Company Registration No. 02276322 (England and Wales)
UNICO (UK) LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
UNICO (UK) LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
UNICO (UK) LTD
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,236,620
1,228,945
Current assets
Stocks
888,146
516,691
Debtors
5
4,699,822
4,448,499
Cash at bank and in hand
454,465
261,312
6,042,433
5,226,502
Creditors: amounts falling due within one year
6
(1,761,167)
(1,380,658)
Net current assets
4,281,266
3,845,844
Total assets less current liabilities
5,517,886
5,074,789
Provisions for liabilities
7
(79,798)
(52,604)
Net assets
5,438,088
5,022,185
Capital and reserves
Called up share capital
650,714
650,714
Profit and loss reserves
4,787,374
4,371,471
Total equity
5,438,088
5,022,185

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
C J Hutt
Director
Company Registration No. 02276322
UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information

Unico (UK) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Garamonde Drive, Wymbush, Milton Keynes, MK8 8LF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis for the following reasons.true

The directors have reviewed the company's cash flow forecast which suggests that the company will be able to meet its liabilities in the next 12 months.

Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

Sales of goods

Turnover on sale of goods represents the value of work completed under contract and the invoiced value of other goods sold and services provided, net of VAT. The value of work completed under contract is assessed using the percentage of completion method, which involves making a comparison of the costs incurred on a contract to date to the total expected contact costs as a percentage. Profit is recognised on projects, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account the turnover and related costs as contract activity progresses.

Revenue 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 dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sale of services - Recharged expenses

The company incurs certain expenses in the normal course of business which are then recharged to its immediate parent undertaking. The income is recognised when the expenditure has been incurred and the right to receive payment from the immediate parent undertaking for the recharge has been established.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
50 years
Freehold buildings extension
15 years
Plant and machinery
3 - 15 years
Fixtures, fittings & equipment
5 years

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.9
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

 

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Government grants

Government grants, which include amounts received under the Coronavirus Job Retention Scheme, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other operating income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.

1.14
Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction.

 

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are taken to profit and loss account.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 6 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

Due to the rapid rate of technological advancements in the industry in which the company operates, stock is required to undergo an impairment test.

 

Items of stock in hand with a balance above the previous 24 months' usage are categorised as excess stock. A provision of 50% is applied against this category. Items of stock held for longer than 24 months and with no forecasted useage are considered obsolete and are provided at a rate of 90% of their value.

 

At the year end, the carrying value of the stock provision was £405,740 (2021: £472,222)

Revenue recognised on percentage of completion

The percentage of completion method of accounting requires the reporting of revenues and expenses on a period-by-period basis, as determined by the percentage of the project that has been fulfilled. The current income and expenses are compared with the total estimated costs to determine the revenue to be recognised. The total project costs are estimated based on the knowledge and experience of the director.

Warranty provision

Where the company is required to carry out warranty work, an estimate of the costs which the company could reasonably be expected to meet is determined. The warranty provision is estimated based on warranty fulfillment during the preceding 12 months.

 

At the year end, the carrying value of the warranty provision was £40,589 (2021: £15,904)

Bad debt provision

The company calculates the bad debt provision as debts greater than 90 days overdue, unless there is significant reasoning not to provide for such debts.

 

At the year end, the carrying value of the debtors provision was £2,950 (2021: £8,184)

3
Employees

The average monthly number of people (including directors) employed by the company during the year was 24 (2021: 22).

UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
4
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2022
1,378,531
167,115
236,583
1,782,229
Additions
-
0
54,828
23,932
78,760
At 31 December 2022
1,378,531
221,943
260,515
1,860,989
Depreciation and impairment
At 1 January 2022
249,090
147,399
156,795
553,284
Depreciation charged in the year
27,448
21,687
21,950
71,085
At 31 December 2022
276,538
169,086
178,745
624,369
Carrying amount
At 31 December 2022
1,101,993
52,857
81,770
1,236,620
At 31 December 2021
1,129,441
19,716
79,788
1,228,945
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
2,754,400
1,752,701
Gross amounts owed by contract customers
1,378,686
1,278,119
Corporation tax recoverable
48,224
8,802
Amounts owed by group undertakings
236,257
1,193,745
Prepayments and accrued income
282,255
215,132
4,699,822
4,448,499
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
477,981
689,806
Amounts owed to group undertakings
7,268
-
0
Payments received on account
388,434
252,982
Taxation and social security
306,807
125,182
Other creditors
1,887
1,887
Accruals and deferred income
578,790
310,801
1,761,167
1,380,658
UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
7
Provisions for liabilities
2022
2021
£
£
Engineering and warranty
61,689
37,004
Deferred tax liabilities
18,109
15,600
79,798
52,604
Movements on provisions apart from deferred tax liabilities:
Engineering and warranty
£
At 1 January 2022
37,004
Additional provisions in the year
24,685
At 31 December 2022
61,689
8
Related party transactions
Transactions with related parties

The Company has taken the exemption available from disclosing transactions and balances with all wholly owned subsidiary companies forming part of the group of which Sun Capital Partners VI LP is the ultimate parent undertaking.

9
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
48,599
53,971
10
Parent company

At the year end the company's controlling party was Unico LLC, a limited liability company incorporated in the State of Delaware, USA. The registered office of Unico LLC is 3725 Nicholson Road, Franksville, WI 53126. The ultimate parent company was Sun Capital Partners VI LP, a company incorporated in The Cayman Islands.

UNICO (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Russell Cooper.
The auditor was HW Fisher LLP.
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