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Registration number: 03132212

Elring Parts Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2021

 

Elring Parts Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Income Statement

10

Statement of Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 34

 

Elring Parts Limited

Company Information

Directors

G Waite

D Willers

T Jessulat

Dr S Wolf

Company secretary

T Jensen

Registered office

Unit 2 Derwent Court
Earlsway
Team Valley Trading Estate
Gateshead
NE11 0TF

Auditor

Azets Audit Services
Chartered Accountants & Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

 

Elring Parts Limited

Strategic Report for the Year Ended 31 December 2021

The directors present their strategic report for the year ended 31 December 2021.

Fair review of the business

Sales decreased in 2021 by 0.89% from prior year, Gross margin has decreased by 3.70% and Administrative expenses have increased by 9.41%, resulting in an decrease in net profit before tax on prior year.

The motor industry saw many constraints around the world with shortages of raw materials and disrupted supply chains leading to major availability issues and increased costs for the aftermarket sector. Taking these conditions into account along with the continued Coronavirus repercussions, Directors consider the year overall as being successful.

The first quarter of 2022 saw slow but positive signs of improvement in availability, achieving sales above targets and a profit before tax of 10%. We are seeing signs of business returning to more acceptable levels during May 2022, however we must remain cautious with the continued unrest in Eastern Europe and continuing price rises.

Directors remain optimistic for 2022 with sales growth anticipated. We will achieve the target growth forecast and estimate to be around 13% up on the previous year. Increased costs are being carefully managed and Directors are optimistic that we will continue to achieve PBT above 10%.

The directors are satisfied with the position of the company's business at the end of the year having increased reserves by £454,539 after the payment of a final dividend of £700,000 in respect of 2020.

Measurement
Given the straightforward nature of the business, the company’s directors are of the opinion that analysis using KPI’s is not necessary development, for an understanding of the performance or position of the business.

Proposed dividend
A final dividend was paid amounting to £700,000 in respect of the previous financial year. The directors agreed a final dividend at the board meeting in July 2022 in respect of 2021 amounting to £850,000 to be paid in August 2022.

Principal risks and uncertainties

The strength of the pound against the Euro, Covid19 repercussions and continuing price rises in many sectors are the main risks of exposure for the remainder of 2022.

While the above mentioned risks continue to be monitored, procedures are in place with the assistance of ElringKlinger AG, additional administration strategies have been considered and actioned to ensure the company can operate with minimal disruption.

Approved by the board on 5 September 2022 and signed on its behalf by:
 

.........................................
G Waite
Director

 

Elring Parts Limited

Directors' Report for the Year Ended 31 December 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Directors' of the company

The directors, who held office during the year, were as follows:

G Waite

D Willers

T Jessulat

Dr S Wolf

Financial instruments

Objectives and policies

The company finances its activities with a combination of finance leases and hire purchase contracts, and cash and short term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.

Price risk, credit risk, liquidity risk and cash flow risk

The main risks associated with the company’s financial assets and liabilities are set out below.

Market Risk
Expenditure in foreign currencies continue to make up a significant part of the company’s business, these being mainly in Euro’s. The company is therefore exposed to movements in exchange rates. The company maintains a Euro bank account and enters into forward exchange purchases of Euros when rates are favourable which partly mitigates this risk.

Credit risk
The company undertakes assessments of its customers in order to manage credit risk where there is a likelihood of default. 

Liquidity risk
The company aims to mitigate risk by managing cash generated by its operations.

Future developments

The Company's principle activities continues to be the distribution of engine parts. The Directors are not aware at the date of this report of any intended major changes in the companies activities in the next year.

The Company intends to continue sales growth and increase profitability in 2022.

 

Elring Parts Limited

Directors' Report for the Year Ended 31 December 2021 (continued)

Going concern

The financial statements have been prepared on a going concern basis.

The company meets its day to day working capital requirements through cash generated from operations.

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios. This also considers the effectiveness of available measures to assist in mitigating the impact. In the directors assessment of reasonably possible changes in trading performance for the next twelve months they have considered a fall in demand should the global economic impact widen.

Although the forecasts prepared taking account of the matters above, support the ability of the company to remain a going concern and to be able to trade and meet its debts as they fall due, the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.

