Company Registration No. 08073811 (England and Wales)
SCAL ARABIA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
SCAL ARABIA LIMITED
COMPANY INFORMATION
Directors
B E Osthus
J D Lawrence
O S Hjelmeland
Company number
08073811
Registered office
Gable House
239 Regents Park Road
London
N3 3LF
Auditor
BoseCo
309 Regents Park Road
London
N3 1DP
SCAL ARABIA LIMITED
CONTENTS
Page
Balance sheet
1
Statement of cash flows
2
Notes to the financial statements
3 - 9
SCAL ARABIA LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
US $
US $
US $
US $
Fixed assets
Tangible assets
3
3,218,350
4,387,731
Current assets
Debtors
4
1,914,829
1,546,841
Cash at bank and in hand
243,649
2,799
2,158,478
1,549,640
Creditors: amounts falling due within one year
5
(5,617,551)
(4,426,551)
Net current liabilities
(3,459,073)
(2,876,911)
Total assets less current liabilities
(240,723)
1,510,820
Creditors: amounts falling due after more than one year
6
(11,853,196)
(10,934,911)
Net liabilities
(12,093,919)
(9,424,091)
Capital and reserves
Called up share capital
7
15,870
15,870
Profit and loss reserves
(12,109,789)
(9,439,961)
Total equity
(12,093,919)
(9,424,091)
The directors of the company have elected not to include a copy of the profit and loss account 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 23 September 2019 and are signed on its behalf by:
J D Lawrence
Director
Company Registration No. 08073811
SCAL ARABIA LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 2 -
2018
2017
Notes
US $
US $
US $
US $
Cash flows from operating activities
Cash generated from/(absorbed by) operations
13
234,280
(2,543,293)
Interest paid
(581,445)
(424,722)
Net cash outflow from operating activities
(347,165)
(2,968,015)
Investing activities
Purchase of tangible fixed assets
(3,399)
(112,030)
Proceeds on disposal of tangible fixed assets
407,394
-
Proceeds on disposal of fixed asset investments
(407,394)
-
Net cash used in investing activities
(3,399)
(112,030)
Financing activities
Repayment of borrowings
918,285
83,456
Repayment of bank loans
(296,079)
2,909,514
Net cash generated from financing activities
622,206
2,992,970
Net increase/(decrease) in cash and cash equivalents
271,642
(87,075)
Cash and cash equivalents at beginning of year
(27,993)
59,082
Cash and cash equivalents at end of year
243,649
(27,993)
Relating to:
Cash at bank and in hand
243,649
2,799
Bank overdrafts included in creditors payable within one year
-
(30,792)
SCAL ARABIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 3 -
1
Accounting policies
Company information
SCAL Arabia Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
, Gable House, 239 Regents Park Road, London, N3 3LF.
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 US $.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
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
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.3
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:
Leasehold improvements
over the lease term
Plant and machinery
10%, 20% and 33% on straight line basis
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
.
SCAL ARABIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 4 -
1.4
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5
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.
1.6
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
SCAL ARABIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 5 -
Trade debtors
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
1.7
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.
1.8
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.
SCAL ARABIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
1.9
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.
1.10
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
Monetary assets and liabilities denominated in foreign currencies are translated into U.S. Dollar at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 20 (2015 - 23).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
US $
US $
US $
Cost
At 1 January 2018
1,696,577
5,146,915
6,843,492
Additions
-
3,399
3,399
Disposals
-
(729,341)
(729,341)
At 31 December 2018
1,696,577
4,420,973
6,117,550
Depreciation and impairment
At 1 January 2018
657,913
1,797,848
2,455,761
Depreciation charged in the year
239,241
526,145
765,386
Eliminated in respect of disposals
-
(321,947)
(321,947)
At 31 December 2018
897,154
2,002,046
2,899,200
Carrying amount
At 31 December 2018
799,423
2,418,927
3,218,350
At 31 December 2017
1,038,664
3,349,067
4,387,731
SCAL ARABIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 7 -
4
Debtors
2018
2017
Amounts falling due within one year:
US $
US $
Trade debtors
667,667
534,386
Amounts owed by group undertakings
160,000
-
Other debtors
1,087,162
1,012,455
1,914,829
1,546,841
5
Creditors: amounts falling due within one year
2018
2017
US $
US $
Bank loans and overdrafts
2,613,435
2,940,306
Trade creditors
1,274,781
1,097,394
Taxation and social security
7,600
-
Other creditors
1,721,735
388,851
5,617,551
4,426,551
6
Creditors: amounts falling due after more than one year
2018
2017
US $
US $
Other creditors
11,853,196
10,934,911
7
Called up share capital
2018
2017
US $
US $
Ordinary share capital
Issued and fully paid
15,870 Ordinary shares of $1 each
15,870
15,870
15,870
15,870
8
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 auditor was BoseCo.
SCAL ARABIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
8
Audit report information
(Continued)
- 8 -
9
Operating lease commitments
Lessee
The operating lease represent
s
leases to third parties. The leases are negotiated over terms of
3
years and
there
are
yearly increments of 5%
.
There
is an
option in place for either party to extend the lease term
for a further 3 years
.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2018
2017
US $
US $
637,602
414,514
10
Parent company
The ultimate controlling party is Petricore Limited, a company registered in England and Wales. The registered office address is Gable House, 239 Regents Park Road, London, N3 3LF.
11
Related party transactions
The company has taken advantage of the exemption under FRS 8 not to disclose transactions with entities that are part of the group on the grounds that consolidated financial statements are prepared by the ultimate parent company.
12
Going concern
The company made a loss for the year of $2,268,710 , had net liabilities of $9,424,091 and net current liabilities of $2,876,911.
The company's shareholders, Petricore Limited (51%) and Zamil Group Trade & Services Co. Ltd (49%), have undertaken to provide financial support in such amounts to enable the company to meet its obligations as and when required for a period of at lease twelve months from the date of approval of these financial statements.
Therefore, the directors have a reasonable expectation that the company will have access to adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
SCAL ARABIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 9 -
13
Cash generated from/(absorbed by) operations
2018
2017
US $
US $
Loss for the year after tax
(2,669,828)
(2,268,711)
Adjustments for:
Finance costs
581,445
424,722
Depreciation and impairment of tangible fixed assets
765,386
760,930
Amounts written off investments
407,394
-
Movements in working capital:
(Increase)/decrease in debtors
(367,988)
587,629
Increase/(decrease) in creditors
1,517,871
(2,047,863)
Cash generated from/(absorbed by) operations
234,280
(2,543,293)
2018-12-31
2018-01-01
false
30 September 2019
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
This audit opinion is unqualified
B E Osthus
J D Lawrence
O S Hjelmeland
S R Page
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