REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2019 |
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Lianhetech Europe Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2019 |
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for |
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Lianhetech Europe Limited |
Lianhetech Europe Limited (Registered number: 10582859) |
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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 | 3 |
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Statement of Directors' Responsibilities | 4 |
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Report of the Independent Auditors | 5 |
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Statement of Comprehensive Income | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Notes to the Financial Statements | 10 |
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Lianhetech Europe 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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Chartered Certified Accountants |
and Statutory Auditors |
9 St Clare Street |
London |
EC3N 1LQ |
Lianhetech Europe Limited (Registered number: 10582859) |
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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 |
During the year ended 31 December 2019 the business has suffered a loss of £1,216K (2018: profit of £5,143K) in terms |
of EBITDA, (earnings before interest, tax, depreciation and amortisation), the measure used by the Board of directors |
and investors to track financial performance. Despite these losses, the performance for the business has improved as it |
began its operations as a limited risk distributor on behalf of the ultimate parent undertaking, generating gross revenues |
of £11,788K (2018: £nil). The comparable losses are largely driven by disparities in exchange gains which were |
significant in the prior year. The Company continues to strengthen its relationships with the existing customer base and |
explore growth opportunities for its limited risk distribution operations. |
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The financial position of the Company as at the year end is net assets of £22,370K (2018: £86,908K). |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the company's strategy are subject to a number of risks. The main |
risks and uncertainties are as follows: |
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- COVID-19: at the outbreak of the COVID-19 pandemic, the business received special dispensation to continue |
operations as a Site Critical for National Infrastructure and as such we have managed to ensure stable operations and |
minimise disruption by implementation of strict social distancing measures. |
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- Brexit: the business has acknowledged supply chain risks surrounding movement of materials in a 'no-deal' Brexit |
scenario. As such the business has worked with customers and key suppliers to ensure sufficient safety stocks of material |
are held for business continuity. The company maintains a 'Brexit committee' for on-going assessment of business risk. |
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KEY PERFORMANCE INDICATORS |
The key performance indicators of the company were as follows: |
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31 December 2019 | 31 December 2018 |
£'000 | £'000 |
Turnover | 11,788 | - |
Gross profit | 450 | - |
Operating profit / (loss) | (1,262) | 5,143 |
In conjunction with the management of costs and working capital to improve profit, the company uses a number of KPIs |
to monitor performance. These KPIs are monitored both on a product-by-product basis and also for the Company as a |
whole, compared to budget. |
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ON BEHALF OF THE BOARD: |
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10 September 2020 |
Lianhetech Europe Limited (Registered number: 10582859) |
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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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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of acting as an investment holding company and |
providing corporate services to the ultimate parent undertaking. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2019. |
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RESEARCH AND DEVELOPMENT |
The company's research and development activities are focused on the safe implementation of improving plant |
efficiency, optimisation of plant productivity, reducing waste and improving environmental performance, satisfying both |
our customers and all stakeholders. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this |
report. |
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Other changes in directors holding office are as follows: |
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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, Shinewing Wilson Accountancy Limited, 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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Lianhetech Europe Limited (Registered number: 10582859) |
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Statement of Directors' Responsibilities |
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). 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 |
Lianhetech Europe Limited |
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Opinion |
We have audited the financial statements of Lianhetech Europe Limited (the 'company') for the year ended |
31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, 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 loss 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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Material uncertainty related to going concern |
We draw your attention to note 2 in the financial statements, which indicates that the Company incurred a loss before tax |
of £64,504K including an impairment loss of £63,242K during the year, and had a net current liability of £7,130K at the |
year ended 31 December 2019. The Company fully depends on its ultimate parent's support. As stated in the note, these |
events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability |
to continue as a going concern. Our opinion is not modified in respect of this matter. |
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However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the |