Based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

Directors' liabilities

There were no qualifying third party indemnity provisions in force for the benefit of any of the Directors during the financial year.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

Azets Audit Services Limited were appointed auditor to the company following their acquisition of the trade of Tait Walker LLP, trading as MHA Tait Walker, on 1 May 2022.

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved by the board on 5 September 2022 and signed on its behalf by:
 

.........................................
G Waite
Director

 

Elring Parts Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report 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 UK adopted International Financial Reporting Standards (IFRSs). 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK adopted International Financial Reporting Standards (IFRSs) have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

Elring Parts Limited

Independent Auditor's Report to the Members of Elring Parts Limited

Qualified opinion

We have audited the financial statements of Elring Parts Limited (the 'company') for the year ended 31 December 2021, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, 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 UK adopted International Financial Reporting Standards (IFRSs).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;

have been properly prepared in accordance with UK adopted IFRSs; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion on financial statements

We were not appointed as auditor of the company until after 31 December 2021 and thus did not observe the counting of physical inventories during the year or at the end of that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £2,306,682 held at 31 December 2021 by using other audit procedures. Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 December 2021.

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 auditor 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 qualified opinion.

Other matters

The financial statements of Elring Parts Limited for the year ended 31 December 2020 were unaudited.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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.

 

Elring Parts Limited

Independent Auditor's Report to the Members of Elring Parts Limited (continued)

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 course of 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.

Opinion on other matter prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

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 5], 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 is 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.

 

Elring Parts Limited

Independent Auditor's Report to the Members of Elring Parts Limited (continued)

Auditor 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 an auditor’s report 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:

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;

enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;

challenging assumptions and judgements made by management in their significant accounting estimates;

auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and

reviewing financial statement disclosures and testing to support documentation.

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Elring Parts Limited

Independent Auditor's Report to the Members of Elring Parts Limited (continued)

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 an auditor’s report 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.

......................................
Christopher Potter BA CA (Senior Statutory Auditor)
For and on behalf of
Azets Audit Services
Chartered Accountants
Statutory Auditor

Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

12 September 2022

Azets Audit Services is a trading name of Azets Audit Services Limited

 

Elring Parts Limited

Income Statement for the Year Ended 31 December 2021

Note

2021
£

(As restated)
(Unaudited)
2020
£

Revenue

4

10,933,684

11,031,331

Cost of sales

 

(8,198,202)

(8,207,760)

Gross profit

 

2,735,482

2,823,571

Administrative expenses

 

(1,393,421)

(1,346,878)

Other operating income

5

59,382

85,681

Operating profit

6

1,401,443

1,562,374

Finance income

7

37,331

37,394

Finance expense

7

(6,723)

(15,541)

Profit before tax

 

1,432,051

1,584,227

Income tax expense

11

(277,509)

(303,103)

Profit for the year

 

1,154,542

1,281,124

The above results were derived from continuing operations.

 

Elring Parts Limited

Statement of Comprehensive Income for the Year Ended 31 December 2021

2021
£

(As restated)
(Unaudited)
2020
£

Profit for the year

1,154,542

1,281,124

Total comprehensive income for the year

1,154,542

1,281,124

 

Elring Parts Limited

(Registration number: 03132212)
Statement of Financial Position as at 31 December 2021

Note

2021
£

(As restated)
(Unaudited)
2020
£

Assets

Non-current assets

 

Property, plant and equipment

12

65,321

88,035

Right of use assets

13

411,137

263,062

 

476,458

351,097

Current assets

 

Inventories

14

2,375,181

2,306,682

Trade and other receivables

15

3,301,741

3,187,156

Cash and cash equivalents

16

1,868,098

2,220,850

 

7,545,020

7,714,688

Total assets

 

8,021,478

8,065,785

Liabilities

Current liabilities

 

Trade and other payables

19

(1,127,150)

(1,705,472)

Loans and borrowings

17

(105,288)

(84,953)

Income tax liability

 

(130,577)

(172,779)

 

(1,363,015)

(1,963,204)

Non-current liabilities

 

Loans and borrowings

17

(292,659)

(192,200)

Deferred tax liabilities

11

(10,373)

(9,492)

 

