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Registered number: 02853384










SCHLUTER SYSTEMS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
SCHLUTER SYSTEMS LIMITED
 

COMPANY INFORMATION


Directors
M Schlüter 
U Schlüter 
J Backes 




Registered number
02853384



Registered office
Units 3-6 Bardon 22 Industrial Estate
Bardon Hill

Coalville

Leicestershire

LE67 1TE




Independent auditors
PKF Smith Cooper Audit Limited

2 Lace Market Square

Nottingham

NG1 1PB




Solicitors
Ashfords
Ashfords House

Grenadier Road

Exeter

EX1 3LH





 
SCHLUTER SYSTEMS LIMITED
 

CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Statement of Cash Flows
11
Analysis of Net Debt
12
Notes to the Financial Statements
13 - 25


 
SCHLUTER SYSTEMS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their strategic report for year ended 31 December 2023.
In line with the long-term strategy, the company has again been focussing on product and service solutions for premium tile and stone applications in domestic and commercial buildings. The company has continued to provide best in class products, services and in particular education/training to our customer base either at our Education Centre or in the field. With the launch of new and innovative products and services, a stable, well-educated and engaged (motived) workforce Schlüter Systems Limited remains to be seen as one of the leading companies in its industry.

Business review
 
The Directors consider 2023 as a very positive result for the company with a strong sales performance of £12,168k (2022: £12,095k). The project pipeline for the next 3 years remains healthy. In line with the above mentioned indicators, stock levels decreased slightly in 2023 to £1,237k (2022: £1,501k). Profit before tax amounted to £608k (2022: £792k), down slightly from the previous year.

Principal risks and uncertainties
 
For 2024, the Directors of Schlüter Systems Limited remain optimistic, with regards to their expectations for turnover. As in previous years the Company is committed to its long-term strategy and will continue to provide new and existing innovative products and services which the Company considers to be the best solutions for its customers in their premium tile and stone applications. 
However, trading in 2024 is still being affected by the war in Ukraine, with raw material shortages and increases in the cost of those materials in the construction industry. The cost of energy has reduced, compared to 2023, but is still higher than before the war. 
The Directors expect ongoing exchange rate volatility. However, at the same time, the Directors remain optimistic that they have taken the right measures to minimise the effects on sales and margins in 2024.


This report was approved by the board on 1 August 2024 and signed on its behalf.



................................................
J Backes
Director

Page 1

 
SCHLUTER SYSTEMS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £364,963 (2022 - £604,223).

No dividends have been recommended.

Directors

The Directors who served during the year were:

M Schlüter 
U Schlüter 
J Backes 

Disclosure of information to auditors

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

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

Post balance sheet events

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

Page 2

 
SCHLUTER SYSTEMS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 1 August 2024 and signed on its behalf.
 





................................................
J Backes
Director

Page 3

 
SCHLUTER SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCHLUTER SYSTEMS LIMITED
 

Opinion


We have audited the financial statements of Schluter Systems Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

 
SCHLUTER SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCHLUTER SYSTEMS LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 5

 
SCHLUTER SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCHLUTER SYSTEMS LIMITED (CONTINUED)


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 an Auditors' 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:

Based on our understanding of the company and industry, we identify the key laws and regulations affecting the company. We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
• Management bias in respect of accounting estimates and judgements made;
• Management override of control;
• Posting of unusual journals or transactions.
We focussed on those areas that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:
• Enquiry of management and those charged with governance around actual and potential litigation and    claims, including instances of non-compliance with laws and regulations and fraud;
• Reviewing minutes of meetings of those charged with governance where available;
• Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations   and fraud;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance   with applicable laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries  and other adjustments for appropriateness, evaluating the business rationale of significant transactions    outside the normal course of business and reviewing accounting estimates for bias.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 6

 
SCHLUTER SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCHLUTER SYSTEMS LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.





Sarah Flear (Senior Statutory Auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Statutory Auditors
2 Lace Market Square
Nottingham
NG1 1PB

2 August 2024
Page 7

 
SCHLUTER SYSTEMS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,168,128
12,095,264

Cost of sales
  
(6,304,602)
(6,360,842)

Gross profit
  
5,863,526
5,734,422

Administrative expenses
  
(5,194,308)
(5,049,217)

Other operating income
 5 
138
1,305

Gains/(losses) on financial instruments
  
(41,139)
103,658

Operating profit
 6 
628,217
790,168

Interest receivable and similar income
  
24,053
9,071

Interest payable and similar expenses
  
(44,140)
(7,555)

Profit before tax
  
608,130
791,684

Tax on profit
 10 
(243,167)
(187,461)

Profit for the financial year
  
364,963
604,223

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 25 form part of these financial statements.

