Company Registration No. 06214162 (England and Wales)
LUNDIN MINING UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
LUNDIN MINING UK LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
LUNDIN MINING UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2017
31 December 2017
- 1 -
2017
2016
Notes
£
£
£
£
Current assets
Fixed assets held for sale
45,598
100,191
Trade and other receivables
3
1,479,398
1,722,294
Cash at bank and in hand
1,155,081
973,043
2,680,077
2,795,528
Current liabilities
4
(672,718)
(921,825)
Net current assets
2,007,359
1,873,703
Provisions for liabilities
(151,294)
(181,668)
Net assets
1,856,065
1,692,035
Equity
Called up share capital
1
1
Retained earnings
1,856,064
1,692,034
Total equity
1,856,065
1,692,035
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
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 18 May 2018 and are signed on its behalf by:
Mr S T Gatley
Director
Company Registration No. 06214162
LUNDIN MINING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 2 -
1
Accounting policies
Company information
Lundin Mining UK Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Dixcart House, Addlestone Road, Bourne Business Park, Addlestone, Surrey, KT15 2LE.
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 on the historical cost convention, modified to include all fixed assets as stock due to the proposed impending sale. This has been detailed in note 1.2 below. The principal accounting policies adopted are set out below.
1.2
Going concern
The parent company has made the decision to close the UK office in March 2018. The directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements as the company will continue to operate despite the office closure, albeit on a reduced scale. The company is reliant on the financial support of its parent company to fund its operations and the parent company has confirmed its support for a period of not less than twelve months from the approval of the financial statements. The directors therefore have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
As a result of the decision to close the UK office, fixed assets were transferred to current assets as held for sale. This transfer was made at net book value and it is the directors’ opinion that this is the realisable amount. During the year any assets which remain unsold have been depreciated / amortised on the following bases:
Computer licences 33% straight line per annum
Plant and machinery 25% reducing balance per annum
Fixtures, fittings and equipment 25% reducing balance per annum
Computer equipment 33% straight line and 25% reducing balance per annum
1.3
Revenue
Revenue
represents amounts receivable for services net of VAT. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance of services.
1.4
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks
.
1.5
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.
LUNDIN MINING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 3 -
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost
.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
All equity shares have been allotted
, called up
and
fully
paid.
1.7
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.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.
1.8
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
LUNDIN MINING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 4 -
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income 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 asset are consumed.
1.12
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 12 (2016 - 16).
3
Trade and other receivables
2017
2016
Amounts falling due within one year:
£
£
Corporation tax recoverable
83,806
83,806
Amounts owed by group undertakings
1,254,212
1,464,203
Other receivables
141,380
174,285
1,479,398
1,722,294
4
Current liabilities
2017
2016
£
£
Trade payables
17,059
80,058
Other taxation and social security
370,571
211,735
Other payables
285,088
630,032
672,718
921,825
5
Share-based payment transactions
The company participates in an incentive plan operated by Lundin Mining Corporation, the ultimate parent company. Under this plan key personnel receive remuneration in the form of share options and Restricted Stock Units (RSUs) in the ultimate parent company.
As 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, the company has taken advantage of the exemptions from the disclosures required under Section 26 ‘Share-based Payment’.
LUNDIN MINING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 5 -
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Robin Evans BA FCA CTA.
The auditor was MHA Carpenter Box.
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
71,867
583,734
8
Parent company
The immediate controlling party is Lundin Mining AB.
The ultimate controlling party is Lundin Mining Corporation, a company incorporated in Canada. Copies of Lundin Mining Corporation consolidated financial statements can be obtained from the Company Secretary at 150 King Street West, Suite 1500, P.O Box 38, Toronto, ON M5H 1J9, Canada.