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REGISTERED NUMBER: 01616847 (England and Wales)










STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

FOR

E.U. LIMITED

E.U. LIMITED (REGISTERED NUMBER: 01616847)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 January 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


E.U. LIMITED

COMPANY INFORMATION
for the year ended 31 January 2023







DIRECTORS: Mr R J Shortis
Mr K J Allen
Mr W Griffin
Mr J Williams



SECRETARY: Mr S P Allman



REGISTERED OFFICE: Salhouse Road
Norwich
Norfolk
NR7 9AH



REGISTERED NUMBER: 01616847 (England and Wales)



AUDITORS: Sexty & Co
Chartered Certified Accountants
& Statutory Auditor
124 Thorpe Road
Norwich
Norfolk
NR1 1RS



SOLICITORS: Howes Percival
Flint Buildings
1 Bedding Lane
Norwich
Norfolk
NR3 1RG

E.U. LIMITED (REGISTERED NUMBER: 01616847)

STRATEGIC REPORT
for the year ended 31 January 2023

The directors present their strategic report for the year ended 31 January 2023.

CHAIRMAN'S REPORT
E.U. Limited, which trades as EU Linco, together with its subsidiaries Linco Plc and PPK Factors Limited, had a combined turnover of over £21.2m, pre-tax profits of over £1.4m and net assets of over £11.2m.

The combined companies distribute car parts through 26 branches in a very competitive marketplace.

A comprehensive business review is available in the consolidated group financial statements of K J Shortis Limited.

Margins and prices have continued to be squeezed, due to the record high shipping container costs which continued in the early part of our financial year, before falling to pre-covid prices in 2023. We also saw massive price rises due to our supplier's passion to pass on their cost increases. The Russian invasion of Ukraine in February 2022 brought additional price increases on diesel and electricity. Diesel has now begun to fall from its record high, but electricity remains high.

The sales for the latter half of the year picked up strongly. This is largely due to the shortage of new cars and the cost-of-living crisis meaning that people are keeping their cars for longer. The average car age is therefore increasing, which is in turn increasing the size of our main marketplace. It should also be remembered that some of this increase in sales is inflationary.

PRINCIPAL RISKS AND UNCERTAINTIES
Business risks:
The UK market in the past year became attractive to foreign investors coming and buying up established UK companies, due to the downturn in the UK economic conditions. This has presented the group's companies with opportunities to purchase additional businesses. When the right opportunities arise, the group is able to take advantage of these opportunities, due to its strong financial position. The group's companies are able to afford and hold stocks when suitable deals become available via our good supplier and customer relationships.

Competition:
With the foreign investment in the UK market, this can lead to some customers looking to switch suppliers. We have always prided ourselves on being family owned and family run. This allows us to differentiate ourselves from the competition, which we feel our customers value. The Company manages this by continually assessing, reviewing and developing suitable systems and practises to ensure quality of service to maintain good customer relationships and competitive pricing.

Regulatory compliance risk:
The Company is subject to various laws and regulations set by local authorities and the Health and Safety Executive. The directors ensure that they are up to date and comply with all relevant areas of legislation to mitigate the risk of fines or other disciplinary actions.

Financial risk management:
The directors continually monitor the performance of the Company, trade debtors, stock levels and stock movements to minimise the financial risk of the business. In addition the Company ensures adequate financing facilities are in place to meet the requirements of the business, along with the strong financed strength of the group companies.

E.U. LIMITED (REGISTERED NUMBER: 01616847)

STRATEGIC REPORT
for the year ended 31 January 2023


Financial key performance indicators

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole, these being turnover, gross margin and return on capital employed.


31 January 2023
£
31 January 2022
£
Turnover 16,421,193 14,530,185
Gross margin 42.4% 42.2%
Return on capital employed 13.7% 9.2%

The directors are very pleased with the results of the past year; however, the current year is very testing. Inflationary costs are increasing the cost of wages, with fuel and heating being highest. As with most industries, being able to recruit staff has been the biggest problem. We are fortunate that we have loyal key staff to drive the group forward, to assist the group in continuing to reinvest and expand the business.

ON BEHALF OF THE BOARD:





Mr R J Shortis - Director


19 October 2023

E.U. LIMITED (REGISTERED NUMBER: 01616847)

REPORT OF THE DIRECTORS
for the year ended 31 January 2023

The directors present their report with the financial statements of the company for the year ended 31 January 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 January 2023.

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

Mr R J Shortis
Mr K J Allen
Mr W Griffin
Mr J Williams

GOING CONCERN
The business has substantial financial resources which the directors believe puts them in a strong position to mitigate the current business risks identified within the strategic report.

FUTURE DEVELOPMENTS
Narrative for future developments is included within the strategic report.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
The directors have regarded the need to foster the Company's business relationships with suppliers, customers and others. We have built and maintained long standing business relationships with our suppliers and customers. We continue to consider the needs our suppliers, customers and others with regards to the principle business decisions made throughout the year.