(303,032)

(201,692)

Total liabilities

 

(1,666,047)

(2,164,896)

Net assets

 

6,355,431

5,900,889

Equity

 

Share capital

21

300,000

300,000

Retained earnings

 

6,055,431

5,600,889

Total equity

 

6,355,431

5,900,889

Approved by the board on 5 September 2022 and signed on its behalf by:
 

.........................................
G Waite
Director

 

Elring Parts Limited

Statement of Changes in Equity for the Year Ended 31 December 2021

Share capital
£

Retained earnings
£

Total
£

At 1 January 2020

300,000

4,919,765

5,219,765

Profit for the year

-

1,281,124

1,281,124

Total comprehensive income

-

1,281,124

1,281,124

Dividends

-

(600,000)

(600,000)

At 31 December 2020

300,000

5,600,889

5,900,889

Share capital
£

Retained earnings
£

Total
£

At 1 January 2021

300,000

5,600,889

5,900,889

Profit for the year

-

1,154,542

1,154,542

Total comprehensive income

-

1,154,542

1,154,542

Dividends

-

(700,000)

(700,000)

At 31 December 2021

300,000

6,055,431

6,355,431

 

Elring Parts Limited

Statement of Cash Flows for the Year Ended 31 December 2021

Note

2021
£

(As restated)
(Unaudited)
2020
£

Cash flows from operating activities

Profit for the year

 

1,154,542

1,281,124

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

30,754

33,718

Depreciation on right of use assets

 

78,904

121,587

Loss on disposal of property plant and equipment

818

-

Finance income

7

(37,331)

(37,394)

Finance expense

7

6,723

15,541

Income tax expense

11

277,509

303,103

 

1,511,919

1,717,679

Working capital adjustments

 

(Increase)/decrease in inventories

14

(68,499)

133,269

Increase in trade and other receivables

15

(44,999)

(458,566)

(Decrease)/increase in trade and other payables

19

(582,410)

5,565

Increase in lease liability

 

14,609

-

Cash generated from operations

 

830,620

1,397,947

Income taxes paid

11

(318,830)

(243,894)

Net cash flow from operating activities

 

511,790

1,154,053

Cash flows from investing activities

 

Interest received

7

37,331

37,394

Acquisitions of property plant and equipment

(8,858)

(18,568)

Payments made on leased assets during the year

 

(120,794)

(120,850)

Net cash flows from investing activities

 

(92,321)

(102,024)

Cash flows from financing activities

 

Interest expense on leases

 

(6,723)

(15,541)

Dividends paid

22

(700,000)

(600,000)

Movement on group loans

 

(65,498)

476,528

Net cash flows from financing activities

 

(772,221)

(139,013)

Net (decrease)/increase in cash and cash equivalents

 

(352,752)

913,016

Cash and cash equivalents at 1 January

 

2,220,850

1,307,834

Cash and cash equivalents at 31 December

 

1,868,098

2,220,850

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated, registered and domiciled in England.

The address of its registered office is:
Unit 2 Derwent Court, Earlsway, Team Valley Trading Estate, Gateshead, NE11 0TF

These financial statements were authorised for issue by the board on 5 September 2022.

2

Accounting policies

Statement of compliance

The company financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by the UK ("UK adopted IFRSs").

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

The financial statements have been prepared in accordance with adopted IFRSs and under historical cost accounting rules.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies.

The financial statements are presented in pounds sterling, rounded to the nearest thousand and are prepared on the historical cost basis. Non-current assets are stated at the lower of carrying amount and fair value less costs to sell.

Going concern

The financial statements have been prepared on a going concern basis.

The company meets its day to day working capital requirements through cash generated from operations.

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios.This also considers the effectiveness of available measures to assist in mitigating the impact. In the directors assessment of reasonably possible changes in trading performance for the next twelve months they have considered a fall in demand should the global economic impact widen.

