Company Registration No. 05241591 (England and Wales)
ELBIT SYSTEMS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
ELBIT SYSTEMS UK LIMITED
COMPANY INFORMATION
Directors
Mr J Gaspar
Mr B Machlis
Mr M C S J Fausset
Mr D A Hook CBE
(Appointed 15 February 2019)
Mr R R Goldsmid
(Appointed 15 February 2019)
Company number
05241591
Registered office
2 Temple Back East
Temple Quay
Bristol
BS1 6EG
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
ELBIT SYSTEMS UK LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Statement of income and retained earnings
6
Statement of financial position
7
Notes to the financial statements
8 - 18
ELBIT SYSTEMS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of an intermediate parent undertaking.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J Gaspar
Mr D Block-Temin
(Resigned 15 February 2019)
Mr B Machlis
Mr R Kril
(Resigned 15 February 2019)
Mr M C S J Fausset
Mr Y Ramon
(Resigned 15 February 2019)
Mr D A Hook CBE
(Appointed 15 February 2019)
Mr R R Goldsmid
(Appointed 15 February 2019)
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £11,500,000. The directors do not recommend payment of a final dividend.
Post reporting date events
On 11 March 2020, the World Health Organisation officially declared COVID-19, the disease caused by novel coronavirus, a pandemic. Management is closely monitoring the evolution of this pandemic, including how it may affect the company, the economy and the general population. We have an appropriate response plan in place, and we will continue to monitor and assess the ongoing development and respond accordingly.
Auditor
The auditor, Edwards, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr R R Goldsmid
Director
28 December 2020
ELBIT SYSTEMS UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;
-
make judgements 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 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.
ELBIT SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELBIT SYSTEMS UK LIMITED
- 3 -
Opinion
We have audited the financial statements of Elbit Systems UK Limited (the 'company') for the year ended 31 December 2019 which comprise the statement of income and retained earnings, the statement of financial position and notes to the financial statements, 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 FRS 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:
-
give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 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
.
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.
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.
ELBIT SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELBIT SYSTEMS UK LIMITED
- 4 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you 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; or
-
the company is not entitled to claim exemption in preparing a strategic report due to it being a member of an ineligible group.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
ELBIT SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELBIT SYSTEMS UK LIMITED
- 5 -
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 Tonks BSc (Econ) FCA (Senior Statutory Auditor)
for and on behalf of Edwards
28 December 2020
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
ELBIT SYSTEMS UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
2019
2018
Notes
£
£
Turnover
5,383,356
-
Cost of sales
(5,383,356)
-
Gross profit
-
-
Administrative expenses
(317,163)
(19,905)
Operating loss
3
(317,163)
(19,905)
Interest receivable and similar income
4
10,176,505
9,751,714
Interest payable to group undertakings
5
(58,303)
(41,817)
Profit before taxation
9,801,039
9,689,992
Tax on profit
6
(230,472)
(275,943)
Profit for the financial year
9,570,567
9,414,049
Retained earnings brought forward
35,345,118
25,931,069
Dividends
7
(11,500,000)
-
Retained earnings carried forward
33,415,685
35,345,118
The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.
ELBIT SYSTEMS UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
31 December 2019
- 7 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
8
1,328,037
362,644
Investments
9
17,381,562
17,381,562
18,709,599
17,744,206
Current assets
Stocks
12
246,538
137,474
Debtors falling due after more than one year
13
11,426,822
12,523,507
Debtors falling due within one year
13
6,503,656
3,919,328
Cash at bank and in hand
3,405,300
4,506,878
21,582,316
21,087,187
Creditors: amounts falling due within one year
14
(6,806,104)
(3,482,434)
Net current assets
14,776,212
17,604,753
Total assets less current liabilities
33,485,811
35,348,959
Provisions for liabilities
15
(70,125)
(3,840)
Net assets
33,415,686
35,345,119
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
33,415,685
35,345,118
Total equity
33,415,686
35,345,119
The financial statements were approved by the board of directors and authorised for issue on 28 December 2020 and are signed on its behalf by:
Mr R R Goldsmid
Director
Company Registration No. 05241591
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
1
Accounting policies
Company information
Elbit Systems UK Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
2 Temple Back East, Temple Quay, Bristol, BS1 6EG.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Elbit Systems Limited
. These consolidated financial statements are available from
www.elbitsystems.com
.
The company has taken advantage of the exemption under section 40
1
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
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
Development contract revenue and associated costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date and the anticipated profit at the end of the contract.
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 9 -
1.4
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.
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:
Land and buildings leasehold
10% straight line
Fixtures, fittings and equipment
12.5% - 20% straight line
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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 10 -
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 statement of financial position 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.
Basic financial assets
Short term trade 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.
Basic financial liabilities
Short term trade creditors are measured at 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 11 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
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 income statement for the period.
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Valuation of investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or
l
oss
.
Long-term contracts
The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen.
Contract work in progress is stated at cost incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.
