Registered number
02775102
Swisslog (UK) Ltd
Report and Financial Statements
31 December 2023
Swisslog (UK) Ltd
Registered number: 02775102
Directors' Report
The directors present their report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the company during the year were the delivery of industry-specific solutions for automated and manual warehouses and distribution centres, provision of consultancy services, software solutions, general contracting, implementation and customer support.
Directors
The following persons served as directors during the year:
J A Sharples
R J Duhy
R Baumann
A Trioschi (resigned 1 March 2024)
J Schmale (appointed 1 March 2024)
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, research and developments, principal risks, engagement with stakeholders, environmental responsibility 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.
Third party indemnity provisions
The company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the Director's report.
This report was approved by the board on 24 May 2024 and signed on its behalf.
J A Sharples
Director
Swisslog (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.
Swisslog (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
The company maintained a strong level of revenues in the year driven largely by orders secured in previous years. Profitability was very strong in all areas, bolstered by the sale of the business’s legacy healthcare contracts to a third party. A number of major orders were secured in the second half of the year, which positions the business strongly moving forwards, with a healthy backlog to drawn upon going into the next year.
New business projects activity decreased from £59.4m to £33.9m year on year, and customer support work increased from £19.3m in 2022 to £24.0m in 2023.
The Key Performance Indicators used by the business are:
Perfomance in 2023 Performance in 2022
Turnover £57.9m £78.7m
Operating profit/(loss) £3.1m £2.8m
Profit/(Loss) before tax £3.6m £2.8m
Shareholder's funds/(deficit) £2.2m (£0.6m)
Average number of employees 295 263
A strategic business decision was made to dispose of legacy healthcare contracts. On 29 November 2023, a gross proceeds sum of £1.2m was generated on the disposal to a third party. £0.9m of the proceeds are for customer contracts and records, recognised in gains on the disposal of intangible assets. The remaining £0.3m proceeds relate to the disposal of attributable spares stock and work in progress as of the sale date, both recognised in turnover.
Research and development
The immediate parent undertaking, Swisslog Holding AG, develops and maintains application software such as "Warehouse Manager", "Application Manager" and "SPOC" which is granted to the company under licence. Therefore no research and development is conducted directly by the company.
Swisslog Group has a proven track record of implementing its technological innovations with well-known brands. Solutions are manufactured using a stringent design and testing process and the Group has an entire Research and Development department committed to ensuring solutions meet market requirements.
Swisslog (UK) Ltd
Strategic Report
Principal risks and uncertainties
Contractual: Long-term contracts are entered into with customers to provide industry specific solutions for the delivery of automated and manual warehouses and distributions centres. These contracts may contain provision for liquidated damages connected with delivery dates and performance criteria. Failure to meet these contractual obligations would result in the company incurring significant costs. To manage such risks, the company has established rigorous quality control procedures under the guidance of its parent undertaking for project execution and risk management. In addition, the company is able to pass on some of this risk to contractors.
Financial: The company has established a risk and financial management framework in collaboration with its parent undertaking. The objectives of this framework are to protect the company from undue exposure due to insufficient working capital, foreign exchange rate movements and onerous legal obligations when entering into contractual relationships.
Insufficient Working Capital: The company manages credit risk by ensuring that customers are only granted deferred payment terms as appropriate to their payment history and subject to credit worthiness checks. Liquidity risk is mitigated by managing cash flow generation throughout its operation and by applying cash collection procedures. Cash flow risk is managed by careful negotiation of terms with customers and suppliers. This is further facilitated by group framework agreements with regards to major suppliers, which are negotiated by the parent undertaking's central purchasing function.
Foreign Exchange Rates: Wherever possible, transactions with customers and suppliers are conducted in Sterling. Where foreign currency transactions are necessary, natural hedging is used wherever possible to match inflows and outflows of the same currency. Where this is not possible, support is provided by the parent undertaking's corporate treasury function who will provide the company with a project hedge agreement. This is a forward currency contract provided to reduce the exposure to foreign exchange rate volatility by fixing the rate of any material foreign currency payments.
Legal Obligations: The parent undertaking has a central legal department which provides legal support and advice on contractual issues in order to limit the company's exposure to onerous legal commitments.
Engagement with employees
Our people are our greatest asset. We are driven to have a high preforming, productive, collaborative, team-oriented environment that is safe, supportive, and encouraging for our employees. We are united by a common understanding of our fundamental values and principles. This starts with our leadership team demonstrating positive behaviours but is strengthened by our workforce generating positive results, supported by an organizational culture that is driven by purpose, respect, and clear expectations.
Numerous policies have been implemented in areas such as wellbeing, positive working, equality, inclusion and diversity. Equal treatment, rights, opportunities, training and career development are promoted for all employees, regardless of ethnicity, history, social background, gender, religious beliefs or ideology, age, political opinions, physical or mental disability, or sexual orientation.
Quarterly meetings are held with all members of staff, in which transparent discussions and presentations are held in relation to all areas of the business, including customer services, sales and finance.
Swisslog (UK) Ltd
Strategic Report
Engagement with suppliers, customers and others