Although the forecasts prepared taking account of the matters above, support the ability of the company to remain a going concern and to be able to trade and meet its debts as they fall due, the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

Changes in accounting policy

New standards, interpretations and amendments effective

The following have been applied for the first time from 1 January 2021, none of which have had a material impact on the financial statements:

Interest Rate Benchmark Reform Phase 2

New standards, interpretations and amendments not yet effective

The following newly issued but not yet effective standards, interpretations and amendments, which have not been applied in these financial statements, and are not expected to have a material impact on the financial statements:

Annual Improvements to IFRS Standards 2018–2020

effective 1 January 2022

Reference to the Conceptual Framework

effective 1 January 2022

Property, Plant and Equipment: Proceeds before intended use

effective 1 January 2022

Onerous Contracts—Cost of Fulfilling a Contract

effective 1 January 2022

Deferred Tax related to Assets and Liabilities arising from a single transaction

effective 1 January 2023

Definition of Accounting Estimates

effective 1 January 2023

Disclosure of Accounting Policies

effective 1 January 2023

Classification of Liabilities as Current or Non-current

effective 1 January 2023

Prior period adjustments

During the year the following prior period adjustments were identified.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

During the period it was brought to the attention of management that the presentation of volume rebates is not treated in accordance with IFRS 15. This resulted in the following prior period adjustment:

(Unaudited)
2020
£

Revenue

(565,466)

Cost of sales

565,466

Impact on profit after tax

-

 

During the period it was identified that balances owed to related entities that were included on the payables ledger had not been presented correctly in the financial statements. This resulted in the following prior period adjustment:

(Unaudited)
2020
£

Trade payables

513,098

Balances owed by related entities

(513,098)

Impact on net current assets

-

 

Revenue recognition

Recognition

The company earns revenue from the sale of Revenue from the sale of goods is recognised in the statement of comprehensive income when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods.. This revenue is recognised in the accounting period when control of the product has been transferred, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to customers.

Government grants

Government grants are recognised based on the accruals model and are measured at the fair value of the asset received or receivable. Grants are classified as related either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of the grant relating to an asset is deferred, it is recognised as deferred income.

Geographical reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the board, who make strategic operating decisions.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Foreign currency transactions and balances

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to pounds sterling at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the statement of income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Research and development

Expenditure on research activities, undertaken with the prospect of gaining new technical know ledge and understanding, is recognised in the statement of comprehensive income as an expense as incurred.

Tax

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income except to the extent that it relates to items recognised directly in equity', in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided for using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for in relation to the initial recognition of assets or liabilities that affect neither accounting nor taxable profit. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Property, plant and equipment

Items of property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised net within administration expenses in the statement of comprehensive income as incurred.

The Company recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred, if it is probable that the future economic benefits embodied with the item will flow to the Company and the cost of item can be measured reliably. All other costs are recognised in the statement of comprehensive income as an expense as incurred.

Depreciation

Depreciation is charged to the statement of comprehensive income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. Depreciation methods, useful lives and residual values are reviewed at each balance sheet date.The estimated useful lives are as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

5-10 years straight line

Plant and equipment

12 years straight line

Computer Equipment

3-5 years straight line

Leasehold property

Term of lease

Cash and cash equivalents

Cash comprises cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash for the purpose only of the cash flow statement. The Company does not hold any cash equivalent balances.

Trade receivables

Trade and other receivables are recognised initially at fair value. Impairments on doubtful receivables involve to a considerable extent estimates and judgements of the individual receivables based on the creditworthiness of the customer concerned. Should this not be possible or appropriate under certain circumstances, an average rating (which is based on the average of all the ratings obtained in the reporting period) is applied.

Elringklinger considers this estimate regarding ratings as appropriate.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Inventories

Inventories are stated at the lower of cost or net realisable value.

The cost of inventories is based on the weighted average purchase price principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Trade payables

Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

Borrowings

All interest-bearing loans and borrowings are initially recognised at net proceeds. After initial recognition the debt is increased by the finance cost in respect of the reporting period and reduced by repayments made in the period.

Provisions

A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event that can be reliably measured, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the risks specific to the liability.

Operating lease payments

With effect from 1 January 2019 operating leases are accounted for in accordance with IFRS 16. Assets are recognised in the Balance Sheet as right of use assets and the liability under the contract is also recognised. Assets are depreciated over the useful life and interest charged to the income statement over the length of the contract.

