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REGISTERED NUMBER: 01573447 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2022

for

Heat Trace Limited

Heat Trace Limited (Registered number: 01573447)






Contents of the Financial Statements
for the Year Ended 31 December 2022




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Heat Trace Limited

Company Information
for the Year Ended 31 December 2022







DIRECTORS: N S Malone
J O'Connor
S Ellam
C Fredriksson
M Örtenblad





REGISTERED OFFICE: Meres Edge Chester Road
Helsby
Frodsham
Cheshire
WA6 0DJ





REGISTERED NUMBER: 01573447 (England and Wales)





AUDITORS: Haines Watts
Chartered Accountants &
Statutory Auditors
3rd Floor
56 Wellington Street
Leeds
West Yorkshire
LS1 2EE

Heat Trace Limited (Registered number: 01573447)

Strategic Report
for the Year Ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS
Heat Trace continue to manufacture and develop a range of trace heating cables in both self-regulating and constant wattage designs. Further work during 2022 has been carried out to restructure the management team and to align the business with wider group activities in order to develop sales within the Nibe Element group whilst continuing to strengthen co-operation with key affiliate partners around the world.

Turnover at £8,702,129 in 2022, shows a growth of 15% from 2021, with a significant improvement in the overall financial performance.

The business has been re-structured in order to focus resources on the existing manufacturing operations whilst giving further independence to the product development team.

Investments and improvement to the production processes will allow for more efficient product manufacturing and improved customer service which, along with the strategic business plans now in place, will provide opportunities for growth.

PRINCIPAL RISKS AND UNCERTAINTIES
Some risks remain in raw material supply but this has reduced dramatically from previous years and good work has been done to secure secondary suppliers for all key materials. Human resources remain challenging with considerable focus continuing on recruitment.

FUTURE PLANS
Growth with existing products into new markets is a key focus, with product certification being of major importance. This further growth has led to a challenging turnover budget for 2023 of £10.5m, with an operating profit margin of 4.3%.

ON BEHALF OF THE BOARD:





S Ellam - Director


29 September 2023

Heat Trace Limited (Registered number: 01573447)

Report of the Directors
for the Year Ended 31 December 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture of electrical surface heating tapes and allied products.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2022.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

N S Malone
J O'Connor
S Ellam
C Fredriksson
M Örtenblad

MATTERS COVERED IN THE STRATEGIC REPORT
Disclosures with regards to principal activity, review of the business, future developments, principal risks and uncertainties and financial and other key performance indicators are included within the strategic report.

FINANCIAL RISK MANAGEMENT
The Company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects of these risks on the financial performance of the company.

Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The Company's finance department implements the policies set by the board of directors.

LIQUIDITY RISK
The Company currently has cash balances, which provide sufficient available funds for operations and
planned expansions.

CURRENCY RISK
The Company has foreign currency bank accounts into which it received monies from the customers and makes payments to suppliers. The Company considers that this policy meets its objectives of managing exposure to currency risk.

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.


Heat Trace Limited (Registered number: 01573447)

Report of the Directors
for the Year Ended 31 December 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S Ellam - Director


29 September 2023

Report of the Independent Auditors to the Members of
Heat Trace Limited

Opinion
We have audited the financial statements of Heat Trace Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Heat Trace Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Heat Trace Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management; and from our commercial knowledge and experience of the sector
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit

We assessed the susceptibility of the company's financial statements to misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
- understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, including the impact on revenue recognition, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions; and
- the use of data analytics to identify transactions requiring further investigation.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosure to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.


