REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Audited Financial Statements for the Year Ended 31 December 2019 |
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Metka - EGN Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Audited Financial Statements for the Year Ended 31 December 2019 |
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for |
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Metka - EGN Limited |
Metka - EGN Limited (Registered number: 09627590) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Directors' Responsibilities Statement | 6 |
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Report of the Independent Auditors | 7 |
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Statement of Comprehensive Income | 10 |
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Statement of Financial Position | 11 |
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Statement of Changes in Equity | 13 |
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Notes to the Financial Statements | 14 |
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Metka - EGN Limited |
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Company Information |
for the Year Ended 31 December 2019 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Northern Assurance Buildings |
9/21 Princess Street |
Manchester |
M2 4DN |
Metka - EGN Limited (Registered number: 09627590) |
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Strategic Report |
for the Year Ended 31 December 2019 |
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The directors present their strategic report for the year ended 31 December 2019. |
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REVIEW OF BUSINESS |
Metka EGN is both an EPC contractor and a renewable energy developer, drawing on the combined experience of |
both joint venture partners, Mytilineos Holdings S.A and EGN Projects Limited. |
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RESULTS AND PERFORMANCE |
The company has been successfully securing and delivering solar and battery storage EPC projects for over 3 |
years. The company is also continuing to grow through applying its expertise to the acquisition and development of |
its own projects. |
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The results of the company show a profit before tax of £2.3m (2018: loss of £0.5m) and shareholders funds of £8m |
(2018: £6.2m). In the prior year, the company incurred significant costs in relation to acquiring a new pipeline of |
projects and developing new markets. These new projects have been realised in the current year, yielding |
significant revenues and driving a strong profit margin in the year. |
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BUSINESS ENVIRONMENT |
Whilst government subsidies and Brexit have impacted the renewable industry in the UK, Metka-EGN and its |
subsidiary companies continue to exploit opportunities at home and overseas. Both the company and the group |
have a large portfolio of current and future EPC contracts along with a number of maintenance contracts for |
completed projects. |
Furthermore, maintenance contracts in respect of completed projects continue to stretch into future years. |
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In March 2020, the World Health Organisation announced that the emergence of a Coronavirus (Covid-19) that |
was infecting humans globally was categorised as a pandemic. The safety of Metka-EGN and its subsidiaries |
employees and contractors is of the upmost importance at this time. Mytilineos, the parent company, has developed |
a task force to assess the ongoing developments and advise the group on how to best deal with situation in light of |
advice from health experts and governments. The pandemic is likely to impact the business operations of the |
company. Already, measures have been put in place to limit travel and promote at-home working practices. The |
ability of the company to continue developing EPC projects and obtaining necessary supplies from abroad will also |
be disrupted. The company and the group is continually assessing the impact of the pandemic on the progress of |
the projects under construction, cash flow forecasts and liquidity. Based upon current forecasts and reserves, the |
company remains in a strong position despite the ongoing pandemic and retains the continued financial support of |
its parent entity to cover any potential short term cash flow issues that may arise. |
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STRATEGY |
In addition to EPC engagements, Metka-EGN and its subsidiaries continue to develop opportunities |
overseas, in countries including France, Kazakhstan, Greece, Chile, Mexico and Australia. |
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Furthermore, the company is strongly positioned in the battery storage industry, having successfully completed a |
number of installations in 2018 and 2019. It is expected that such projects will form a large part of the new |
business pipeline in the UK as competition in the solar market intensifies. |
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KEY PERFORMANCE INDICATORS |
The board monitors the company's progress with reference to key performance indicators. The company has a gross |
profit margin of 13% (2018: 17%) and a net profit margin of 5% (2018: -2%). As at 31/12/19 the company had |
amounts recoverable on contracts of £11.2m (2018: £1.6m) and amounts invoiced in excess of contract progress of |
£0.5m (2018: £0.4m). |
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Metka - EGN Limited (Registered number: 09627590) |