Impairment of financial assets

The carrying amounts of the Company’s assets, other than cash and deferred tax assets, are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of comprehensive income.Calculation of recoverable amount.The recoverable amount of assets is the greater of their net selling price and value in use. In assessing value in use, the estimated future cash flow are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash¬generating unit to which the asset belongs.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the year in which the dividends are approved by the company’s shareholders.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.

Defined contribution pension obligation

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity' and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the statement of comprehensive income in the years during which services are rendered by employees.

Financial instruments

Classification and measurement

Financial instruments issued by the Company are treated as equity (i.e. forming part of shareholders’ funds) only to the extent that they meet the following two conditions:

(i) they include no contractual obligations upon the Company to deliver cash or other financial assets or to exchange assets or financial liabilities with another party under conditions that are potentially unfavourable to the Company; and
(ii) where the instrument will or may be settled in the Company’s own equity instruments it is either a non¬derivative that includes no obligation to deliver a variable number of the Company’s own equity instruments or is a derivative that will be settled by the Company’s exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.

To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the Company’s own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares.

Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and trade and other payables.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

3

Critical accounting judgements and key sources of estimation uncertainty

In the preparation of the financial statements, it is necessary for the management of the company to make estimates and certain presumptions that can affect the valuation of the assets and liabilities and the outcome of the income statement. The actual outcome may differ from these estimates and presumptions. The most significant estimates made in these accounts relate to

Useful lives of tangible fixed assets and licence rights
The directors have applied a useful economic life of 20 years to tangible fixed assets and 20 years to licence rights and consider this to be appropriate based upon their expected lives.

Non-recognition of a deferred tax asset
A deferred tax asset has not been recognised in full due to uncertainty surrounding its future recovery.

4

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2021
£

(As restated)
(Unaudited)
2020
£

Sale of goods

10,933,684

11,031,331

 

The analysis of the company's revenue for the year by geographical destination is as follows:

2021
£

(As restated)
(Unaudited)
2020
£

UK

9,672,364

9,912,615

Europe

1,257,545

1,114,941

Rest of World

3,775

3,775

10,933,684

11,031,331

 

5

Other operating income

The analysis of the company's other operating income for the year is as follows:

2021
£

(Unaudited)
2020
£

Government grants

38,271

125,862

Foreign currency gains/(losses)

21,111

(40,181)

59,382

85,681

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

6

Operating profit

Arrived at after charging/(crediting)

2021
£

(Unaudited)
2020
£

Depreciation expense

30,754

33,718

Depreciation on right of use assets - machinery

33,835

60,298

Depreciation on right of use assets - property

45,069

61,289

Foreign exchange (gains)/losses

(21,111)

40,181

Loss on disposal of property, plant and equipment

818

-

7

Finance income and costs

2021
£

(Unaudited)
2020
£

Finance income

Interest income on bank deposits

-

824

Other finance income

37,331

36,570

Total finance income

37,331

37,394

Finance costs

Interest expense on leases

(6,723)

(15,541)

Net finance income

30,608

21,853

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2021
£

(Unaudited)
2020
£

Wages and salaries

1,120,181

1,123,617

Social security costs

120,082

100,449

Pension costs, defined contribution scheme

67,655

67,264

1,307,918

1,291,330

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2021
No.

(Unaudited)
2020
No.

Administration and support

4

4

Sales, marketing and distribution

28

27

32

31

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2021
£

(Unaudited)
2020
£

Remuneration

91,447

88,168

During the year the number of directors who were receiving benefits and share incentives was as follows:

2021
No.

(Unaudited)
2020
No.

Accruing benefits under money purchase pension scheme

1

1

10

Auditor's remuneration

2021
£

(Unaudited)
2020
£

Audit of the financial statements

15,000

-

For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

11

Income tax

Tax charged/(credited) in the income statement

2021
£

(Unaudited)
2020
£

Current taxation

UK corporation tax

276,577

303,950

UK corporation tax adjustment to prior periods

51

(719)

276,628

303,231

Deferred taxation

Arising from origination and reversal of temporary differences

881

(128)

Tax expense in the income statement

277,509

303,103

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of 19% (2020 - 19%).