Report of the Independent Auditors to the Members of
Heat Trace Limited

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Matthew Barton BA (Hons) FCA CTA (Senior Statutory Auditor)
for and on behalf of Haines Watts
Chartered Accountants &
Statutory Auditors
3rd Floor
56 Wellington Street
Leeds
West Yorkshire
LS1 2EE

30 September 2023

Heat Trace Limited (Registered number: 01573447)

Statement of Comprehensive Income
for the Year Ended 31 December 2022

2022 2021
Notes £    £    £    £   

TURNOVER 4 8,702,129 7,578,329

Cost of sales 4,855,862 4,738,522
GROSS PROFIT 3,846,267 2,839,807

Distribution costs 188,368 145,907
Administrative expenses 3,637,915 3,427,631
3,826,283 3,573,538
19,984 (733,731 )

Other operating income - 50,237
OPERATING PROFIT/(LOSS) 7 19,984 (683,494 )

Income from participating interests 1,420 478
21,404 (683,016 )

Interest payable and similar expenses 8 37,339 21,465
LOSS BEFORE TAXATION (15,935 ) (704,481 )

Tax on loss 9 - -
LOSS FOR THE FINANCIAL YEAR (15,935 ) (704,481 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(15,935

)

(704,481

)

Heat Trace Limited (Registered number: 01573447)

Balance Sheet
31 December 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 3,439 6,957
Tangible assets 11 754,302 568,420
757,741 575,377

CURRENT ASSETS
Stocks 12 2,528,467 2,103,338
Debtors 13 3,013,501 3,153,882
Cash at bank and in hand 156,589 1,655,232
5,698,557 6,912,452
CREDITORS
Amounts falling due within one year 14 2,123,963 2,567,524
NET CURRENT ASSETS 3,574,594 4,344,928
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,332,335

4,920,305

CREDITORS
Amounts falling due after more than one
year

15

99,505

671,540
NET ASSETS 4,232,830 4,248,765

CAPITAL AND RESERVES
Called up share capital 19 1,330 1,330
Share premium 20 164,632 164,632
Capital redemption reserve 20 360 360
Retained earnings 20 4,066,508 4,082,443
SHAREHOLDERS' FUNDS 4,232,830 4,248,765

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:





S Ellam - Director


Heat Trace Limited (Registered number: 01573447)

Statement of Changes in Equity
for the Year Ended 31 December 2022

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   

Balance at 1 January 2021 1,330 4,786,924 164,632 360 4,953,246

Changes in equity
Deficit for the year - (704,481 ) - - (704,481 )
Total comprehensive income - (704,481 ) - - (704,481 )
Balance at 31 December 2021 1,330 4,082,443 164,632 360 4,248,765

Changes in equity
Deficit for the year - (15,935 ) - - (15,935 )
Total comprehensive income - (15,935 ) - - (15,935 )
Balance at 31 December 2022 1,330 4,066,508 164,632 360 4,232,830

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements
for the Year Ended 31 December 2022

1. STATUTORY INFORMATION

Heat Trace 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.

Going concern
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current wider economic conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. Those assessments are dependent on the continued provision of facilities and support from Backer AB. As with any Company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue, although, at the date of approval of these financial statements, they have no reason to believe that it will not do so and therefore do not consider there is a material uncertainty.

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.

Debtors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. At the end of each reporting year the financial assets are assessed for evidence of impairment. If an asset is impaired, the impairment loss is recognised in the profit and loss.

Creditors
Trade and other creditors are recognised initially at transaction price plus attributable transaction costs.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty
on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Employee benefits
Short term employee benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which they are incurred.

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Intangible fixed assets
Included in intangible fixed assets are patents, trademarks, certification and standards approval costs. Intangible fixed assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life and are written off over five years on a straight line basis.

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

Building improvements - 10% on cost
Plant and machinery - Post 01/01/22 = SL over 10 years /Pre 01/01/22 = SL over 3-10 years
Fixtures and fittings - 16.67% on cost
Motor vehicles - 25% on cost
Computer equipment - Straight line over 3 to 6 years

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Trademarks is being amortised evenly over its estimated useful life of nil years.

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

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation 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 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.


Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued
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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants
Government grants are recognised using the accruals model. Grants relating to revenue are recognised in the income statement on a systematic basis over the period in which the company recognises the related costs for which the grants is intended to compensate.

Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Research and development expenditure
Expenditure on research and development activities is recognised in the profit and loss account as an expense as incurred.