3
Operating loss
2019
2018
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,500
7,350
Depreciation of owned tangible fixed assets
72,732
43,380
Operating lease charges
197,004
-
4
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest receivable from group companies
1,649,755
1,502,051
Other income from investments
Dividends received
8,526,750
8,249,663
Total income
10,176,505
9,751,714
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 13 -
5
Interest payable and similar expenses
2019
2018
£
£
Interest payable to group undertakings
58,303
41,817
6
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
183,422
282,002
Adjustments in respect of prior periods
(19,235)
(3,301)
Total current tax
164,187
278,701
Deferred tax
Origination and reversal of timing differences
66,285
(2,758)
Total tax charge
230,472
275,943
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
6
Taxation
(Continued)
- 14 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
9,801,039
9,689,992
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
1,862,197
1,841,098
Under/(over) provided in prior years
(7,339)
(3,301)
Dividends received not taxable
(1,620,083)
(1,567,436)
Other timing differences
(4,303)
5,582
Taxation charge for the year
230,472
275,943
7
Dividends
2019
2018
£
£
Interim paid
11,500,000
-
8
Tangible fixed assets
Land and buildings leasehold
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 January 2019
-
483,444
483,444
Additions
944,232
93,893
1,038,125
Disposals
-
(50,145)
(50,145)
At 31 December 2019
944,232
527,192
1,471,424
Depreciation and impairment
At 1 January 2019
-
120,800
120,800
Depreciation charged in the year
24,317
48,415
72,732
Eliminated in respect of disposals
-
(50,145)
(50,145)
At 31 December 2019
24,317
119,070
143,387
Carrying amount
At 31 December 2019
919,915
408,122
1,328,037
At 31 December 2018
-
362,644
362,644
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 15 -
9
Fixed asset investments
2019
2018
Notes
£
£
Investments in subsidiaries
10
17,381,412
17,381,412
Investments in joint ventures
11
150
150
17,381,562
17,381,562
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 January 2019 & 31 December 2019
17,381,562
Carrying amount
At 31 December 2019
17,381,562
At 31 December 2018
17,381,562
10
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Ferranti Technologies
England and
Aerospace and defence
Ordinary
100.00
(Group) Limited
Wales
Elite KL Limited
England and
Defence contractor
Ordinary
100.00
Wales
UAV Tactical Systems
England and
Defence contractor
Ordinary
51.00
Limited
Wales
UAV Engines Limited
England and
Aerospace and defence
Ordinary
100.00
Wales
Instro Precision Limited
England and
Defence contractor
Ordinary
100.00
Wales
Endomedix BV Limited
Netherlands
Defence contractor
Ordinary
100.00
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 16 -
11
Joint ventures
The company’s investments in joint ventures at 31 December 2019 represent 50% interests in the ordinary share capital of Affinity Flying Training Services Limited, Affinity Flying Services Limited and Affinity Capital Works Limited. All three companies are defence contractors and are registered at Hill Park Court, Springfield Drive, Leatherhead, Surrey KT22 7NL.
12
Stocks
2019
2018
£
£
Work in progress
246,538
137,474
13
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
376,145
-
Amounts owed by group undertakings
4,242,933
3,192,121
Amounts owed by undertakings in which the company has a participating interest
1,884,578
683,342
Prepayments and accrued income
-
43,865
6,503,656
3,919,328
2019
2018
Amounts falling due after more than one year:
£
£
Amounts owed by undertakings in which the company has a participating interest
11,426,822
12,523,507
Total debtors
17,930,478
16,442,835
14
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
144,797
-
Amounts owed to group undertakings
4,616,681
2,219,154
Corporation tax
454,033
515,522
Other taxation and social security
315,600
-
Accruals and deferred income
1,274,993
747,758
6,806,104
3,482,434
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 17 -
15
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
16
70,125
3,840
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
70,125
3,840
2019
Movements in the year:
£
Liability at 1 January 2019
3,840
Charge to profit or loss
66,285
Liability at 31 December 2019
70,125
17
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,491 Ordinary shares of 0.1p each
1
1
ELBIT SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
217,750
217,750
Between two and five years
1,424,745
471,792
In over five years
1,226,184
-
2,868,679
689,542
19
Related party transactions
The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.
The company owns 50% of the share capital of Affinity Flying Training Services Limited ("AFTSL") and Affinity Capital Works Limited ("ACWL"). The company also owns 51% of UAV Tactical Systems Limited ("UTACS").
During the year, the company charged interest of £1,604,315 (2018 - £1,486,441) to AFTSL in relation to loans advanced. The company received dividends of £1,200,000 (2018 - £Nil) from AFTSL. At 31 December 2019, included within debtors is an amount of £13,311,400 (2018 - £13,206,849) due from AFTSL.
During the year, the company received dividends of £3,501,750 (2018 - £8,249,663) from ACWL.
During the year, the company received dividends of £3,825,000 (2018 - £Nil) from UTACS.
20
Ultimate controlling party
The company is a subsidiary undertaking of Elbit Systems Limited, a company incorporated in Israel, which is the ultimate parent undertaking and controlling party.
Elbit Systems Limited is the largest and smallest group for which group financial statements are prepared. The group financial statements of this group are available to the public and may be obtained from www.elbitsystems.com.
2019-12-31
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CCH Software
CCH Accounts Production 2020.200
Mr J Gaspar
Mr D Block-Temin
Mr B Machlis
Mr R Kril
Mr B Machlis
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Mr M C S J Fausset
Mr Y Ramon
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