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Strategic Report |
for the Year Ended 31 December 2019 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk acceptance and risk management is addressed through a framework of policies, procedures and |
internal controls. Compliance with regulation, legal and ethical standards is a high priority for the directors and |
they take an important oversight role in this regard. |
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Prospects for 2020 |
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The group adjusts its strategic planning by focussing on the development of its activities in markets with particular |
demands, where its prestige and know-how can generates significant added value. |
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We expect that the renewable energy market in the UK will be impacted by the continued lack of political support |
and by Brexit. The company is addressing these risks by diversifying both geographically and within the renewable |
market through new revenue streams such as development and battery storage. To manage the potential risk of |
Brexit related delays to the import of goods, the company now includes mitigating clauses in contracts to ensure |
that it is not liable for these costs or delays. |
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Financial risk management |
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The company's activities give rise to multiple financial risks, including the foreign exchange and interest rates |
related risks; credit risks; and liquidity risks. The essential risk management policies are determined by the group |
and applied by the group corporate treasury department. |
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Credit Risks |
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The company maintains strict credit controls over customer balance, ensuring that there is no concentration of |
credit risk outside of the limits deemed acceptable for each individual customer. Credit risk originates from |
available cash and cash equivalents, deposits with banks and financial institutions and clients with respect to trade |
receivables. |
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To minimise credit risk on cash reserves and cash equivalents, the company specifies certain limits to its exposure |
on each individual financial institution and only engages in transactions with creditworthy financial institutions of |
high credit rating. |
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The company monitors its business claims and adopts policies and practices to ensure that such claims are |
collected. By way of example, such policies and practices include insuring credits where possible; pre-collection |
of the value of product sold, and receiving letters of guarantee. |
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Liquidity Risks |
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Liquidity risk is related to the company's need for sufficient financing of its operations and development. The |
relevant liquidity risks are the subject of management through the meticulous monitoring of debts,financial |
liabilities and payments made on a regular basis. |
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The group ensures that there are sufficient available credit facilities to be able to cover its short-term business |
needs, after the calculation of cash flows arising from the operation as well as cash and cash equivalents which are |
held. The company can rely on its parent company and other group companies for long-term liquidity. |
Metka - EGN Limited (Registered number: 09627590) |
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Strategic Report |
for the Year Ended 31 December 2019 |
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Exchange Rate Risks |
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The company operates at an international level and is therefore exposed to exchange rate risk that arises mainly |
from the Euro and the US dollar. Such risk primarily stems from commercial transactions in foreign currency. For |
the management of such risk, the group to which the company belongs establishes financial derivative and |
non-derivative instruments with financial organizations to compensate for adverse movements in foreign exchange |
rates. |
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Interest Rate Risks |
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The company's assets that are exposed to interest rate fluctuation primarily concern cash and cash equivalents. The |
company's policy is to invest its cash in floated interest rates so as to maintain the necessary liquidity while |
achieving satisfactory return for its shareholders. |
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Price |
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The majority of the company's business is conducted via fixed-price contracts. The company undertakes diligence |
on its customers and where appropriate requires funds to be held on deposit or in escrow. |
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ON BEHALF OF THE BOARD: |
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Metka - EGN Limited (Registered number: 09627590) |
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Report of the Directors |
for the Year Ended 31 December 2019 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2019. |
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DIRECTORS |
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Other changes in directors holding office are as follows: |