Company's ability to continue as a going concern. For example, the terms on which the United Kingdom withdraw from |
European Union and current Covid 19 situation, are not clear. It is difficult to evaluate all of the potential impacts on the |
Company's trade. |
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Other matters |
The financial statements for the Company for the year ended 31 December 2018 were audited by another auditor, who |
expressed an unqualified opinion on those statements on 26 June 2019. |
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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 Statement of Directors' Responsibilities, 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. |
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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. |
Report of the Independent Auditors to the Members of |
Lianhetech Europe Limited |
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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 Statement of Directors' Responsibilities set out on page four, 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. |
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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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Chartered Certified Accountants |
and Statutory Auditors |
9 St Clare Street |
London |
EC3N 1LQ |
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Lianhetech Europe Limited (Registered number: 10582859) |
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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 | £'000 | £'000 |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(1,425 | ) | (1,229 | ) |
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Other operating income |
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OPERATING (LOSS)/PROFIT | ( |
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Waiver of intercompany | 6 |
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Cost of reorganisation | 6 |
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(1,262 | ) | (16,204 | ) |
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Amounts written off investments | 7 | 63,242 | - |
(64,504 | ) | (16,204 | ) |
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Interest payable and similar expenses | 8 |
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LOSS BEFORE TAXATION | 9 | ( |
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Tax on loss | 10 |
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( |
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LOSS FOR THE FINANCIAL YEAR | ( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
( |
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( |
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Lianhetech Europe Limited (Registered number: 10582859) |
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Balance Sheet |
31 December 2019 |
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31.12.19 | 31.12.18 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Investments | 11 |
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CURRENT ASSETS |
Debtors | 12 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT (LIABILITIES)/ASSETS | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 14 |
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Share premium |
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Retained earnings | ( |
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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
were signed on its behalf by: |
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Lianhetech Europe Limited (Registered number: 10582859) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2019 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£'000 | £'000 | £'000 | £'000 |
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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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(16,688 | ) |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2019 |
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( |
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Lianhetech Europe Limited (Registered number: 10582859) |
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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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Lianhetech Europe Limited (the "Company") is a private company incorporated, domiciled and registered in |
England and Wales, registration number 10582859, the registered address is Seal Sands, Middlesbrough, |
Cleveland TS2 1UB. The Company acts as an investment holding company. |
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The presentation currency of the financial statements is the Sterling. All amounts in the financial statements and |
notes have been rounded off to the nearest thousand Sterling Pound, unless otherwise stated. |
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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 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; |
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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 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. |
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Consolidation |
The Company is a part of a larger group and included in the consolidated financial statements of a parent of |
which the accounts were prepared in an equivalent GAAP. The ultimate parent undertaking Lianhe Chemical |
Technology Co.Limited, is the smallest and largest group to consolidate these financial statements. Therefore, |
the company is exempt, by virtue of section 400 of the Companies Act 2006, from the requirement to prepare |
consolidated financial statements. Group consolidation under Chinese GAAP are available from the website: |
http://www.cninfo.com.cn/new/fulltextSearch?notautosubmit=&keyWord=300662. |
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The English version of the consolidated financial statements are available upon request at the address of the |
ultimate parent's registered office: 8 Yongjiao Road, Huangyan Economic Development Zone, Taizhou, Zhejiang |
Province, P.R.China 318020. |
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Going concern |
The Company incurred a loss before tax of £64,504K including an impairment loss of £63,242K during the year, |
and had a net current liability of £7,130K at the year ended 31 December 2019. The whole UK group relies on |
