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Registered number: 11340954
ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
COMPANY INFORMATION
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A S Grafton (appointed 19 December 2019)
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C W Miller (resigned 29 March 2019)
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Z Quattrocchi (appointed 2 September 2019)
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M T S Walker (appointed 12 March 2019)
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Anglo American Corporate Secretary Limited
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
CONTENTS
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Directors' responsibilities statement
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Independent auditor's report
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
Anglo American Technical & Sustainability Limited (the "Company") was incorporated in the United Kingdom on 2 May 2018. The Company is a holding company. The directors are not aware, at the date of this report, of any likely major changes in the Company’s activities in the next year.
As shown in the Company’s Statement of comprehensive income, the Company has a loss for the year of $124,682,307 compared to a loss of $NIL in the prior period.
The Balance sheet shows that the Company is in a net asset position of $27,817,694 (2018: $1).
Principal risks and uncertainties and financial risk management policies
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The directors consider the risks attached to the Company’s financial instruments which principally comprise loans to other group companies. The directors have taken a prudent approach in their consideration of the various risks attached to the financial instruments of the Company.
The Company’s exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of assets, liabilities and the financial statements. Credit risk is not considered to be material on the basis that the Company's debtor balances are due from other companies within the Anglo American Group.
Key performance indicators
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The directors consider the Company’s key performance indicator to be the financial performance of its subsidiaries. The performance of these subsidiaries is monitored by the directors by way of management reports.
The Anglo American Technical & Sustainability Limited Board is cognisant of its legal duty to act in good faith and to promote the success of the Company for the benefit of its shareholders and with regard to the interests of stakeholders and other factors. These include the likely consequences of any decisions we make in the long term; the need to foster the relationships we have with all our stakeholders; the interests of our employees; the impact our operations have on the environment and local communities; and the desire to maintain a reputation for high standards of business conduct.
The Board received an update on the Companies (Miscellaneous Reporting) Regulations 2018 amongst other things.
Stakeholder considerations are integral to discussions at Board meetings and the decisions we make take into account any potential impacts on them and the environment. Like any business, we are aware that some of the decisions we make may have an adverse impact on certain stakeholders.
By listening to, understanding and engaging with our stakeholders, the Board endeavours to live up to their expectations, by staying true to the Purpose and making decisions in accordance with our Values.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
This report was approved by the board on 5 June 2020 and signed on its behalf.
C Murphy
For and on behalf of
Anglo American Corporate Secretary Limited
Secretary
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their annual report and the audited financial statements for the year ended 31 December 2019.
The Company was incorporated in the United Kingdom on 2 May 2018. The Company is a holding company. The directors have the present intention of maintaining the business in its current form for the foreseeable future.
The loss for the year, after taxation, amounted to $124,682,307 (2018:$NIL).
The directors do not recommend the payment of a dividend (2018: $NIL).
The directors who served during the year and up to the date of this report were:
A S Grafton (appointed 19 December 2019)
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C W Miller (resigned 29 March 2019)
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Z Quattrocchi (appointed 2 September 2019)
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M T S Walker (appointed 12 March 2019)
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The Company’s ability to operate as a going concern is assessed in conjunction with Anglo American plc and its subsidiaries (together the “Group”) as its viability is dependent upon the ability of the Group companies to settle their intercompany balances with the Company and to provide funds for working capital needs. Anglo American Services (UK) Ltd have confirmed that they intend to provide financial resources, where requested, for at least 12 months from the date of signing these financial statements, whilst the Company remains a subsidiary of Anglo American plc.
The directors of the Company therefore feel that the Company will have sufficient funds, taking account of possible changes in trading performance (including specifically the potential impact of COVID-19 on the cash flows of the Company, Anglo American Services (UK) Ltd and Anglo American plc) and amounts owed by other Group companies, to conclude that the Company can adopt the going concern basis for the foreseeable future.
Principal risks and uncertainties and financial risk management policies
The financial risk management policies of the Company are disclosed in the Strategic Report.
The directors are not aware, at the date of this report, of any likely major changes in the Company’s activities in the next year.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director 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 auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Post balance sheet events
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Following the end of 2019 the novel coronavirus (COVID-19) has been declared a pandemic by the World Health Organisation. The emergence of COVID-19 is considered a non-adjusting post balance sheet event as defined in IAS 10 Events after the reporting period since it represents a set of conditions which only arose after the balance sheet date. The impact of COVID-19 on the world economy and the Company’s future financial performance remains uncertain. Depending on the extent and severity of the pandemic, there may be a material impact on the Company’s accounting estimates in future periods.
At the 2020 Annual General Meeting of Anglo American plc, the Company’s ultimate parent company, PricewaterhouseCoopers LLP were appointed as external auditor to the Group. Accordingly Deloitte LLP will not be seeking re-appointment as auditor of the Company at the conclusion of their current term of office. There are no circumstances connected with the resignation of Deloitte LLP as external auditor which should be brought to the attention of members or creditors of the Company.
This report was approved by the board on 5 June 2020 and signed on its behalf.