Page 8

 
SCHLUTER SYSTEMS LIMITED
REGISTERED NUMBER: 02853384

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
4,731,677
1,013,468

Investments
 12 
8,890
8,890

  
4,740,567
1,022,358

Current assets
  

Stocks
 13 
1,237,273
1,501,012

Debtors: amounts falling due within one year
 14 
2,072,142
2,151,889

Cash at bank and in hand
 15 
2,995,403
3,078,852

  
6,304,818
6,731,753

Creditors: amounts falling due within one year
 16 
(2,406,235)
(1,706,573)

Net current assets
  
 
 
3,898,583
 
 
5,025,180

Total assets less current liabilities
  
8,639,150
6,047,538

Creditors: amounts falling due after more than one year
  
(2,003,767)
-

Provisions for liabilities
  

Deferred tax
 20 
(222,882)
-

  
 
 
(222,882)
 
 
-

Net assets
  
6,412,501
6,047,538


Capital and reserves
  

Called up share capital 
 21 
100,000
100,000

Profit and loss account
 22 
6,312,501
5,947,538

  
6,412,501
6,047,538


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 August 2024.




................................................
J Backes
Director

The notes on pages 13 to 25 form part of these financial statements.

Page 9

 
SCHLUTER SYSTEMS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
100,000
5,343,315
5,443,315


Comprehensive income for the year

Profit for the year
-
604,223
604,223



At 1 January 2023
100,000
5,947,538
6,047,538


Comprehensive income for the year

Profit for the year
-
364,963
364,963


At 31 December 2023
100,000
6,312,501
6,412,501


The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
SCHLUTER SYSTEMS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
364,963
604,223

Adjustments for:

Depreciation of tangible assets
148,751
271,021

Interest paid
44,140
7,555

Interest received
(24,053)
(9,071)

Taxation charge
243,167
187,461

Decrease/(increase) in stocks
263,739
(65,197)

(Increase)/decrease in debtors
(48,764)
150,102

Increase/(decrease) in creditors
352,971
(307,013)

(Decrease)/increase in amounts owed to groups
(42,601)
12,952

Net fair value losses/(gains) recognised in P&L
41,139
(103,658)

Corporation tax received/(paid)
20,714
(35,960)

Net cash generated from operating activities

1,364,166
712,415


Cash flows from investing activities

Purchase of tangible fixed assets
(3,866,960)
(835,614)

Interest received
24,053
9,071

Net cash from investing activities

(3,842,907)
(826,543)

Cash flows from financing activities

Other new loans
2,579,923
-

Repayment of loans
(140,491)
-

Interest paid
(44,140)
(7,555)

Net cash used in financing activities
2,395,292
(7,555)

Net (decrease) in cash and cash equivalents
(83,449)
(121,683)

Cash and cash equivalents at beginning of year
3,078,852
3,200,535

Cash and cash equivalents at the end of year
2,995,403
3,078,852


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,995,403
3,078,852

2,995,403
3,078,852


The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
SCHLUTER SYSTEMS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023






At 1 January 2023
Cash flows
New finance leases
Other non-cash changes
At 31 December 2023
£

£

£

£

£

Cash at bank and in hand

3,078,852

(83,449)

-

-

2,995,403

Debt due after 1 year

-

-

(2,003,767)

-

(2,003,767)

Debt due within 1 year

-

140,491

(544,903)

(31,253)

(435,665)

Financial instruments

38,407

-

-

(41,139)

(2,732)


The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
SCHLUTER SYSTEMS LIMITED
 

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

1.


General information

Schluter Systems Limited is a private Company limited by shares incorporated in England within the United Kingdom. The address of the registered office is the same as the place of business being Units 3-6 Bardon 22 Industrial Estate, Bardon Hill, Coalville, Leicestershire, LE67 1TE. The company’s registration number is 02853384.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

Bardon 22 (2008) Limited is not controlled by Schluter Systems Ltd and is therefore not considered a subsidiary for the purposes of consolidation. As Bardon 22 (2008) Limited is not considered material to the financial statements, no subsidiary results have been included in these financial statements.

