USS Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04045212 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

USS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

A P Weaver

A M S Weaver

P Smith

D Balmforth

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 2020.

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:

2020

2019

Change

£

£

%

Turnover

23,699,945

28,208,141

-16%

Profit before tax

697,351

518,790

+18%

Shareholders' funds

7,959,741

7,950,944

+0.1%

The UK market had unprecedented features during 2020 due to the effects of the Covid-19 pandemic. The second quarter was affected due to closure and part time working. At the end of the year the market was strong and is looking positive throughout 2021. Our 2020 results were successful considering the gyrations of working practices and the economy in 2020.

Our investment programme has concluded successfully, resulting in a wider range of sales and production efficiency gains.

We are concentrating on continuing measures to ensure that our cash flow remains very strong, the safety or our workforce is maintained and ensuring we have sufficient and timely supplies for our customers during 2021 and beyond.

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, product availability and the external macro-economic effects of Covid 19 and Brexit. The Company has policies which are aimed at mitigating and managing such risks.

ON BEHALF OF THE BOARD:

A M S Weaver - Director

17 May 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

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

DIVIDENDS

An interim dividend of £675,000 was paid on 31 December 2020 representing £7.563 per A Ordinary £1 share. No other dividends will be distributed for the year ended 31 December 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

A P Weaver

A M S Weaver

P Smith

D Balmforth

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

17 May 2021

Opinion

We have audited the financial statements of USS Limited (the 'company') for the year ended 31 December 2020 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 2020 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks to obtain sufficient appropriate audit evidence on which to base our opinion.

To identify and assess risks of material misstatement in respect of irregularities, including fraud, we conduct general and specific risk assessment procedures which include considering:

- The nature of the entity and the industry in which it operates, business performance and the control environment.

- The laws and regulations applicable to the entity.

- Management's own assessment of the risk of fraud occurring and non-compliance with laws and regulations.

- The operating effectiveness of management's controls established to mitigate the risks of fraud or non-compliance with laws and regulations.

- Whether management know of any instances of fraud or non-compliance with laws and regulations.

We also hold an audit engagement team meeting to discuss how and where fraud might occur, if any opportunities and incentives may exist within the business and assess any potential indicators of fraud.

As a result of our procedures we identified direct and indirect laws and regulations applicable to the entity. Direct laws and regulations are those that effect the financial statements and indirect laws and regulations are those that may be central to the entity's ability to operate. The direct laws and regulations identified are the Companies Act, UK GAAP and UK Tax Legislation. The indirect laws and regulations identified are International Organization Standardization (ISO) regulations covering health and safety, quality management and environmental management.

Our response to the risks identified include:

- Reviewing the financial statement disclosures and testing supporting documentation.

- Enquiring of management concerning actual or potential litigation claims.

- Performing analytical procedures to identify any unusual or unexpected variances that may be indicators of material misstatement due to fraud.

- Assessing the risk of management override of controls and bias by testing the appropriateness of journal entries and estimates within the financial statements.

- Obtaining an understanding of related parties and evaluating related party transactions and any significant transactions outside the normal course of business.

We also communicate the requirement to maintain professional skepticism to all members of the engagement team and ensure they are aware of relevant identified laws and regulations, related parties and potential fraud risks and remain alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit.

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

20 May 2021

TURNOVER

4

23,699,945

28,208,141

Cost of sales

21,498,875

25,847,119

GROSS PROFIT

2,201,070

2,361,022

Administrative expenses

1,669,937

1,840,359

531,133

520,663

Other operating income

5

246,950

-

OPERATING PROFIT

7

778,083

520,663

Interest receivable and similar income

13,018

6,224

791,101

526,887

Interest payable and similar expenses

8

93,750

8,097

PROFIT BEFORE TAXATION

697,351

518,790

Tax on profit

9

13,554

119,527

PROFIT FOR THE FINANCIAL YEAR

683,797

399,263

PROFIT FOR THE YEAR

683,797

399,263

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

-

560,395

Income tax relating to other comprehensive income

-

(106,474

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

453,921

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

683,797

853,184

FIXED ASSETS

Tangible assets

11

3,733,121

3,296,368

CURRENT ASSETS

Stocks

12

3,373,879

2,489,257

Debtors

13

6,744,709

6,328,566

Cash at bank

10,772,436

4,132,103

20,891,024

12,949,926

CREDITORS

Amounts falling due within one year

14

15,069,014

7,963,520

NET CURRENT ASSETS

5,822,010

4,986,406

TOTAL ASSETS LESS CURRENT LIABILITIES

9,555,131

8,282,774

CREDITORS

Amounts falling due after more than one year

15

(1,250,006

)

-

PROVISIONS FOR LIABILITIES

18

(345,384

)

(331,830

)

