Katun UK Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01552270 (England and Wales)

Katun UK Limited

Report of the Director and

Financial Statements for the Year Ended 31st December 2017

Page

Company Information

1

Report of the Director

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTOR:

W F Mcintyre

SECRETARY:

Mitre Secretaries Limited

REGISTERED OFFICE:

Cannon Place

78 Cannon Street

London

EC4N 6AF

REGISTERED NUMBER:

01552270 (England and Wales)

ACCOUNTANTS:

Sheen Stickland

Chartered Accountants

4 High Street

Alton

Hampshire

GU34 1BU

SOLICITORS:

CMS Cameron McKenna Nabarro Olswang LLP

Cannon Place

78 Cannon Street

London

EC4N 6AF

The director presents his report with the financial statements of the company for the year ended 31st December 2017.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2017.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

W F Mcintyre held office during the whole of the period from 1st January 2017 to the date of this report.

ON BEHALF OF THE BOARD:

W F Mcintyre - Director

28th August 2018

TURNOVER

14,016,946

12,133,287

Cost of sales

12,797,149

10,925,358

GROSS PROFIT

1,219,797

1,207,929

Administrative expenses

879,023

942,578

OPERATING PROFIT

340,774

265,351

Interest receivable and similar income

114

-

340,888

265,351

Interest payable and similar expenses

-

157

PROFIT BEFORE TAXATION

340,888

265,194

Tax on profit

4

-

-

PROFIT FOR THE FINANCIAL YEAR

340,888

265,194

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

1,870

9,131

1,870

9,131

CURRENT ASSETS

Debtors

7

2,268,338

2,080,513

Cash at bank

236,878

165,403

2,505,216

2,245,916

CREDITORS

Amounts falling due within one year

8

1,492,886

1,581,735

NET CURRENT ASSETS

1,012,330

664,181

TOTAL ASSETS LESS CURRENT LIABILITIES

1,014,200

673,312

CAPITAL AND RESERVES

Called up share capital

10

895,000

895,000

Share premium

11

1,800,000

1,800,000

Retained earnings

11

(1,680,800

)

(2,021,688

)

SHAREHOLDERS' FUNDS

1,014,200

673,312

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2017 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the director on 28th August 2018 and were signed by:

W F Mcintyre - Director

1.	STATEMENT OF COMPLIANCE

Katun UK Limited is a company limited by shares and incorporated in England, registration number

01552270. The registered office is Cannon Place, 78 Cannon Street, London, EC4N 6AF. The financial

statements are presented in sterling which is the functional currency of the company and rounded

to the nearest pound.

The financial statements have been prepared in compliance with FRS 102 (Section 1A) as it applied

to the financial statements for the year ended 31st December 2017.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in accordance with applicable United Kingdom accounting

standards. The particular accounting policies adopted are described below. These have been applied

consistently in the current and prior years.

The financial statements have been prepared on the going concern basis on the understanding that

the immediate parent undertaking, Cooperative Katun DutchHoldco U.A., is both willing and able to

continue to provide the financial and other support required by the company for the foreseeable

future.

Turnover

Turnover represents sales by the company to outside customers and fellow group companies

excluding value added tax. Turnover is recognised on shipment of the products.

Goodwill

Goodwill arising on the acquisition of customer lists is recognised in the financial statements at

initial valuation less accumulated amortisation. Goodwill is amortised over its estimated useful

economic life of 12 years and is reviewed for impairment on an annual basis. Any impairment

identified is written off in the year of identification.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

20% - 33% on cost

Fixtures and fittings

-

33% on cost

Website developments

-

20% on cost

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive income

or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed

at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that

are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is

probable that they will be recovered against the reversal of deferred tax liabilities or other future

taxable profits.

Foreign currencies

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

at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate

of exchange ruling at the date of transaction. Exchange differences are taken into account in

arriving at the operating result.

Operating lease commitments

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

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial

instruments.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2016 - 13 ) .

4.

TAXATION

Katun UK Limited currently has approximately £1,619,000 (2016: £1,967,000) of trading losses

carried forward as at the year ended 31 December 2017.

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1st January 2017

and 31st December 2017

358,168

AMORTISATION

At 1st January 2017

and 31st December 2017

358,168

NET BOOK VALUE

At 31st December 2017

-

At 31st December 2016

-

6.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Website

machinery

fittings

developments

Totals

£

£

£

£

COST

At 1st January 2017

and 31st December 2017

22,532

20,277

10,200

53,009

DEPRECIATION

At 1st January 2017

22,532

15,056

6,290

43,878

Charge for year

-

5,221

2,040

7,261

At 31st December 2017

22,532

20,277

8,330

51,139

NET BOOK VALUE

At 31st December 2017

-

-

1,870

1,870

At 31st December 2016

-

5,221

3,910

9,131

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

2,236,722

2,053,700

Other debtors

13,102

8,650

Prepayments and accrued income

18,514

18,163

2,268,338

2,080,513

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

11,198

23,209

Amounts owed to group undertakings

1,042,116

809,675

Social security and other taxes

34,117

24,354

VAT

202,715

594,593

Other creditors

2,668

-

Accrued expenses

200,072

129,904

1,492,886

1,581,735

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2017

2016

£

£

Within one year

55,351

51,790

Between one and five years

94,230

62,070

149,581

113,860

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

895,000

Ordinary

£1

895,000

895,000

11.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1st January 2017

(2,021,688

)

1,800,000

(221,688

)

Profit for the year

340,888

340,888

At 31st December 2017

(1,680,800

)

1,800,000

119,200

12.	CONTINGENT LIABILITIES

A contingent liability exists in the form of a fixed and floating charge over the assets of the company

granted to HSBC Bank USA over the borrowings of Katun Corporation and Cooperative Katun

Dutchholdco UA, both related group companies. This charge was satisfied on 9th January 2018.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard

102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose

related party transactions between wholly owned group members.

14.	POST BALANCE SHEET EVENTS

The company's ultimate controlling parent company sold it's investments in the immediate parent

company to General Plastic Industrial Co. Ltd Taiwan on 8th January 2018, a company listed on the

Taiwan stock exchange. The financial effect on these financial statements is considered to be nil.

15.	ULTIMATE CONTROLLING PARTY

The company's ultimate controlling parent company and controlling party is Monomoy Capital

Partners L.P, a company incorporated in the United States of America. The immediate parent

company is Cooperative Katun DutchHoldco U.A., a company incorporated in The Netherlands.

The smallest group in which results are consolidated is that headed by Cooperative Katun

DutchHoldco U.A. The consolidated financial statements are available to the public and can be

obtained from Edisonweg 44, Gorinchem, 4207HG.

The largest group in which the results are consolidated is that headed by Katun Holdings L.P. The

consolidated financial statements are available to the public and can be obtained from Katun

Holdings L.P, 10951 Bush Lake Road, Minneapolis, MN U.S.A. 55438-2391.

16.	AUDIT EXEMPTION

For the year ending 31st December 2017 the company is entitled to exemption from audit under

Section 477 of the Companies Act 2006.

The directors consider that the company was entitled to exemption from audit under section 479A

of the Companies Act 2006 relating to subsidiary companies.

The members have not required the company to obtain an audit of its accounts for the year in

question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Act with

respect to accounting records and the preparation of accounts.