 
2.3

Going concern

In preparing the financial statements on a going concern basis, the Directors have paid due regard to relevant forecast financial information, including cash flows, and factored in sensitivities and uncertainties affecting the Company. Unwavering support has also been confirmed from shareholders of the parent and other Group Companies. In the Directors’ opinion, the Company is a going concern for a minimum of twelve months from the date of the approval of the financial statements.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Page 13

 
SCHLUTER SYSTEMS LIMITED
 

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

2.Accounting policies (continued)

 
2.5

Revenue

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts.  The policies adopted for the recognition of turnover are as follows:
Sale of goods
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.  This is usually on  dispatch of the goods.

 
2.6

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

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

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

Page 14

 
SCHLUTER SYSTEMS LIMITED
 

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

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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

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

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

 
2.12

Tangible fixed assets

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

Depreciation is provided on the following basis:

Short-term leasehold property
-
10% straight line on original building, improvements over the lease term
Plant and machinery
-
25% and 50% straight line
Fixtures and fittings
-
25% and 50% straight line
Software
-
33% straight line
Computer equipment
-
25% straight line
Assets under construction
-
no depreciation until in use

 
2.13

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

 
2.15

Debtors and creditors receivable/payable within one year

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

Page 15

 
SCHLUTER SYSTEMS LIMITED
 

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

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

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

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.17

Provisions for liabilities

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

 
2.18

Derivatives

Derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss.
At the year end, the company had forward currency contracts in existence. The fair value of those instruments has been estimated with reference to the year end market spot rate. Any gains or losses have been recognised in the profit and loss account and no hedge accounting has been applied. 


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Financial instruments - fair values have been estimated at the amount the Company would expect to receive or pay to terminate the forward contracts at the balance sheet date based on prevailing foreign currency rates. 

Page 16

 
SCHLUTER SYSTEMS LIMITED
 

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

4.


Turnover

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


2023
2022
£
£

Sales
12,168,128
12,095,264


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
12,052,734
11,939,764

Rest of Europe
115,394
155,500

12,168,128
12,095,264



5.


Other operating income

2023
2022
£
£

Other operating income
138
1,305



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
148,751
271,021

Exchange differences
8,059
27,001

Other operating lease rentals
541,853
470,877


7.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
9,000
8,500

Page 17

 
SCHLUTER SYSTEMS LIMITED
 

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

8.


Employees

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


2023
2022
£
£

Wages and salaries
2,340,232
2,285,651

Social security costs
255,706
262,881

Cost of defined contribution scheme
169,673
158,754

2,765,611
2,707,286


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


        2023
        2022
            No.
            No.







Average employees
52
50


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
239,675
227,259

Company contributions to defined contribution pension schemes
45,440
42,987

285,115
270,246


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

The highest paid Director received remuneration of £239,675 (2022 - £227,259).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £45,440 (2022 - £42,987).

The total accrued pension provision of the highest paid Director at 31 December 2023 amounted to £NIL (2022 - £NIL).

Page 18

 
SCHLUTER SYSTEMS LIMITED
 

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

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
276,907

Adjustments in respect of previous periods
(69,817)
1,628


(69,817)
278,535


Total current tax
(69,817)
278,535

Deferred tax


Origination and reversal of timing differences
312,984
(91,074)

Total deferred tax
312,984
(91,074)


Taxation on profit on ordinary activities
243,167
187,461

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
608,130
791,684


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
143,032
150,420

Effects of:


Expenses not deductible for tax purposes
70,913
93,292

Capital allowances for year in excess of depreciation
(326)
33,195

Adjustments to tax charge in respect of prior periods - deferred tax
85,717
-

Adjustments to tax charge in respect of prior periods
(69,817)
1,628

Remeasurement of deferred tax forchanges in tax rates
13,448
-

Short term timing difference leading to an increase/(decrease) in taxation
200
(91,074)

Total tax charge for the year
243,167
187,461

Page 19

 
SCHLUTER SYSTEMS LIMITED
 

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

11.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Fixtures and fittings
Software
Computer equipment
Assets under construction
Total