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FINANCIAL INSTRUMENTS |
Details of financial instruments can be found in the strategic report. |
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FUTURE DEVELOPMENTS |
Details of future developments can be found in the strategic report. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that |
he ought to have taken as a director in order to make himself aware of any relevant audit information and to |
establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, Haines Watts Manchester Limited, Statutory Auditor, will be proposed for re-appointment at the |
forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Metka - EGN Limited (Registered number: 09627590) |
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Directors' Responsibilities Statement |
for the Year Ended 31 December 2019 |
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The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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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), including Financial Reporting |
Standard 101 'Reduced Disclosure Framework'. 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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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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. |
Report of the Independent Auditors to the Members of |
Metka - EGN Limited |
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Opinion |
We have audited the financial statements of Metka - EGN Limited (the 'company') for the year ended |
31 December 2019 which comprise the Statement of Comprehensive Income, Statement of Financial Position, |
Statement of Changes in Equity 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 Financial Reporting Standard 101 'Reduced Disclosure |
Framework' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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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. |
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Basis for opinion |
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 Auditors' 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. |
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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: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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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. |
However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most |
significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore |
difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider |
economy. The Directors' view on the impact of COVID-19 is disclosed in the accounting policies. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report, the Report of the Directors and the Directors' Responsibilities Statement, but does not include the |
financial statements and our Report of the Auditors thereon. |
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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. |
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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. |
Report of the Independent Auditors to the Members of |
Metka - EGN Limited |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which the
financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
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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 identified material misstatements in the Strategic Report or the Report of the Directors. |
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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: |
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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. |
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Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page six, 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 necessary to enable the preparation of financial statements |
that are free from material misstatement, whether due to fraud or error. |
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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. |
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Auditors' 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 a Report of the Auditors 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. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report |
of the Auditors. |
Report of the Independent Auditors to the Members of |
Metka - EGN Limited |
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Use of our report |
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 a Report of the Auditors 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. |
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for and on behalf of
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Northern Assurance Buildings |
9/21 Princess Street |
Manchester |
M2 4DN |
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Metka - EGN Limited (Registered number: 09627590) |
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Statement of Comprehensive Income |
for the Year Ended 31 December 2019 |
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31.12.19 | 31.12.18 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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2,836,493 | 171,937 |
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Other operating income |
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OPERATING PROFIT |
