REGISTERED NUMBER: 04882353 (England and Wales)

FINANCIAL STATEMENTS

FOR THE PERIOD

1 SEPTEMBER 2016 TO 31 DECEMBER 2017

FOR

ABLE2 UK LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

I S Reed

M Diaj

REGISTERED OFFICE:

Bridge Mill

Moorgate Street

Blackburn

Lancashire

BB2 4PB

REGISTERED NUMBER:

04882353 (England and Wales)

AUDITORS:

Fairhurst

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

BANKERS:

Handelsbanken

First Floor

Sunlight House

Quay Street

Manchester

M3 3JZ

SOLICITORS:

Brabners LLP

55 King Street

Manchester

M2 4LQ

FIXED ASSETS

Intangible assets

4

486,245

466,138

Tangible assets

5

605,478

617,614

Investments

6

376,105

267,518

1,467,828

1,351,270

CURRENT ASSETS

Stocks

475,509

482,420

Debtors

7

3,350,165

3,215,020

Cash at bank and in hand

1,790,814

1,856

5,616,488

3,699,296

CREDITORS

Amounts falling due within one year

8

3,866,783

1,889,133

NET CURRENT ASSETS

1,749,705

1,810,163

TOTAL ASSETS LESS CURRENT LIABILITIES

3,217,533

3,161,433

CREDITORS

Amounts falling due after more than one year

9

407,886

2,236,314

NET ASSETS

2,809,647

925,119

CAPITAL AND RESERVES

Called up share capital

11

1,756,396

1,000

Share premium

187,983

187,983

Capital redemption reserve

1,170,264

1,170,264

Retained earnings

(304,996

)

(434,128

)

SHAREHOLDERS' FUNDS

2,809,647

925,119

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 8 May 2018 and were signed on its behalf by:

M Diaj - Director

1.	STATUTORY INFORMATION

Able2 UK 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 the provisions of Section 1A "Small Entities" of 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.

Preparation of consolidated financial statements

The financial statements contain information about Able2 UK Limited as an individual company and do not

contain consolidated financial information as the parent of a group. The company has taken the option under

Section 398 of the Companies Act 2006 not to prepare consolidated financial statements.

Turnover

Turnover is recognised when the significant risks and rewards of ownership of the goods has transferred to the

buyer, which is usually at the point the customer has signed for the goods. Turnover is measured at the fair value

of the consideration received or receivable for goods and services and is shown net of VAT.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of subsidiaries is stated at cost net of

amortisation and any impairment. Goodwill is being amortised evenly over its estimated useful life of 10 years in

accordance with FRS 102 Section 1A.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

straight line over 3 years

Tangible fixed assets are stated at cost less depreciation and any impairment.

Impairment of assets

At each reporting date assets are reviewed to determine whether there is any indication that those assets have

suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any

affected asset is estimated and compared with its carrying amount. If the recoverable amount is lower, the

carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised

immediately in the profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised

estimate of its recoverable amount, but not to exceed the amount that would have been determined had no

impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised

immediately in the profit or loss.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Stocks

Stocks are measured at the lower of cost and selling price less cost to complete and sell. Cost is measured at the

most recent purchase price and other costs incurred in bringing the stocks to their present location and condition.

Financial instruments

Basic financial instruments that are payable or receivable within one year, typically trade creditors and debtors,

are measured initially and subsequently at the undiscounted amount of the cash or other consideration that is

expected to be paid or received less impairment losses for bad and doubtful debts.

Related party loans have no stated interest rate, are payable on demand and are measured at the undiscounted

amount due.

Taxation

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

substantively enacted by the statement of financial position date.

Deferred tax

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

statement of financial position 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 period 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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

Leases

Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of

the leased assets to the company. All other leases are classified as operating leases.

Rentals payable under operating leases are charged to the profit or loss on a straight-line basis over the lease

term. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the

lease term on a straight-line basis.

Employee 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.

