Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falsefalse142023-01-01falseNo description of principal activity12false 02550154 2023-01-01 2023-12-31 02550154 2022-01-01 2022-12-31 02550154 2023-12-31 02550154 2022-12-31 02550154 c:Director1 2023-01-01 2023-12-31 02550154 c:Director2 2023-01-01 2023-12-31 02550154 c:RegisteredOffice 2023-01-01 2023-12-31 02550154 d:Buildings 2023-01-01 2023-12-31 02550154 d:Buildings 2023-12-31 02550154 d:Buildings 2022-12-31 02550154 d:Buildings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02550154 d:MotorVehicles 2023-01-01 2023-12-31 02550154 d:MotorVehicles 2023-12-31 02550154 d:MotorVehicles 2022-12-31 02550154 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02550154 d:FurnitureFittings 2023-01-01 2023-12-31 02550154 d:FurnitureFittings 2023-12-31 02550154 d:FurnitureFittings 2022-12-31 02550154 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02550154 d:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 02550154 d:OtherPropertyPlantEquipment 2023-12-31 02550154 d:OtherPropertyPlantEquipment 2022-12-31 02550154 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02550154 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02550154 d:CurrentFinancialInstruments 2023-12-31 02550154 d:CurrentFinancialInstruments 2022-12-31 02550154 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 02550154 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 02550154 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 02550154 d:ReportableOperatingSegment1 2022-01-01 2022-12-31 02550154 e:UnitedKingdom 2023-01-01 2023-12-31 02550154 e:UnitedKingdom 2022-01-01 2022-12-31 02550154 e:RestEuropeOutsideUK 2023-01-01 2023-12-31 02550154 e:RestEuropeOutsideUK 2022-01-01 2022-12-31 02550154 d:UKTax 2023-01-01 2023-12-31 02550154 d:UKTax 2022-01-01 2022-12-31 02550154 d:ShareCapital 2023-12-31 02550154 d:ShareCapital 2022-12-31 02550154 d:OtherMiscellaneousReserve 2023-01-01 2023-12-31 02550154 d:OtherMiscellaneousReserve 2023-12-31 02550154 d:OtherMiscellaneousReserve 2022-12-31 02550154 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02550154 d:RetainedEarningsAccumulatedLosses 2023-12-31 02550154 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02550154 d:RetainedEarningsAccumulatedLosses 2022-12-31 02550154 d:RetainedEarningsAccumulatedLosses 2022-01-01 02550154 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02550154 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02550154 c:OrdinaryShareClass1 2023-01-01 2023-12-31 02550154 c:OrdinaryShareClass1 2023-12-31 02550154 c:OrdinaryShareClass1 2022-12-31 02550154 c:FRS102 2023-01-01 2023-12-31 02550154 c:Audited 2023-01-01 2023-12-31 02550154 c:FullAccounts 2023-01-01 2023-12-31 02550154 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02550154 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02550154










EURO-PHARMA MACHINERY LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
EURO-PHARMA MACHINERY LIMITED
 
 
COMPANY INFORMATION


Directors
Mr J Dittrich 
Mr P Kierans 




Registered number
02550154



Registered office
Unit 12
Highview

Bordon

Hampshire

GU35 OAX




Independent auditor
Shaw Gibbs (Audit) Limited
Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
EURO-PHARMA MACHINERY LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Statement of income and retained earnings
 
9
Statement of financial position
 
10
Analysis of net debt
 
11
Notes to the financial statements
 
12 - 24


 
EURO-PHARMA MACHINERY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
Euro-Pharma Machinery Limited (EPM) are a wholly owned subsidiary of Fette Compacting International GmbH and a part of the LMT Group of companies. The purpose of the business is to supply and service the Pharmaceutical and associated industries with machinery to manufacture products in the market of United Kingdom and Ireland. This equipment is various and with complex solutions primarily supplied from first in class European manufacturers.

Business review
 
For capital equipment the UK and Ireland are mature markets with a long history of successful investment and manufacturing. The Irish market continues to grow whereas the UK market is more considered and slower to invest. In general the pharmaceutical market continues to thrive and requires more equipment, automation, and associated services. Ireland is particularly strong in this area and has benefited as a part of EU as well as major investments from multi-national companies. Many of these multi-nationals have facilities placed strategically in Ireland for European access.

Principal risks, uncertainties and future developments
 
The next 2-3 years have a similar pattern of business level on the horizon. Our new machinery sales have an excellent pipeline albeit with longer lead times and challenges due to supplier capacities.
Exchange rates with the Euro remain quite stable. The political climate may affect our customer base and their decisions for investment and where they place manufacturing. European based manufacturers may streamline their operations.
There is the low risk that companies will not invest in capital equipment but rather utilize their current assets and manage these for extended use.
Opportunities:
EPM are expanding our portfolio which can only enhance our competitive position in the market.