Expenditure on tangible assets purchased as part of development activities, such as cast iron and production tooling, is capitalised (if the foreseeable life is sufficient to justify capitalisation) over four years to seven years, depending on the type of tooling purchased.

Foreign currencies
The presentation currency of these Financial Statements is Sterling.

Transactions in foreign currencies are translated to the Company's functional currency 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 retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currency are translated using the exchange rate at the date of the transaction.

Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency as the foreign exchange rate ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account, except for differences arising on the retranslation of qualifying cash flow hedges and items which are fair valued with changes taken to other comprehensive income, which are recognised in other comprehensive income.

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on despatch of the goods, and can be reliably measured.

Turnover from contracts is recognised by reference to the stage of completion where the outcome can be estimated reliably, otherwise it is recognised to the extent costs are incurred. Losses on contracts are recognised in the year when such losses become probable.

The attributable profit recognised on contracts is based on the stage of completion and after taking account of uncertainties.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following estimate had the most significant effect on amounts recognised in the financial statements.

Stock Provision
The stock is determined by ageing the stock in conjunction with management knowledge and experience of stock movements. The provision applied reduces the carrying value to its selling price less costs to sell.

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

2022 2021
£    £   
United Kingdom 894,148 846,392
Europe 4,417,944 3,031,310
Rest of the World 3,390,037 3,700,627
8,702,129 7,578,329

5. EMPLOYEES AND DIRECTORS
2022 2021
£    £   
Wages and salaries 2,425,017 2,164,620
Social security costs 265,607 229,924
Other pension costs 112,252 102,529
2,802,876 2,497,073

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2022 2021

Management, engineering & administration 20 20
Research and development 8 8
Sales and marketing 2 2
Production 40 38
70 68

6. DIRECTORS' EMOLUMENTS

31/12/22 31/12/21
£    £   
Directors' remuneration 208,674 304,137
Directors' pension contributions to money purchase schemes 7,800 20,447

The number of directors to whom retirement benefits were accruing was as follows:
Money purchase schemes 1 4

Information regarding the highest paid director is as follows:
31/12/22 31/12/21
£    £   
Emoluments etc 157,950 179,687
Pension contributions to money purchase schemes 7,800 6,947

7. OPERATING PROFIT/(LOSS)

31/12/2231/12/21
££
Hire of plant and machinery44,86146,409
Depreciation - owned assets129,031186,494
Depreciation - assets on hire purchase contracts102,327141,326
Patents amortisation3,4954,588
Auditors' remuneration12,60012,000
Other non-audit services7,38612,400
Foreign exchange differences(169,487)137,061
Research and development 88,43585,523
Land and buildings lease rental 317,758319,276

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
£    £   
Bank interest 22,106 3,541
Interest payable - 1,111
Hire purchase 15,233 16,813
37,339 21,465

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

9. TAXATION

Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£    £   
Loss before tax (15,935 ) (704,481 )
Loss multiplied by the standard rate of corporation tax in the UK of
19% (2021 - 19%)

(3,028

)

(133,851

)

Effects of:
Expenses not deductible for tax purposes 109 1,734
Income not taxable for tax purposes (270 ) -
Capital allowances in excess of depreciation (23,384 ) -
Depreciation in excess of capital allowances - 41,717
Tax losses - 90,400
Change in deferred tax rates (125,116 ) -
DT asset not recognised 151,689 -
Total tax charge - -

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

10. INTANGIBLE FIXED ASSETS
Patents
and
licences Trademarks Totals
£    £    £   
COST
At 1 January 2022
and 31 December 2022 639,214 6,194 645,408
AMORTISATION
At 1 January 2022 632,257 6,194 638,451
Amortisation for year 3,518 - 3,518
At 31 December 2022 635,775 6,194 641,969
NET BOOK VALUE
At 31 December 2022 3,439 - 3,439
At 31 December 2021 6,957 - 6,957

