|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Audited Financial Statements for the Year Ended 31 December 2017 |
|
for |
|
Metka - EGN Limited |
|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Audited Financial Statements for the Year Ended 31 December 2017 |
|
for |
|
Metka - EGN Limited |
Metka - EGN Limited (Registered number: 09627590) |
|
|
|
|
|
|
Contents of the Financial Statements |
for the Year Ended 31 December 2017 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 5 |
|
Directors' Responsibilities Statement | 6 |
|
Report of the Independent Auditors | 7 |
|
Statement of Comprehensive Income | 10 |
|
Statement of Financial Position | 11 |
|
Statement of Changes in Equity | 12 |
|
Notes to the Financial Statements | 13 |
|
Metka - EGN Limited |
|
Company Information |
for the Year Ended 31 December 2017 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
|
|
AUDITORS: |
|
Northern Assurance Buildings |
9/21 Princess Street |
Manchester |
M1 4DN |
Metka - EGN Limited (Registered number: 09627590) |
|
Strategic Report |
for the Year Ended 31 December 2017 |
|
The directors present their strategic report for the year ended 31 December 2017. |
|
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. |
|
RESULTS AND PERFORMANCE |
|
The company was incorporated on 8 June 2015 and since then has successfully secured and |
delivered a number of EPC projects during this period. |
|
The results of the company show a profit before tax of £4m (2016: £3.2m) and shareholders funds |
of £6.6m (2016: £3.5m). |
|
The performance of the company during 2017 has again produced encouraging results. The |
pipeline of new EPC contracts continues to grow and although the reduction in government |
subsidies has cooled the UK market, Metka-EGN is well-placed to explore and exploit opportunities |
overseas. Furthermore, maintenance contracts in respect of completed projects will stretch into |
2019 and beyond. |
|
BUSINESS ENVIRONMENT |
|
Between April-September 2017, the UK produced more energy from solar panels than from |
burning coal. The solar industry has proved resilient despite the reduction in government feed-in |
tariffs, with the downward pressure on installation cost being offset by the availability of cheap |
financing. |
|
STRATEGY |
|
Globally, solar energy represents around 1% of energy generation. In addition to EPC |
engagements, Metka-EGN and its subsidiaries are actively developing solar opportunities in Puerto |
Rico, France, Spain, The Netherlands, Japan, Poland, Cyprus and Italy. |
|
Furthermore, the company is at the forefront of the burgeoning battery storage industry, having |
successfully completed its first installation during the year. |
|
|
KEY PERFORMANCE INDICATORS |
|
The board monitors the company's progress with reference to key performance indicators. The |
company has a gross profit margin of 14% (2016: 19%) and a net profit margin of 8.7% (2016; |
12%). As at 31/12/17 the company had amounts recoverable on contracts of £7.5m (2016:£0.7m) |
and amounts invoiced in excess of contract progress of £0.4m (2016: £2.3m). |
|
Metka - EGN Limited (Registered number: 09627590) |
|
Strategic Report |
for the Year Ended 31 December 2017 |
|
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. |
|
Prospects for 2018 |
|
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. |
|
In spite of the progress made during the last few years, the energy market is still in a transition |
stage. There is an increase in both solar capacity and competition in the solar EPC marketplace. |
The principal risks arise from the withdrawal of political support for the UK solar industry which the |
company is addressing with increased geographical divergence. |
|
Financial risk management |
|
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. |
|
Credit Risks |
|
The company does not exhibit any considerable concentration of credit risk in any one customer. |
Credit risk originates from available cash and cash equivalents, deposits with banks and financial |
institutions and clients with respect to trade receivables. |
|
To minimise credit risk on cash reserves and cash equivalents, the company specifies certain |
limits to its exposure on each individual financial institutions and only engages in transactions with |
creditworthy financial institutions of high credit rating. |
|
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. |
|
Liquidity Risks |
|
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. |
|
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. |
|
Exchange rate risk |
|
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. |
Metka - EGN Limited (Registered number: 09627590) |
|
Strategic Report |
for the Year Ended 31 December 2017 |
|
|
Interest rate risk |
|
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. |
|
Price |
|
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. |
|
POST BALANCE SHEET EVENTS |
On 7 March 2018 Metka-EGN signed an agreement with HC ESS3 Ltd, a company set up by a |
long term client of the group, Corylus Capital LLP (previously known as Hazel Capital) for the EPC |
of a new 20 MW hybrid energy storage system (ESS) project in the United Kingdom, which will |