Financial key performance indicators
 
KPI’s were set for Order Intake, which was exceeded and Turnover. The turnover achieved in 2023 was £15,284,790. Based on budgets set for 2023 we have over-achieved the target on modifications, sales of spares and service continues to achieve regular incomes and at a similar level to previous years. Another KPI was profit, which was higher than expectations, achieving £3,243,576 in 2023.

Other key performance indicators
 
Sales going forward; existing projects are running which continues to supply income and we also gained new clients. EPM are also creating new income streams with the extension of the portfolio.
Making additions to the service team will decrease our reliance on our principles and create added income. 

Page 1

 
EURO-PHARMA MACHINERY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.







Mr P Kierans
Director

Date: 8 April 2024

Page 2

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £3,243,576 (2022 - £2,970,563).

Dividends of £2,817,509 (2022: £3,500,000) were payable during the year.

Directors

The directors who served during the year were:

Mr J Dittrich 
Mr P Kierans 

Matters covered in the Strategic Report

The company has chosen in accordance with s414C (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
future developments.

Page 3

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Shaw Gibbs (Audit) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 







Mr P Kierans
Director

Date: 8 April 2024

Page 4

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EURO-PHARMA MACHINERY LIMITED
 

Opinion


We have audited the financial statements of Euro-Pharma Machinery Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of income and retained earnings, the Statement of financial position and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 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 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EURO-PHARMA MACHINERY LIMITED (CONTINUED)


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 ReportOur 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.


Opinion 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 set out on page 3, 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.


Page 6

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EURO-PHARMA MACHINERY LIMITED (CONTINUED)


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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and inspection of legal correspondence. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditor's report.


Page 7

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EURO-PHARMA MACHINERY LIMITED (CONTINUED)


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 2006Our 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.







Stephen Morgan FCA (Senior statutory auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

10 April 2024
Page 8

 
EURO-PHARMA MACHINERY LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£


Turnover
15,284,790
13,385,222

Cost of sales
(10,085,123)
(8,744,862)

Gross profit
5,199,667
4,640,360

Administrative expenses
(1,050,009)
(964,177)

Other operating income
92,672
-

Operating profit
4,242,330
3,676,183

Tax on profit
(998,754)
(705,620)

Profit after tax
3,243,576
2,970,563



Retained earnings at the beginning of the year
2,555,057
3,084,494

Profit for the year
3,243,576
2,970,563

Dividends declared and paid
(2,817,509)
(3,500,000)

Retained earnings at the end of the year
2,981,124
2,555,057
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
EURO-PHARMA MACHINERY LIMITED
REGISTERED NUMBER: 02550154

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
357,905
398,475

  
357,905
398,475

Current assets
  

Stocks
 11 
13,239
13,239

Debtors: amounts falling due within one year
 12 
3,913,106
3,042,307

Cash at bank and in hand
 13 
2,454,175
2,153,207

  
6,380,520
5,208,753

Creditors: amounts falling due within one year
 14 
(3,667,301)
(2,962,171)

Net current assets
  
 
 
2,713,219
 
 
2,246,582

Total assets less current liabilities
  
3,071,124
2,645,057

  

Net assets
  
3,071,124
2,645,057


Capital and reserves
  

Called up share capital 
 16 
60,000
60,000

Other reserves
 17 
30,000
30,000

Profit and loss account
 17 
2,981,124
2,555,057

  
3,071,124
2,645,057


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 






Mr P Kierans
Director

Date: 8 April 2024

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
EURO-PHARMA MACHINERY LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,153,207

300,968

2,454,175


2,153,207
300,968
2,454,175

The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Euro-Pharma Machinery Limited (02550154) is a private company limited by shares and incorporated in
England and Wales. Its registered office is Unit 12, Highview, Bordon, Hampshire, GU35 OAX.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

Amounts have been rounded to the nearest £.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

  
2.2

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 the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the the consolidated financial statements prepared under the name of LMT GmbH & Co. KG. Copies of the consolidated financial statements are available from its registered office: Grabauer Straße 24, 21493 Schwarzenbek, Germany.

Page 12

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Commissions
Revenue from commissions due on a contract is recognised at the end of the quarter following the completed order to the customer.

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
over 50 year life of building
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
20%
reducing balance
Freehold land
-
not depreciated

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

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

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 16

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the
Page 17

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.13
Financial instruments (continued)

risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales
15,284,790
13,385,222

15,284,790
13,385,222


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
3,918,221
4,024,132

Rest of Europe
11,366,569
9,361,090

15,284,790
13,385,222



4.