its ultimate parent's financial support. The directors have considered available funding facilities, and concluded |
that the UK group has sufficient resource for next 12 months from the date of signing these financial statements. |
The financial statements are therefore prepared on a going concern basis, without reflecting the material |
uncertainty existence that may cast significant doubt on the company’s ability to continue as a going concern. |
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Reclassification of Prior Year Presentation |
Certain prior year amounts have been reclassified for consistency with the current year presentation. |
Lianhetech Europe Limited (Registered number: 10582859) |
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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 |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts |
receivable for work provided in the normal course of business, net of discounts, VAT and other sales related |
taxes. |
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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 balance sheet date. |
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Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet date where transactions that result in an obligation to pay more tax in the future or a right to pay less tax in |
the future have occurred at the balance sheet date. An asset is not recognised to the extent that the transfer of |
economic benefits in the future is uncertain. Deferred tax is measured at the average tax rates that are expected to |
apply in the years in which the timing differences are expected to reverse based on tax rates and laws that have |
been substantially enacted by the balance sheet date. Deferred tax assets and liabilities which have been |
recognised have not been discounted. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
balance sheet 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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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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Investment in subsidiaries |
Investments in subsidiaries are held at cost less accumulated impairment losses. Annual impairment review is |
performed by the directors when there has been an indication of potential impairment. An impairment loss is |
recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable |
amount is the higher of an asset's fair value less costs of disposal and value in use. |
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Trade and other debtors |
Trade and other debtors are recognised initially at fair value. Subsequent to initial recognition they are measured |
at amortised cost. A provision for impairment of trade receivables is established where there is evidence that the |
company will not be able to collect all amounts due according to the original terms of the debtors. |
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Trade and other creditors |
Trade creditors are recognised initially at fair value and subsequently measured at amortised cost using the |
effective interest method. |
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Borrowings |
Borrowings are classified as creditors: amounts falling due within one year unless the company has an |
unconditional right to defer settlement of the liability for at least 12 months after the reporting period in which |
case they are classified as creditors: amounts falling due after more than one year. |
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Interest income/(expense) |
Interest income/(expense) is recognised using the effective interest rate method. In calculating interest |
income/(expense), the effective interest rate is applied to the gross carrying amount of the asset, when the asset is |
not impaired or to the amortised cost of the liability for interest expense. For financial assets that have been |
impaired after initial recognition, interest income is calculated by applying the effective interest rate to the |
amortised cost of the financial asset. If the asset is no longer impaired the interest income calculation reverts to |
the gross carrying amount. |
Lianhetech Europe Limited (Registered number: 10582859) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
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The preparation of the financial statements requires management to make judgements, estimates and assumptions |
that affect the application of the accounting policies and reported amounts of assets and liabilities, revenue and |
expenses. Actual results may differ from these estimates. |
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Estimates and underlying assumptions are continually evaluated and are based on historical experience and other |
factors, including expectations of future events that are reasonable under the circumstances. Revisions to |
accounting estimates are recognised in the year in which the estimates are revised and in any future years |
affected. |
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The directors perform impairment reviews on the carrying value of investments, this involves judgement and |
involves the use of estimates and assumptions, particularly in relation to future forecasts and events. |
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4. | TURNOVER |
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The turnover and loss before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market for the year ended 31 December 2019 is given below: |
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£'000 |
Europe |
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This analysis is not considered to be applicable to the year ended 31 December 2018. |
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5. | EMPLOYEES AND DIRECTORS |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Wages and salaries | 1,673 | 926 |
Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
31.12.19 | 31.12.18 |
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General administration | 5 | 5 |
Research and development | 27 | 14 |
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31.12.19 | 31.12.18 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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Lianhetech Europe Limited (Registered number: 10582859) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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6. | EXCEPTIONAL ITEMS |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Waiver of intercompany |