provide Fast Frequency Response (FFR) and other ancillary services to the National Grid. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Report of the Directors |
for the Year Ended 31 December 2017 |
|
The directors present their report with the financial statements of the company for the year ended 31 December 2017. |
|
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2017. |
|
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2017 to |
the date of this report. |
|
|
|
|
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. |
|
AUDITORS |
The auditors, Haines Watts Manchester Limited, Statutory Auditor, will be proposed for |
re-appointment at the forthcoming Annual General Meeting. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Directors' Responsibilities Statement |
for the Year Ended 31 December 2017 |
|
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. |
|
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: |
|
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- |
prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the company will continue in business. |
|
The directors are responsible for keeping adequate accounting records that are sufficient to show |
and explain the company's transactions and disclose with reasonable accuracy at any time the |
financial position of the company and enable them to ensure that the financial statements comply |
with the Companies Act 2006. They are also responsible for safeguarding the assets of the |
company and hence for taking reasonable steps for the prevention and detection of fraud and |
other irregularities. |
Report of the Independent Auditors to the Members of |
Metka - EGN Limited |
|
Opinion |
We have audited the financial statements of Metka - EGN Limited (the 'company') for the year |
ended 31 December 2017 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). |
|
In our opinion the financial statements: |
- |
give a true and fair view of the state of the company's affairs as at 31 December 2017 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. |
|
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. |
|
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) |
require us to report to you where: |
- |
the directors' use of the going concern basis of accounting in the preparation of the financial
statements is not appropriate; or |
- |
the directors have not disclosed in the financial statements any identified material uncertainties
that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
|
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. |
|
Our opinion on the financial statements does not cover the other information and we do not |
express any form of assurance conclusion thereon. |
|
In connection with our audit of the financial statements, our responsibility is to read the other |
information and, in doing so, consider whether the other information is materially inconsistent with |
the financial statements or our knowledge obtained in the audit or otherwise appears to be |
materially misstated. If, 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 |
|
|
Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- |
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 |
- |
the Strategic Report and the Report of the Directors have been prepared in accordance with
applicable legal requirements. |
|
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in |
the course of the audit, we have not identified material misstatements in the Strategic Report or the |
Report of the Directors. |
|
We have nothing to report in respect of the following matters where the Companies Act 2006 |
requires us to report to you if, in our opinion: |
- |
adequate accounting records have not been kept, or returns adequate for our audit have not
been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
|
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. |
|
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. |
|
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. |
|
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 |
|
|
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. |
|
|
|
|
|
for and on behalf of
|
Northern Assurance Buildings |
9/21 Princess Street |
Manchester |
M1 4DN |
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Statement of Comprehensive Income |
for the Year Ended 31 December 2017 |
|
31.12.17 | 31.12.16 |
Notes | £ | £ |
|
TURNOVER | 3 |
|
|
|
Cost of sales |
|
|
GROSS PROFIT |
|
|
|
Administrative expenses |
|
|
4,358,315 | 3,341,886 |
|
Other operating income | ( |
) |
|
OPERATING PROFIT |
|
|
|
|
Interest payable and similar
expenses |
5 |
|
|
PROFIT BEFORE TAXATION | 6 |
|
|
|
Tax on profit | 7 |
|
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
|
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Statement of Financial Position |
31 December 2017 |
|
31.12.17 | 31.12.16 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
|
|
Investments | 9 |
|
|
|
|
|
CURRENT ASSETS |
Stocks | 10 |
|
|
Debtors | 11 |
|
|
Cash at bank |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 12 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 15 |
|
|