C Murphy
For and on behalf of
Anglo American Corporate Secretary Limited
Secretary
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR YEAR ENDED 31 DECEMBER 2019
The directors are responsible for preparing the Annual Report and the audited financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare annual financial statements for each financial year. Under that law the directors have elected to prepare the annual financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the annual financial statements unless they are 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 directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments 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 directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
Report on the audit of the financial statements
Opinion
In our opinion the financial statements of Anglo American Technical & Sustainability Limited (the ‘Company’):
∙give a true and fair view of the state of the Company’s affairs as at 31 December 2019 and of its loss for the year then ended; and
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 101 “Reduced Disclosure Framework” and
∙have been properly prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of the Company which comprise:
∙ the Statement of comprehensive income;
∙ the Balance sheet;
∙ the Statement of changes in equity; and
∙ the related notes 1 to 15.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
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 auditor's 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 UK, including the Financial Reporting Council's (the 'FRC'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.
Conclusions relating to going concern
We are required by ISAs (UK) to report in respect of the following matters where:
∙the directors’ use of the going concern basis of accounting in preparation of the financial statements is not appropriate; or
∙the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
We have nothing to report in respect of these matters.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
Other information (continued)
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 respect of these matters.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are 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 intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Report on other legal and regulatory requirements
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and Directors' report have been prepared in accordance with applicable legal requirements.
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 any material misstatements in the Strategic report or the Directors' report.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters 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 directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
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 auditor’s 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.
Paul Barnett FCA (Senior statutory auditor)
for and on behalf of
Deloitte LLP
Statutory Auditor
London
United Kingdom
Hill House
1 Little New St
London
United Kingdom
EC4A 3TR
5 June 2020
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
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LOSS FOR THE FINANCIAL YEAR
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TOTAL COMPREHENSIVE LOSS FOR THE YEAR
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The notes on pages 13 to 21 form part of these financial statements.
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The results relate to continuing operations of the Company.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
REGISTERED NUMBER: 11340954
BALANCE SHEET
AS AT 31 DECEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 June 2020.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
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COMPREHENSIVE LOSS FOR THE YEAR
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TOTAL COMPREHENSIVE LOSS FOR THE YEAR
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Shares issued during the year
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TOTAL TRANSACTIONS WITH OWNERS
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The notes on pages 13 to 21 form part of these financial statements.
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Further details in respect of the shares issued during the year are disclosed in note 12.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2018
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
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Shares issued during the period
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TOTAL TRANSACTIONS WITH OWNERS
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Anglo American Technical & Sustainability Limited is a private company limited by shares, incorporated in the United Kingdom and registered in England and Wales.
The nature of the Company’s operations and principal activities is set out in the Directors' report.
The address of the registered office is given on the Company Information page.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.
Group accounts are not presented as the Company is a wholly owned subsidiary undertaking of Anglo American plc, a company incorporated in the United Kingdom and registered in England and Wales. Accordingly, these accounts present information about the Company as an individual undertaking and not about its group. Consolidated financial statements have not been prepared because the Company is exempt under s400 Companies Act 2006.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The following principal accounting policies have been applied:
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Financial reporting standard 101 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
The Company may take FRS 101 exemptions as it is a member of a group where the parent prepares publicly available consolidated financial statements which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss and the Company is included in that consolidation.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
The Company’s ability to operate as a going concern is assessed in conjunction with Anglo American plc and its subsidiaries (together the “Group”) as its viability is dependent upon the ability of the Group companies to settle their intercompany balances with the Company and to provide funds for working capital needs. Anglo American Services (UK) Ltd have confirmed that they intend to provide financial resources, where requested, for at least 12 months from the date of signing these financial statements, whilst the Company remains a subsidiary of Anglo American plc.
The directors of the Company therefore feel that the Company will have sufficient funds, taking account of possible changes in trading performance (including specifically the potential impact of COVID-19 on the cash flows of the Company, Anglo American Services (UK) Ltd and Anglo American plc) and amounts owed by other Group companies, to conclude that the Company can adopt the going concern basis for the foreseeable future.
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Impact of new international reporting standards, amendments and interpretations
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IFRS 16
There are no material adjustments required to be made to the Company's financial statements as a result of the application of IFRS 16.
The Company has applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 January 2019.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is USD as this is the currency of the primary
economic environment in which the Company operates.
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.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed Company shares are remeasured to market value at each Balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
All of the Company's financial assets other than those which meet the criteria to be measured at amortised cost are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.
Debt instruments at amortised cost
Debt instruments are subsequently measured at amortised cost where they are financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and selling the financial assets, and the contractual terms of the financial
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
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Financial instruments (continued)
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asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortised cost is calculated using the effective interest method and represents the amount measured at initial recognition less repayments of principal plus the cumulative amortisation using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.
Impairment of financial assets
The Company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost or at FVOCI. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.
The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
Financial liabilities
At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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There are no critical judgments made by the directors in applying the Company's accounting policies other than assessing investments for impairment.