The differences are reconciled below:

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

11

Income tax (continued)

2021
£

(As restated)
(Unaudited)
2020
£

Profit before tax

1,432,051

1,584,227

Corporation tax at standard rate

272,090

301,003

Increase/(decrease) in current tax from adjustment for prior periods

51

(719)

Increase from effect of expenses not deductible in determining taxable profit (tax loss)

5,368

2,819

Total tax charge

277,509

303,103

In the Spring Budget 2020, the Government announced that from 1 April 2020 the corporation tax rate would remain at 19% (rather than reducing to 17% as previously enacted). This new law was deemed substantively enacted on 17 March 2020. In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase from 19% to 25%. This new law was deemed substantively enacted on 24 May 2021 and the deferred tax balances at the year end have been calculated based on this rate.

Deferred tax

Deferred tax assets and liabilities

2021

Asset
£

Liability
£

Net deferred tax
£

Accelerated tax depreciation

-

(10,373)

(10,373)

-

(10,373)

(10,373)

2020

Asset
£

Liability
£

Net deferred tax
£

Accelerated tax depreciation

-

(9,492)

(9,492)

-

(9,492)

(9,492)

Deferred tax movement during the year:

At 1 January 2021
£

Recognised in income
£

At
31 December 2021
£

Accelerated tax depreciation

(9,492)

(881)

(10,373)

(9,492)

(881)

(10,373)

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

11

Income tax (continued)

Deferred tax movement during the prior year:

At 1 January 2020
£

Recognised in income
£

At
31 December 2020
£

Accelerated tax depreciation

(9,620)

128

(9,492)

(9,620)

128

(9,492)

12

Property, plant and equipment

Furniture, fittings and equipment
£

Other property, plant and equipment
£

Total
£

Cost or valuation

At 1 January 2020

395,082

32,782

427,864

Additions

18,568

-

18,568

Disposals

(41,289)

-

(41,289)

At 31 December 2020

372,361

32,782

405,143

At 1 January 2021

372,361

32,782

405,143

Additions

8,858

-

8,858

Disposals

(34,148)

(5,079)

(39,227)

At 31 December 2021

347,071

27,703

374,774

Depreciation

At 1 January 2020

308,743

15,936

324,679

Charge for year

31,315

2,403

33,718

Eliminated on disposal

(41,289)

-

(41,289)

At 31 December 2020

298,769

18,339

317,108

At 1 January 2021

298,769

18,339

317,108

Charge for the year

28,352

2,402

30,754

Eliminated on disposal

(33,330)

(5,079)

(38,409)

At 31 December 2021

293,791

15,662

309,453

Carrying amount

At 31 December 2021

53,280

12,041

65,321

At 31 December 2020

73,592

14,443

88,035

At 1 January 2020

86,339

16,846

103,185

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

13

Right of use assets

Machinery
£

Property
£

Total
£

Cost or valuation

At 1 January 2020

67,868

338,504

406,372

Additions

52,303

-

52,303

Disposals

(52,312)

-

(52,312)

At 31 December 2020

67,859

338,504

406,363

At 1 January 2021

67,859

338,504

406,363

Additions

32,647

401,894

434,541

Disposals

(18,605)

(338,504)

(357,109)

At 31 December 2021

81,901

401,894

483,795

Depreciation

At 1 January 2020

21,536

52,490

74,026

Charge for year

60,298

61,289

121,587

Eliminated on disposal

(52,312)

-

(52,312)

At 31 December 2020

29,522

113,779

143,301

At 1 January 2021

29,522

113,779

143,301

Charge for the year

33,835

45,069

78,904

Eliminated on disposal

(17,492)

(132,055)

(149,547)

At 31 December 2021

45,865

26,793

72,658

Carrying amount

At 31 December 2021

36,036

375,101

411,137

At 31 December 2020

38,337

224,725

263,062

14

Inventories

2021
£

(Unaudited)
2020
£

Finished goods and goods for resale

2,375,181

2,306,682

The cost of inventories recognised as an expense in the year amounted to £7,260,168 (2020 - £7,439,959). This is included within cost of sales.