£
£
£
£
£
£
£



Cost


At 1 January 2023
2,439,805
175,094
853,019
346,522
608,233
906,031
5,328,704


Additions
-
-
39,455
2,983
81,452
3,743,070
3,866,960


Transfers between classes
4,649,101
-
-
-
-
(4,649,101)
-



At 31 December 2023

7,088,906
175,094
892,474
349,505
689,685
-
9,195,664



Depreciation


At 1 January 2023
2,417,899
163,606
843,425
329,729
560,577
-
4,315,236


Charge for the year on owned assets
94,211
5,001
6,425
10,437
32,677
-
148,751



At 31 December 2023

2,512,110
168,607
849,850
340,166
593,254
-
4,463,987



Net book value



At 31 December 2023
4,576,796
6,487
42,624
9,339
96,431
-
4,731,677



At 31 December 2022
21,906
11,488
9,594
16,793
47,656
906,031
1,013,468

Page 20

 
SCHLUTER SYSTEMS LIMITED
 

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

12.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 January 2023
8,890



At 31 December 2023
8,890






Net book value



At 31 December 2023
8,890



At 31 December 2022
8,890


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Bardon 22 (2008) Ltd
Units 3-6 Bardon 22 Industrial Estate, Bardon Hill, Coalville, Leicestershire, LE67 1TE
Ordinary
50%

The aggregate of the share capital and reserves and profit or loss for the subsidiary as at 31 December 2023 were immaterial to the financial statements and have not been disclosed.


13.


Stocks

2023
2022
£
£

Finished goods and goods for resale
1,237,273
1,501,012






 

Page 21

 
SCHLUTER SYSTEMS LIMITED
 

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

14.


Debtors

2023
2022
£
£


Trade debtors
1,837,015
1,798,785

Prepayments and accrued income
235,127
224,595

Deferred taxation
-
90,102

Financial instruments
-
38,407

2,072,142
2,151,889



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,995,403
3,078,852



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Other loans
435,665
-

Trade creditors
539,078
170,533

Amounts owed to group undertakings
278,127
320,728

Corporation tax
227,804
276,907

Other taxation and social security
221,273
171,320

Other creditors
31,042
6,247

Accruals and deferred income
670,514
760,838

Financial instruments
2,732
-

2,406,235
1,706,573



17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
2,003,767
-


Page 22

 
SCHLUTER SYSTEMS LIMITED
 

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

18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Other loans
435,665
-

Amounts falling due 1-2 years

Other loans
460,239
-

Amounts falling due 2-5 years

Other loans
1,543,528
-


2,439,432
-



19.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at amortised cost through profit or loss
1,837,015
1,798,785

Derivative financial instruments measured at fair value through profit or loss
-
38,407

1,837,015
1,837,192


Financial liabilities


Derivative financial instruments measured at fair value through profit or loss
(2,732)
-

Financial liabilities measured at amortised cost through profit or loss
(3,287,679)
(497,508)

(3,290,411)
(497,508)


Financial assets that are debt instruments measured at amortised cost comprise trade debtors.


Derivative financial instruments measured at fair value through profit or loss comprise forward contracts for foreign currencies.


Financial liabilities measured at amortised cost comprise amounts owed to group undertakings, trade creditors, other creditors and other loans.

Page 23

 
SCHLUTER SYSTEMS LIMITED
 

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

20.


Deferred taxation




2023


£






At beginning of year
90,102


Credited to profit or loss
(312,984)



At end of year
(222,882)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(457,803)
30,602

Other provisions
46,776
59,500

Losses and other deductions
188,145
-

(222,882)
90,102


21.


Share capital

2023
2022
£
£
Authorised, allotted, called up and fully paid



100,000 (2022 - 100,000) Ordinary shares of £1.00 each
100,000
100,000



22.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.


23.


Capital commitments


At 31 December 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
194,394
2,941,356

Page 24

 
SCHLUTER SYSTEMS LIMITED
 

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

24.


Pension commitments

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £169,673 (2022: £158,754).
Contributions totalling £nil (2022: £nil) were payable to the scheme at the end of the year and are included in accruals.


25.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
536,704
446,564

Later than 1 year and not later than 5 years
1,638,240
1,457,249

Later than 5 years
1,317,309
1,672,771

3,492,253
3,576,584


26.


Related party transactions

The company purchased goods from a related party amounting to £5,871,617 (2022: £5,605,417). The balance owing to this related party within amounts owed to group undertakings totals £278,127 (2022: £320,728).
Rents payable to directors totalled £285,000 (2022: £285,000).
Included in creditors within other loans is an amount due to a related party totalling £2,439,432. Repayments were made during the year of £140,491 and interest accrued totalling £23,505.
All directors of the company who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £285,115 (2022: £270,246).


27.


Controlling party

The immediate parent undertaking is S GB H GmbH, a Company incorporated in Germany, which is itself under the direct control of Schlueter Handels- und Beteiligungs-Kommanditgesellschaft, also incorporated in Germany. No publicly available group financial statements are prepared.


Page 25