USS Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04045212 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

USS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

A P Weaver

A M S Weaver

REGISTERED OFFICE:

Mill Lane

Halesowen

West Midlands

B63 3JP

REGISTERED NUMBER:

04045212 (England and Wales)

AUDITORS:

Saxon & Co.

Statutory Auditors

Chartered Accountants

Kings Chambers

Queens Cross

High Street

Dudley

West Midlands

DY1 1QT

The directors present their strategic report for the year ended 31 December 2018.

REVIEW OF BUSINESS

The principal activities during the year continued to be steel slitting services.

The key financial performance indicators during the year were as follows:

2018

2017

Change

£

£

%

Turnover

29,262,948

33,343,648

-13%

Profit before tax

443,473

1,236,803

-65%

Shareholders' funds

7,097,760

6,651,313

+6%

A weaker market was experienced during 2018. Turnover and profitability fell during the year against a cost and pricing

pressure backdrop. Processing downtime due to plant refurbishment was also a factor. The weaker market was not

entirely unexpected and therefore management actions to drive efficiencies has led to a solid performance with the

company in robust shape.

Our investment program continued during the year to upgrade and replace production equipment and to refurbish

buildings at the Mill Lane processing site. This investment will continue into 2019 and once completed will ensure USS

have market leading production facilities.

Since the year end the company has appointed two new, but experienced, members to the Board of Directors further

enhancing and widening the management team in line with the shareholders longer term objectives of the continuing

investment programme.

The economic uncertainties created by Brexit and the imposition of trade tariffs on imported steel continues to have an

effect on the market within which we operate, but USS has a long history of being able to manage difficult market

conditions in a positive way.

The company operates from a strong financial footing and expects to maintain profitability in 2019, whilst continuing to

fund its investments and trading without significant external funding requirements.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and execution of the company's strategy are subject to a number of risks including

price, credit, liquidity and cash flow risks. The key business risks and uncertainties are considered to be competition

from other steel service centres and product availability. The Company has policies which are aimed at mitigating and

managing such risks.

ON BEHALF OF THE BOARD:

A M S Weaver - Director

14 August 2019

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of steel slitting services.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this

report.

A P Weaver

A M S Weaver

Other changes in directors holding office are as follows:

X Bei - resigned 14 March 2018

D O'Riordan - resigned 14 March 2018

J Verden - resigned 14 March 2018

Z Qi - resigned 14 March 2018

The Directors review of the business, future developments and principal risks and uncertainties have been included

within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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). 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.

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, Saxon & Co., will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A M S Weaver - Director

14 August 2019

Opinion

We have audited the financial statements of USS Limited (the 'company') for the year ended 31 December 2018 which

comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash

Flow Statement and Notes to the Cash Flow Statement, 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 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (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 2018 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 and the Report of the Directors, 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, except to the extent otherwise

explicitly stated in our report, 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 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.

Opinions 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 Statement of Directors' Responsibilities set out on page three, 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.

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.

Anthony Saxon (Senior Statutory Auditor)

for and on behalf of Saxon & Co.

Statutory Auditors

Chartered Accountants

Kings Chambers

Queens Cross

High Street

Dudley

West Midlands

DY1 1QT

14 August 2019

TURNOVER

4

29,262,948

33,343,648

Cost of sales

26,529,114

29,860,519

GROSS PROFIT

2,733,834

3,483,129

Administrative expenses

2,284,601

2,236,220

OPERATING PROFIT

6

449,233

1,246,909

Interest receivable and similar income

4,110

298

453,343

1,247,207

Interest payable and similar expenses

7

9,870

10,404

PROFIT BEFORE TAXATION

443,473

1,236,803

Tax on profit

8

(2,974

)

310,290

PROFIT FOR THE FINANCIAL YEAR

446,447

926,513

PROFIT FOR THE YEAR

446,447

926,513

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

446,447

926,513

FIXED ASSETS

Tangible assets

9

2,330,983

1,246,057

CURRENT ASSETS

Stocks

10

14,615,305

6,574,297

Debtors

11

6,080,528

7,828,948

Cash at bank

1,795,645

1,527,130

22,491,478

15,930,375

CREDITORS

Amounts falling due within one year

12

17,338,872

10,111,882

NET CURRENT ASSETS

5,152,606

5,818,493

TOTAL ASSETS LESS CURRENT LIABILITIES

7,483,589

7,064,550

CREDITORS

Amounts falling due after more than one year

13

(280,000

)

(350,000

)

PROVISIONS FOR LIABILITIES

16

(105,829

)

(63,237

)

NET ASSETS

7,097,760

6,651,313

CAPITAL AND RESERVES

Called up share capital

17

175,000

175,000

Retained earnings

18

6,922,760

6,476,313

SHAREHOLDERS' FUNDS

7,097,760

6,651,313

The financial statements were approved by the Board of Directors on 14 August 2019 and were signed on its behalf by:

