Company registration number 06970756 (England and Wales)
BEUMER Group UK Limited
Annual report and financial statements
for the year ended 31 December 2023
BEUMER Group UK Limited
Company Information
Directors
J Karia
B Jones
D McGarry
Secretary
D R Critchley
Company number
06970756
Registered office
BEUMER House
L1/L2 Ivanhoe Business Park
Smisby Road
Ashby de la Zouch
Leicestershire
LE65 2AB
Auditor
B M Howarth Ltd
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Bankers
Nordea Bank Abp
6th Floor,
5 Aldermanbury Square
London
EC2V 7AZ
BEUMER Group UK Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Income statement
10
Statement of financial position
11 - 12
Statement of changes in equity
13
Notes to the financial statements
14 - 21
BEUMER Group UK Limited
Strategic Report
for the year ended 31 December 2023
- 1 -

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

Business review

The sales for the year ended 31 December 2023 have decreased due to the delivery of two significant logistics projects in 2022, leaving only one significant project to be delivered in the year. The Airports sector showed revenue after two stagnant years and Customer Support continued to grow on the back of new modernisation projects.

 

 

 

 

 

 

2023

 

2022

 

 

 

 

 

£m

 

£m

 

 

 

 

 

 

 

 

Airports

 

 

 

 

2

 

 

Logistics Systems

 

 

 

 

0.8

11.4

 

-

52.5

Customer Support

Mineral & Mining

 

 

 

 

21.2

0.2

 

33.6

 

16.0

-

 

68.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airports

The company has witnessed significant re-evaluation of upgrade and investment plans, leading to an increased pipeline for potential baggage systems projects.

 

The company entered an early works contract to re-commence works on the baggage system in Terminal 4 at Heathrow Airport. During the pandemic in 2021, the contract to complete the baggage system in Terminal 4 was terminated early when the terminal was closed. The system was used for live baggage sortation when the terminal re-opened in June 2022. The works effectively look to complete the outstanding works of the original project. The early works will conclude early 2024 and the company expects to enter a main contract, in mid-2024, to complete the full scope of the baggage system in the terminal over a 20-month period.

 

The company also participated in a design / build / maintain tender for a new baggage system for Terminal 2 at Heathrow Airport. The customer confirmed in November 2023 that BEUMER Group UK Ltd was successful with the tender and the contract was executed in December 2023.

 

This is a significant award for the company at one of the world's busiest airports, involving the design, installation and commissioning of a new baggage system over a 4-year period. The contract also allows for an 'Operational and Maintenance' contract post-delivery of the system.

 

Revenue for Airports in 2023 reflects the early works completed on the Heathrow Terminal 4 project. From 2024 the revenues will show a significant increase because of these new contracts.

 

Logistics Systems Projects

 

The key success in the year was the on-time delivery of the largest logistics project, based in the Midlands. This project has endured the effects of the pandemic together with the supply chain material shortages and cost escalation challenges. The system went live in June 2023 and performed well in the first Christmas peak period. The company continues to work with the client to improve the performance of the system to achieve its optimum output capabilities.

 

The company entered 2023 with increased optimism on a promising pipeline of logistics projects that had been delayed from 2022. However, most projects in this pipeline continued to be delayed further into 2024 and beyond as lower capacity requirements forced logistics companies to re-evaluate their investment plans.

 

The company was involved in two major tenders in the latter part of 2023, with positive outcomes expected in early 2024 on one significant project in the UK for a despatch sorter system with an early engineering order on a Click & Collect cross belt sorter system for a major UK retailer.

 

The outlook for 2024 is encouraging where four existing customers have projects planned in the year and other logistic companies have provided information on potential projects.

 

BEUMER Group UK Limited
Strategic Report (continued)
for the year ended 31 December 2023
- 2 -

Customer Support

 

The customer support business continues to develop and strengthen year on year, with increased revenue and margins in 2023.

 

The year has seen renewal of existing residential service contracts in the Logistics sector, the start of a 3-year residential service contract on the Midlands project delivered in June. In addition to the residential contract the company has also seen a significant increase in remote field service contracts as well as growth in the digitalisation offerings of the company in support of operational and maintenance activities and IT security. In line with the Airport sector re-evaluation of upgrade and investment plans there was significant new modernisation contracts in 2023.

 

The main challenges in the year have come from two key areas. Firstly, supply chain challenges, with lead time on spare parts across local and regional suppliers. Secondly, it was a challenging environment for the recruitment and retention of skilled labour with pressures relating to the cost of living which has pushed up wage demands.

 

Overall

 

A very strong performance in the Customer Support sector has driven the increased financial performance of the company in 2023. The Logistics sector has showed a steady performance with the delivery of the active projects and the Airport sector has improved with the early contract on the re-commencement of the baggage delivery project.