The amount of write-down of inventories recognised as an expense in the year is £10,139 (2020 - £10,874). This is included within cost of sales.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

15

Trade and other receivables

2021
£

(As restated)
(Unaudited)
2020
£

Current

Trade debtors

2,136,110

2,081,538

Provision for impairment of trade debtors

(16,021)

(10,829)

Receivables from related parties

1,140,325

1,070,739

Other prepayments

41,327

45,708

3,301,741

3,187,156

The company's exposure to credit and market risks, including maturity analysis, relating to trade and other receivables is disclosed in note 23 "Financial risk review".

The ageing of trade receivables at the balance sheet date was:

2021
£

(Unaudited)
2020
£

7 to 30 days

2,105,342

2,059,757

31 to 60 days

9,472

13,083

61 to 90 days

17,634

(7,292)

91 to 120 days

3,662

15,990

2,136,110

2,081,538

16

Cash and cash equivalents

2021
£

(Unaudited)
2020
£

Cash at bank

1,868,098

2,220,850

17

Loans and borrowings

2021
£

(Unaudited)
2020
£

Non-current loans and borrowings

Long term lease liabilities

292,659

192,200

2021
£

(Unaudited)
2020
£

Current loans and borrowings

Current portion of long term lease liabilities

105,288

84,953

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

17

Loans and borrowings (continued)

The company's exposure to market and liquidity risks, including maturity analysis, relating to loans and borrowings is disclosed in note 23 "Financial risk review".

18

Leases

Lease liabilities maturity analysis

A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:

2021
£

(Unaudited)
2020
£

Less than one year

105,288

84,953

2 years

82,944

192,200

3 years

83,148

-

4 years

82,014

-

5 years

44,553

-

Total lease liabilities (undiscounted)

397,947

277,153

Total cash outflows related to leases

Total cash outflows related to leases are presented in the table below:

Payment

2021
£

(Unaudited)
2020
£

Other

38,481

20,924

19

Trade and other payables

2021
£

(As restated)
(Unaudited)
2020
£

Current

Trade payables

203,374

170,795

Accrued expenses

454,193

472,963

Amounts due to related parties

4,088

-

Social security and other taxes

465,495

1,061,714

1,127,150

1,705,472

The company's exposure to market and liquidity risks, including maturity analysis, relating to trade and other payables is disclosed in note 23 "Financial risk review".

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £67,655 (2020 - £67,264).

21

Share capital

Allotted, called up and fully paid shares

 

2021

(Unaudited)
2020

 

No.

£

No.

£

Ordinary shares of £1 each

300,000

300,000

300,000

300,000

         

22

Dividends

Final dividends paid

   

2021
£

 

(Unaudited)
2020
£

Final dividend of £2.33 (2020 - £2.00) per each Ordinary shares

 

700,000

 

600,000

         

23

Financial risk review

This note presents information about the company’s exposure to financial risks and the company’s management of capital.

 

Capital risk management

Capital management
 
The Board of Directors has overall responsibility' for the establishment and oversight of the Company’s risk management framework.

 The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company’s treasury policy has as its principal objective the achievement of the maximum interest rate on any cash balances whilst maintaining an acceptable level of risk.

 There was no change in the Company’s approach to capital management during the year. The Company uses cash held, working capital balances and undrawn facilities to enable the Company to continue as a going concern and to maximise returns for stakeholders. The Company is not subject to externally imposed capital requirements.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

23

Financial risk review (continued)

Credit risk

The company's definition of credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. A long standing trading relationship is held with most customers, with a low level of debt default.

The risk is mitigated by the company by The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Company’s customer base, including the default risk of the industry' and country in which customers operate, has less of an influence on credit risk. The company has continued to spread the credit risk with 54% of the debt now spread across 7 customers.

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings where available. Purchase limits are established for each customer. These limits are reviewed regularly.

Goods are sold subject to retention of title clauses, so that in the event of non-payment the Company may have a secured claim. The Company does not require collateral in respect of trade and other receivables. The Company does not have insurance in place related to credit risk. The Company ensures that it credit checks new and existing customers as required. A system of collecting outstanding balances is in place to minimise exposure to bad debts..

Credit quality analysis

The following tables set out information about the credit quality of financial assets measured at amortised cost and FVOCI debt investments. Unless specifically indicated for all the financial assets, the amounts represent gross carrying amounts.