A M S Weaver - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2017

175,000

5,549,800

5,724,800

Changes in equity

Total comprehensive income

-

926,513

926,513

Balance at 31 December 2017

175,000

6,476,313

6,651,313

Changes in equity

Total comprehensive income

-

446,447

446,447

Balance at 31 December 2018

175,000

6,922,760

7,097,760

Cash flows from operating activities

Cash generated from operations

1

1,903,080

(1,866,165

)

Interest paid

(9,870

)

(10,404

)

Tax paid

(287,922

)

(397,974

)

Net cash from operating activities

1,605,288

(2,274,543

)

Cash flows from investing activities

Purchase of tangible fixed assets

(1,284,733

)

(335,082

)

Sale of tangible fixed assets

13,850

5,354

Interest received

4,110

298

Net cash from investing activities

(1,266,773

)

(329,430

)

Cash flows from financing activities

Loan repayments in year

(70,000

)

(70,000

)

Net cash from financing activities

(70,000

)

(70,000

)

Increase/(decrease) in cash and cash equivalents

268,515

(2,673,973

)

Cash and cash equivalents at beginning of year

2

1,527,130

4,201,103

Cash and cash equivalents at end of year

2

1,795,645

1,527,130

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

443,473

1,236,803

Depreciation charges

189,380

144,351

(Profit)/loss on disposal of fixed assets

(3,423

)

804

Finance costs

9,870

10,404

Finance income

(4,110

)

(298

)

635,190

1,392,064

(Increase)/decrease in stocks

(8,041,008

)

916,787

Decrease in trade and other debtors

1,793,986

169,042

Increase/(decrease) in trade and other creditors

7,514,912

(4,344,058

)

Cash generated from operations

1,903,080

(1,866,165

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

1,795,645

1,527,130

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

1,527,130

4,201,103

1.	COMPANY INFORMATION

USS Limited is a limited liability company incorporated in England. The registered office and principal place of

business is Mill Lane, Halesowen B63 3JP.

2.	STATUTORY INFORMATION

USS Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling (£), which is also the company's functional currency.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

4% on cost

Plant and machinery

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated

impairment losses. Depreciation is provided on all tangible fixed assets other than freehold land.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Financial instruments

Basic financial instruments are recognised at amortised cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary

assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of

exchange prevailing at that date. Exchange differences are recognised in profit or loss in the period in which they

arise.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

5.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

1,110,277

1,137,772

Social security costs

155,716

143,116

Other pension costs

21,413

19,357

1,287,406

1,300,245

The average number of employees during the year was as follows:

2018

2017

Employees

22

23

2018

2017

£

£

Directors' remuneration

370,000

370,000

Information regarding the highest paid director is as follows:

2018

2017

£

£

Emoluments etc

185,000

185,000

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2018

2017

£

£

Depreciation - owned assets

189,380

144,350

(Profit)/loss on disposal of fixed assets

(3,423

)

804

Auditors' remuneration

17,540

25,398

Fees payable to the company's auditor for non-audit services

11,412

21,005

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Interest

9,870

9,267

Factoring discount

-

1,137

9,870

10,404

8.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

(45,566

)

287,922

Deferred tax:

Current year

42,592

22,368

Tax on profit

(2,974

)

310,290

UK corporation tax has been charged at 19% .

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

2018

2017

£

£

Profit before tax

443,473

1,236,803

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.246%)

84,260

238,035

Effects of:

Expenses not deductible for tax purposes

(50,220

)

66,792

Capital allowances in excess of depreciation

(79,606

)

(16,905

)

Deferred tax movement

42,592

22,368

Total tax (credit)/charge

(2,974

)

310,290

9.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2018

900,379

805,414

12,666

Additions

17,002

1,218,731

-

At 31 December 2018

917,381

2,024,145

12,666

DEPRECIATION

At 1 January 2018

173,579

377,058

12,067

Charge for year

24,791

127,094

599

Eliminated on disposal

-

-

-

At 31 December 2018

198,370

504,152

12,666

NET BOOK VALUE

At 31 December 2018

719,011

1,519,993

-

At 31 December 2017

726,800

428,356

599

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2018

145,388

44,710

1,908,557

Additions

49,000

-

1,284,733

Disposals

(29,440

)

-

(29,440

)

At 31 December 2018

164,948

44,710

3,163,850

DEPRECIATION

At 1 January 2018

57,410

42,386

662,500

Charge for year

36,130

766

189,380

Eliminated on disposal

(19,013

)

-

(19,013

)

At 31 December 2018

74,527

43,152

832,867

NET BOOK VALUE

At 31 December 2018

90,421

1,558

2,330,983

At 31 December 2017

87,978

2,324

1,246,057

10.

STOCKS

2018

2017

£

£

Stocks

14,615,305

6,574,297