We fulfill our due diligence obligations in the supply chain with regard to human rights and the environment by reducing (potential) risks as much as possible. Before we decide on products and services, we evaluate them for their energy efficiency and low environmental impact. Globally oriented supply chain management based on the principles of sustainability is a significant success factor for us. We are always talking to our suppliers about ways to minimize potential risks.
We require our suppliers to comply with the Swisslog Code of Conduct for Business Partners or to apply an equivalent code of conduct. We work to ensure that not only our business partners but also their sub-suppliers follow these principles.
Our business partners observe the rules of fair competition. They act in accordance with applicable national and international competition and antitrust laws and do not participate in collusion and agreements with other market participants or other third parties.
High quality relationships are forged with all stakeholders, evidenced by the numerous longstanding associations that exist. Principal decisions affecting the company are undertaken with due regard and consideration for all stakeholders.
Ecological responsibility
We are committed to protecting the environment through the responsible use of natural resources and energy. We strive to optimise the use of resources and avoid any adverse effects on people and the environment or to keep these to a minimum. The relevant resources and information are made available to the extent necessary to achieve the objective. Our goal is to minimise the consumption of energy, water and raw materials as well as keep waste generation and greenhouse gas emissions to a minimum in order to continuously reduce the global environmental pollution and energy consumption.
Applicable laws, regulations and international conventions are observed at all times. We pay attention to the protection, conservation and restoration of biodiversity and to the sustainable use of the constituent parts of the same. This is part of our environmental management system and is promoted both in our own corporate environment as well as among our partners and suppliers.
Future developments
The company is expecting to maintain the levels of turnover seen over the last few years, due to the strong backlog of secured orders together with further anticipated new orders. Interest in automation continues to be high among the company’s customer base, with a strong pipeline of potential new orders.
This report was approved by the board on 24 May 2024 and signed on its behalf.
J A Sharples
Director
Swisslog (UK) Ltd
Independent auditor's report
to the member of Swisslog (UK) Ltd
Opinion
We have audited the financial statements of Swisslog (UK) Ltd (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, the Statement of Comprehensive Income, 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, procedures and internal controls relating to the identification, evaluation and compliance with laws and regulations, whether they were aware of any instances of non-compliance, detecting and responding to the risks of fraud, and whether they have knowledge of any actual, suspected or alleged fraud;
obtaining an understanding of the legal and regulatory framework, 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 sensitive assumptions and management judgements, looking for indicators of manipulation through management bias, challenging significant estimates, assessing the use of service organisations and management’s experts, and ensuring adequacy of disclosures; and
observing any signs of management override of controls, testing the appropriateness of journal entries and other adjustments, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
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.
David Parkes
(Senior Statutory Auditor) 11 Kingfisher Business Park
for and on behalf of Arthur Street, Lakeside
Mills Pyatt Audit Limited Redditch
Statutory Auditor Worcestershire
24 May 2024 B98 8LG
Swisslog (UK) Ltd
Income Statement
for the year ended 31 December 2023
Notes 2023 2022
£ £
Turnover 3 57,882,116 78,691,632
Cost of sales (46,498,044) (67,834,393)
Gross profit 11,384,072 19.7% 10,857,239 13.8%
Distribution costs (3,788,929) (3,553,906)
Administrative expenses (4,492,446) (4,482,514)
Operating profit 4 3,102,697 5.4% 2,820,819 3.6%
Profit on the disposal of intangible assets 892,098 -
Interest receivable 16,662 36,198
Interest payable 7 (149,542) (41,720)
Pension related finance income/(costs) 107,000 (19,000)
Other finance charges - forex and guarantees (412,310) -
Profit on ordinary activities before taxation 3,556,605 2,796,297
Tax on profit on ordinary activities 8 (5,929) -
Profit for the financial year 3,550,676 2,796,297
Profit attributable to:
Owners of the parent 3,550,676 2,796,297
Swisslog (UK) Ltd
Statement of Comprehensive Income
for the year ended 31 December 2023
2023 2022
£ £
Profit for the financial year 3,550,676 2,796,297
Other comprehensive income
Remeasurements of defined benefit pension asset (808,750) 1,977,500
Total comprehensive income for the year 2,741,926 4,773,797
Profit attributable to:
Owners of the parent 2,741,926 4,773,797
Swisslog (UK) Ltd Reg no. 02775102
Statement of Financial Position
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 9 257,256 261,474
Right of use assets 10 1,120,465 1,058,132
Other non-current assets: 16 1,088,750 1,319,500
defined benefit pension net asset
2,466,471 2,639,106
Current assets
Stocks 11 47,891 99,921
Debtors 12 17,196,019 17,593,993
Cash at bank and in hand 13,164,282 1,794,340
30,408,192 19,488,254
Creditors: amounts falling due within one year 13 (29,964,419) (21,939,351)
Net current assets/(liabilities) 443,773 (2,451,097)
Total assets less current liabilities 2,910,244 188,009
Creditors: amounts falling due after more than one year 14 (721,831) (741,522)
Net assets/(liabilities) 2,188,413 (553,513)
Capital and reserves
Called up share capital 17 250,000 250,000
Profit and loss account 18 1,938,413 (803,513)
Total equity 2,188,413 (553,513)
J A Sharples
Director
Approved by the board on 24 May 2024
Swisslog (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 250,000 - - (5,577,310) (5,327,310)
Profit for the financial year 2,796,297 2,796,297
Other comprehensive income for the financial year - - - 1,977,500 1,977,500
Total comprehensive income for the financial year - - - 4,773,797 4,773,797
At 31 December 2022 250,000 - - (803,513) (553,513)
At 1 January 2023 250,000 - - (803,513) (553,513)
Profit for the financial year 3,550,676 3,550,676
Other comprehensive income for the financial year - - - (808,750) (808,750)
Total comprehensive income for the financial year - - - 2,741,926 2,741,926
At 31 December 2023 250,000 - - 1,938,413 2,188,413
All amounts reported above are attributable to owners of the parent.
Swisslog (UK) Ltd
Notes to the Accounts
for the year ended 31 December 2023
1 Summary of significant accounting policies
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework January 2022 ("FRS 101"). The financial statements present information relating to the individual entity.

