Uretek (U.K.) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02371014 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

URETEK (U.K.) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R Caldbeck

J P Laine

SECRETARY:

J P Laine

REGISTERED OFFICE:

Regency Court

62-66 Deansgate

Manchester

Lancashire

M3 2EN

REGISTERED NUMBER:

02371014 (England and Wales)

SENIOR STATUTORY AUDITOR:

David Miller

AUDITORS:

Sedulo Audit Limited

Statutory Auditors

Regency Court

62-66 Deansgate

Manchester

M3 2EN

CURRENT ASSETS

Stocks

318,763

591,291

Debtors

5

6,234,749

5,591,249

Cash at bank

19,383

63,458

6,572,895

6,245,998

CREDITORS

Amounts falling due within one year

6

3,062,585

2,369,920

NET CURRENT ASSETS

3,510,310

3,876,078

TOTAL ASSETS LESS CURRENT LIABILITIES

3,510,310

3,876,078

PROVISIONS FOR LIABILITIES

-

19,500

NET ASSETS

3,510,310

3,856,578

CAPITAL AND RESERVES

Called up share capital

112

112

Retained earnings

3,510,198

3,856,466

3,510,310

3,856,578

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

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

The financial statements were approved by the Board of Directors on 16 September 2019 and were signed on its behalf by:

R Caldbeck - Director

1.	STATUTORY INFORMATION

Uretek (U.K.) Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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 principal accounting policies adopted are set out below.

Significant judgements and estimates

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 where the revision affects only that period, or in the

period of the revision and future periods where the revision affects both current and future periods.

Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the company

has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to

adopt the going concern basis of accounting in preparing the financial statements.

Turnover

The turnover shown in the profit and loss account represents the value of all goods sold during the period, less

returns received at selling pice exclusive of Value Added Tax.

Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and

rewards attaching to the product such as obsolescence, have been transferred to the customer.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of five years.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported

in the profit and loss account 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 group'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.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it

is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be

recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is

settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it

relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax

assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future

economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date.

Non-monetary assets and liabilities and transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of the transaction.

Exchange differences are taken into account in arriving at the operating profit. Foreign currency transactions are

translated at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at

the rates ruling at the the balance sheet dates. Any differences are taken to the profit and loss account.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and

rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of

inception and the present value of the minimum lease payments. The related liability is included in the balance

sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The

interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the

remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme and the pension charge represents the amounts

payable by the group to the fund in respect of the year. The assets of the scheme are held separately from those

of the company in an independently administered fund.

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 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.

Basic financial assets

Basic financial assets, which include debtors 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint

ventures, are initially measured at fair value, which is normally the transaction price. Such assets are

subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that

investments in equity instruments that are not publically traded and whose fair values cannot be measured

reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of

impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that

occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised,

the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the

carrying amount would have been, had the impairment not previously been recognised. The impairment reversal

is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are

settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership

to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has

transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, including creditors, bank loans, loans

from fellow group companies and preference shares that are classified as debt, 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 creditors 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 creditors are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial

instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and

are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit

or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a

cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair

value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or

loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance

evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Determination of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or

cancelled.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current

market assessments of the time value of money and the risks specific to the asset for which the estimates of future

cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,

the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment

loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which

case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to

apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating

unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount

does not exceed the carrying amount that would have been determined had no impairment loss been recognised

for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately

in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the

impairment loss is treated as a revaluation increase.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 19 (2017 - 25 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2018

and 31 December 2018

200,726

AMORTISATION

At 1 January 2018

and 31 December 2018

200,726

NET BOOK VALUE

At 31 December 2018

-

At 31 December 2017

-

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade debtors

703,049

1,069,446

Amounts owed by group undertakings

5,012,090

4,168,736

Other debtors

519,610

353,067

6,234,749

5,591,249

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade creditors

241,303

176,153

Amounts owed to group undertakings

2,082,985

1,185,598

Taxation and social security

192,211

221,991

Other creditors

546,086

786,178

3,062,585

2,369,920

7.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

David Miller (Senior Statutory Auditor)

for and on behalf of Sedulo Audit Limited

8.	OPERATING LEASE COMMITMENTS

At the balance sheet date the company had operating lease commitments of £120,985 (2017: £164,750).

9.	RELATED PARTY DISCLOSURES

Included within other debtors/other creditors are the following related party balances:

2018

2017

Debtor

Creditor

Debtor

Creditor

£

£

£

£

Uretek Worldwide Oy

87,474

82,786

Geobear Commercial Ltd

203,444

97,185

Geobear Infrastructure Ltd

76,276

42,314

Geobear Solutions Ltd

27,678

Re-Level Finland Oy

6,856

130,435

Re-Level Poland SP ZOO

43,076

Re-Level China Co Ltd

16,579

63,940

PowerPile Suomi Oy

3,444

29,939

Geobear SP Z

1,175

Oddveig OU

46,265

Uretek AB Sweden

1,273

Total

330,833

139,631

136,955

352,720

10.	ULTIMATE PARENT COMPANY

OY Uretek Marketing Ltd (incorporated in Finland) is the ultimate parent company due to its 100% shareholding

in Uretek Worldwide OY (incorporated in Finland) which in turn holds 100% of the share capital in UWW

Holdings Limited which in turn holds 100% of the share capital of Geopolymer Innovations Limited the

immediate parent company of Uretek (U.K.) Limited.