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;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

E.U. LIMITED (REGISTERED NUMBER: 01616847)

REPORT OF THE DIRECTORS
for the year ended 31 January 2023


AUDITORS
The auditors, Sexty & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr R J Shortis - Director


19 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
E.U. LIMITED

Opinion
We have audited the financial statements of E.U. Limited (the 'company') for the year ended 31 January 2023 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 January 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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
E.U. 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 page 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.

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

We have made enquiries with management regarding their procedures for complying with laws and regulations along with detecting and preventing fraud. We also review minutes of meetings and any published news articles to identify any instances of non-compliance with laws and regulations.

Evidence has been obtained where applicable. Written representation has been obtained to confirm there have been no breaches of laws and regulations.

The audit procedures are designed so that with reasonable assurance, material misstatements can be detected, including those relating to fraud. Specifically, areas which involve provisions or estimations have been tested where material.

We consider our approach to be reasonable for this entity.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
E.U. LIMITED


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.




I A Barlow (Senior Statutory Auditor)
for and on behalf of Sexty & Co
Chartered Certified Accountants
& Statutory Auditor
124 Thorpe Road
Norwich
Norfolk
NR1 1RS

19 October 2023

E.U. LIMITED (REGISTERED NUMBER: 01616847)

STATEMENT OF COMPREHENSIVE
INCOME
for the year ended 31 January 2023

2023 2022
Notes £    £   

TURNOVER 16,421,193 14,530,185

Cost of sales 9,457,963 8,398,138
GROSS PROFIT 6,963,230 6,132,047

Administrative expenses 5,965,300 5,282,976
997,930 849,071

Other operating income 1,500 25,421
OPERATING PROFIT and
PROFIT BEFORE TAXATION 999,430 874,492

Tax on profit 6 201,534 160,534
PROFIT FOR THE FINANCIAL YEAR 797,896 713,958

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

797,896

713,958

E.U. LIMITED (REGISTERED NUMBER: 01616847)

BALANCE SHEET
31 January 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 1,084,207 -
Tangible assets 8 427,140 396,834
Investments 9 1,667,960 1,307,670
3,179,307 1,704,504

CURRENT ASSETS
Stocks 10 3,250,282 2,778,792
Debtors 11 3,337,667 4,173,257
Cash in hand 2,308 2,208
6,590,257 6,954,257
CREDITORS
Amounts falling due within one year 12 2,371,295 2,089,988
NET CURRENT ASSETS 4,218,962 4,864,269
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,398,269

6,568,773

PROVISIONS FOR LIABILITIES 14 80,000 48,400
NET ASSETS 7,318,269 6,520,373

CAPITAL AND RESERVES
Called up share capital 15 2 2
Retained earnings 16 7,318,267 6,520,371
SHAREHOLDERS' FUNDS 7,318,269 6,520,373

The financial statements were approved by the Board of Directors and authorised for issue on 19 October 2023 and were signed on its behalf by:





Mr R J Shortis - Director


E.U. LIMITED (REGISTERED NUMBER: 01616847)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 January 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 February 2021 2 5,806,413 5,806,415

Changes in equity
Total comprehensive income - 713,958 713,958
Balance at 31 January 2022 2 6,520,371 6,520,373

Changes in equity
Total comprehensive income - 797,896 797,896
Balance at 31 January 2023 2 7,318,267 7,318,269

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 January 2023

1. STATUTORY INFORMATION

E.U. 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. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The financial statements are presented in pounds sterling and are rounded to the nearest pound.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions 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;
the requirement of paragraph 3.17(d);
the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of K.J. Shortis Limited as at 31 January 2023 and these financial statements may be obtained from Companies House.

Related party transactions

The company has taken the disclosure exemption available as permitted by FRS 102 section 33.1A not to disclose transactions with group member companies which are also wholly owned subsidiaries within the same group.

Preparation of consolidated financial statements
The financial statements contain information about E.U. Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, K J Shortis Limited, .

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The turnover figure shown in the statement of comprehensive income relates wholly to sale of goods.

Goodwill
Goodwill represents the excess of cost of acquisition over the fair value of the separable net assets of businesses acquired. Goodwill is amortised through the profit and loss account in equal instalments over its estimated useful life.

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

3. ACCOUNTING POLICIES - continued

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

Plant and machinery-15% straight line basis
Fixtures and fittings-15% straight line basis
Motor vehicles-25% straight line basis
Office equipment-20% straight line basis
Leasehold property-over the term of the lease

Stocks
Stocks are stated at the lower of cost and net realisable value using the average cost method, after making due allowance for obsolete and slow moving items.

Cost comprises the average cost of all purchases.

To reflect market conditions and in accordance with good accounting practice all rebates have been taken into account.

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

3. ACCOUNTING POLICIES - continued

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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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.

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.

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.


E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

3. 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.

Pension costs and other post-retirement benefits
The company operates a money purchase pension scheme. Contributions payable are charged in the profit and loss account.

Leasing commitments
The annual rentals due on operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,760,851 3,393,384
Social security costs 330,717 275,271
Other pension costs 92,123 83,298
4,183,691 3,751,953

The average number of employees during the year was as follows:
2023 2022

Sales and administration 176 172

2023 2022
£    £   
Directors' remuneration 175,894 138,882
Directors' pension contributions to money purchase schemes 16,915 17,749

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 210,605 220,413
Profit on disposal of fixed assets (10,392 ) (35,417 )
Auditors' remuneration 11,342 8,733
Operating leases - land and buildings 317,045 311,516

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

5. OPERATING PROFIT - continued

The pension contributions for Mr R J Shortis are made by K J Shortis Limited, these are recharged in the management charges.