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Interest payable and similar expenses | 5 |
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PROFIT/(LOSS) BEFORE TAXATION | 6 |
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Tax on profit/(loss) | 7 |
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PROFIT/(LOSS) FOR THE
FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME |
Item that may be reclassified subsequently to profit or loss: |
IFRS16 Adjustment | ( |
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Income tax relating to item that may be reclassified
subsequently to profit or loss |
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OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
( |
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TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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( |
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Metka - EGN Limited (Registered number: 09627590) |
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Statement of Financial Position |
31 December 2019 |
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31.12.19 | 31.12.18 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Owned |
Tangible assets | 8 | 17,752 | 23,283 |
Right-of-use |
Tangible assets | 8, 14 | 168,500 | - |
Investments | 9 |
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CURRENT ASSETS |
Inventory | 10 |
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Debtors | 11 |
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Contract assets | 3 | 11,319,784 | 1,566,095 |
Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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CONTRACT LIABILITIES |
Amounts falling due within one year | 3 | (504,065 | ) | (425,203 | ) |
NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
13 |
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NET ASSETS |
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Metka - EGN Limited (Registered number: 09627590) |
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Statement of Financial Position - continued |
31 December 2019 |
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31.12.19 | 31.12.18 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 15 |
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Retained earnings | 16 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
and were signed on its behalf by: |
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Metka - EGN Limited (Registered number: 09627590) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2019 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2018 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2018 |
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6,194,682 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2019 |
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Metka - EGN Limited (Registered number: 09627590) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2019 |
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1. | STATUTORY INFORMATION |
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Metka - EGN Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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The nature of the company's operations and its principal activities are set out in the business review on page |
2. |
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The company has taken advantage of the exemption under s.400 of the Companies Act 2006 not to prepare |
consolidated financial statements because it is included in the financial statements of Mytilineos Holdings |
S.A. which are available at www.mytilineos.gr. |
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2. | ACCOUNTING POLICIES |
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Basis of preparation |
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The company has taken advantage of the following disclosure exemptions in preparing these financial |
statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
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the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii),
B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations; |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
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the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of
IFRS 16 Leases; |
the requirements of paragraph 58 of IFRS 16; |
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the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a)
to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers; |
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the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative
information in respect of: |
- | paragraph 79(a)(iv) of IAS 1; |
- | paragraph 73(e) of IAS 16 Property, Plant and Equipment; |
- | paragraphs 76 and 79(d) of IAS 40 Investment Property; and |
- | paragraph 50 of IAS 41 Agriculture; |
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the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of
IAS 1 Presentation of Financial Statements; |
• | the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements; |
• | the requirements of IAS 7 Statement of Cash Flows; |
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the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
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the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into
between two or more members of a group; |
• | the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets. |