NET ASSETS

7,959,741

7,950,944

CAPITAL AND RESERVES

Called up share capital

19

175,000

175,000

Revaluation reserve

20

453,921

453,921

Retained earnings

20

7,330,820

7,322,023

SHAREHOLDERS' FUNDS

7,959,741

7,950,944

The financial statements were approved by the Board of Directors and authorised for issue on 17 May 2021 and were signed on its behalf by:

A M S Weaver - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2019

175,000

6,922,760

-

7,097,760

Changes in equity

Total comprehensive income

-

399,263

453,921

853,184

Balance at 31 December 2019

175,000

7,322,023

453,921

7,950,944

Changes in equity

Dividends

-

(675,000

)

-

(675,000

)

Total comprehensive income

-

683,797

-

683,797

Balance at 31 December 2020

175,000

7,330,820

453,921

7,959,741

Cash flows from operating activities

Cash generated from operations

1

2,028,640

3,502,790

Interest paid

-

(8,097

)

Government grants

153,200

-

Tax paid

45,566

-

Net cash from operating activities

2,227,406

3,494,693

Cash flows from investing activities

Purchase of tangible fixed assets

(643,266

)

(604,170

)

Sale of tangible fixed assets

31,145

4,001

New loans in year

-

(219,265

)

Loan repayments in year

12,030

4,975

Interest received

13,018

6,224

Net cash from investing activities

(587,073

)

(808,235

)

Cash flows from financing activities

New loans in year

5,000,000

-

Loan repayments in year

-

(350,000

)

Net cash from financing activities

5,000,000

(350,000

)

Increase in cash and cash equivalents

6,640,333

2,336,458

Cash and cash equivalents at beginning of year

2

4,132,103

1,795,645

Cash and cash equivalents at end of year

2

10,772,436

4,132,103

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

2020

2019

£

£

Profit before taxation

697,351

518,790

Depreciation charges

202,309

195,436

Profit on disposal of fixed assets

(26,942

)

(257

)

Government grants

(246,950

)

-

Finance costs

93,750

8,097

Finance income

(13,018

)

(6,224

)

706,500

715,842

(Increase)/decrease in stocks

(884,622

)

12,126,048

Increase in trade and other debtors

(473,738

)

(33,748

)

Increase/(decrease) in trade and other creditors

2,680,500

(9,305,352

)

Cash generated from operations

2,028,640

3,502,790

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 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

10,772,436

4,132,103

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

4,132,103

1,795,645

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank

4,132,103

6,640,333

10,772,436

4,132,103

6,640,333

10,772,436

Debt

Debts falling due within 1 year

-

(3,749,994

)

(3,749,994

)

Debts falling due after 1 year

-

(1,250,006

)

(1,250,006

)

-

(5,000,000

)

(5,000,000

)

Total

4,132,103

1,640,333

5,772,436

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 as modified by the revaluation of certain assets.

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 and 5% 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.

Government grants

Once the recognition criteria have been met the company recognises grants using either the performance model or the accruals model. Covid-19 grants are revenue based grants and are therefore recognised immediately in profit or loss.

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.	OTHER OPERATING INCOME

2020

2019

£

£

Government grants

246,950

-

6.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

954,132

964,672

Social security costs

114,669

118,006

Other pension costs

23,776

24,221

1,092,577

1,106,899

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

2020

2019

Management

3

3

Sales

3

3

Operations

18

16

24

22

2020

2019

£

£

Directors' remuneration

363,268

347,917

Information regarding the highest paid director is as follows:

2020

2019

£

£

Emoluments etc

100,644

90,584

7.	OPERATING PROFIT

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

2020

2019

£

£

Depreciation - owned assets

202,310

195,436

Profit on disposal of fixed assets

(26,942

)

(257

)

Auditors' remuneration

17,500

17,500

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

11,328

11,425

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Mortgage

-

8,097

Loan

93,750

-

93,750

8,097

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Deferred tax:

Current year

13,554

119,527

Tax on profit

13,554

119,527

UK corporation tax was charged at 19%) in 2019.

Reconciliation of total tax 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:

2020

2019

£

£

Profit before tax

697,351

518,790

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

132,497

98,570

Effects of:

Expenses not deductible for tax purposes

(19,309

)

2,354

Income not taxable for tax purposes

(5,118

)

(48

)

Capital allowances in excess of depreciation

(109,298

)

(110,790

)

Deferred tax movement

13,554

119,527

Tax losses carried forward

1,228

9,914

Total tax charge

13,554

119,527

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2020.

2019

Gross

Tax

Net

£

£

£

Revaluation of freehold property

560,395

(106,474

)

453,921

10.

DIVIDENDS

2020

2019

£

£

A Ordinary shares of £1 each

Dividend paid

675,000

-