Registered number
03283255
WEG (UK) Ltd
Report and Financial Statements
31 December 2023
WEG (UK) Ltd
Company Information
Directors
P O'Neill
A L Rodrigues
W J Watzko
E J Stringari
Auditors
Mills Pyatt Audit Limited
11 Kingfisher Business Park
Arthur Street
Redditch
Worcestershire
B98 8LG
Bankers
HSBC Bank Plc
Midlands Corporate Banking Centre
4th Floor, 120 Edmund Street
Birmingham
West Midlands
B3 2QZ
Deutsche Bank AG London
Winchester House
1 Great Winchester Street
London
EC2N 2DB
Registered office
Lakeside Point
Broad Ground Road
Redditch
Worcestershire
B98 8YP
Registered number
03283255
WEG (UK) Ltd
Registered number: 03283255
Directors' Report
The directors present their report and financial statements for the year ended 31 December 2023.
Principal activities
The company's principal activity during the year continued to be that of the import and resale of electric motors, automation products, power transformers and generators.
Directors
The following persons served as directors during the year:
P O'Neill
A L Rodrigues
W J Watzko
E J Stringari
Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of business review, principal risks and future developments.
Disclosure of information to auditors
Each person who was a director at the time this report was approved confirms that:
so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
he 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 auditor is aware of that information.
This report was approved by the board on 5 February 2024 and signed on its behalf.
P O'Neill
Director
WEG (UK) Ltd
Statement of Directors' Responsibilities
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 estimates that are reasonable and prudent;
state whether applicable UK 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.
WEG (UK) Ltd
Strategic Report
Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006
The Board of Directors consider that they have conducted themselves in a way that promotes success of the company for the benefit of its members and stakeholders, as a whole, in good faith throughout the year. The Board confirms that it routinely communicates with members, employees, customers, suppliers, other stakeholders and representatives of those groups, to encourage openness and transparency, promote a culture of honesty and intgrity, and commit to ensuring the highest level of health, safety and environmental factors.
Review of the business
2023 presented the business with challenges, mainly in the area of Global Logistics supply chain. Fortunately we seen a stabilisation in the fluctuation of raw material prices and international shipping costs of the imports from Brazil and China.
Despite these challenges the company managed to achieve a strong revenue growth of 7% higher than 2022.
We anticipate that the market value has remained unchanged through 2023 thus our market share has grown yet again in the Electric Motor Industry.
We anticipate that Product market pricing will remain around the same levels in 2024 as we saw in 2023. However, we expect continued revenue growth for 2024 of approximately 15% through a combination of organic growth and changes in the sales channels and product mix.
Order booking during 2023 was strong, resulting in a growth in yearly order booking value over 2022, giving us a good carryover with revenue to be realised in 2024.
Order intake increase was aided by the expansion in sales in higher value non-core products. This integration of new product lines will remain a focus area for the immediate future.
The Key Performance Indicators used by the business are:
Perfomance in 2023 Performance in 2022
Turnover £44.6m £41.8m
Gross Profit % 17.7% 17.4%
Net Profit Before Tax % 3.0% 3.8%
Debtor Days 125 120
Principal risks and uncertainties
Currency exchange rate stability remains as an important factor in the future profitability of the business.
The main risks and uncertainties facing the business are the cost volatility of raw materials, mainly steel, copper and other base metals, as well as the increasing costs and instability in the global logistics and shipping industry.
Future developments
The company is seeing a recovery in capital project activity, particularly in the oil, gas and mining industry segments where the company has strong customer representation.
The focus will be kept on the accelerated integration and growth of new products to the sales mix, which has already had a positive impact in the last two years.
The drivers for growth will be:
Continued migration in the market for higher efficiency low voltage electric motors meeting the IE3 and IE4 efficiency standards;
Strong growth targets of the geared motor and industrial gearbox business area, as well as the expansion in sales of electronic automation products; and
Increased focus on high value product offerings and integrated product solution packages.
Research and development
Technological innovation encompasses new products, materials, tests and technology with the aim of increasing efficiency, quality, sustainability and competitiveness, as well as reducing costs and raw materials used in products. The wider group invests heavily in an R&D team where creativity is encouraged.
Engagement with employees, suppliers, customers and others
The company prides itself on the development of people at all levels, providing training and support to all employees regardless of ethnicity and disability, with real routes of internal promotion and career progression. Regular communication occurs with employees in an informed environment, integrating their involvement to the continued growth and success of the business. High quality relationships are forged with suppliers, customers and other stakeholders, evidenced by the numerous longstanding associations that exist. In all cases, principal decisions affecting the company are undertaken with due regard and consideration for stakeholders.
This report was approved by the board on 5 February 2024 and signed on its behalf.