In preparing these financial statements, the company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as adopted by the UK ("Adopted IFRSs"), but makes amendments where necessary in order to comply with the Companies Act 2006 and applies the reduced disclosure framework under FRS 101. Exemptions that have been applied in these financial statements under the provisions of FRS 101 are in respect of:

- A Cash Flow Statement and related notes;
- Comparative period reconciliations for share capital and tangible fixed assets;
- Disclosures in respect of capital management;
- The effects of new but not yet effective IFRS's; and
- Disclosures in respect of the compensation of Key Management Personnel.

The company's intermediate parent undertaking KUKA Aktiengesellschaft includes the company in its consolidated financial statements, which are prepared in accordance with IFRS and are available from Zugspitzstr. 140, 86165 Augsburg, Germany. As these consolidated financial statements include the equivalent disclosures, the company has taken advantage of FRS 101 disclosure exemption provisions in respect of:

- Certain disclosures required by IFRS 13 Fair Value Measurement;
- Certain paragraphs regarding disclosure under IFRS 15 Revenue from Contracts with Customers;
- Certain disclosures about its leases for which it is a lessee required by IFRS 16 Leases; and
- Disclosures required by IFRS 7 Financial Instruments Disclosures.
Judgements made by the directors in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in the notes. Unless otherwise stated, accounting policies have been applied consistently to all periods presented in these financial statements.
Measurement convention
The financial statements are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: derivative financial instruments and financial instruments classified as fair value through the profit or loss or as available-for-sale. Non-current assets and disposal groups held for sale are stated at the lower of previous carrying amount and fair value less costs to sell.
Going concern
The company's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic report and Directors' report.

