ACCOUNTS - Final Accounts preparation

Registered number: 07077094

REM SURFACE ENGINEERING LIMITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2024

REM SURFACE ENGINEERING LIMITED

REGISTERED NUMBER: 07077094

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	5		39,023		52,026
			39,023		52,026
Current assets
Stocks	6	503,923		862,393
Debtors: amounts falling due within one year	7	2,077,973		1,298,044
Cash at bank and in hand	8	309,545		702,543
		2,891,441		2,862,980
Creditors: amounts falling due within one year	9	(1,103,540)		(1,756,188)
Net current assets			1,787,901		1,106,792
Total assets less current liabilities			1,826,924		1,158,818
Provisions for liabilities
Deferred tax	10	(2,444)		(10,688)
			(2,444)		(10,688)
Net assets			1,824,480		1,148,130

Capital and reserves
Called up share capital	11	1,000	1,000
Profit and loss account		1,823,480	1,147,130
Total Equity		1,824,480	1,148,130

Page 1

REM SURFACE ENGINEERING LIMITED

REGISTERED NUMBER: 07077094

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2024

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 October 2025.

Justin Michaud

Director

The notes on pages 3 to 13 form part of these financial statements.

Page 2

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

The principal activity of the company is that of metal products surface finishing and sale of related materials and chemicals involved in the process.
REM Surface Engineering is a private company limited by shares and is incorporated in England and Wales under company registration number 07077094.
The address of its registered office is c/o Mishcon De Reya Africa House, 70 Kingsway, London, United Kingdom, WC2B 6AH. The trading address is Alington Road, Little Barford, St Neots, Cambridgeshire PE19 6YH.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:

2.2

Going concern

Subsequent to the year end, the company has substantially reduced its trading activities. The company has transferred the service and production activities to its fellow subsidiary in Germany and will continue primarily as a sales based company. The company gave notice to break the lease of the premises later in 2025. Plant and machinery and any remaining stocks have been transferred to the German subsidiary at book value. The directors have assessed the use of going concern and have considered the impact of reducing trading levels and whether this now casts significant doubt on the ability of the company to continue as a going concern. The directors have made this assessment for a period of at least twelve months from the date of the approval of these financial statements.
The directors consider that the company has adequate resources to continue in operational existence albeit on a smaller scale for the foreseeable future and there are no material uncertainties about the company's ability to continue as a going concern. In the opinion of the directors, trading levels for the next twelve months will generate sufficient contribution to cover the expected level of overheads. The directors therefore continue to adopt the going concern basis in preparing these financial statements.

Page 3

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

All foreign exchange gains and losses are presented in profit or loss within "Administration Expenses"

Page 4

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

2.5

Operating leases: the Company as lessee

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

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Pensions

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.

Page 5

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Current and deferred taxation

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.

2.9

Tangible fixed assets

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, on a straight line and reducing balance basis.

Depreciation is provided on the following basis:

Short-term leasehold property	-	10%	Straight line
Plant and machinery	-	25%	Reducing balance
Fixtures and fittings	-	25%	Reducing balance
Office equipment	-	25%	Reducing balance
Computer equipment	-	25%	Reducing balance

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.

Page 6

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Stocks

Stocks represent chemicals and materials for resale and the use in the processing of metal components for customers, they are stated at the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase on a first in, first out basis.

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 sell. The impairment loss is recognised immediately in profit or loss.

2.11

Cash and cash equivalents

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.

2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 7

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.13

Financial instruments

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 to and from related parties
i) Financial assets
Basic financial assets, including trade and other debtors, 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 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.
(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.

Page 8

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

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 revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
There are no judgements which materially affect the amounts in the accounts.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. There are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Employees

The average monthly number of employees, including directors, during the year was 8 (2023 - 8).

Page 9


		REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

	5.	Tangible fixed assets

	Short-term leasehold property	Plant and machinery	Fixtures and fittings	Office equipment	Computer equipment	Total
	£	£	£	£	£	£
Cost
At 1 January 2024	13,680	47,937	120,789	23,577	92,814	298,797
At 31 December 2024	13,680	47,937	120,789	23,577	92,814	298,797
Depreciation
At 1 January 2024	13,680	40,677	90,020	23,006	79,388	246,771
Charge for the year on owned assets	-	1,812	7,692	142	3,357	13,003
At December 2024	13,680	42,489	97,712	23,148	82,745	259,774
Net book value
At 31 December 2024	-	5,448	23,077	429	10,069	39,023
At 31 December 2023	-	7,260	30,769	571	13,426	52,026

Page 10

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Stocks
		2024	2023
		£	£

Raw materials and consumables	138,760	150,650
Finished goods and goods for resale	365,163	711,743
	503,923	862,393

Debtors

					2024	2023
					£	£


Trade debtors	540,357	450,450
Amounts owed by group undertakings	1,460,525	702,191
Other debtors	60,069	56,502
Prepayments and accrued income	17,022	88,901
	2,077,973	1,298,044

8.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	309,545	702,543
	309,545	702,543

9.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Trade creditors	79,742	401,456
Amounts owed to group undertakings	754,824	733,693
Corporation tax	173,410	101,518
Other creditors	53,290	467,962
Accruals and deferred income	42,274	51,559
	1,103,540	1,756,188

Page 11

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	Deferred taxation

	2024	2023
	£	£

At beginning of year	(10,688)	(4,050)
Charged to profit or loss	8,244	(6,638)
At end of year	(2,444)	(10,688)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Accelerated capital allowances	(2,639)	(10,882)
Other timing differences	195	194
	(2,444)	(10,688)

11.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

1,000 (2023 - 1,000) Ordinary shares of £1.00 each	1,000	1,000

12.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £30,728 (2023: £30,057). Contributions totalling £777 (2023: £777) were payable to the fund at the reporting date.

13.	Related party transactions
	Where possible the Company has taken advantage of the exemption conferred by FRS 102 section 33.1A from the requirement to disclose transactions with other wholly owned group undertakings.

Page 12

REM SURFACE ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	Post balance sheet events

Prior to the year end, the directors of the company took the decision to close down the service and production facility in St Neots, United Kingdom, during 2025, and gave notice to break the lease of the premises later in 2025. Plant and machinery and any remaining stocks have been transferred to the German subsidiary at book value. The staff count has been reduced substantially since the year end. UK customers are now serviced from the German fellow subsidiary company and this is facilitated by a small customer liaison and administration team in the United Kingdom.
The staff redundancy programme has resulted in redundancy costs of £68,695 being incurred in 2025. The directors estimate that dilapidations costs of £130,000 will be incurred as a result of vacating the premises in November 2025. Neither the redundancy costs or the estimated costs of dilapidations have been provided in the accounts.

15.	Controlling party

The ultimate parent undertaking is REM Chemicals Inc, incorporated in the State of Connecticut in the USA and its address is 325 West Queen Street, Southington, CT 06489, USA.

16.	Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2024 was qualified.

The qualification in the audit report was as follows:

In the year ended 31 December 2024, the company took the decision to close down the service and production facility in the UK. The financial statements do not include provisions for redundancy costs of £68,695 and estimated dilapidations costs of £130,000 expected to arise as a result of the closure of the facility.
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 the provisions available for small entities, 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 qualified opinion.

The audit report was signed on 28 October 2025 by Ian Saunderson FCA (Senior Statutory Auditor) on behalf of BKL Audit LLP.

Page 13