Retained earnings | 16 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
The financial statements were approved by the Board of Directors on
were signed on its behalf by: |
|
|
|
|
|
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Statement of Changes in Equity |
for the Year Ended 31 December 2017 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 January 2016 |
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
Balance at 31 December 2016 |
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
Balance at 31 December 2017 |
|
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements |
for the Year Ended 31 December 2017 |
|
1. | STATUTORY INFORMATION |
|
Metka - EGN Limited is a
|
Wales. The company's registered number and registered office address can be found on the |
Company Information page. |
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
|
The nature of the company's operations and its principal activities are set out in the business |
review on page 2. |
|
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. |
|
2. | ACCOUNTING POLICIES |
|
Basis of preparation |
|
|
The company has taken advantage of the following disclosure exemptions in preparing these |
financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
|
• |
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; |
• |
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; |
• |
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; |
• |
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; |
• |
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) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
2. | ACCOUNTING POLICIES - continued |
|
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 IAS11, |
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. |
|
Tangible fixed assets |
|
|
|
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 |
|
Tangible assets with finite useful lives are carried at cost less accumulated depreciation and |
accumulated impairment losses. |
|
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance |
for obsolete and slow moving items. |
|
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. |
|
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. |
|
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the profit or loss on a straight line basis |
over the period of the lease. |
|
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. |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
2. | ACCOUNTING POLICIES - continued |
|
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. After reviewing the forecasts for the year ended 31 December 2018 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 to continue in operational existence for the foreseeable |
future. |
|
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 before taxation are attributable to the one principal activity of the |
company. |
|
An analysis of turnover by class of business is given below: |
|
31.12.17 | 31.12.16 |
£ | £ |
|
|
|
|
|
|
|
|
|
An analysis of turnover by geographical market is given below: |
|
31.12.17 | 31.12.16 |
£ | £ |
United Kingdom |
|
|
|
|
|
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. |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
4. | EMPLOYEES AND DIRECTORS |
31.12.17 | 31.12.16 |
£ | £ |
Wages and salaries | 654,607 | 416,993 |
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31.12.17 | 31.12.16 |
|
Engineering and support staff | 20 | 15 |
|
31.12.17 | 31.12.16 |
£ | £ |
Directors' remuneration |
|
|
|
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.17 | 31.12.16 |
£ | £ |
Bank interest |
|
|
Connected party interest | 218,084 | - |
Bonds | 188,902 | 74,025 |
Bank charges | 22,527 | 28,419 |
|
|
|
6. | PROFIT BEFORE TAXATION |
|
The profit before taxation is stated after charging: |
31.12.17 | 31.12.16 |
£ | £ |
Cost of inventories recognised as expense |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Auditors' remuneration |
|
|
Audit-related assurance services |
|
|
Foreign exchange differences |
|
|
Group interest receivable | 26,501 | - |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
7. | TAXATION |
|
Analysis of tax expense |
31.12.17 | 31.12.16 |
£ | £ |
Current tax: |
Tax |
|
|
Total tax expense in statement of comprehensive income |
|
|
|
Factors affecting the tax expense |
The tax assessed for the year is higher (2016 - lower) than the standard rate of corporation |
tax in the UK. The difference is explained below: |
|
31.12.17 | 31.12.16 |
£ | £ |
Profit before income tax |
|
|
Profit multiplied by the standard rate of corporation tax in the
UK of |
745,564 |
648,005 |
|
Effects of: |
Capital allowances in excess of depreciation | (5,757 | ) | - |
permanent differences |
|
(2,053 | ) |
Tax expense |
|
|
|
8. | TANGIBLE FIXED ASSETS |
Office | Motor | Computer |
Equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2017 |
|
|
|
|
Additions |
|
|
|
|
At 31 December 2017 |
|
|
|
|
DEPRECIATION |
At 1 January 2017 |
|
|
|
|
Charge for year |
|
|
|
|
At 31 December 2017 |
|
|
|
|
NET BOOK VALUE |
At 31 December 2017 |
|
|
|
|
At 31 December 2016 |
|
|
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
9. | INVESTMENTS |
Shares in |
group |
undertakin |
£ |
COST |