The financial statements have been prepared on the going concern basis, which the directors believe to be appropriate for the following reasons. The company is occasionally dependent for its working capital requirements upon funds provided to it by KUKA Aktiengesellschaft, an intermediate parent undertaking within the group. KUKA Aktiengesellschaft has provided the company with an undertaking that, provided that on a fully diluted basis it beneficially holds more than 50% of the shares of the company for at least 12 months from the date of approval of these financial statements, it will continue to make available such funds as are needed by the company. This should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment.

On 6 January 2017, MECCA International (BVI) Limited, a wholly-owned subsidiary of Midea Group Co. Ltd acquired KUKA Aktiengesellschaft. From this date, Swisslog (UK) Ltd's ultimate parent company and ultimate controlling party became Midea Group Co. Ltd. KUKA Aktiengesellschaft remains an intermediate parent of the company.

As with any company placing reliance on other group entities for financial support, the Directors acknowledge that there can be no certainty that this support will continue, although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

Based on this undertaking, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments which would result in the basis of preparation being inappropriate.
Turnover
Turnover, which excludes value added tax and trade discounts, represents the value of goods and services supplied and the value of long-term contract work completed. Revenue from maintenance contracts is recognised rateably over the term of the contract, and revenue from sales of spare parts is recognised when the parts are shipped to the customer.

Turnover on long-term contracts is recognised according to the stage reached in the contract by reference to the value of work done. An estimate of the profit attributable to work completed is recognised once the outcome of the contract can be assessed with reasonable certainty.
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 at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets.
Right of use assets (held under finance leases) over the lease term
Plant, equipment and vehicles 3 - 10 years
Fixtures & fittings 5 - 10 years
Stocks
Stocks are stated at the lower of cost and net realisable value. Cost is based on the weighted average principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.
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
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for on the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.
Provisions
A provision is recognised in the balance sheet when the company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.
Foreign currency translation
Transactions in foreign currencies are translated to the company's functional currencies at the foreign exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.
Leased assets
A lease is classified as a finance lease and accounted for under IFRS 16 Leases if it transfers substantially all the risks and rewards incidental to ownership. 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. 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. Leases of a trivial nature or in respect of assets acquired for a period of less than twelve months are classified as operating leases, with such payments recognised as an expense on a straight line basis over the lease term.
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other debtors, cash and cash equivalents, loans and borrowings, and trade and other creditors.

Trade and other debtors: Trade and other debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.

Trade and other creditors: Trade and other creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

Cash and cash equivalents: Cash and cash equivalents comprise cash balances and call deposits.

Interest-bearing borrowings: Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.
Derivative financial instruments and hedging
Derivative financial instruments: Derivative financial instruments are recognised at fair value. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (see below).

Cash flow hedges: Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a highly probable forecast transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in the hedging reserve. Any ineffective portion of the hedge is recognised immediately in the profit and loss account.

Fair value hedges: Where a derivative financial instrument is designated as a hedge of the variability in fair value of a recognised asset or liability or an unrecognised firm commitment, all changes in the fair value of the derivative are recognised immediately in the profit and loss account. The carrying value of the hedged item is adjusted by the change in fair value that is attributable to the risk being hedged (even if it is normally carried at cost or amortised cost) and any gains or losses on remeasurement are recognised immediately in the profit and loss account (even if those gains would normally be recognised directly in reserves).
Construction contract debtors
Construction contract debtors represent the gross unbilled amount for contract work performed to date. They are measured at cost plus profit recognised to date (see the turnover accounting policy) less a provision for foreseeable losses and less progress billings. Variations are included in contract revenue when they are reliably measurable and it is probable that the customer will approve the variation itself and the revenue arising from the variation. Claims are included in contract revenue only when they are reliably measurable and negotiations have reached an advanced stage such that it is probable that the customer will accept the claim. Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred in the company's contract activities based on normal operating capacity.

Construction contract debtors are presented as part of debtors in the balance sheet. If payments received from customers exceed the income recognised, then the difference is presented as accruals and deferred income in the balance sheet.
Impairment excluding stocks and deferred tax assets
Financial assets (including trade and other debtors): A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment, an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
Non-financial assets: The carrying amounts of the company's non-financial assets, other stocks and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.
Other assets: In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Employee benefits
Defined contribution plans: A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.
Defined benefit plans: A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The company's net obligation in respect of defined benefit pension plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets (at bid price) are deducted. The company determines the net interest on the net defined benefit liability/(asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability/(asset).