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( |
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Cost of reorganisation |
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( |
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- | (21,347 | ) |
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7. | AMOUNTS WRITTEN OFF INVESTMENTS |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Impairment losses | 63,242 | - |
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8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Bank loan interest |
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9. | LOSS BEFORE TAXATION |
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The loss before taxation is stated after charging/(crediting): |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Cost of inventories recognised as expense |
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Foreign exchange differences |
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( |
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The auditors' fees are borne by a subsidiary undertaking, Fine Organics Limited, and amounted to £8,000 in the |
year (2018: £1,850). |
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10. | TAXATION |
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Analysis of tax expense/(income) |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Current tax: |
Tax |
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( |
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Deferred tax |
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Total tax expense/(income) in statement of comprehensive income |
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( |
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Lianhetech Europe Limited (Registered number: 10582859) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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10. | TAXATION - continued |
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Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
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31.12.19 | 31.12.18 |
£'000 | £'000 |
Loss before income tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of
(2018 - |
(12,256 |
) |
(3,231 |
) |
|
Effects of: |
Expenses not deductible for tax purposes | 12,016 | 4,019 |
Adjustment in respect of previous periods | - | (49 | ) |
Group relief not paid for | - | (791 | ) |
Deferred tax assets not recognised | 243 | - |
Tax on R+D expenditure credit | 31 | - |
Tax expense/(income) |
|
( |
) |
|
The Company has an unrecognised deferred tax asset as at 31 December 2019 of £242K (2018: £nil). This has |
not been recognised in the financial statements due to uncertainty over the future income streams required from |
the potential asset to be recovered. |
|
The rate of corporation tax throughout the year was 19%. A reduction to 18%, due to come into effect from 1 |
April 2020, was substantively enacted on 6 September 2016. However, the current government announced that |
this reduction would be put on hold and this was confirmed in the recent Budget on 11 March 2020 and the rate |
will remain at 19% past 1 April 2020. Therefore, deferred taxes at the balance sheet date have been measured |
using the most recent enacted tax rate at 19% and reflected in these financial statements. |
|
11. | INVESTMENTS |
Shares in |
group |
undertakings |
£'000 |
COST |
At 1 January 2019 | 76,377 |
Additions | 16,365 |
Impairments | (63,242 | ) |
At 31 December 2019 | 29,500 |
NET BOOK VALUE |
At 31 December 2019 | 29,500 |
At 31 December 2018 | 76,377 |
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: England and Wales |
Nature of business:
|
% |
Class of shares: | holding |
|
|
Lianhetech Europe Limited (Registered number: 10582859) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
11. | INVESTMENTS - continued |
|
|
Registered office: England and Wales |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: England and Wales |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: England and Wales |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: England and Wales |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: England and Wales |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: England and Wales |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
12. | DEBTORS |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Amounts falling due within one year: |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors | 1 | 148 |
Tax - RDEC | 132 | - |
|
|
Lianhetech Europe Limited (Registered number: 10582859) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
|
12. | DEBTORS - continued |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Amounts falling due after more than one year: |
Deferred tax asset |
Other timing differences | - | 3 |
|
|
|
Aggregate amounts |
|
|
|
Included in the debtors is an amount of £7,810K (2018: £nil) due from its subsidiaries Fine Organics Ltd, which |
is payable on demand and interest free. In 2018, the amounts owed by group undertakings were unsecured, |
interest free and have no fixed repayment date, see note 13. |
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
Accruals and deferred income |
|
|
|
|
|
Included in the creditors is an amount of £22,262K due to group undertakings, which is payable on demand and |
interest free. At the year end, £14,628K (2018: due from £9,106K) and £7,634K (2018: due from £2,071K) were |
outstanding due to its immediate parent Lianhetech Holdco Ltd and its ultimate parent Lianhe Chemical |
Technology Co. Ltd, respectively. |
|
14. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.19 | 31.12.18 |
value: | £ | £ |
|
Ordinary | £1 | 100 | 100 |
|
15. | PENSION COMMITMENTS |
|
The Company operates a defined contribution pension scheme. The pension cost charged for the year represents |
contributions payable by the Company to the scheme and amounted to £148K (2018: £98K). There was £19K |
(2018: £18K) outstanding at the end of the financial year. |
|
16. | RELATED PARTY DISCLOSURES |
|
See note 5 for disclosure of the directors’ remuneration, note 12 for disclosure of a balance due from its |
subsidiary, and note 13 for disclosures to its immediate and ultimate parents. |
|
17. | ULTIMATE CONTROLLING PARTY |
|
The immediate parent undertaking of the Company is Lianhetech Holdco Ltd. |
|
The ultimate controlling party is Lianhe Chemical Technology Co. Ltd, a company incorporated in P.R. China. |