 

Administrative costs have increased on previous years with the company moving to a new head office in the Midlands, higher recruitment and relocation costs for key personnel and an increased headcount overall.

Principle Risk

 

The principal risks facing BEUMER Group UK centre around the full close out of the existing Logistics projects, the retention of staff and the start-up of the Airport projects in early 2024.

 

Although the large Midlands based logistics project was delivered on time, the improved performance of the system and full acceptance by the customer must be achieved in early 2024.

 

With the award of new contracts in the Airport sector, the company is focused on the start-up of these projects given the historical financial challenges of Airport projects in the past. The company has the full backing of its Group companies in delivering these new projects and the foundations for their successful delivery need to be laid in 2024.

 

Staff recruitment and retention has been challenging in the current economic environment, with salary demands and competition for skilled labour on the increase. The company is continuously monitoring the market to ensure that the compensation packages for employees are competitive and able to attract new employees.

 

Future Developments

 

The prospects for 2024 and beyond remain positive with the increased activity in the Airports sector and the promising pipeline on the CEP and Warehouse and Distribution areas. The company expects to receive two awards in 2024 which will further establish its capabilities on delivering such projects.

 

The Customer Support business continues to develop in multiple areas from the expansion of core services across the installed base and the further establishment of the newer digitalisation offerings. With the increased activities at the Airports and Logistics Systems we also see the opportunity to grow in baseline offerings with multiyear contract commitments.

 

The company is also looking to increase its Products business in the UK in the fields of palletising, packaging and bulk material handling, with the recruitment of a dedicated sales manager in late 2023. The focus will not only be on new product sales but also to provide dedicated support to the large installed base in the UK and IE to offer the customer options on modernisations and upgrades.

BEUMER Group UK Limited
Strategic Report (continued)
for the year ended 31 December 2023
- 3 -
Section 172(1) Statement

In the performance of their duties and in regard to promoting the success of the company for the benefit of its members, the Directors hold board meetings when appropriate, seek external professional advice when required, and have an open relationship with employees, customers and suppliers.

Engagement with Employees

Directors and management are regularly engaged with employees through meetings and frequent small group discussions.

Engagement with Suppliers, Customers and Others

Meaningful engagement occurs with both suppliers and customers as follows:

 

-     Regular strategic operating reviews with major suppliers are undertaken to discuss relationship     priorities going forward.

 

-     Market research discussions are frequently held with customers in order to ascertain their     priority and focus areas as these evolve and develop.

On behalf of the board

J Karia
Director
14 February 2024
BEUMER Group UK Limited
Directors' report
for the year ended 31 December 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

There is no change to the principal activity of the Company which provides intralogistic solutions and life cycle support for conveying, loading, palletising, packaging, sortation and baggage handling markets.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Karia
K Schäfer
(Resigned 2 January 2023)
B Jones
D McGarry
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 26 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Auditor

The auditor, B M Howarth Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Here follows the data prepared for Streamlined Energy and Carbon reporting requirements.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
366,450
333,616
BEUMER Group UK Limited
Directors' report (continued)
for the year ended 31 December 2023
- 5 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Fuel consumed for owned transport
96.03
92.16
Scope 2 - indirect emissions
- Electricity purchased
9.69
4.77
Total gross emissions
105.72
96.93
Intensity ratio
Intensity ratio: tCO2  / Revenue (£'000)
3.18
1.42
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per Revenue (£'000), the recommended ratio for the sector.

Measures taken to improve energy efficiency

In December 2022, the company moved into larger offices in the Midlands, following a period where the property was fully refurbished and modernised. The modernisation included the installation of low energy LED panels throughout the property, controlled by motion sensors to avoid unnecessary energy use in the day. The company's energy efficiency was substantially improved with the installation of photovoltaic panels and six EV chargers were installed on the allocated parking bays.

 

2023 saw the company occupy these new offices for the full year. The electrical energy generated through the photovoltaic panels contributed to a 47% saving for the new head office and an overall 40% saving in the total electricity consumed by the company across its two dedicated UK offices.

 

Two company directors and two employees replaced their traditional fuel motor vehicles with electric motor vehicles. The company was also in the process of signing up to an employee salary sacrifice scheme to enable employees to take advantage of the tax benefits around the scheme in acquiring leased electric motor vehicles.

 

The mileage travelled by the company's employees was consistent to the prior year and this is expected to continue at the same level in the coming years.

 

The increase in the intensity ratio for 2023 has been heavily effected by the reduction in revenue for the year.

 

For 2024 the company is focused on replacing the aging motor vehicle fleet with either "Hybrid" motor vehicles or "Electric" motor vehicles. Employees will also be encouraged to take advantage of the salary sacrifice scheme introduced in late 2023.

 

The company is likely to move to larger offices in the London area in the latter part of the year and all options for further energy efficiencies will be explored prior to the move.