The discount rate is the yield at the reporting date on bonds that have a credit rating of at least AA that have maturity dates approximating the terms of the company's obligations and that are denominated in the currency in which the benefits are expected to be paid.

Remeasurements arising from defined benefit plans comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest). The company recognises them immediately in other comprehensive income and all other expenses related to defined benefit plans in employee benefit expenses in profit or loss.

When the benefits of a plan are changed, or when a plan is curtailed, the portion of the changed benefit related to past service by employees, or the gain or loss on curtailment, is recognised immediately in profit or loss when the plan amendment or curtailment occurs.

The calculation of the defined benefit obligations is performed by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the company, the recognised asset is limited to the present value of benefits available in the form of any future refunds from the plan or reductions in future contributions and takes into account the adverse effect of any minimum funding requirements.
Short-term benefits: Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Termination benefits: Termination benefits are recognised as an expense when the company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the company has made an offer of voluntary redundancy, it is probably that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value.
Interest receivable and interest payable
Interest payable and similar charges include interest payable, finance charges on shares classified as liabilities and finance leases recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchanges losses that are recognised in the profit and loss account (see foreign currency accounting policy). Other interest receivable and similar income include interest receivable on funds invested and net foreign exchange gains.

Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Foreign currency gain and losses are reported on a net basis.
2 Critical accounting estimates and judgements
Directors make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis and are based on historical experience and factors considered to be reasonable. Revisions to accounting estimates are recognised in the period in which the estimate is revised. Key judgements and estimates made in connection with the financial statements are as follows:
Retirement benefits: In determining the valuation of defined benefit pension scheme assets and liabilities, a number of key assumptions which are largely dependent on factors outside of the company's control have been made in relation to inflation rate, mortality, discount rate, salary increases and pension increases.
Revenue recognition: In determining the revenue and costs to be recognised each year for work done on construction contracts, management continually review estimates made in relation to the final out-turn on each contract. Estimates may include cost contingencies to take account of the specific risks within each contract. However, the nature of the risks on contracts are such that they often cannot be resolved until the end of the project and may therefore not reverse until the end of the project.
3 Analysis of turnover 2023 2022
£ £
System implementation projects 33,917,177 59,422,837
Customer support 21,452,412 17,386,290
Spare parts sales 2,512,527 1,882,505
57,882,116 78,691,632
By geographical market:
UK 57,040,947 77,895,660
Rest of world 841,169 795,972
57,882,116 78,691,632
Exceptional income item: Included in the profit on ordinary activities for the year is the disposal of legacy healthcare contracts to a third party for the gross sum of £1.2m. Of this, £0.3m relates to the disposal of stock and work in progress at the disposal date, both recognised in turnover, whilst the remaining £0.9m relates to the disposal of customer contracts and is recognised in gains on the disposal of intangible assets.
4 Operating profit 2023 2022
£ £
This is stated after charging:
Depreciation of owned fixed assets 113,285 84,953
Depreciation of assets held under finance leases 342,010 302,882
Operating lease rentals - plant and machinery 9,049 9,285
Auditors' remuneration for audit services 18,900 18,000
Auditors' remuneration for other services 21,587 17,488
Auditors' remuneration for associated pension schemes 4,300 4,095
Foreign currency translation losses/(gains) (19,411) (745,900)
Contributions to defined benefit pension plans 105,916 107,868
5 Directors' emoluments 2023 2022
£ £
Emoluments 309,280 314,007
Company contributions to defined contribution pension plans 15,687 11,275
324,967 325,282
Highest paid director:
Emoluments 223,006 234,240
Company contributions to defined contribution pension plans 12,375 11,275
235,381 245,515
Number of directors to whom retirement benefits accrued: 2023 2022
Number Number
Defined contribution plans 2 1
6 Staff costs 2023 2022
£ £
Wages and salaries 17,237,126 14,769,069
Social security costs 1,967,527 1,729,709
Contributions to defined contribution plans 950,695 776,157
Expenses related to defined benefit plans 105,916 107,868
20,261,264 17,382,803
Average number of employees during the year Number Number
Administration 56 52
Software 18 17
Engineering 24 23
Sales and marketing 21 16
Customer support 176 155
295 263
7 Interest payable 2023 2022
£ £
Loans from group undertakings 114,548 4,430
Finance charges payable under finance leases 34,994 37,290
149,542 41,720
8 Taxation 2023 2022
£ £
Analysis of charge in period
Current tax:
UK corporation tax on profits of the period 5,929 -
Tax on profit on ordinary activities 5,929 -
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 3,556,605 2,796,297
Standard rate of corporation tax in the UK 23.52% 19%
£ £
Profit on ordinary activities multiplied by the standard rate of corporation tax 836,533 531,296
Effects of:
Expenses not deductible for tax purposes 1,480 20,254
Temporary differences not recognised for deferred tax (613,416) (176,554)
Utilisation of tax losses - (374,996)
Effect of changes in tax rates 13,754 -
Effect of unrecognised tax credits 132,999 -
Adjustments in respect of previous periods (365,421) -
Current tax charge for period 5,929 -
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 23.52%. The main rate of 25% will apply in full in the next accounting period.