Debt investments at amortised cost

Total
£

Total prior year
£

Trade receivables

2,120,089

2,070,709

Trade receivables due from related parties

1,136,237

1,583,837

Other receivables

41,237

45,708

Cash and cash equivalents

1,868,098

2,220,850

Gross carrying amount

5,165,661

5,921,104

Liquidity risk

The company's definition of liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

23

Financial risk review (continued)

Maturity analysis for financial liabilities and financial assets

The following tables set out the remaining contractual maturities of the company’s financial assets and financial liabilities by type.

2021
Non-derivative liabilities

Carrying amount
£

Gross nominal inflow/-outflow
£

Less than 1 month
£

1-3 months
£

3 months - 1 year
£

1-5 years
£

Non-current financial liabilities

292,659

307,045

-

-

-

307,045

Current financial liabilities

105,288

100,718

9,072

17,622

74,024

-

Trade payables

203,374

203,374

6,330

197,044

-

-

Social security and other taxes

465,495

465,495

394,596

70,899

-

-

Amounts due to related parties

4,088

4,088

4,088

-

-

-

2020
Non-derivative liabilities

Carrying amount
£

Gross nominal inflow/-outflow
£

Less than 1 month
£

1-3 months
£

3 months - 1 year
£

1-5 years
£

Non-current financial liabilities

192,200

25,169

-

-

-

25,169

Current financial liabilities

84,953

73,133

8,122

16,225

48,796

-

Trade payables

170,795

170,795

69

170,726

-

-

Social security and other taxes

1,061,714

1,061,714

536,665

525,049

-

-

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

23

Financial risk review (continued)

Market risk

 

Foreign exchange risk

The Company is exposed to currency risk on sales and purchases that are denominated in a currency other than the functional currency of the Company, primarily the Euro. No formal hedging arrangements are entered into by the Company however management aim to match foreign expenditure with similar foreign income.

2021

Sterling
£

Euro
£

Total
£

Cash and cash equivalents

1,841,065

27,033

1,868,098

Trade receivables

2,104,309

31,801

2,136,110

Trade payables

(189,778)

(498,527)

(688,305)

Net exposure

3,755,596

(439,693)

3,315,903

2020

Sterling
£

Euro
£

Total
£

Cash and cash equivalents

1,132,016

175,818

1,307,834

Trade receivables

1,595,821

21,647

1,617,468

Trade payables

(40,909)

(696,376)

(737,285)

Net exposure

2,686,928

(498,911)

2,188,017

 

Interest rate risk

No formal hedging arrangements are entered into by the Company.

Sensitivity analysis

An increase or decrease of 1 percent in interest rates during the year ended 31 December 2021 would have increased or decreased equity' and profit before tax by £16,212. The analysis at 31 December 2020 on the basis of a 1 percent increase or decrease in interest rates would have decreased or increased equity and profit before tax by £15,269.

A 10% strengthening or weakening in the value of Sterling against the Euro during the year ended 31 December 2021 would have increased or decreased equity and profit before tax by £732,651. The analysis at 31 December 2020 on the basis of a 10% strengthening or weakening in the value of Sterling against the Euro would have increased or decreased equity and profit before tax by £670,420.

The above calculations assume that the change occurred at the balance sheet date and had been applied to risk exposures existing at that date, assuming all other variables remain constant.

 

Elring Parts Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

24

Related party transactions

Income and receivables from related parties

2021

Parent
£

Amounts receivable from related party

1,136,237

2020

Parent
£

Amounts receivable from related party

1,583,837

Expenditure with and payables to related parties

2021

Parent
£

Entities with joint control or significant influence
£

Purchase of goods

3,293,281

20,076

Amounts payable to related party

484,931

4,088

2020

Parent
£

Entities with joint control or significant influence
£

Purchase of goods

3,486,865

21,655

Amounts payable to related party

513,098

-

25

Parent and ultimate parent undertaking

The smallest and largest group of undertakings in which the results are consolidated is that headed by Elring Klinger AG.

 The company's immediate parent is Elring Klinger AG. These financial statements are available upon request from Eling Klinger AG
Max Eyth - Strasse 2,
D-72581, Detlingen/Erms,
Germany

The ultimate controlling party is Elring Klinger AG.