Impairment of investments in subsidiaries
Determining whether the Company’s debt and equity investments in subsidiaries have been impaired requires estimations of the recoverable amount of the investments. Recoverable amount is the higher of fair value less costs of disposal and value in use. The value in use calculations require the Company to estimate the future cash flows expected to arise from the investments and suitable discount rates in order to calculate present values. If the recoverable amount of an investment is estimated to be less than its carrying amount, the carrying amount of the investment is reduced to its recoverable amount. An impairment loss is recognised in the Statement of comprehensive income. See Note 8 for further information.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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The audit fee payable to the Company's auditor for the audit of the Company's financial statements, of $2,456 (2018: $3,720) has been borne by Anglo American Services (UK) Ltd.
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The Company has no employees other than the directors, who did not receive any remuneration (2018: $NIL).
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Current tax on profit for the year
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2018 - no charge) the standard rate of corporation tax in the UK of 19% (2018 - 19%). The differences are explained below:
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Loss before tax multiplied by standard rate of corporation tax in the UK of 19% (2018 - 19%)
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Impairment not deductible
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Total tax charge for the year
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Factors that may affect future tax charges
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On 6 September 2016, the Finance Act 2016 was substantively enacted and provided for a reduction in the main rate of UK corporation tax from 19% to 17% from 1 April 2020. Deferred tax has therefore been recognised at the 17% rate where appropriate.
On 17th March 2020, a Budget resolution was passed which substantively enacted an increase in the rate of UK corporation tax to 19% from 1 April 2020.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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After a review of the net asset value of the Company's investments as at 31 December 2019, the Company has recognised impairment charges on its investments as follows:
- Anglo American Technical & Sutstainabilty Services Ltd - $122,182,307 (2018: $NIL)
- Anglo American US Holdings Inc - $2,500,000 (2018: $NIL)
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Investments in subsidiary companies
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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The following were subsidiary undertakings of the Company:
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Anglo American Technical & Sustainability Services Ltd
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20 Carlton House Terrace
London
United Kingdom
SW1Y 5AN
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Anglo American US Holdings Inc
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251 Little Falls Drive Wilmington
DE 19808
USA
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On 27 March 2019, the Company purchased 1,500 ordinary shares of $1 in its subsidiary Anglo American Technical & Sustainability Services Ltd for total consideration of $150,000,000.
On 27 March 2019, the Company invested $2,500,000 in Anglo American US Holdings Inc. as an advance for shares. 250 ordinary shares of $0.001 were issued to the Company on 13 December 2019.
After a review of the net asset value of the Company's investments as at 31 December 2019, the Company has recognised impairment charges on its investments as follows:
- Anglo American Technical & Sutstainabilty Services Ltd - $122,182,307 (2018: $NIL)
- Anglo American US Holdings Inc - $2,500,000 (2018: $NIL)
Group financial statements are not presented as the Company is a wholly owned subsidiary undertaking of Anglo American plc, a company incorporated in the United Kingdom and registered in England and Wales. Accordingly, these financial statements present information about the Company as an individual undertaking and not about its group. As permitted by IFRS 10.4(a) consolidated financial statements have not been prepared.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Debtors: Amounts falling due within one year
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Amounts owed by group undertakings
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Amounts owed by group undertakings are interest free and repayable upon demand.
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Amounts owed to group undertakings are interest free and repayable upon demand.
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Loans and receivables measured at amortised cost
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Financial liabilities measured at amortised cost
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Loans and receivables measured at amortised cost comprise amounts owed by group undertakings.
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Financial liabilities measured at amortised cost comprise amounts owed to group undertakings.
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ANGLO AMERICAN TECHNICAL & SUSTAINABILITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Shares classified as equity
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Allotted, called up and fully paid
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1 ordinary share of £1 each
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1,525 (2018 - NIL) ordinary shares of $1 each
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The Company has two classes of ordinary shares which carry no right to fixed income.
On 27 March 2019, the Company made an allotment of 1,525 ordinary $1 shares. These ordinary shares were subscribed by Anglo American Services (UK) Ltd for total consideration of $152,500,000.
Share premium account
Share premium represents the excess of the issue price over the par value on shares issued less transaction costs arising on issue.
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Post balance sheet events
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Following the end of 2019, the novel coronavirus (COVID-19) has been declared a pandemic by the World Health Organisation. The emergence of COVID-19 is considered a non-adjusting post balance sheet event as defined in IAS 10 Events after the reporting period since it represents a set of conditions which only arose after the balance sheet date.
The impact of COVID-19 on the world economy and the Company’s future financial performance remains uncertain. Depending on the extent and severity of the pandemic, there may be a material impact on the Company’s accounting estimates in future periods.
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Ultimate parent undertaking and controlling party
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The immediate parent company is Anglo American Services (UK) Ltd, a company incorporated in the United Kingdom and registered in England and Wales.
The ultimate parent company and controlling entity is Anglo American plc, a company incorporated in the United Kingdom and registered in England and Wales. Anglo American plc is the parent undertaking of the largest and smallest group which includes the Company and for which group financial statements are prepared. The financial statements of both the immediate and ultimate parent companies may be obtained from the Company Secretary, 20 Carlton House Terrace, London SW1Y 5AN, the registered office of both companies.
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