The company has unutilised tax losses of £0.2m (2022: £3.1m). The company also has temporary differences in respect of pension scheme net assets of £nil (2022: £2.0m), in respect of the excess of depreciation over capital allowances of £0.2m (2022: £0.2m) and in respect of other trading temporary differences of £0.1m (2022: £0.1m).

The net resulting deferred tax asset of £0.1m (2022: £0.4m), calculated at 25% (2022: 25%) has not been recognised due to the uncertainty over the timing of future profitability.
9 Tangible fixed assets
At cost Land & buildings Plant, equipment & vehicles Fixtures & fittings Total
£ £ £ £
Cost or valuation
At 1 January 2023 - 599,112 31,405 630,517
Additions - 109,067 - 109,067
Disposals - (53,454) - (53,454)
At 31 December 2023 - 654,725 31,405 686,130
Depreciation
At 1 January 2023 - 354,029 15,014 369,043
Charge for the year - 110,201 3,084 113,285
On disposals - (53,454) - (53,454)
At 31 December 2023 - 410,776 18,098 428,874
Carrying amount
At 31 December 2023 - 243,949 13,307 257,256
At 31 December 2022 - 245,083 16,391 261,474
10 Right of use assets - held under finance leases
At PV of lease payments Short leasehold buildings Plant & equipment Motor vehicles Total
£ £ £ £
Cost or valuation
At 1 January 2023 1,134,799 - 845,700 1,980,499
Additions - - 441,181 441,181
Disposals - - (213,929) (213,929)
At 31 December 2023 1,134,799 - 1,072,952 2,207,751
Depreciation
At 1 January 2023 504,202 - 418,165 922,367
Charge for the year 128,161 - 250,687 378,848
On disposals - - (213,929) (213,929)
At 31 December 2023 632,363 - 454,923 1,087,286
Carrying amount
At 31 December 2023 502,436 - 618,029 1,120,465
At 31 December 2022 630,597 - 427,535 1,058,132
11 Stocks 2023 2022
£ £
Raw materials and consumables 47,891 99,921
12 Debtors 2023 2022
£ £
Trade debtors 6,940,894 8,032,014
Amounts owed by group undertakings 5,415,859 5,584,517
Other debtors 69,061 52,370
Prepayments and accrued income 548,429 405,694
Construction contract debtors 4,221,776 3,519,398
17,196,019 17,593,993
Amounts due after more than one year included in:
Trade debtors 570,000 -
At the year end, aggregate costs incurred plus recognised profits, net of recognised losses, under open construction contracts that are essentially complete, save for snagging resolution, amounted to £85.9m (2022: £69.5m). Progress billings and advances received from customers under these open construction contracts amounted to £102.6m (2022: £67.4m). Anticipated snagging costs to completion have been provided for in the period. Advances for which related work has not started, and billings in excess of costs incurred and recognised profits are presented as deferred income and amounted to £21.7m (2022: £2.5m). Realisation of related balances is anticipated within one year from the balance sheet date.
Amounts owed by group undertakings includes £4.0m plus accrued interest (2022: £4.9m) in respect of a short-term loan issued in favour of an intermediate parent company. The loan bears interest at 5.45% and falls due for repayment on 11 January 2024.
13 Creditors: amounts falling due within one year 2023 2022
£ £
Obligations under finance leases 397,905 320,662
Construction contract creditors 21,712,645 2,857,733
Trade creditors 1,942,419 8,537,848
Amounts owed to group undertakings 18,309 6,923,422
Corporation tax 5,929 -
Other taxes and social security costs 4,151,003 1,646,827
Other creditors and accruals 1,736,209 1,652,859
29,964,419 21,939,351
14 Creditors: amounts falling due after one year 2023 2022
£ £
Obligations under finance leases 721,831 741,522
15 Obligations under finance leases 2023 2022
£ £
Amounts payable:
Within one year 397,905 320,662
Within two to five years 721,831 741,522
1,119,736 1,062,184
Liabilities for assets acquired under finance leases are secured on those assets with the exception of leased premises.
16 Employee benefits
The information disclosed below is in respect of the whole of the plans for which the company is the sponsoring employer throughout the periods shown.
2023 2022
£'000 £'000
Total defined benefit asset 18,222 18,390
Total defined benefit liability (16,547) (16,360)
Net defined benefit asset/(liability) before tax implications 1,675 2,030
Finance Act 2004 tax charge on surplus payments at 35% (586) (711)
1,089 1,319