Metka - EGN Limited (Registered number: 09627590) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Turnover |
Revenue is measured at the fair value of the consideration received or receivable and represents amounts |
receivable for goods and services provided in the normal course of business, net of discounts, VAT and |
other sales-related taxes. As required by IFRS 15, revenue in respect of construction contracts is recognised |
on the basis of work completed. The company invoices its customers on the basis of stage payments as set |
out in individual EPC contracts. As a result accrued and deferred income (being the difference between |
revenue recognised in the accounts and invoices issued), is recognised on the balance sheet as amounts |
recoverable or payable by the company in respect of construction contracts. |
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Tangible fixed assets |
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Fixtures and fittings: 5 years on a straight-line basis |
Plant and machinery: 3 years on a straight-line basis |
Motor Vehicles: 8 years on a straight-line basis |
Right-of-use: Over the life of the lease |
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Tangible assets with finite useful lives are carried at cost less accumulated depreciation and accumulated |
impairment losses. |
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Stocks |
Inventory are valued at the lower of cost and net realisable value, after making due allowance for obsolete |
and slow moving items. |
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Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to |
local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate |
of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the |
operating result. |
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Leases |
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the |
lease payments which have not yet been made and subsequently measured under the amortised cost method. |
The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease |
liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated |
costs of removing or dismantling the underlying asset per the conditions of the contract. |
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Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use |
asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not |
transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life |
of the right-of-use asset and the lease term. |
Metka - EGN Limited (Registered number: 09627590) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Employee benefit costs |
The company operates a defined contribution pension scheme. Contributions payable to the company's |
pension scheme are charged to the income statement in the period to which they relate. |
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Going concern |
The directors have prepared forecasts of the Company's profitability and cash generation, taking into |
account the sensitivity of business performance to possible changes in market conditions and the potential |
impact of COVID-19. After reviewing the forecasts and making such other enquiries as they consider |
necessary, the directors have formed a judgement, at the time of approving the financial statements, that |
there is a reasonable expectation that the Company has adequate resources, either from operations or |
through drawing on the ongoing financial support of the parent company, to continue in operational |
existence for the foreseeable future. |
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Critical accounting 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 costs of delivering a contract. The amount of contract revenue |
recognised is directly proportionate to the percentage of budgeted costs incurred. 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 and any adjustments are recognised in the period in which the budgets are |
revised. |
|
Amounts recoverable on contracts and amounts payable on contracts are disclosed at note 11 and note 12 |
respectively. |
|
3. | TURNOVER |
|
The turnover and profit (2018 - loss) before taxation are attributable to the one principal activity of the |
company. |
|
An analysis of turnover by class of business is given below: |
|
31.12.19 | 31.12.18 |
£ | £ |
|
|
|
|
|
|
|
|
|
An analysis of turnover by geographical market is given below: |
|
31.12.19 | 31.12.18 |
£ | £ |
United Kingdom |
|
|
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
3. | TURNOVER - continued |
|
The company generates its turnover by undertaking engineering, procurement and construction contracts |
"EPC contracts". The nature of such contracts means that it is impossible to separate the provision of |
services from the sales of goods and equipment. |
|
Revenue from contracts with customers |
For the year ended 31 December 2019, the company's recognised revenue relating to customers contracts of |
£46,991,591 (2018: £25,516,027) |
|
Contract balances |
31.12.19 | 31.12.18 | 1.1.18 |
£ | £ | £ |
Contract assets |
|
Current |
Contract assets | 11,319,784 | 1,566,095 | 6,612,085 |
11,319,784 | 1,566,095 | 6,612,085 |
|
Contract liabilities |
|
Current |
Contract liabilities | 504,065 | 425,203 | 434,551 |
504,065 | 425,203 | 434,551 |
|
4. | EMPLOYEES AND DIRECTORS |
31.12.19 | 31.12.18 |
£ | £ |
Wages and salaries | 1,354,338 | 1,150,510 |
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31.12.19 | 31.12.18 |
|
Engineering and support staff | 22 | 29 |
|
31.12.19 | 31.12.18 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.19 | 31.12.18 |
£ | £ |
Connected party interest | 130,076 | 108,400 |