P O'Neill
Director
WEG (UK) Ltd
Independent auditor's report
to the member of WEG (UK) Ltd
Opinion
We have audited the financial statements of WEG (UK) Ltd (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 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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 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 the audit:
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
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:
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 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.
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:
enquiring of management, including obtaining and reviewing supporting documentation concerning policies and procedures relating to the identification, evaluation and compliance with laws and regulations, whether they were aware of any instances of non-compliance, review for actual and potential litigation and claims, detecting and responding to the risks of fraud, whether they have knowledge of any actual, suspected or alleged fraud, and internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
obtaining an understanding of the legal and regulatory framework that the company operates in, reviewing laws and regulations that may have a direct effect on the financial statements or are fundamental to the company's operations;
discussing among the engagement team those areas that may be susceptible to irregularities, ensuring that we remain vigilant, sceptical, open-minded, inquisitive and alert to any potential indicators of fraud;
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
assessing and challenging sensitive assumptions and management judgements that form part of significant estimates, looking for indicators of manipulation through management bias; and
observing any signs of management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether any judgements made in making accounting estimates are indicative of potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
Geoffrey Mills
(Senior Statutory Auditor) 11 Kingfisher Business Park
for and on behalf of Arthur Street
Mills Pyatt Audit Limited Redditch
Statutory Auditor Worcestershire
5 February 2024 B98 8LG
WEG (UK) Ltd
Income Statement
for the year ended 31 December 2023
Notes 2023 2022
£ £
Turnover 3 44,558,599 41,787,849
Cost of sales (36,682,210) (34,518,468)
Gross profit 7,876,389 7,269,381
Administrative expenses (5,848,285) (5,490,642)
Operating profit 4 2,028,104 1,778,739
Interest receivable 224 -
Interest payable 7 (711,237) (172,215)
Profit on ordinary activities before taxation 1,317,091 1,606,524
Tax on profit on ordinary activities 8 (436,237) (366,941)
Profit for the financial year 880,854 1,239,583
Profit attributable to:
Owners of the parent 880,854 1,239,583
WEG (UK) Ltd Reg no. 03283255
Statement of Financial Position
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Intangible assets 9 4,954 7,370
Tangible assets 10 74,243 87,590
Right of use assets 11 6,344,498 367,084
6,423,695 462,044
Current assets
Stocks 12 12,264,250 12,885,064
Debtors 13 18,291,544 16,371,377
Cash at bank and in hand 808,545 258,909
31,364,339 29,515,350
Creditors: amounts falling due within one year 14 (23,806,359) (22,552,828)
Net current assets 7,557,980 6,962,522
Total assets less current liabilities 13,981,675 7,424,566
Creditors: amounts falling due after more than one year 15 (5,849,244) (172,989)
Net assets 8,132,431 7,251,577
Capital and reserves
Called up share capital 18 6,245,321 6,245,321
Profit and loss account 19 1,887,110 1,006,256
Total equity 8,132,431 7,251,577
P O'Neill
Director
Approved by the board on 5 February 2024
WEG (UK) Ltd
Statement of Changes in Equity
for the year ended 31 December 2023
Share Share Other Profit Total
capital premium reserves and loss
account
£ £ £ £ £
At 1 January 2022 6,245,321 - - (233,327) 6,011,994
Profit for the financial year attributable to owners of the parent 1,239,583 1,239,583
At 31 December 2022 6,245,321 - - 1,006,256 7,251,577
At 1 January 2023 6,245,321 - - 1,006,256 7,251,577
Profit for the financial year attributable to owners of the parent 880,854 880,854
At 31 December 2023 6,245,321 - - 1,887,110 8,132,431
WEG (UK) Ltd
Notes to the Accounts
for the year ended 31 December 2023
1 Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
In preparing these financial statements, the company has applied the reduced disclosure exemption within FRS 102 for subsidiary companies, from the requirement to incorporate a Cash Flow Statement, the related notes and an analysis of changes in net debt.
The name of the parent of the group, in whose consolidated financial statements this company is incorporated, is WEG S.A. The consolidated financial statements are publicly available on the WEG S.A. website or can be obtained from Av. Prefeito Waldemar Grubba, 3000, 89256-900, Jaragua do Sul, Santa Catarina, Brazil.