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

11. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2022 407,530 5,449,938 281,658 397,413 6,536,539
Additions 3,674 198,906 6,025 209,899 418,504
Disposals - - - (54,260 ) (54,260 )
At 31 December 2022 411,204 5,648,844 287,683 553,052 6,900,783
DEPRECIATION
At 1 January 2022 301,233 5,051,299 276,953 338,634 5,968,119
Charge for year 23,754 141,330 2,348 63,926 231,358
Eliminated on disposal - - - (52,996 ) (52,996 )
At 31 December 2022 324,987 5,192,629 279,301 349,564 6,146,481
NET BOOK VALUE
At 31 December 2022 86,217 456,215 8,382 203,488 754,302
At 31 December 2021 106,297 398,639 4,705 58,779 568,420

12. STOCKS
2022 2021
£    £   
Raw materials 1,279,312 1,080,023
Work-in-progress 448,815 510,874
Finished goods 800,340 512,441
2,528,467 2,103,338

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade debtors 2,329,818 2,585,586
Amounts owed by group undertakings 47,006 21,731
Other debtors 1,932 79,241
Directors' current accounts 8,213 13,966
Tax 14,062 101,116
VAT 31,030 30,979
Prepayments and accrued income 581,440 321,263
3,013,501 3,153,882

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Bank loans and overdrafts (see note 16) 82,627 162,500
Hire purchase contracts (see note 17) 111,618 146,326
Trade creditors 1,203,465 1,046,157
Amounts owed to group undertakings 61,599 26,597
Social security and other taxes 73,592 69,518
Other creditors 4,755 17,475
Accruals and deferred income 586,307 1,098,951
2,123,963 2,567,524

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2022 2021
£    £   
Bank loans (see note 16) - 460,417
Hire purchase contracts (see note 17) 99,505 211,123
99,505 671,540

16. LOANS

An analysis of the maturity of loans is given below:

2022 2021
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 82,627 -
Bank loans - 162,500
82,627 162,500

Amounts falling due between one and two years:
Bank loans - 1-2 years - 162,500

Amounts falling due between two and five years:
Bank loans - 2-5 years - 297,917

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2022 2021
£    £   
Net obligations repayable:
Within one year 111,618 146,326
Between one and five years 99,505 211,123
211,123 357,449

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

17. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2022 2021
£    £   
Within one year 409,558 401,864
Between one and five years 1,262,247 1,458,943
In more than five years 408,758 204,591
2,080,563 2,065,398

18. SECURED DEBTS

The following secured debts are included within creditors:

2022 2021
£    £   
Bank overdraft 82,627 -
Bank loans - 622,917
Hire purchase contracts 211,123 357,449
293,750 980,366

The hire purchase debt is secured on the assets to which they relate. The bank borrowings are secured by an unscheduled mortgage debenture dated 14th April 1992.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
1,330 Ordinary £1 1,330 1,330

20. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2022 4,082,443 164,632 360 4,247,435
Deficit for the year (15,935 ) (15,935 )
At 31 December 2022 4,066,508 164,632 360 4,231,500

21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged to the profit and loss account.

The pension charge for the year was £112,252 (2021: £102,529). The amount outstanding at the year end was £8,134 (2021: £8,134).

Heat Trace Limited (Registered number: 01573447)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2022

22. CONTINGENT LIABILITIES

The company had entered into a number of bank performance guarantees in relation to ongoing contracts. The total value of these guarantees was £143,735 (2021: £172,492).

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2022 and 31 December 2021:

2022 2021
£    £   
D White
Balance outstanding at start of year 13,966 17,474
Amounts repaid (5,753 ) (3,508 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 8,213 13,966

24. RELATED PARTY DISCLOSURES

No transactions with related parties were undertaken such as are required to be disclosed under FRS 102.

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.

25. ULTIMATE CONTROLLING PARTY

The immediate controlling party is Heat Trace Holdings Limited. The ultimate parent entity is NIBE Industrier AB, incorporated in Sweden.

The largest and smallest group for which consolidated accounts for the year ended 31 December 2022 are prepared was NIBE Industrier AB. Consolidated accounts are available from NIBE Industrier AB, Box 14, Jarnvagsgaten 40, 285 21 Markaryd, Sweden or www.nibe.com