E Karakus
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The notes on pages 13 to 23 form part of these financial statements.
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ERBAY UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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(Increase)/decrease in stocks
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(Increase)/decrease in debtors
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(Increase)/decrease in amounts owed by groups
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Increase in amounts owed to groups
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Corporation tax (paid)/received
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Net cash from investing activities
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Net (decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 13 to 23 form part of these financial statements.
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of the company is that of aluminium cladding services.
The company is a private company limited by shares and is incorporated in England.
The address of its registered office is Unit C3, Tamian Way, Hounslow, England, TW4 6BL.
2.Accounting policies
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Basis of preparation of financial statements
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements are prepared in pounds sterling, which is the functional and presentational currency of the Company. Monetary amounts in these financial statements are rounded to the nearest pound.
At the time of approving the financial statements, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The director has a reasonable expectation, based on their assessment of the Company's financial position and resources, that it will continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
The director therefore continues to adopt the going concern basis of accounting in preparing the annual financial statements.
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
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Long-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less
costs to complete and sell. Cost includes all direct costs.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Slow-moving or obsolete stock is reviewed regularly, and where appropriate, provision is made to reduce the carrying amount to reflect any loss in value, including where the stock is not expected to be sold within a reasonable period.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to and from related parties and investments in non-puttable ordinary shares.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
A provision for bad debts is made where there is evidence that amounts due may not be recoverable in full. This includes specific balances identified as doubtful based on ageing, past payment history, or known financial difficulties of the debtor. Amounts considered irrecoverable are written off against the provision when identified.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenes and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Retentions
In common with businesses in the industry, projects include retentions which are due to be paid to the company after completion of the project and satisfactory sign off of the project from the client. Due to the uncertainty of the nature of the projects, the company only recognises retentions on projects that are due to complete in the next 12 months.
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Cost of defined pension contribution scheme
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The average monthly number of employees, including directors, during the year was 19 (2023 - 21).
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Company contributions to defined contribution pension schemes
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Long-term leasehold property
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Charge for the year on owned assets
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Amounts owed by group undertakings
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Prepayments and accrued income
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Allotted, called up and fully paid
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1,250,000 (2023 - 1,250,000) Ordinary shares of £1.00 each
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The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions of £3,796 (2023: £Nil) were payable to the fund at the balance sheet date.
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Transactions with directors
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Included within other debtors is a balance totalling £5,783 (2023: £5,783) due from the director of the Company.This balance is unsecured and interest free, with no fixed repayment terms.
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Related party transactions
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Where possible the company has taken advantage of the exemption conferred by section 33.1A of FRS102 from the requirement to disclose transactions with other wholly owned group companies.
Included within other debtors is a balance totalling £259,983 (2023: £Nil) due from a company with shared directors. This balance is unsecured and interest free, with no fixed repayment terms
Included within other creditors are balances totalling £2,630,587 (2023: £2,016,713) due to companies with shared directors. These balances are unsecured and interest free, with no fixed repayment terms.
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ERBAY UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Post balance sheet events
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Subsequent to the year ended 31 December 2024, Erbay UK Limited (“the Company”) entered into a settlement agreement with a customer on 18 August 2025 in relation to a dispute over payments for construction services. The dispute arose following the issuance of a payless notice by the customer on 25 June 2025, which reduced the amount payable under Erbay’s application for payment dated 15 May 2025.
Under the terms of the settlement, the parties agreed that a total amount of £1,000,000 would be payable to the Company, split into two instalments as follows:
• £600,000 (plus VAT) payable within 14 days of the settlement date; and
• £400,000 (plus VAT) payable within 28 days of the settlement date.
As £864,544 of the settlement amount relates to services provided during the year ended 31 December 2024, the Company has adjusted the 2024 financial statements to increase accrued income and turnover by this amount. The remaining balance of £135,456, which relates to services provided in the year ending 31 December 2025, will be recognized in the 2025 financial statements.
£600,000 was received on 29 September 2025, with the remaining amount expected to be received later in 2025.
The immediate and ultimate parent undertaking is Erbay Aluminyum, a company incorporated in Turkey
Copies of Erbay Aluminyum's consolidated financial statements can be obtained from Zümrütevler Mah. Keskin Sokak No:8, Maltepe, Istanbul.
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