IFRS 16 lease interest |
|
|
Bonds | 439,311 | 645,645 |
Bank charges | 15,639 | 20,750 |
|
|
|
6. | PROFIT/(LOSS) BEFORE TAXATION |
|
The profit before taxation (2018 - loss before taxation) is stated after charging/(crediting): |
|
|
31.12.19 | 31.12.18 |
£ | £ |
Cost of inventories recognised as expense | 40,838,501 | 13,901,618 |
Other operating leases | 56,649 | 171,082 |
Depreciation - owned assets | 11,798 | 12,025 |
Depreciation - right-of-use assets | 61,196 | - |
Auditors' remuneration | 13,000 | 12,000 |
Audit-related assurance services | 9,000 | 13,500 |
Foreign exchange differences | (55,332 | ) | 71,846 |
Group interest receivable | 107,721 | 72,798 |
|
7. | TAXATION |
|
Analysis of tax expense/(income) |
31.12.19 | 31.12.18 |
£ | £ |
Current tax: |
Tax |
|
( |
) |
Total tax expense/(income) in statement of comprehensive income |
|
( |
) |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
7. | TAXATION - continued |
|
Factors affecting the tax expense |
The tax assessed for the year is higher (2018 - lower) than the standard rate of corporation tax in the UK. |
The difference is explained below: |
|
31.12.19 | 31.12.18 |
£ | £ |
Profit/(loss) before income tax |
|
( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK
of |
446,719 |
(100,711 |
) |
|
Effects of: |
Capital allowances in excess of depreciation | (1,229 | ) | (690 | ) |
Disallowable expenses | 3,377 | - |
Prior year adjustment | - | (1,335 | ) |
Tax expense/(income) |
|
( |
) |
|
Tax effects relating to effects of other comprehensive income |
|
31.12.19 |
Gross | Tax | Net |
£ | £ | £ |
IFRS16 Adjustment | ( |
) | - | (4,572 | ) |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
8. | TANGIBLE FIXED ASSETS |
Right-of-use | Office | Motor | Computer |
asset | Equipment | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 December 2019 |
|
|
|
|
|
DEPRECIATION |
At 1 January 2019 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 31 December 2019 |
|
|
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
|
|
At 31 December 2018 |
|
|
|
|
|
|
9. | INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2019 | 34,805 |
Additions | 194 |
At 31 December 2019 | 34,999 |
NET BOOK VALUE |
At 31 December 2019 | 34,999 |
At 31 December 2018 | 34,805 |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
9. | INVESTMENTS - continued |
|
Metka-EGN Chile S.p.A. (Chile) |
|
On 4/9/15 Metka-EGN Limited invested £6,536 in Metka-EGN Chile S.p.A (Chile). |
|
Metka-EGN owns 7,000,000 x $1CLP ordinary shares in the company, which represents 100% of its share |
capital. |
|
The registered office of the company is: |
Av Nueva Tajamar 555 Piso 6 |
Las Condes |
Santiago |
76.513.469-2 |
Chile |
|
The principal activity of the company is EPC within the solar energy industry. |
|
Metka-EGN Mexico S. de R.R. de C.V.(Mexico) |
|
On 28/4/17 Metka-EGN invested £204 in Metka-EGN Mexico S. de R.R. de C.V.(Mexico). |
|
The registered office of the company is: |
|
4338 Periferico Sur |
Jardines del pedregal de san angel |
04500 |
Ciuded de Mexico |
Coyoacan |
Mexico |
|
Metka-EGN owns 4,999 x $1MXN ordinary shares in the company, which represents 99.8% of its share |
capital. |
|
The principal activity of the company is EPC within the solar energy industry. |
|
Metka-EGN K2 LLP (Kazakhstan) |
|
On 11/9/17 Metka-EGN invested £18,985 in Metka-EGN K2 LLP (Kazakhstan). |
|
The registered office of the company is: |
|
House 50, Premises 129, Office 6 |
Post index 050042 |
Zhetysu-3 residential district |
Almaty City |
Auezovskiy region |
Republic of Kazakhstan |
|
Metka-EGN owns, which represents a 99.9% partnership interest |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
9. | INVESTMENTS - continued |
|
The principal activity of the partnership is EPC within the solar energy industry. |
|
Metka-EGN (Japan) |
|
On 11/6/18 Metka-EGN Limited invested £6,989 in Metka-EGN (Japan). |
|
Metka-EGN owns 100 x JPY 10,100 ordinary shares in the company, which represents 100% of its share |
capital. |
|
The registered office of the company is: |
Matsunaga Building 4F, 2-1-17, |
Hamamatsucho, Minato-ku, |
105-0013 |
Tokyo |
|
Metka-EGN owns, which represents a 100% partnership interest. |
|
The principal activity of the company is EPC within the solar energy industry. |
|
Metka-EGN (Uganda) |
|
On 2/7/18 Metka-EGN Limited invested £2,091 in Metka-EGN (Japan). |
|
Metka-EGN owns 100 x UGX 100,000 ordinary shares in the company, which represents 100% of its share |
capital. |
|
The registered office of the company is: |
10MW en Bufulubi, |
Uganda |
|
Metka-EGN owns, which represents a 100% partnership interest. |
|
The principal activity of the company is EPC within the solar energy industry. |
|
10. | INVENTORY |
31.12.19 | 31.12.18 |
£ | £ |
Stocks |
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.19 | 31.12.18 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Amounts owed by associates |
|
|
Prepayment | 50,243 | 118,955 |
Tax | - | 94,108 |
Called up share capital not paid |
|
|
|
|
|
No financial assets have been accounted for at fair value. |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.19 | 31.12.18 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Amounts owed to associates | 569,438 | 569,438 |
Social security and other taxes |
|
|
VAT | 307,153 | 583,328 |
Other creditors | 227,961 | 62,488 |
Accrued expenses |
|
|
Lease liabilities |
|
|
Goods received not invoiced | 360,390 | 56,172 |
|
|
|
No financial liabilities have been accounted for at fair value. |
|
13. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR |
31.12.19 | 31.12.18 |
£ | £ |
Lease Liabilities |