Going concern
The financial statements are prepared on a going concern basis as the ultimate parent undertaking has agreed to provide financial support for the foreseeable future and in particular for a period of at least twelve months following the date of approval of these financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods, recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. Intangible fixed assets are amortised over their anticipated useful life of 4 years.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Short leasehold building alterations over 4 years
Plant and equipment over 4 years
Right of use assets (held under finance leases) over the lease term
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow-moving stocks. Cost is determined using the moving average method and includes attributable direct costs. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. Goods in transit from group factories are incorporated into the company's stock once goods arrive at the port of destination.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. 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. Current and deferred tax assets and liabilities are not discounted.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. In accordance with the Group's directive to promote consistent and comparable reporting across subsidiaries in respect of leased assets, the company adopts IFRS 16 Leases. Leased assets are accounted for as finance leases, unless they are acquired for a period of less than twelve months or of a trivial nature, in which case they are accounted for as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions to defined contribution plans are expensed in the period to which they relate. Contributions to defined contribution plans are expensed in the period to which they relate. No pension commitments exist at the balance sheet date.
2 Critical accounting estimates and judgements
Slow moving stock provision - The company implements a policy of writing down slow moving and older items by certain percentages depending on the number of days they have been held in stock, to reduce those relevant items down to their anticipated recoverable value.
Warranty provision - Accrued warranty costs are based on the average actual experience of the previous two financial periods, and applying that ratio against turnover achieved in the current period. Warranty periods can vary between a few months to several years and so it is not always known at the date of approval of the financial statements whether an issue might arise further down the line against sales made up to the reporting date.
3 Analysis of turnover 2023 2022
£ £
Sale of goods 44,558,599 41,787,849
By geographical market:
UK 39,809,827 37,904,422
Europe 3,965,188 2,856,316
Rest of world 783,584 1,027,111
44,558,599 41,787,849
4 Operating profit 2023 2022
£ £
This is stated after charging:
Depreciation of owned fixed assets 39,944 42,281
Depreciation of assets held under finance leases and hire purchase contracts 793,297 541,710
Amortisation of intangible fixed assets 2,416 1,884
Operating lease rentals - plant and equipment 32,168 28,205
Auditors' remuneration for audit services 17,900 16,890
Auditors' remuneration for other services 13,390 13,690
Key management personnel compensation (including directors' emoluments) 172,587 158,337
Foreign currency exchange (gains)/losses (26,557) 495,877
Carrying amount of stock sold 36,230,556 33,741,642
5 Directors' emoluments 2023 2022
£ £
Emoluments 114,663 117,582
Company contributions to defined contribution pension plans 57,924 40,755
172,587 158,337
Number of directors to whom retirement benefits accrued: 2023 2022
Number Number
Defined contribution plans 1 1
6 Staff costs 2023 2022
£ £
Wages and salaries 3,099,879 2,709,967
Social security costs 339,587 316,019
Other pension costs 463,898 395,413
3,903,364 3,421,399
Average number of employees during the year Number Number
Production and service 14 13
Sales 47 43
61 56
7 Interest payable 2023 2022
£ £
Loans from group undertakings 567,848 160,287
Finance charges payable under finance leases 143,389 11,928
711,237 172,215
8 Taxation 2023 2022
£ £
Analysis of charge in period
Current tax:
UK corporation tax on profits of the period 436,519 366,941
Adjustments in respect of previous periods (282) -
436,237 366,941
Tax on profit on ordinary activities 436,237 366,941
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
2023 2022
£ £
Profit on ordinary activities before tax 1,317,091 1,606,524
Standard rate of corporation tax in the UK 23.5% 19%
£ £
Profit on ordinary activities multiplied by the standard rate of corporation tax 309,516 305,240
Effects of:
Expenses not deductible for tax purposes 124,072 68,056
(Capital allowances for period in excess of depreciation) / Depreciation in excess of capital allowances 2,931 (6,355)
Adjustments to tax charge in respect of previous periods (282) -
Current tax charge for period 436,237 366,941
Factors that may affect future tax charges
Substantively enacted by Finance Bill on 24 May 2021, the main rate of corporation tax in the United Kingdom increased from its current level of 19% to 25% from 1 April 2023. The effective hybrid rate for the company during this financial year is 23.5%. The main rate of 25% will apply in full in the next accounting period.
9 Intangible fixed assets £
Software:
Cost
At 1 January 2023 9,665
At 31 December 2023 9,665
Amortisation
At 1 January 2023 2,295
Provided during the year 2,416
At 31 December 2023 4,711
Carrying amount
At 31 December 2023 4,954
At 31 December 2022 7,370
Capitalised software is being amortised on a straight line basis over its estimated useful economic life of 4 years.