At 1 January 2017 | 6,536 |
Additions | 19,189 |
At 31 December 2017 | 25,725 |
NET BOOK VALUE |
At 31 December 2017 | 25,725 |
At 31 December 2016 | 6,536 |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
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. |
|
Roark Engineering LLP (Kazakhstan) |
|
On 11/9/17 Metka-EGN invested £18,985 in Roark Engineering 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 |
|
The principal activity of the partnership is EPC within the solar energy industry. |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
10. | STOCKS |
31.12.17 | 31.12.16 |
£ | £ |
Stocks |
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.17 | 31.12.16 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Amounts recoverable on contract |
|
|
Prepayment | 302,150 | 2,037,109 |
Called up share capital not paid |
|
|
|
|
|
No financial assets have been accounted for at fair value. |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.17 | 31.12.16 |
£ | £ |
Bank loans and overdrafts (see note
13) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Amounts owed to associates | 1,285,296 | 401,128 |
Corporation tax |
|
|
Social security and other taxes |
|
|
VAT | 2,072,701 | 715,301 |
Amounts payable on contracts |
|
|
Other creditors | 85,092 | - |
Accrued expenses |
|
|
Goods received not invoiced | 822,048 | 103,200 |
|
|
|
No financial liabilities have been accounted for at fair value. |
|
13. | FINANCIAL LIABILITIES - BORROWINGS |
|
31.12.17 | 31.12.16 |
£ | £ |
Current: |
Credit card |
|
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
13. | FINANCIAL LIABILITIES - BORROWINGS - continued |
|
Terms and debt repayment schedule |
|
1 year or |
less |
£ |
Credit card |
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.17 | 31.12.16 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Operating lease costs relate to various residential properties for the use of foreign |
contractors visiting the UK for business purposes. |
|
15. | CALLED UP SHARE CAPITAL |
|
|
Allotted and issued: |
Number: | Class: | Nominal | 31.12.17 | 31.12.16 |
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 2017 |
|
Profit for the year |
|
At 31 December 2017 |
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
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 £2,948,581 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 2017 |
|
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 31/12/17: |
|
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) | - | 105,492 | - | 219,988 |
Metka - EGN CY (parent company) | - | - | 18,701 | - |
EGN Projects Ltd (associated
company) |
187,140 |
35,114 |
601,034 |
447,423 |
Metka - EGN Chile SPA (associated
company) |
- |
- |
- |
- |
Metka - EGN USA LLC (associated
company) |
- |
- |
- |
- |
Tegnatia Egnerji Ulerim (associated
company) |
22,845 |
- |
24.851 |
- |
EGN Studies (associated company) | - | 201,597 | - | 218,513 |
Metka-EGN (Greece) | - | 409,750 | - | 444,133 |
Mytilineos Holdings S.A. (ultimate
parent company) |
- |
100,537 |
- |
108,973 |
Egnatia Attek (associated company) | - | 2,471 | - | - |
|
|
Year ended 31/12/16: |
|
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) | - | 91,637 | - | 101,481 |
Metka - EGN CY (parent company) | 18,701 | - | 18,701 | - |
EGN Projects Ltd (associated
company) |
316,302 |
363.230 |
413,894 |
406,370 |
Metka - EGN Chile SPA (associated
company) |
- |
- |
- |
- |
Metka - EGN USA LLC (associated
company) |
33,883 |
- |
33,883 |
- |
Tegnatia Egnerji Ulerim (associated
company) |
78,248 |
- |
85 |
- |
|
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
The company also has non-trading debtor and creditor balances with related parties as |
follows: |
|
Year ended 31/12/17: |
|
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) | - | 5,428,096 |
EGN Projects Ltd (associated
company) |
- |
861,885 |
Metka - EGN Chile SPA (associated
company) |
159,026 |
- |
Metka - EGN USA LLC (associated
company) |
503,181 |
- |
Tegnatia Egnerji Ulerim (associated
company) |
- |
- |
Paraskevi Papapetrou & Co
(associated company) |
- |
325,056 |
Metka-EGN Mexico (associated
company) |
- |
204 |
|
Year ended 31/12/16: |
|
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) | - | 174,555 |
EGN Projects Ltd (associated
company) |
|
302,773 |
Metka - EGN Chile SPA (associated
company) |
74,270 |
|
Metka - EGN USA LLC (associated
company) |
635,341 |
|
Tegnatia Egnerji Ulerim (associated
company) |
- |
- |
Metka - EGN Limited (Registered number: 09627590) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2017 |
|
20. | POST BALANCE SHEET EVENTS |
|
On 7 March 2018 Metka-EGN signed an agreement with HC ESS3 Ltd, a company set up by |
a long term client of the group, Corylus Capital LLP (previously known as Hazel Capital) for |
the EPC of a new 20 MW hybrid energy storage system (ESS) project in the UNited |
Kingdom, which will provide Fast Frequency Response (FFR) and other ancillary services to |
the National Grid. |
|
On 18 June 2018 Metka-EGN Limited subscribed for 100 x Ordinary shares of 100,000 |
Ugandan shillings (£19.73) each in Metka-EGN Uganda SMC Ltd representing 100% of the |
share capital in the company. |