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REGISTERED NUMBER: 08504795 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Statement of Income and Retained Earnings 10

Statement of Financial Position 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 14 to 21


VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: S Juszczyk
P L Van Merksteijn
M P Brookes





REGISTERED OFFICE: C/o DPC Accountants
Stone House
Stone Road Business Park
Stoke on Trent
Staffordshire
ST4 6SR





BUSINESS ADDRESS: Unit 6 Weston Hall Commercial Complex
Main Road
Weston
Crewe
Cheshire
CW2 5ND





REGISTERED NUMBER: 08504795 (England and Wales)





AUDITORS: DPC Accountants Ltd
Chartered accountants & statutory auditors
Stone House
Stone Road Business Park
Stoke-On-Trent
ST4 6SR

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

The principal activity of the company is the wholesale distribution of steel mesh fencing systems to the UK and Irish market.

REVIEW OF BUSINESS
In spite of the challenges faced by increased overseas and domestic competition, the directors are of the opinion that the company has produced another set of pleasing results for the financial year to 31 December 2023.

Whilst turnover for the year of £13.1m (2022: £15.3m) represents a 14.4% decrease on the previous 12 months, tight control over raw material and other direct costs, together with effective stock holding management, resulted in an increase in gross profit margins to 27.2% (2022: 26.7%).

The directors continue to steer the business and seek to maintain market share with an ethos of exceptional product quality, customer service and 'just in time' availability and supply of full fencing systems.

The following measures are the Key Performance Indicators against which the performance of the business is measured:


2023 2022
Turnover (£'000) 13,115 15,339
Gross Profit Margin % 27.2% 26.7%
EBITDA % 20.3% 21.3%
Current Ratio 14:1 9:1

With strong liquidity the business is in a strong position to face any further challenges in the new financial year.


VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company's operations expose it to a variety of financial issues including the effects of changes in market prices, credit risk and the impact of worldwide developments.

Price Risk
The steel fencing market is very competitive in nature and the availability of raw materials and consequent volatility of raw material prices exposes the company to margin reductions, and the market to new entrants, particularly from overseas. The directors consider, however, that they are close enough to the market to enable them to react quickly to price changes and competitive attacks and are therefore able to effectively manage any impact to the company's performance.

Credit Risk
Credit risk is managed through the company's policy of applying appropriate credit checks to all potential customers and obtaining credit insurance cover prior to agreeing any sales.

Economic & Political Risk
Supply and demand volatility is likely to continue whilst there is so much turbulence in the world markets. The ongoing Ukraine and Russian war, together with other potential emerging conflicts, can impact the supply chain to both the UK and worldwide.

The directors continue to monitor all situations and assess any impact to the company's continued performance. Strategies are re-assessed accordingly to mitigate any risks posed.

ON BEHALF OF THE BOARD:





S Juszczyk - Director


25 March 2024

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £1,500,000 (2022: £Nil)

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
S Juszczyk has held office during the whole of the period from 1 January 2023 to the date of this report.

Other changes in directors holding office are as follows:

R B J Echtermeijer - resigned 1 January 2023
P L Van Merksteijn - appointed 1 January 2023
M P Brookes - appointed 27 July 2023

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 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, incorporating the future developments of the business.

The strategic report can be found on page 2 of these financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

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

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





S Juszczyk - Director


25 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED


Opinion
We have audited the financial statements of VAN MERKSTEIJN FENCING SYSTEMS UK LIMITED (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED


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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information.

Audit response to risks identified

As a result of performing the above, we did not identify any key audit matters related to the potential risk of
fraud or irregularities.

