Company registration number:
03538743
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FOR THE YEAR ENDED
31 DECEMBER 2020
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SAXLUND INTERNATIONAL LIMITED
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SAXLUND INTERNATIONAL LIMITED
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COMPANY INFORMATION
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Chartered Accountants
&
Statutory Auditor
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SAXLUND INTERNATIONAL LIMITED
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CONTENTS
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Statement of Financial Position
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Notes to the Financial Statements
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SAXLUND INTERNATIONAL LIMITED
REGISTERED NUMBER:
03538743
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STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 2 to 10 form part of these financial statements.
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Saxlund International Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is disclosed on the company information page. The registered address is the same as the trading address.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The financial statements are prepared in sterling, which is the functional currency of the entity.
As widely reported in the media COVID-19 is impacting many businesses at the time these accounts are being filed.
In terms of the impact that the pandemic and lockdown regulations imposed by the UK Governement has had on the business, this has been significant. Work on project sites have been delayed through clients closing sites and furloughing employees. The impact of this has been reflected on the trading performance.
The directors continually review ongoing contracts and are constantly looking to win new contracts, with several in the pipeline.
The Company has taken steps to mitigate the impact of COVID-19 and has secured a Coronavirus Interruption Business Scheme Loan and also has continued support from its parent company Saxlund Group AB. Taking this into consideration along with the expected performance over the foreseeable future, the directors consider that the Company has sufficient resources to continue operational existence for the for that time.
For this reason the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
The Directors have adopted the Urgent Issues Task Force (UITF) abstract 40 "Revenue recognition and service contracts" issued by the Accounting Standrads Board (ASB) in accordance with Generally Accepted Accounting Practice (GAAP) in the United Kingdom. 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. The Directors have adopted the Urgent Issues Task Force (UITF) abstract 40 "Revenue recognition and service contracts" issued by the Accounting Standrads Board (ASB) in accordance with Generally Accepted Accounting Practice (GAAP) in the United Kingdom. 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
The Directors have adopted the Urgent Issues Task Force (UITF) abstract 40 "Revenue recognition and service contracts" issued by the Accounting Standrads Board (ASB) in accordance with Generally Accepted Accounting Practice (GAAP) in the United Kingdom. from the sale of goods is recognised when all of the following conditions are satisfied:
∙
the Company has transferred the significant risks and rewards of ownership to the buyer;
∙
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
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the amount of revenue can be measured reliably;
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it is probable that the Company will receive the consideration due under the transaction; and
∙
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Contracts in progress
The Directors have adopted the Urgent Issues Task Force (UITF) abstract 40 "Revenue recognition and service contracts" issued by the Accounting Standards Board (ASB) in accordance with Generally Accepted Accounting Practice (GAAP) in the United Kingdom.
Where the Company enters into a contractual obligation to be performed over a period of time the revenue is recognised in the income statement as the contract activity progresses to reflect the proportion of the contract undertaken. A provision is made for the full amount of foreseeable losses on contracts.
Contracts in progress balances represent sales or cost of sales in excess of, or the shortfall of the amounts transferred to sales or costs of sales, as appropriate, in respect of work recorded as turnover, less foreseeable losses and payments on account not matched with turnover.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Tangible fixed assets (continued)
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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 and reducing balance basis.
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.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Foreign currency translation
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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.
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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Operating leases: the Company as lessee
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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.
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.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Provisions for liabilities
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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.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
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:
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The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
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.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Completion stage of contracts
The majority of contracts are either longer than a year or span the period end. Each month the project director reviews the stage of completion and appropriate levels of revenue and costs are recorded according to this stage of completion, for each contract.
Warranty provision
The provision is calculated as 1-2% of the revenue held multiplied by the completion percentage. This is the default position, however each contract is looked at individually by the project director and assessed as to whether the % is appropriate. If necessary this is adjusted.
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The average monthly number of employees, including directors, during the year was 10
(2019 -
10
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Charge for the year on owned assets
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Prepayments and accrued income
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Amounts recoverable on completed contracts
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Amounts recoverable on on-going contracts
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Contract costs in advance of revenue recognition
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Additional costs on completed contracts where revenue has been recognised
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Additional costs on on-going contracts where revenue has been recognised
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Contract sales in advance of revenue recognition
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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The bank has provided guarantees on certain commercial contracts totalling £60,932 (2019 - £97,828), in the form of the bank loan and the £30,466 (2019 - £45,224) bond held in investments. In providing this guarantee the bank has secured its borrowing with a fixed and floating charge over the company's assets.
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SAXLUND INTERNATIONAL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Saxlund International Limited accrue a percentage of each job and hold it as a provision should any remedial works be required. Should this work not be required this amount will be released at the end of the contract term.
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At 31 December 2019 the Company had liabilities totalling £1,623 (2019 - £2,329) relating to pension commitments.
The company's parent undertaking is Saxlund International Holding AB, a company incorporated in Sweden.
The ultimate parent undertaking of the company is Saxlund Group AB, a company incorporated in Sweden.
The largest and smallest company which prepares group accounts in the Group is Saxlund Group AB.
Consolidated group accounts are available by application from;
Saxlund Group AB
Fannys Vag 3
131 54 Nacka
Sweden
The ultimate controlling party is Saxlund Group AB, by right of its shares in the group.
The auditors' report on the financial statements for the year ended 31 December 2020 was unqualified.
The audit report was signed on
26 April 2021
by
James Hadfield FCA
(Senior Statutory Auditor) on behalf of
Menzies LLP
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