Short term employee benefits are recognised as an expense in the period in which they are incurred.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 40 (2016 - 38 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

Goodwill

licences

Totals

£

£

£

COST

At 1 September 2016

1,033,915

30,000

1,063,915

Additions

90,559

-

90,559

At 31 December 2017

1,124,474

30,000

1,154,474

AMORTISATION

At 1 September 2016

567,777

30,000

597,777

Amortisation for period

70,452

-

70,452

At 31 December 2017

638,229

30,000

668,229

NET BOOK VALUE

At 31 December 2017

486,245

-

486,245

At 31 August 2016

466,138

-

466,138

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 September 2016

773,920

563,685

56,538

498,950

1,893,093

Additions

-

18,707

25,026

4,710

48,443

Disposals

-

-

(56,539

)

-

(56,539

)

At 31 December 2017

773,920

582,392

25,025

503,660

1,884,997

DEPRECIATION

At 1 September 2016

204,166

555,985

21,119

494,209

1,275,479

Charge for period

16,636

5,177

16,346

3,346

41,505

Eliminated on disposal

-

-

(37,465

)

-

(37,465

)

At 31 December 2017

220,802

561,162

-

497,555

1,279,519

NET BOOK VALUE

At 31 December 2017

553,118

21,230

25,025

6,105

605,478

At 31 August 2016

569,754

7,700

35,419

4,741

617,614

The net book value of tangible fixed assets includes £ 25,025 (2016 - £ 35,419 ) in respect of assets held under

hire purchase contracts.

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 September 2016

267,518

Additions

108,587

At 31 December 2017

376,105

NET BOOK VALUE

At 31 December 2017

376,105

At 31 August 2016

267,518

7.

DEBTORS

2017

2016

£

£

Amounts falling due within one year:

Trade debtors

456,370

538,889

Amounts owed by group undertakings

-

35,312

Other debtors

121,420

121,420

Deferred tax asset

3,828

8,244

Prepayments and accrued income

159,594

53,887

741,212

757,752

Amounts falling due after more than one year:

Amounts owed by group undertakings

2,608,953

2,455,695

Other debtors

-

1,573

2,608,953

2,457,268

Aggregate amounts

3,350,165

3,215,020

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

60,000

249,200

Hire purchase contracts

10,175

7,737

Trade creditors

446,503

657,989

Amounts owed to group undertakings

159,586

11,000

Amounts owed to related undertakings

2,950

2,950

Tax

83,953

32,922

Social security and other taxes

123,748

51,795

Other creditors

152,129

106,295

Invoice discounting

257,819

-

Directors' loan accounts

2,513,594

693,848

Accrued expenses

56,326

75,397

3,866,783

1,889,133

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans

380,000

449,110

Preference shares

-

1,755,396

Hire purchase contracts

27,886

31,808

407,886

2,236,314

Amounts falling due in more than five years:

Repayable by instalments

Preference shares

-

1,755,396

10.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdraft

-

174,200

Bank loans

440,000

524,110

Hire purchase contracts

38,061

39,545

Invoice discounting

257,819

-

735,880

737,855

Hire purchase contracts are secured on the assets to which they relate.

There is a debenture and a fixed and floating charge secured on the assets of the company in favour of Svenska

Handelsbanken AB (Publ). There is also an unlimited intercompany composite guarantee between Able2 UK

Limited, ADL Holdings Limited and Spinal Products Limited.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

1,756,396

Ordinary

£1

1,756,396

1,000

(2016 - 1,000 )

On the 4 December 2017 the share capital of the company was converted to Ordinary shares, which meant that

the 1,755,396 redeemable preference shares in existence at that date have been converted and redesignated. The

redeemable preference shares had previously been classified as debt and included in creditors (see note 10).

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

John B S Fairhurst BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of Fairhurst

13.	OTHER FINANCIAL COMMITMENTS

The company had total operating lease commitments of £48,503 (2016 - £98,637) at the period end.

14.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

15.	PARENT COMPANY

16.	FIRST YEAR ADOPTION

These financial statements for the period ended 31 December 2017 are the first financial statements that comply

with FRS 102 Section 1A for small entities. The directors have concluded that there are no measurement

differences on transition however certain amounts owed by and to group undertakings have been restated as

falling due within one year as they are deemed to be repayable on demand.