Registered number:
For the Year Ended
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BURCKHARDT COMPRESSION (UK) LIMITED
COMPANY INFORMATION
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BURCKHARDT COMPRESSION (UK) LIMITED
CONTENTS
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BURCKHARDT COMPRESSION (UK) LIMITED
STRATEGIC REPORT
For the Year Ended 31 March 2019
The Company continues to build on its previous success in securing aftermarket work on non-Burckhardt compressors in line with the Group’s reciprocating compressor aftermarket business strategy and is still recognised as being one of leading Group subsidiary in this business area. This business is varied and often complex and the competitive nature of the market requires a high level of customer interaction and service quality delivered in a short timeframe with high attention to detail.
The Company continues to partner with KompressorTeknik ML AB of Ludvika for its Nordic Countries business expansion and the Service Centre in Landvetter near Gothenburg, Sweden went "live" on 1st October 2018 and has continued to complete repair works for existing and new customers throughout the year. A successful Opening Day and Customer Training Day were held on 8th & 9th May 2019. The service business is commercially managed and administered by the Company, however, technical management and administration is done locally as far as possible with support from the UK and Switzerland. Sales for the services are delivered by a team drawn from the Company in the UK and the parent in Switzerland with a local sales manager employed by the business partner. This region has real potential for market share growth on Burckhardt compressors and on other brands of compressors, however, the service centre is effectively a "start-up" which needed an amount of capital expenditure and working capital to get to this point. The growth required to get to a sustainable business level and be clearly profitable including commissions is expected to take another one to two years. The sales turnover in FY18 year was at a slightly lower level than the previous year despite benefitting from a significant increase in commissions with the addition of the Nordic Countries. This was due to some delays in delivery of large orders out of the parent company in Switzerland and deferred or delayed service contracts. Also, we did not have any new compressor installation and commissioning projects in country. The Company made a loss this year largely due to the dip in local aftermarket sales, field service under-recovery early in the year, and an increase in warranty rework costs. Also the early operating/start-up costs for the new Landvetter had to be borne without return. Six to eight months of costs were incurred before the first work could be invoiced The results compared with measured financial objectives were as follows: • EBIT Local (After Centralized Services) – (£258k) achieved vs target £761k • Local Sales Turnover for compressor aftermarket, excluding commissions, in UK and Nordic Countries territory - £5.915 million achieved vs target £5.545 million • Total Sales Turnover in UK and Nordic Countries territory – CHF15.725 million achieved vs target CHF13.00 million Going forward the results in FY19 the overall sales turnover was comparible to FY18 with some significant projects being delivered in the UK and an increase in works through Sweden. For the UK key staff have been hired and/or replaced which has shown some upturn in capabilities and efficiency.
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BURCKHARDT COMPRESSION (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
For the Year Ended 31 March 2019
The potential uncertainties for the Compressor Services business to grow are evident in FY20 are as follows:
• Postponement or cancellation by customers of maintenance and plant improvements due to the Covid-19 pandemic, • Supply-chain delays or deficiencies for spare parts which may affect our ability to provide a full-service offer due to the Covid-19 pandemic • Restriction of movement of staff to attend the offices and workshops, participate in key meetings both internal and external, and deliver onsite services due to the Covid-19 pandemic • Postponement or cancellation of investment for maintenance and plant improvement in existing UK process plants due to uncertainty regarding Brexit, • Supply-chain delays or deficiencies for spare parts which may affect our ability to provide a full-service offer, also a risk due to Brexit, • Recruitment, retention, availability and utilisation of key technical staff and trained and experienced field service and workshop technicians, • Qualification and availability of suitable sub-contractors in UK and the Nordic Countries as and when required, • End-users may close their process plants where we service compressors or replace them with different machinery or decide to reinvest in maintenance teams and chose not to outsource. • No new sales of Compressor Systems in UK and Nordic Countries – less installation and maintenance work, • Low level Oil & Gas sector business in the UK and Norway • Local competition from other UK and Nordic Countries service and component companies, However, the sales turnover likely to be achieved in FY20 will exceed the forecast made at the end of FY19 largely due to higher than average spare parts sales in the UK and Nordic Countries to date. Sales turnover for Compressor Systems orders through the UK and Nordic Countries territories have been buoyant in FY19 in the Transport and Storage industry sector for LNG and LPG compressors with orders received for several newbuild gas carriers. One new process compressor was ordered for a chemical plant in the UK and one standard compressor was ordered for an industrial gas plant in Finland. A further order for a process compressor for a refinery in Sweden has been pushed back into FY21 although early engineering works have been ordered this year. There are many more opportunities for compressor systems in the pipeline at present. In addition the commissions basis for LPG compressor sales in the Nordics Countries were aligned with the UK agency agreement hence the Compressor Systems commissions are higher in FY18, FY19 and FY20 than previously. The potential uncertainties for the new compressors business to continue or grow are as follows: • Postponement by customers of orders due to the Covid-19 pandemic, • Postponement or cancellation of orders in UK due to uncertainty regarding Brexit, • new construction projects onshore or at sea are deferred or cancelled due to continuing low oil and gas prices, • loss of orders to competition on technical or commercial grounds, • the orders are placed outside this territory thus reducing the commissions Overall the Company continued to out-perform the sale turnover that is desired by the Group under the Mid-Range Plan.