Other operating income

2023
2022
£
£

Other operating income
92,672
-

92,672
-


Page 18

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
13,683
16,873


6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
748,504
647,416

Social security costs
88,232
83,710

Cost of defined contribution scheme
35,298
30,671

872,034
761,797


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
14
12


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
148,500
151,930

Company contributions to defined contribution pension schemes
4,455
3,568

152,955
155,498


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

Page 19

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
998,671
698,269


Deferred tax


Origination and reversal of timing differences
83
7,351


Taxation on profit on ordinary activities
998,754
705,620

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
4,242,330
3,676,183


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
1,060,583
698,475

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,384
692

Capital allowances for year in excess of depreciation
720
(918)

Deferred tax movement
83
7,351

Changes in the standard rate of corporation tax in the period from 19% to 25% leading to an decrease (increase) in the tax charge
(62,817)
-

Changes in provisions leading to an increase (decrease) in the tax charge
(1,199)
-

Other differences leading to an increase (decrease) in the tax charge
-
20

Total tax charge for the year
998,754
705,620


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Dividends

2023
2022
£
£


Dividends
2,817,509
3,500,000

2,817,509
3,500,000


10.


Tangible fixed assets





Freehold property
Freehold land
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
270,450
250,000
120,533
136,938
777,921


Additions
-
-
-
4,241
4,241


Disposals
-
-
(25,375)
-
(25,375)



At 31 December 2023

270,450
250,000
95,158
141,179
756,787



Depreciation


At 1 January 2023
151,131
100,000
40,412
87,902
379,445


Charge for the year on owned assets
3,409
-
15,100
9,254
27,763


Disposals
-
-
(8,326)
-
(8,326)



At 31 December 2023

154,540
100,000
47,186
97,156
398,882



Net book value



At 31 December 2023
115,910
150,000
47,972
44,023
357,905



At 31 December 2022
119,319
150,000
80,120
49,036
398,475

Freehold land was impaired to £150,000 in 2013 and is not depreciated.

Page 21

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Stocks

2023
2022
£
£

Finished goods and goods for resale
13,239
13,239

13,239
13,239



12.


Debtors

2023
2022
£
£


Trade debtors
3,595,367
2,820,993

Other debtors
309
29,453

Prepayments and accrued income
299,332
173,680

Deferred taxation
18,098
18,181

3,913,106
3,042,307



13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,454,175
2,153,207

2,454,175
2,153,207



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,094,373
1,851,939

Corporation tax
39,198
-

Other taxation and social security
430,058
376,598

Other creditors
1,778
1,778

Accruals and deferred income
1,101,894
731,856

3,667,301
2,962,171


Page 22

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Deferred taxation




2023


£






At beginning of year
18,181


Charged to profit or loss
(83)



At end of year
18,098

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
18,098
18,181

18,098
18,181


16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



60,000 (2022 - 60,000) Ordinary shares of £1.00 each
60,000
60,000



17.


Reserves

Other reserves

This reserve records capital redemption.

Profit and loss account

This reserve records retained earnings and accumulated losses.


18.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £35,298 (2022:  £30,671). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the reporting date.

Page 23

 
EURO-PHARMA MACHINERY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Related party transactions

Fette Compacting International GmbH is the sole shareholder of the company. There are no balances owed to/ from Fette Compacting International GmbH at year end.
Fette Compacting GmbH is a fellow subsidiary within the LMT Group. At the year end, £285,682 (2022: £285,597) was owed to Fette Compacting GmbH and is included within trade creditors. At the year end £42,324 (2022: £167,034) was due from Fette Compacting GmbH and is included within trade debtors.
Fette Compacting (China) Co Ltd is a fellow subsidiary within the LMT Group. At the year end £Nil (2022: £18,295) was owed to Fette Compacting (China) Co Ltd and is included within trade creditors.
The key management personnel are considered to be the directors, as named on page 1 of the financial statements. The remuneration for the year was £152,955 (2022: £155,498)


20.


Controlling party

The company is under the control of its immediate parent undertaking: Fette Compacting International GmbH
Fette Compacting International GmbH is incorporated in Germany. Copies of its financial statements are available from its registered office: Grabauer Straße 24, 21493 Schwarzenbek, Germany.
Fette Compacting International GmbH is part of the LMT Group. The consolidated financial statements are prepared under the name of LMT GmbH & Co. KG. Copies of the consolidated financial statements are available from its registered office: Grabauer Straße 24, 21493 Schwarzenbek, Germany.

 
Page 24