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
14. | LEASING |
|
Right-of-use assets |
|
Tangible fixed assets |
|
31.12.19 | 31.12.18 |
£ | £ |
COST |
Additions | 229,696 | - |
|
DEPRECIATION |
Charge for year | 61,196 | - |
|
NET BOOK VALUE | 168,500 | - |
|
15. | CALLED UP SHARE CAPITAL |
|
|
Allotted and issued: |
Number: | Class: | Nominal | 31.12.19 | 31.12.18 |
value: | £ | £ |
|
Ordinary shares | 1 | 1,000 | 1,000 |
|
The total authorised share capital of the company is 1,000 x £1 Ordinary shares. |
|
16. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2019 |
|
Profit for the year |
|
IFRS16 adjustment | ( |
) |
At 31 December 2019 |
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
17. | ULTIMATE PARENT COMPANY |
|
Mytilineos Holdings S.A (incorporated in Greece ) is regarded by the directors as being the company's |
ultimate parent company. |
|
The directors consider Mytilineos Holdings S.A. to be the company's ultimate parent company by virtue of |
its indirect interest in 50.1% of the shares. |
|
Mytilineos Holdings S.A is listed on the Athens Stock Exchange. |
|
The registered address for Metka SA is: |
5-7 Patroklou Str. |
Maroussi |
15125 Athens |
|
The consolidated accounts for Mytilineos Holdings S.A are publicly available from |
http://www.mytilineos.gr. |
|
18. | CONTINGENT LIABILITIES |
|
The company has contingent liabilities of £9,733,616 (2018: £21,536,739) in respect of bank guarantees |
issued to customers. |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
19. | RELATED PARTY DISCLOSURES |
|
During the year the Company entered into transactions, in the ordinary course of business, with other |
related parties. The Company has taken advantage of the exemption under paragraph 8(k) of FRS101 not to |
disclose transactions with fellow wholly owned subsidiaries. |
|
Trading transactions entered into, and trading balances outstanding with other related parties, are as |
follows: |
|
Year ended 31/12/19: |
|
Related party |
Sales to related party (£ |
) |
Purchase from related party(£ |
) |
Trading
balances owed by related party(£ |
) |
Trading
balances owed to related party (£ |
) |
|
Metka S.A. (parent company) | - | - | - | 52,641 |
Metka - EGN CY (parent company) | 1,983,844 | 361,809 | 2,002,545 | 361,809 |
EGN Projects Ltd (associated company) | 161,797 | 154,875 | 1,005,796 | 636,649 |
Tegnatia Egnerji Ulerim (associated
company) |
- |
5,740 |
- |
5,740 |
EGN Studies (associated company) | - | - | - | 208,206 |
Metka-EGN (Greece) (associated company) | 59,246 | - | 59,246 | - |
Mytilineos Holdings S.A. (ultimate parent
company) |
- |
686,361 |
- |
1,178,973 |
Tegnatia Enerji A.S. (associated company) | - | - | 127 | - |
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
Year ended 31/12/18: |
|
Related party |
Sales to related party (£ |
) |
Purchase from related party(£ |
) |
Trading
balances owed by related party(£ |
) |
Trading
balances owed to related party (£ |
) |
|
Metka S.A. (parent company) | - | 130,700 | - | 186,763 |
Metka - EGN CY (parent company) | 18,701 | - | 18,701 | - |
EGN Projects Ltd (associated company) | 242,965 | 67,260 | 843,999 | 481,774 |
Tegnatia Egnerji Ulerim (associated
company) |
- |
- |
- |
- |
EGN Studies (associated company) | - | - | - | 221,739 |
Metka-EGN (Greece) (associated company) | - | - | 63,907 | - |
Mytilineos Holdings S.A. (ultimate parent
company) |
- |
324,750 |
- |
669,186 |
Tegnatia Enerji A.S. (associated company) | - | - | - | 135 |
|
The company also has non-trading debtor and creditor balances with related parties as follows: |
|
Year ended 31/12/19: |
|
Related party |
Non-trading balances owed
by related party(£ <1 year |
) |
Non-trading balances owed
to related party (£ <1 year |
) |
|
Metka S.A. (ultimate controlling company) | - | 98,355 |
Metka - EGN CY (parent company) | - | 9,485,557 |
EGN Projects Ltd (associated company) | - | 531,570 |
Metka - EGN Chile SPA (associated
company) |
3,708 |
- |
Metka - EGN USA LLC (associated company | 565,172 | - |
Paraskevi Papapetrou & Co (associated
company) |
709 |
- |
Metka-EGN Mexico (associated company) | 52,550 | - |
Metka-EGN Kazakhstan (associated
company) |
144,102 |
- |
Metka-EGN GR (associated company) | 122,130 | - |
Metka EGN Spain (associated company) | - | 1,418,536 |
Metka EGN Uganda (associated company) | 7,472 | - |
Metka-EGN FR (associated company) | 1,457 | - |
Metka-EGN Japan (associated company) | 36,974 | - |
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
Year ended 31/12/18: |
|
Related party |
Non-trading balances owed
by related party(£ <1 year |
) |
Non-trading balances owed
to related party (£ <1 year |
) |
|
Metka S.A. (ultimate controlling company) | - | 98,355 |
Metka - EGN CY (parent company) | 3,575,536 | - |
EGN Projects Ltd (associated company) | - | 471,083 |
Metka - EGN Chile SPA (associated
company) |
252,984 |
- |
Metka - EGN USA LLC (associated
company) |
503,181 |
- |
Tegnatia Egnerji Ulerim (associated
company) |
- |
- |
Paraskevi Papapetrou & Co (associated
company) |
21,624 |
- |
Metka-EGN Mexico (associated company) | 17,892 | - |
Metka-EGN Kazakhstan (associated
company) |
137,237 |
- |
Metka-EGN GR (associated company) | 115,418 | - |
Metka EGN Spain (associated company) | 219,285 |
|
|
In addition to the disclosures made above, during the year ended 2019 the company incurred finance costs |
of £126,370 (2018: £77,323) in respect of transactions with group/associated companies and received |
finance income of £104,242 (2018: £14,082) from group/associated companies. As at 31 December 2018 |
the company owed £977,593 (2018: £706,800) to group companies in respect of guarantee bonds. |