BEUMER Group UK Limited
Directors' report (continued)
for the year ended 31 December 2023
- 6 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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:

 

 

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
J Karia
D McGarry
Director
Director
14 February 2024
BEUMER Group UK Limited
Independent Auditor's Report
to the members of BEUMER Group UK Limited
- 7 -
Opinion

We have audited the financial statements of BEUMER Group UK Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

BEUMER Group UK Limited
Independent Auditor's Report (continued)
to the members of BEUMER Group UK Limited
- 8 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Based on our understanding of the company and the sector in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the Company accounting policies, the financial reporting framework and the UK Companies Act 2006.

 

We evaluated management incentives and opportunities for manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.

 

There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

BEUMER Group UK Limited
Independent Auditor's Report (continued)
to the members of BEUMER Group UK Limited
- 9 -

Use of our report

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

Charles R Moorby (Senior Statutory Auditor)
For and on behalf of B M Howarth Ltd
Chartered Accountants
Statutory Auditor
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
14 February 2024
BEUMER Group UK Limited
Income Statement
for the year ended 31 December 2023
- 10 -
2023
2022
Notes
£
£
Revenue
2
33,596,963
68,467,094
Cost of sales
(27,484,496)
(63,383,449)
Gross profit
6,112,467
5,083,645
Administrative expenses
(4,113,081)
(3,221,578)
Operating profit
3
1,999,386
1,862,067
Interest income
172,106
15,045
Finance costs
7
(296,192)
(77,250)
Profit before taxation
1,875,300
1,799,862
Tax on profit
6
-
0
-
0
Profit and total comprehensive income for the financial year
1,875,300
1,799,862

The income statement has been prepared on the basis that all operations are continuing operations.

BEUMER Group UK Limited
Statement of financial position
as at 31 December 2023
- 11 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
8
895,501
476,411
Investments
9
2
2
895,503
476,413
Current assets
Trade and other receivables
10
11,801,007
21,912,663
Cash and cash equivalents
3,386,669
2,584,573
15,187,676
24,497,236
Current liabilities
Trade and other payables
12
8,784,923
17,277,830
Taxation and social security
691,817
59,356
Lease liabilities
14
226,955
131,571
9,703,695
17,468,757
Net current assets
5,483,981
7,028,479
Total assets less current liabilities
6,379,484
7,504,892
Non-current liabilities
Borrowings
13
2,793,626
6,172,749
Lease liabilities
14
505,247
126,832
3,298,873
6,299,581
Net assets
3,080,611
1,205,311
BEUMER Group UK Limited
Statement of financial position (continued)
as at 31 December 2023
2023
2022
Notes
£
£
- 12 -
Equity
Called up share capital
16
1
1
Retained earnings
3,080,610
1,205,310
Total equity
3,080,611
1,205,311
The financial statements were approved by the board of directors and authorised for issue on 14 February 2024 and are signed on its behalf by:
J Karia
D McGarry
Director
Director
Company Registration No. 06970756
BEUMER Group UK Limited
Statement of changes in equity
for the year ended 31 December 2023
- 13 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
1
(594,552)
(594,551)
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,799,862
1,799,862
Balances at 31 December 2022
1
1,205,310
1,205,311
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,875,300
1,875,300
Balances at 31 December 2023
1
3,080,610
3,080,611
BEUMER Group UK Limited
Notes to the financial statements
for the year ended 31 December 2023
- 14 -
1
Accounting policies
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company.

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

As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard in relation to share based payments, financial instruments, capital management, presentation of a cash flow statement, presentation of comparative information in respect of certain assets, standards not yet effective, impairment of assets, business combinations, discontinued operations and related party transactions.

 

Where required, equivalent disclosures are given in the group accounts of the ultimate parent company.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Going concern

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

Revenue

Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods falling within the company's ordinary activities. Income is recognised on delivery of the relevant goods and services or on acknowledgement of completion by the customer. In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done during the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Contract Assets/ Liabilities

Amounts recoverable on long term contracts, which are included in receivables, are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in payables as payments received on account.

BEUMER Group UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies
(continued)
- 15 -
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation has been computed to write off the cost of tangible fixed assets over their expected useful lives using the following rates:

Leasehold property
Straight line over the life of the lease
Fixtures and fittings
20% - 33.3% straight line
Motor vehicles
25% straight line
Non-current investments

Fixed asset investments are stated at cost less provision for permanent diminution in value.

Fair value measurement

IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The company is exempt under FRS 101 from the disclosure requirements of IFRS 13. There was no impact on the company from the adoption of IFRS 13.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Employee benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Leases

The company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment.

 

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

BEUMER Group UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies
(continued)
- 16 -

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

Foreign exchange

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

2
Revenue

The company's revenue all derives from it's principal activities undertaken in the United Kingdom.

