Company Registration No. 04399251 (England and Wales)
UTEX INDUSTRIES UK LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
UTEX INDUSTRIES UK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
UTEX INDUSTRIES UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Current assets
Stocks
-
268,615
Debtors
4
37,945
1,993,338
Cash at bank and in hand
7,868
70,114
45,813
2,332,067
Creditors: amounts falling due within one year
5
(2,386,616)
(4,126,196)
Net current liabilities
(2,340,803)
(1,794,129)
Capital and reserves
Called up share capital
6
86,000
86,000
Share premium account
85,960
85,960
Capital redemption reserve
14,000
14,000
Profit and loss reserves
(2,526,763)
(1,980,089)
Total equity
(2,340,803)
(1,794,129)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 March 2020 and are signed on its behalf by:
Mr J Parra Suarez
Director
Company Registration No. 04399251
UTEX INDUSTRIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Utex Industries UK Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
17 Queens Lane, Newcastle upon Tyne, NE1 1RN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group
.
Utex Industries UK Limited is a wholly owned subsidiary of Utex Industries Inc and the results of Utex Industries UK Limited are included in the consolidated financial statements of Utex Industries Inc which are available from
10810 Katy Freeway, Suite 100
,
Houston, TX 77043
.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have reasonable expectation that the company will continue in operational existence for the foreseeable future.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised at the point when the risks and rewards of the goods
are
transferred.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
Goodwill in relation to the purchase of Stephenson Precision Components Limited is considered to have a finite useful life and is being amortised over its expected life of 10 years.
As set out in the basis of preparation the directors have decided to prepare the financial statements on a basis other than that of a going concern. Accordingly all intangible assets have been fully impaired at the year end.
UTEX INDUSTRIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
As set out in the basis of preparation the directors have decided to prepare the financial statements on a basis other than that of a going concern. Accordingly all tangible assets have been classified as current assets valued at the amounts realised post year end.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Stocks
As set out in the basis of preparation the directors have decided to prepare the financial statements on a basis other than that of a going concern. In respect of the year ended 31 December 2018, all stocks have been valued at the amounts realised post year end and not at cost.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
UTEX INDUSTRIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
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
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
s
asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2018:- 1).
UTEX INDUSTRIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2019 and 31 December 2019
320,000
Amortisation and impairment
At 1 January 2019 and 31 December 2019
320,000
Carrying amount
At 31 December 2019
-
At 31 December 2018
-
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
28,207
1,155,264
Amounts owed by group undertakings
-
354,153
Other debtors
9,738
483,921
37,945
1,993,338
Trade debtors disclosed above are measured at amortised cost.
5
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
-
436,866
Amounts owed to group undertakings
2,307,063
3,066,500
Other taxation and social security
1,632
25,856
Other creditors
77,921
596,974
2,386,616
4,126,196
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
86,000 Ordinary shares of £1 each
86,000
86,000
UTEX INDUSTRIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
8
Parent company
The parent undertaking of the largest group, which includes the company and for which group accounts are prepared and the company's immediate controlling party is Utex Industries, Inc. a company incorporated in the United States of America.
In the opinion of the directors, the company's ultimate parent company and ultimate controlling party
is
Riverstone Holdings LLC, a company incorporated in the United States of America.