In accordance with the rules of the company's defined benefit pension scheme, the scheme's trustees conclude that the company has an unconditional right to a refund of a scheme surplus, assuming full settlement of liabilities in the event of scheme wind-up. Except for taxation, no other material costs or reductions are anticipated and the trustees do not plan to augment member benefits as a result of the surplus. Whilst an obligation remains under a recovery plan to continue making deficit repair contributions, these would also be recoverable from the scheme under the rules in the event of a surplus. The recoverable amount is the net asset calculated by the external actuary less a 35% tax charge, levied on the trustees before payment, under the provisions of section 207 of the Finance Act 2004.
Defined benefit obligation 2023 2022
£'000 £'000
Balance at 1 January (16,360) (25,340)
Included in profit or loss:
Current service cost (196) (224)
Interest cost (759) (475)
Actuarial gain/(loss) included in other comprehensive income:
Change in financial assumptions (931) 9,034
Change in demographic assumptions 388 16
Experience adjustment 341 (273)
Other:
Member contributions (21) (19)
Benefits paid 872 811
Administration expenses 119 110
Balance at 31 December (16,547) (16,360)
Fair value of plan assets 2023 2022
£'000 £'000
Balance at 1 January 18,390 23,932
Included in profit or loss:
Interest income 866 456
Remeasurements included in other comprehensive income:
Return on plan assets excluding interest (income)/cost (731) (6,089)
Other:
Contributions paid by the employer 667 993
Member contributions 21 19
Benefits paid (872) (811)
Administration expenses (119) (110)
Balance at 31 December 18,222 18,390
Net defined benefit asset/(liability) 2023 2022
£'000 £'000
Balance at 1 January 2,030 (1,408)
Included in profit or loss:
Current service cost (196) (224)
Interest cost 107 (19)
Remeasurements included in other comprehensive income:
Actuarial gain/(loss) arising from:
- Change in financial assumptions (931) 9,034
- Change in demographic assumptions 388 16
- Experience adjustment 341 (273)
Return on plan assets excluding interest (income)/cost (731) (6,089)
Other:
Contributions paid by the employer 667 993
Balance at 31 December 1,675 2,030
Plan assets 2023 2022
£'000 £'000
Debt instruments e.g. Government bonds 15,133 14,249
Intermediate annuity policies 2,284 2,262
Cash 805 1,879
Balance at 31 December 18,222 18,390
All equity securities and government bonds have quoted prices in active markets. All government bonds are issued by European governments and the majority are AA-rated. All other plan assets are not quoted in an active market. The assets are held separately from those of the Society being invested with an insurance company in managed funds. The main asset types fall within fair value hierarchy level 2 under accounting standards, where direct or indirect observable market data exists in order to accurately measure the Scheme's assets.
Defined benefit plan overview
The scheme provides retirement benefits to eligible employees of the company and their dependants. Benefits are also paid when employees die before retirement age whilst in the company's service. The scheme's regulatory framework includes Pensions Acts, Occupational Pension Schemes Regulations, the applicable financial reporting frameworks for both UK GAAP and Pensions SORP, The Pensions Regulator, its Declaration of Trust and scheme rules.
Actuarial assumptions
Principal actuarial assumptions at the reporting date, expressed as weighted averages, are:
2023 2022
Discount rate at 31 December 4.35% 4.75%
Future salary increases 3.25% 3.1%
Future pension increases 3.7% 3.55%
Inflation assumption (CPI) 2.45% 2.3%
Commutation of pensions to lump sums 25% 25%
Assumptions relating to longevity underlying the pension liabilities at the reporting date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65-year old to live for a number of years as follows:
žCurrent pensioner aged 65: 21.4 years male (2022: 22.2), 23.9 years female (2022: 24.6)
žFuture retiree upon reaching 65: 22.6 years male (2022: 23.5), 25.3 years female (2022: 26.0)
Sensitivity analysis
The calculation of the defined benefit obligation is sensitive to the assumptions set out above. The following table summarises how the impact on the defined benefit obligation at the end of the reporting period would have increased (decreased) as a result of an increase in the respective assumptions by one quarter of a percent:
2023 2022
£'000 £'000
Discount rate increases (470) (550)