Our procedures to identify any potential fraud or irregularities are as follows:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED


Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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




Helen Tidyman (Senior Statutory Auditor)
for and on behalf of DPC Accountants Ltd
Chartered accountants & statutory auditors
Stone House
Stone Road Business Park
Stoke-On-Trent
ST4 6SR

26 March 2024

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 3 13,115,271 15,339,971

Cost of sales (9,549,307 ) (11,246,476 )
GROSS PROFIT 3,565,964 4,093,495

Administrative expenses (933,848 ) (855,600 )
OPERATING PROFIT 5 2,632,116 3,237,895

Interest receivable and similar income 8,929 -
2,641,045 3,237,895

Interest payable and similar expenses 6 (1,480 ) (3,332 )
PROFIT BEFORE TAXATION 2,639,565 3,234,563

Tax on profit 7 (621,522 ) (619,753 )
PROFIT FOR THE FINANCIAL YEAR 2,018,043 2,614,810

Retained earnings at beginning of year 4,882,715 2,267,905

Dividends 8 (1,500,000 ) -

RETAINED EARNINGS AT END OF
YEAR

5,400,758

4,882,715

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   
FIXED ASSETS
Tangible assets 9 107,884 126,931

CURRENT ASSETS
Stocks 10 947,236 1,557,768
Debtors 11 2,188,297 2,870,071
Cash at bank 2,589,619 946,677
5,725,152 5,374,516
CREDITORS
Amounts falling due within one year 12 (405,207 ) (586,899 )
NET CURRENT ASSETS 5,319,945 4,787,617
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,427,829

4,914,548

PROVISIONS FOR LIABILITIES 15 (26,971 ) (31,733 )
NET ASSETS 5,400,858 4,882,815

CAPITAL AND RESERVES
Called up share capital 16 100 100
Retained earnings 17 5,400,758 4,882,715
SHAREHOLDERS' FUNDS 5,400,858 4,882,815

The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2024 and were signed on its behalf by:





S Juszczyk - Director


VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,768,621 1,923,321
Interest paid (1,480 ) (3,332 )
Tax paid (622,163 ) (999,852 )
Net cash from operating activities 3,144,978 920,137

Cash flows from investing activities
Purchase of tangible fixed assets (8,391 ) (64,889 )
Sale of tangible fixed assets 62 66
Interest received 6,293 -
Net cash from investing activities (2,036 ) (64,823 )

Cash flows from financing activities
Equity dividends paid (1,500,000 ) -
Net cash from financing activities (1,500,000 ) -

Increase in cash and cash equivalents 1,642,942 855,314
Cash and cash equivalents at
beginning of year

2

946,677

91,363

Cash and cash equivalents at end of
year

2

2,589,619

946,677

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 2,639,565 3,234,563
Depreciation charges 27,354 24,083
Loss/(profit) on disposal of fixed assets 22 (9 )
Finance costs 1,480 3,332
Finance income (8,929 ) -
2,659,492 3,261,969
Decrease in stocks 610,532 281,077
Decrease in trade and other debtors 680,289 769,350
Decrease in trade and other creditors (181,692 ) (2,389,075 )
Cash generated from operations 3,768,621 1,923,321

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 2,589,619 946,677
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 946,677 91,363


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 946,677 1,642,942 2,589,619
946,677 1,642,942 2,589,619
Total 946,677 1,642,942 2,589,619

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

VAN MERKSTEIJN FENCING SYSTEMS UK LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

SIGNIFICANT JUDGEMENTS AND ESTIMATES
(a) Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See tangible assets note for the carrying amount of the assets and the accounting policy for the useful economic lives for each class of assets.

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See debtors note for the net carrying amount of the debtors.

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

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

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

Short leasehold - 33% on a straight-line basis over 3 years
Fixtures and Fittings - 20% on reducing balance & 20% straight line
Plant and Machinery - 20% on reducing balance

Impairment of Fixed Assets

A review for indicators of impairment is carried out at each reporting date, with recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purpose of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash- generating unit to which the asset belongs. The cash- generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or group of assets.

STOCKS
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

FINANCIAL INSTRUMENTS
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.


VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HIRE PURCHASE AND LEASING COMMITMENTS
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.23 31.12.22
£    £   
Sale of goods 13,115,271 15,339,971
13,115,271 15,339,971

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 12,224,528 14,254,745
Europe 890,743 1,085,226
13,115,271 15,339,971

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 469,217 431,862
Social security costs 45,845 41,892
Other pension costs 13,741 13,123
528,803 486,877

The average number of employees during the year was as follows:
31.12.23 31.12.22

Total number of staff 11 11

31.12.23 31.12.22
£ £
Director's remuneration 142,976 81,059

In addition to the directors remuneration above, the directors received additional benefits of £10,723 (2022: £12,929).

5. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Hire of plant and machinery 815 9,010
Other operating leases 161,564 146,262
Depreciation - owned assets 27,354 24,084
Loss/(profit) on disposal of fixed assets 22 (9 )
Auditors' remuneration 9,875 6,950

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank interest 143 17
Interest on overdue tax 1,337 3,315
1,480 3,332

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 626,764 604,395
Over/Under provision of Tax (480 ) -
Total current tax 626,284 604,395

Deferred tax (4,762 ) 15,358
Tax on profit 621,522 619,753

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 2,639,565 3,234,563
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

620,826

614,567

Effects of:
Expenses not deductible for tax purposes 1,442 754
Depreciation in excess of capital allowances - 4,432
Future changes in tax rates (266 ) -
Adjustments in respect of prior years (480 ) -
Total tax charge 621,522 619,753

8. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary Shares shares of £1 each
Interim 1,500,000 -

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


9. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and
leasehold machinery fittings Totals
£    £    £    £   
COST
At 1 January 2023 5,381 187,295 37,479 230,155
Additions 2,502 258 5,631 8,391
Disposals - - (3,857 ) (3,857 )
At 31 December 2023 7,883 187,553 39,253 234,689
DEPRECIATION
At 1 January 2023 2,426 76,365 24,433 103,224
Charge for year 1,717 22,220 3,417 27,354
Eliminated on disposal - - (3,773 ) (3,773 )
At 31 December 2023 4,143 98,585 24,077 126,805
NET BOOK VALUE
At 31 December 2023 3,740 88,968 15,176 107,884
At 31 December 2022 2,955 110,930 13,046 126,931

10. STOCKS
31.12.23 31.12.22
£    £   
Finished goods 947,236 1,557,768

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 2,092,937 2,775,384
Other debtors 33,649 37,402
Tax 3,484 7,605
Prepayments 58,227 49,680
2,188,297 2,870,071

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 152,038 130,451
Amounts owed to group undertakings 7,565 230,551
Social security and other taxes 10,477 10,768
VAT 70,113 94,237
Accruals and deferred income 165,014 120,892
405,207 586,899

Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 51,801 162,675
Between one and five years 25,219 77,020
77,020 239,695

14. SECURED DEBTS

There is a charge dated 17 November 2023 in favour of Barclays Security Trustee Limited, containing a fixed charge, floating charge and negative pledge.

There is also a charge dated 11 August 2021 in favour of Ing Commercial Finance B.V. containing a fixed charge, floating charge, and negative pledge. The floating charge covers all the property or undertaking of the company.

15. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax
Accelerated capital allowances 26,971 31,733

Deferred
tax
£   
Balance at 1 January 2023 31,733
Accelerated capital allowances (4,762 )
Balance at 31 December 2023 26,971

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
100 Ordinary Shares £1 100 100

17. RESERVES
Retained
earnings
£   

At 1 January 2023 4,882,715
Profit for the year 2,018,043
Dividends (1,500,000 )
At 31 December 2023 5,400,758

VAN MERKSTEIJN FENCING SYSTEMS UK
LIMITED (REGISTERED NUMBER: 08504795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


18. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption from the disclosures required by paragraph 33.1A of Financial Reporting Standard 102 regarding transactions between fellow group companies.

All transactions undertaken with the directors are deemed to be conducted under normal market conditions and/or are not material.

19. POST BALANCE SHEET EVENTS

There were no material events up to the date of approval of the financial statements by the board.

20. ULTIMATE CONTROLLING PARTY

The company's ultimate parent undertaking is P.L. van Merksteijn Beheer BV, a company incorporated in the Netherlands. A copy of the consolidated financial statements can be obtained from the registered office being; Bedrijvenpark Twente 237, 7602KJ, Almelo.

The ultimate controlling party is Mr P L van Merksteijn by virtue of his controlling interest in P.L. van Merksteijn Beheer BV.