Trolex Limited - Limited company accounts 16.3

REGISTERED NUMBER: 00644260 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

TROLEX 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

Notes to the Financial Statements

11

DIRECTORS:

J Pierce-Jones

G Pierce-Jones

L Pierce-Jones

G D Christopher

P Brian

REGISTERED OFFICE:

Newby Road

Hazel Grove

Stockport

Cheshire

SK7 5DY

REGISTERED NUMBER:

00644260 (England and Wales)

AUDITORS:

Moss & Williamson Limited

Chartered Accountants

Statutory Auditor

Booth Street Chambers

Ashton-under-Lyne

Lancashire

OL6 7LQ

The directors present their strategic report for the year ended 31 December 2016.

REVIEW OF BUSINESS

The company achieved an increase in turnover of over £2 million despite the continuing problems in the

global mining market.

The company continues to invest heavily in new and innovative projects together with diversification into other

markets and products.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk and uncertainties facing the company continue to be the current global issues surrounding

the mining and gas markets, which although showing signs of improving have still not recovered to previous

levels. Events outside the control of the company and the unpredictability of the currency market can lead to

significant increases on cost and variance in margins. The directors continue to focus on all the risks and

uncertainties that face the company in order to minimise the effect on the company's performance.

ON BEHALF OF THE BOARD:

G D Christopher - Director

27 September 2017

The directors present their report with the financial statements of the company for the year ended 31 December 2016.

DIVIDENDS

An interim dividend of £0.0648 per share on the Ordinary £0.05 shares was paid on 5 April 2016. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2016 will be £ 80,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 to the date of

this report.

J Pierce-Jones

G Pierce-Jones

L Pierce-Jones

G D Christopher

P Brian

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, Moss & Williamson Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

G D Christopher - Director

27 September 2017

We have audited the financial statements of Trolex Limited for the year ended 31 December 2016 on pages

seven to twenty two. The financial reporting framework that has been applied in their preparation is applicable

law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice),

including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient

to give reasonable assurance that the financial statements are free from material misstatement, whether

caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to

the company's circumstances and have been consistently applied and adequately disclosed; the

reasonableness of significant accounting estimates made by the directors; and the overall presentation of the

financial statements. In addition, we read all the financial and non-financial information in the Strategic Report

and the Report of the Directors to identify material inconsistencies with the audited financial statements and to

identify any information that is apparently materially incorrect based on, or materially inconsistent with, the

knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2016 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our 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 has been prepared in accordance with applicable legal

requirements. In the light of the knowledge and understanding of the company and its environment, we have

not identified any material misstatements in the Strategic Report or the Report of the Directors.

Matters on which we are required to report by exception

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.

D Evans FCA (Senior Statutory Auditor)

for and on behalf of Moss & Williamson Limited

Chartered Accountants

Statutory Auditor

Booth Street Chambers

Ashton-under-Lyne

Lancashire

OL6 7LQ

27 September 2017

TURNOVER

3

9,741,266

7,730,359

Cost of sales

4,272,564

2,749,735

GROSS PROFIT

5,468,702

4,980,624

Distribution costs

10,171

19,199

Administrative expenses

5,271,396

4,753,056

5,281,567

4,772,255

187,135

208,369

Other operating income

4

35,000

35,000

OPERATING PROFIT

6

222,135

243,369

Interest payable and similar expenses

7

26,025

21,546

PROFIT BEFORE TAXATION

196,110

221,823

Tax on profit

8

(129,257

)

(146,758

)

PROFIT FOR THE FINANCIAL YEAR

325,367

368,581

PROFIT FOR THE YEAR

325,367

368,581

OTHER COMPREHENSIVE INCOME

Scheme asset return less interest income

123,000

57,000

Experience gains/(losses)

27,000

1,000

Changes in actuarial assumptions

(487,000

)

366,000

Change in irrecoverable surplus

307,000

(454,000

)

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(30,000

)

(30,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

295,367

338,581

FIXED ASSETS

Intangible assets

10

843,026

916,483

Tangible assets

11

2,424,139

2,468,867

3,267,165

3,385,350

CURRENT ASSETS

Stocks

12

954,667

922,635

Debtors

13

2,356,440

1,948,580

Cash in hand

837,984

302,681

4,149,091

3,173,896

CREDITORS

Amounts falling due within one year

14

2,495,043

1,587,785

NET CURRENT ASSETS

1,654,048

1,586,111

TOTAL ASSETS LESS CURRENT LIABILITIES

4,921,213

4,971,461

CREDITORS

Amounts falling due after more than one year

15

355,088

620,703

NET ASSETS

4,566,125

4,350,758

CAPITAL AND RESERVES

Called up share capital

19

61,739

61,739

Share premium

20

29,779

29,779

Revaluation reserve

20

577,619

577,619

Capital redemption reserve

20

98,606

98,606

Retained earnings

20

3,798,382

3,583,015

SHAREHOLDERS' FUNDS

4,566,125

4,350,758

The financial statements were approved by the Board of Directors on 27 September 2017 and were signed on its behalf by:

G D Christopher - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2015

61,739

3,304,434

29,779

Changes in equity

Dividends

-

(60,000

)

-

Total comprehensive income

-

338,581

-

Balance at 31 December 2015

61,739

3,583,015

29,779

Changes in equity

Dividends

-

(80,000

)

-

Total comprehensive income

-

295,367

-

Balance at 31 December 2016

61,739

3,798,382

29,779

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 January 2015

577,619

98,606

4,072,177

Changes in equity

Dividends

-

-

(60,000

)

Total comprehensive income

-

-

338,581

Balance at 31 December 2015

577,619

98,606

4,350,758

Changes in equity

Dividends

-

-

(80,000

)

Total comprehensive income

-

-

295,367

Balance at 31 December 2016

577,619

98,606

4,566,125

1.	STATUTORY INFORMATION

Trolex 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.