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 170,000 157,000
(Over) / under provision in prior year (66 ) (366 )
Total current tax 169,934 156,634

Deferred tax 31,600 3,900
Tax on profit 201,534 160,534

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:

2023 2022
£    £   
Profit before tax 999,430 874,492
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

189,892

166,153

Effects of:
Expenses not deductible for tax purposes 2,637 (45 )
Capital allowances in excess of depreciation (20,651 ) (2,313 )
Adjustments to tax charge in respect of previous periods (67 ) (366 )
Profit on disposal of assets (1,974 ) (6,729 )
Rounding provision 97 (66 )

Deferred tax 31,600 3,900

Total tax charge 201,534 160,534

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 February 2022 10,100
Additions 1,084,207
At 31 January 2023 1,094,307
AMORTISATION
At 1 February 2022
and 31 January 2023 10,100
NET BOOK VALUE
At 31 January 2023 1,084,207
At 31 January 2022 -

8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to fittings
leasehold Plant and & office Motor
property machinery equipment vehicles Totals
£    £    £    £    £   
COST
At 1 February 2022 14,302 18,993 366,545 991,071 1,390,911
Additions - - 83,641 155,119 238,760
Disposals - - (158,993 ) (50,941 ) (209,934 )
Transfer to ownership - 354 5,679 6,863 12,896
At 31 January 2023 14,302 19,347 296,872 1,102,112 1,432,633
DEPRECIATION
At 1 February 2022 14,302 18,993 350,142 610,640 994,077
Charge for year - 41 9,268 201,296 210,605
Eliminated on disposal - - (158,993 ) (40,196 ) (199,189 )
At 31 January 2023 14,302 19,034 200,417 771,740 1,005,493
NET BOOK VALUE
At 31 January 2023 - 313 96,455 330,372 427,140
At 31 January 2022 - - 16,403 380,431 396,834

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

9. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 February 2022 1,307,670
Additions 360,290
At 31 January 2023 1,667,960
NET BOOK VALUE
At 31 January 2023 1,667,960
At 31 January 2022 1,307,670

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Linco plc
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH
Nature of business: Wholesale of motor vehicle components
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 3,505,703 3,181,925
Profit for the year 323,778 456,831

PPK Factors Limited
Registered office: Salhouse Road, Norwich, Norfolk, NR7 9AH
Nature of business: Retail trade of motor vehicle parts
%
Class of shares: holding
Ordinary 100.00
2023 31.12.21
£    £   
Aggregate capital and reserves 344,290 330,594
Profit for the period/year 28,051 178,560

The entire share capital of PPK Factors Limited was acquired in April 2022 for £1,437,303. At the
acquisition date, £360,290 was recognised as a fixed asset investment and £1,084,207 as goodwill.

The excess of the purchase price of investments over the net assets acquired is amortised over its
estimated useful life.

10. STOCKS
2023 2022
£    £   
Finished goods 3,250,282 2,778,792

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,318,255 1,121,046
Other debtors 36,794 121,587
Amount owed by group companies 1,909,062 2,861,062
Prepayments and accrued income 73,556 69,562
3,337,667 4,173,257

The amounts owed by group companies relates to accumulated cash in the group deposit account.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 1,685,454 1,534,252
Corporation tax 135,614 87,893
Social security and other taxes 357,257 312,474
Other creditors 57,012 48,673
Accrued expenses 135,958 106,696
2,371,295 2,089,988

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 9,600 -
Between one and five years - 8,000
In more than five years 69,820 69,820
79,420 77,820

14. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 80,000 48,400

Deferred
tax
£   
Balance at 1 February 2022 48,400
Provided during year 31,600
Balance at 31 January 2023 80,000

The deferred tax relates to accelerated capital allowances.

E.U. LIMITED (REGISTERED NUMBER: 01616847)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 January 2023

15. CALLED UP SHARE CAPITAL

Allotted and issued:
Number: Class: Nominal 2023 2022
value: £    £   
2 Ordinary £1 2 2

16. RESERVES
Retained
earnings
£   

At 1 February 2022 6,520,371
Profit for the year 797,896
At 31 January 2023 7,318,267

17. PENSION COMMITMENTS

The company operates a defined contribution pension scheme and contributions are charged in the profit and loss account as they accrue. The charge for the year was £92,123 (2022 £83,298).

18. ULTIMATE PARENT COMPANY

The ultimate parent company is K J Shortis Limited. Both K J Shortis Limited and E U Limited have the same registered office address of 186 Salhouse Road, Norwich, NR7 9AH.

19. RELATED PARTY DISCLOSURES

During the year the company paid rent, on commercial terms of £30,000 (2022 £30,000) to Taylor Patterson SIPP. Mr R J Shortis & Mr C J Shortis are both trustees and beneficiaries of the Taylor Patterson SIPP.