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BURCKHARDT COMPRESSION (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
For the Year Ended 31 March 2019
This report was approved by the board
and signed on its behalf.
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BURCKHARDT COMPRESSION (UK) LIMITED
DIRECTORS' REPORT
For the Year Ended 31 March 2019
The directors present their report and the financial statements for the year ended 31 March 2019.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the 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 for the Company's financial statements 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.
The loss for the year, after taxation, amounted to £
483,218
(2018 -
profit
£
263,240
)
.
The company has not recommended a dividend.
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BURCKHARDT COMPRESSION (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
For the Year Ended 31 March 2019
The directors who served during the year were:
Since the Year End the Company has developed environmental and occupational health and safety (EOHS) systems with assistance from an external consultant and achieved accreditation for ISO14001 and OHSAS18001 respectively following the audit in June 2018.
The Company has also upgraded its accounting system to allow for financial control of both operating centres in the UK and Sweden and is introducing an accompanying web-based mini-ERP system for business control and transparency for sales, operations, finance and management. The Company has applied for and attained registration in Sweden for VAT and Corporation Tax should it be required to ensure that any locally generated revenue is treated correctly. Recruitment for several key staff positions is ongoing or has been completed for both the UK replacement or joining the new Swedish organisation. The Company has not engaged in any research and development activities but continues to invest in engineering design for key non-Burckhardt compressor components and developing a responsive and quality-led supply chain for the same.
Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
This report was approved by the board and signed on its behalf.
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BURCKHARDT COMPRESSION (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BURCKHARDT COMPRESSION (UK) LIMITED
We have audited the financial statements of Burckhardt Compression (UK) Limited (the 'Company') for the year ended 31 March 2019, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙
the directors
' use of the going concern basis of accounting in the 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.
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BURCKHARDT COMPRESSION (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BURCKHARDT COMPRESSION (UK) LIMITED (CONTINUED)
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 Auditors' 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.
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 this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic Report and the 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 material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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BURCKHARDT COMPRESSION (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BURCKHARDT COMPRESSION (UK) LIMITED (CONTINUED)
As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.
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 Auditors' 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 Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
Wey Court West
Union Road
Surrey
GU9 7PT
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BURCKHARDT COMPRESSION (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
Registered number:
3966507
STATEMENT OF FINANCIAL POSITION
As at
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BURCKHARDT COMPRESSION (UK) LIMITED
Registered number:
3966507
STATEMENT OF FINANCIAL POSITION
(CONTINUED)
As at
31 March 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 13 to 30 form part of these financial statements.
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BURCKHARDT COMPRESSION (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
For the Year Ended
31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
Burckhardt Compression (UK) Limited (03966507) is a private company limited by shares and incorporated in England & Wales. The Registered Office and principal place of business is Units 1 & 2, Arena 14 Bicester Park, Charbridge Lane, Bicester, Oxfordshire OX26 4SS.
2.
Accounting policies
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 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 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).
These policies have been consistently applied to all the years presented.
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙
the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
∙
the requirements of Section 7 Statement of Cash Flows;
∙
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Burckhardt Compression Holdings AG as at 31 March 2019 and these financial statements may be obtained from Burckhardt Compression Holdings AG. Winterthur, CH-8401, Switzerland.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
2.
Accounting policies (continued)
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.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
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:
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
2.
Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Income statement over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of financial position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to Income statement over the remaining vesting period. Where equity instruments are granted to persons other than employees, the Income statement is charged with fair value of goods and services received.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
2.
Accounting policies (continued)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
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.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
2.
Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted averagebasis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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.
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.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
2.
Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based upon 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. There are no sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
Analysis of turnover by country of destination:
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
8.
Taxation on profit (continued)
There were no factors that may affect future tax charges.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
10.
Tangible assets (continued)
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
Retained earnings
Retained earnings represent cumulative profits and losses net of other adjustments. Capital contribution reserve This reserve represents the capital contribution made by the parent company on a below market rate loan.
The classification of costs between cost of sales and overheads has been adjusted, as management feel this is a more accurate representation. This has led to a rise of £127,589 in the comparative cost of sales figure and a corresponding decrease in overheads costs.
A prior year adjustment of £435,853 in respected of sales commission has been introduced for sales commissions which were due in the comparative perriod but not invoiced.
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 £79,692 (2018 - £90,591). At the year end contributions of £11,486 (2018 - £11,104) were payable to the fund and are included within creditors.
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BURCKHARDT COMPRESSION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2019
The immediate parent company and controlling party is Buckhardt Compression AG.
The ultimate parent company is Burckhardt Compression Holdings AG, a company incorporated in Switzerland. Burckhardt Compression Holdings AG prepares group financial statements which include the results of the company. Copies of the group financial statements are available from Burckhardt Compression Holdings AG. Winterthur, CH-8401, Switzerland.
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