2.	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 functional currency of Trolex Limited is considered to be pounds sterling as this is the currency of

the primary economic environment in which the company operates.

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year,

exclusive of Value Added Tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015 is amortised

over its expected useful life of 10 years. Annual impairment reviews are carried out.

Patents and licences

Patents and licences are amortised at rates calculated to write off the assets on a straight line basis

over their estimated useful economic lives. Impairment of intangible assets is reviewed where

circumstances indicate that the carrying value of an asset may not be fully recoverable.

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

-

2% on valuation

Plant and machinery

-

at varying rates on cost

Motor vehicles

-

25% on cost

Freehold buildings are depreciated at 2% on valuation. Freehold land is not depreciated.

Stock and work in progress

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete

and slow moving items.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal

level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is

included in the valuation of work in progress.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

Pension costs and other post-retirement benefits

The company operates two funded pension schemes, these schemes fall within the following

categories:

Defined Contribution Scheme

The company operates a defined contribution pension scheme for the benefit of qualifying employees.

The assets of the scheme are held separately from those of the group in an independently

administered fund. The pension cost charge for the year represents contributions payable by the

company to the fund.

Defined Benefit Scheme

The company also operates a defined benefit scheme for certain employees, providing benefits based

on final pensionable pay. The assets of the scheme are held separately from those of the company

and invested at the discretion of the trustees under the terms of the definitive trust deed.

The regular pension cost is charged to profit and loss account and is based on the expected pension

costs over the service lives of the employees. Contributions to the pension plan are paid according to

the advice of actuaries.

A pension surplus or deficit is recorded as the difference between the present value of the scheme

liabilities and the fair value of the scheme assets. The Company's share of pension surplus is

recognised to the extent that the company is able to recover a surplus through reduced contributions in

the future or through refunds from the scheme.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership

remain with the lessor are charged against profits on a straight line basis over the period of the lease.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2016

2015

£

£

Europe

7,713,556

5,408,636

America/Canada

364,360

592,925

Africa

147,605

194,101

Asia/Middle East

323,605

379,855

Australia/New Zealand

1,192,140

1,154,842

9,741,266

7,730,359

4.	OTHER OPERATING INCOME

2015

2014

£

£

Rent receivable

35,000

35,000

35,000

35,000

5.	EMPLOYEES AND DIRECTORS

2016

2015

£

£

Wages and salaries

3,161,611

2,891,905

Social security costs

351,626

341,651

Other pension costs

252,668

246,981

3,765,905

3,480,537

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

2016

2015

Office and Management

31

30

Technical/Engineers

16

16

Operatives

28

24

75

70

2016

2015

£

£

Directors' remuneration

690,480

594,362

Information regarding the highest paid director is as follows:

2016

2015

£

£

Emoluments etc

174,000

145,688

6.	OPERATING PROFIT

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

2016

2015

£

£

Depreciation - owned assets

173,650

183,564

Loss/(profit) on disposal of fixed assets

2,104

(27,500

)

Goodwill amortisation

66,989

-

Patents and licences amortisation

6,468

6,468

Auditors' remuneration

15,000

15,000

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2016

2015

£

£

Bank interest

26,025

21,546

8.

TAXATION

Analysis of the tax credit

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

2016

2015

£

£

Current tax:

UK corporation tax

(129,257

)

(147,124

)

Overprovision in prior year

-

366

Tax on profit

(129,257

)

(146,758

)

Reconciliation of total tax credit 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:

2016

2015

£

£

Profit before tax

196,110

221,823

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2015 - 20.247%)

39,222

44,913

Effects of:

Expenses not deductible for tax purposes

5,679

2,720

Capital allowances in excess of depreciation

-

(17,564

)

Depreciation in excess of capital allowances

13,340

-

Adjustments to tax charge in respect of previous periods

-

366

Enhanced capital allowances

(181,498

)

(171,119

)

Pension provision

(6,000

)

(6,074

)

Total tax credit

(129,257

)

(146,758

)

Tax effects relating to effects of other comprehensive income

2016

Gross

Tax

Net

£

£

£

Scheme asset return less interest income

123,000

-

123,000

Experience gains/(losses)

27,000

-

27,000

Changes in actuarial assumptions

(487,000

)

-

(487,000

)

Change in irrecoverable surplus

307,000

-

307,000

(30,000

)

-

(30,000

)

2015

Gross

Tax

Net

£

£

£

Scheme asset return less interest income

57,000

-

57,000

Experience gains/(losses)

1,000

-

1,000

Changes in actuarial assumptions

366,000

-

366,000

Change in irrecoverable surplus

(454,000

)

-

(454,000

)

(30,000

)

-

(30,000

)

9.

DIVIDENDS

2016

2015

£

£

Ordinary shares of £0.05 each

Interim

80,000

60,000