10 Tangible fixed assets
At cost Short leasehold building alterations Plant and equipment Motor vehicles Total
£ £ £ £
Cost or valuation
At 1 January 2023 55,190 522,131 - 577,321
Additions - 26,597 - 26,597
At 31 December 2023 55,190 548,728 - 603,918
Depreciation
At 1 January 2023 54,054 435,677 - 489,731
Charge for the year 1,136 38,808 - 39,944
At 31 December 2023 55,190 474,485 - 529,675
Carrying amount
At 31 December 2023 - 74,243 - 74,243
At 31 December 2022 1,136 86,454 - 87,590
11 Right of use assets - held under finance leases
At PV of lease payments Short leasehold buildings Plant and equipment Motor vehicles Total
£ £ £ £
Cost or valuation
At 1 January 2023 1,637,778 181,264 424,280 2,243,322
Additions 6,566,824 - 203,887 6,770,711
Disposals (1,637,778) (9,000) (56,932) (1,703,710)
At 31 December 2023 6,566,824 172,264 571,235 7,310,323
Depreciation
At 1 January 2023 1,572,267 127,009 176,962 1,876,238
Charge for the year 634,636 36,214 122,447 793,297
On disposals (1,637,778) (9,000) (56,932) (1,703,710)
At 31 December 2023 569,125 154,223 242,477 965,825
Carrying amount
At 31 December 2023 5,997,699 18,041 328,758 6,344,498
At 31 December 2022 65,511 54,255 247,318 367,084
12 Stocks 2023 2022
£ £
Finished goods and goods for resale 12,264,250 12,885,064
13 Debtors 2023 2022
£ £
Trade debtors 17,971,509 16,186,722
Trade amounts due from group undertakings 43,463 8,794
Other debtors - 50,031
Prepayments and accrued income 276,572 125,830
18,291,544 16,371,377
14 Creditors: amounts falling due within one year 2023 2022
£ £
Loans owed to group undertakings (unsecured) 14,070,879 17,778,940
Accrued loan interest 216,040 73,965
Obligations under finance leases 788,440 189,215
Trade creditors 486,867 385,619
Trade amounts owed to group undertakings 5,993,203 3,281,335
Corporation tax 35,431 -
Other taxes and social security costs 1,376,135 258,534
Accruals and deferred income 839,364 585,220
23,806,359 22,552,828
Formal loans from group undertakings are repayable by 21 May 2024 and incur interest at 7.2% (2022 3.1%). Short term cash pooling borrowings are repayable on demand and incur debit interest at 4.5% (2022 1.2%). The interest rate implicit in the premises finance lease is 4% (2022 0.75%).
15 Creditors: amounts falling due after one year 2023 2022
£ £
Obligations under finance leases 5,561,060 172,989
Accruals and deferred income 288,184 -
5,849,244 172,989
16 Loans 2023 2022
£ £
Analysis of maturity of debt:
Within one year or on demand 14,070,879 17,778,940
Loans from group undertakings are unsecured but the ultimate parent company WEG S.A. has provided a guarantee on behalf of the company in respect of the repayment of loans to the parent undertaking.
17 Obligations under finance leases 2023 2022
£ £
Amounts payable:
Within one year 788,440 189,215
Within two to five years 2,852,278 172,989
After five years 2,708,782 -
6,349,500 362,204
Liabilities for assets acquired under finance leases are secured on those assets with the exception of leased premises, which are not secured. The aggregate amount of secured finance leases at the year end is £347,603 (2022 £301,898).
18 Share capital Nominal 2023 2023 2022
value Number £ £
Allotted, called up and fully paid:
Ordinary shares £1 each 6,245,321 6,245,321 6,245,321
The Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
19 Profit and loss account 2023 2022
£ £
At 1 January 1,006,256 (233,327)
Profit for the financial year 880,854 1,239,583
At 31 December 1,887,110 1,006,256
20 Contingent liabilities
In the normal course of business, the company has provided performance guarantees and bonds to a small number of customers. All fall due to expire within 18 months of the year end. Such guarantees recorded at their maximum liability values amounted to £618,251 (2022: £171,823). The likelihood of any material discharge occurring in the foreseeable future is very low.
21 Related party transactions
The company has taken advantage of the exemption provisions under paragraph 33.1A of FRS 102 from disclosing transactions with wholly owned group companies.
22 Controlling party
The company is wholly owned by WEG Holding GmbH, a company incorporated in Austria. The ultimate parent company is WEG S.A. incorporated in Brazil. That company is not under the control of any one individual. The largest and smallest group of undertakings to which the company belongs and which draws up consolidated accounts is WEG S.A. The consolidated accounts of WEG S.A. are publicly available on their website or can be obtained from Av. Prefeito Waldemar Grubba, 3000, 89256-900, Jaragua do Sul, Santa Catarina, Brazil.
23 Presentation currency
The financial statements are presented in Sterling.
24 Legal form of entity and country of incorporation
WEG (UK) Ltd is a private company limited by shares and incorporated in England.
25 Principal place of business
The address of the company's principal place of business and registered office is:
Lakeside Point
Broad Ground Road
Redditch
Worcestershire
B98 8YP
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