Future salary increases 20 30
Inflation (RPI) 170 110
In valuing the liabilities of the pension fund at the year end, mortality assumptions have been made as indicated above. If life expectancy had been changed to assume that all members of the fund lived for one year longer, the value of the reported liabilities at the year end would have increased by £450,000 (2022:£500,000) before deferred tax.
The above sensitivities are based on the average duration of the benefit obligation determined at the date of the last full actuarial valuation at 1 April 2022 and are applied to adjust the defined benefit obligation at the end of the reporting period for the assumptions concerned. Whilst the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation to the sensitivity of the assumptions shown.
Funding
The company expects to pay £195,000 in contributions to its defined benefit plans next year. The weighted average duration of the defined benefit obligation at the end of the reporting period is 15 years (2022: 15 years).
As at the year end, the company is contractually obliged to a statutory funding objective of £1.0m, based on the 2022 actuarial valuation. The company has considered the Scheme rules with regard to IFRIC 14 and whilst the rules indicate that upon wind up the Trustees may increase the benefits to members up to the value of any overpayments made by the company, the rules also give the company the ability to prevent wind up of the scheme. In accordance with IFRIC 14, the company considers that it therefore maintains control over the distribution of any overpayments made, such that the net pension liability recognised remains in line with the actuarial assessment.
Defined contribution plans
The company operates a number of defined contribution pension plans. The total expense relating to these plans in the current year was £845,000 (2022: £776,000).
17 Share capital Nominal 2023 2023 2022
value Number £ £
Allotted, called up and fully paid:
Ordinary shares £1 each 250,000 250,000 250,000
The ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.
18 Profit and loss account 2023 2022
£ £
At 1 January (803,513) (5,577,310)
Profit for the financial year 3,550,676 2,796,297
Other comprehensive income (808,750) 1,977,500
At 31 December 1,938,413 (803,513)
19 Contingent liabilities
In the normal course of business, the company provides performance guarantees and advance payment guarantees to customers. Expiry dates vary, with the vast majority terminating by August 2026. As at the year end, such guarantees recorded at maximum liability values amounted to £59.4m (2022: £19.1m). The likelihood of any material discharge occurring in the foreseeable future is very low.
20 Related party transactions
The company is a wholly owned subsidiary of Swisslog Holding AG and ultimately Midea Group Co. Ltd. The company's results are included in the consolidated financial statements of Midea Group Co. Ltd and consequently the company has taken exemption under the terms of FRS101.8(k) from disclosing details of transactions with Midea Group Co. Ltd or other wholly owned entities that were members of the Midea Group Co. Ltd group.
21 Controlling party
The company is a subsidiary undertaking of ultimate parent company Midea Group Co. Ltd, incorporated in China. The largest group in which the results of the company are consolidated is that headed by Midea Group Co. Ltd. The consolidated financial statements of the group headed by Midea Group Co. Ltd are available from Midea Headquarters Building, No. 6 Midea Avenue, Beijiao Town, Shunde District, Foshan City, Guangdong Province, China. The smallest group in which the company is consolidated is that headed by KUKA Aktiengesellschaft, incorporated in Germany, the consolidated financial statements of which are available from Zugspitzstr. 140, 86165 Augsburg, Germany. The ultimate controlling party is considered to be Mr He Xiangjian, a domestic individual of The People's Republic of China.
22 Presentation currency
The financial statements are presented in Sterling.
23 Legal form of entity and country of incorporation
Swisslog (UK) Ltd is a private company limited by shares and incorporated in England.
24 Principal place of business
The address of the company's principal place of business and registered office is:
2 Brooklands
Moons Moat Drive
Redditch
Worcestershire
B98 9DW
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