 

3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
65,053
(20,003)
Auditor remuneration
35,000
33,000
Depreciation of property, plant and equipment
411,119
247,553
Profit on disposal of property, plant and equipment
(30,137)
(37,398)
BEUMER Group UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 17 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Direct
95
90
Administration
24
23
119
113

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,432,539
6,186,133
Social security costs
749,316
744,145
Pension costs
874,547
788,157
9,056,402
7,718,435
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
291,206
371,919
Company pension contributions to defined contribution schemes
100,668
23,375
391,874
395,294

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
114,638
100,831
Company pension contributions to defined contribution schemes
18,590
-
BEUMER Group UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 18 -
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
-

The unrecognised deferred tax asset comprises:

2023
2022
£'000's
£'000's
Losses carried forward
2,580
3,054
Unrecognised deferred tax assets are stated at 25% (2022: 25%). The asset has not been recognised as the extent to its recoverability remains uncertain.
7
Finance costs
2023
2022
£
£
Interest on group loans
261,132
68,750
Interest on lease liabilities
35,060
8,500
Total interest expense
296,192
77,250
8
Property, plant and equipment
Leasehold property
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 31 December 2022
123,556
347,414
721,006
1,191,976
Additions
652,772
96,473
91,932
841,177
Disposals
(123,556)
-
0
(249,643)
(373,199)
At 31 December 2023
652,772
443,887
563,295
1,659,954
Accumulated depreciation and impairment
At 31 December 2022
109,827
265,050
340,688
715,565
Charge for the year
130,555
59,087
221,477
411,119
Eliminated on disposal
(109,827)
-
0
(252,404)
(362,231)
At 31 December 2023
130,555
324,137
309,761
764,453
Carrying amount
At 31 December 2023
522,217
119,750
253,534
895,501
At 31 December 2022
13,729
82,364
380,318
476,411
BEUMER Group UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
8
Property, plant and equipment
(continued)
- 19 -

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2023
2022
£
£
Net values
Property
522,218
13,729
Motor vehicles
199,528
239,700
721,746
253,429
Depreciation charge for the year
Property
130,555
27,457
Motor vehicles
156,841
102,218
287,396
129,675
9
Investments
2023
2022
£
£
Investments in subsidiaries
2
2

Beumer Ltd incorporated in England and Wales. Its principal activity is the provider of materials handing solutions and associated service and maintenance services. 100% of its issued share capital is held by Beumer Group UK Limited.

 

Beumer UK Material Handling Ltd incorporated in England and Wales. The company has remained dormant throughout the year. 100% of its issued share capital is held by Beumer Group UK Limited.

10
Trade and other receivables
2023
2022
£
£
Trade receivables
4,241,123
4,996,778
Contract assets
7,335,841
16,659,025
Amounts owed by fellow group undertakings
85,411
125,371
Prepayments
138,632
131,489
11,801,007
21,912,663
BEUMER Group UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 20 -
11
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Borrowings
13
-
0
-
0
2,793,626
6,172,749
Trade and other payables
12
8,784,923
17,277,830
-
0
-
0
Taxation and social security
691,817
59,356
-
-
Lease liabilities
14
226,955
131,571
505,247
126,832
9,703,695
17,468,757
3,298,873
6,299,581
12
Trade and other payables
2023
2022
£
£
Trade payables
475,529
1,040,193
Contract liabilities
500,820
1,155,686
Amounts owed to fellow group undertakings
527,151
4,449,439
Accruals
7,281,423
10,632,512
8,784,923
17,277,830
13
Borrowings
2023
2022
£
£
Loans from fellow group undertaking
2,793,626
6,172,749
BEUMER Group UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 21 -
14
Lease liabilities

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
226,955
131,571
Non-current liabilities
505,247
126,832
732,202
258,403
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
35,060
8,500

The fair value of the company's lease obligations is approximately equal to their carrying amount.

15
Retirement benefit schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The total costs charged to income in respect of defined contribution plans is £874,547 (2022 - £788,157).

16
Share capital
2023
2022
£
£
Allotted, called up and fully paid equity shares:
1 Ordinary of £1 each
1
1
17
Related party transactions

The company has taken advantage of the exemption available in FRS101 not to disclose transactions with other wholly owned members of the group headed by Beumer Group GmbH & Co. KG.

18
Parent company

The directors consider Beumer Group GmbH & Co.KG, a company incorporated in Germany, to be the ultimate parent company. This company is the largest company for which group accounts are drawn up including Beumer Group UK Ltd and Beumer Beteiligungsgesellschaft MBH.

19
Company information

BEUMER Group UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is BEUMER House, L1/L2 Ivanhoe Business Park, Smisby Road, Ashby de la Zouch, Leicestershire, LE65 2AB. The company's principal activities and nature of its operations are disclosed in the directors' report.

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