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REGISTERED NUMBER: 00766637 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Heatrod Elements Limited

Heatrod Elements Limited (Registered number: 00766637)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Heatrod Elements Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: S Ellam
U C Fredriksson
H T Hansson





SECRETARY: Southampton Row Secretaries Limited





REGISTERED OFFICE: Unit 10 Top Deck
Smethurst Lane
Farnworth
Bolton
Lancashire
BL4 0AN





REGISTERED NUMBER: 00766637 (England and Wales)





AUDITORS: Haines Watts
Chartered Accountants &
Statutory Auditors
3rd Floor
56 Wellington Street
Leeds
West Yorkshire
LS1 2EE

Heatrod Elements Limited (Registered number: 00766637)

Strategic Report
for the Year Ended 31 December 2023

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

Principal activity

Heatrod Elements Ltd is a leading manufacturer of heating elements and process heating equipment.

REVIEW OF BUSINESS
Heatrod Elements Ltd is a leading manufacturer of heating elements and process heating equipment.

Overheads and staffing levels were actively managed to ensure costs were kept at expected levels, whilst allowing capacity for growth in our key revenue streams. Heatrod Elements Ltd had revenue growth across all key revenue streams.

Heatrod Elements Ltd achieved 16.16% sales growth, 2023 = £7691k, 2022 = £6621k.

Heatrod Elements Ltd achieved 1.75% revenue by employee growth 2023 = £116k, 2022 £114k.

The directors are satisfied with the performance.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's operations expose it to a variety of financial risks including the effects of changes in foreign currency exchange rates, interest rates on debt, credit risk and liquidity risk.

Ongoing supply chain and international pricing issues are actively monitored to ensure adequate stocking levels are met. Forward raw material prices are secured where possible to ensure the best price for our customers.

KEY FINANCIAL PERFORMANCE INDICATORS
Revenue by employee 2023 = £116k (2022 £114k).

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
o Credit risk
o Exchange rate risk

The company's credit risk is largely attributable to its trade receivables. This risk is managed by applying suitable credit limits to customers as recommended by external credit rating agencies. Customers are constantly monitored to limit exposure. The policy is to ensure adequate risk management of customers and prevent significant exposure.

Exchange risk is managed by constant review of the market exchange rates and mitigating the effects of adverse currency movements through the timing of buying and selling currencies.

ON BEHALF OF THE BOARD:





S Ellam - Director


2 August 2024

Heatrod Elements Limited (Registered number: 00766637)

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
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

S Ellam
U C Fredriksson
H T Hansson

FINANCIAL RISK MANAGEMENT
o Credit risk
o Exchange rate risk

The companies credit risk is largely attributable to its trade receivables. This risk is managed by applying suitable credit limits to customers as recommended by external credit rating agencies. Customers are constantly monitored to limit exposure. The policy is to ensure adequate risk management of customers and prevent significant exposure.

Exchange risk is managed by constant review of the market exchange rates and mitigating the effects of adverse currency movements through the timing of buying and selling currencies..

MATTERS COVERED IN THE STRATEGIC REPORT
Disclosures with regards to principle activity, review of the business, future developments, principle risks and uncertainties and financial and other key performance indicatiors are included within the strategic report.

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.

Heatrod Elements Limited (Registered number: 00766637)

Report of the Directors
for the Year Ended 31 December 2023


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.

ON BEHALF OF THE BOARD:





S Ellam - Director


2 August 2024

Report of the Independent Auditors to the Members of
Heatrod Elements Limited

Opinion
We have audited the financial statements of Heatrod Elements Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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.

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.

Report of the Independent Auditors to the Members of
Heatrod Elements Limited


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 three, 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
Heatrod Elements 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:

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management; and from our commercial knowledge and experience of the heating sector
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
- understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, including the impact on revenue recognition, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- used data analytics software to test journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosure to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


Report of the Independent Auditors to the Members of
Heatrod Elements Limited

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 Report of the Auditors.

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.




Matthew Barton BA (Hons) FCA CTA (Senior Statutory Auditor)
for and on behalf of Haines Watts
Chartered Accountants &
Statutory Auditors
3rd Floor
56 Wellington Street
Leeds
West Yorkshire
LS1 2EE

2 August 2024

Heatrod Elements Limited (Registered number: 00766637)

Statement of Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 4 7,691,138 6,621,250

Cost of sales 4,697,314 4,108,733
GROSS PROFIT 2,993,824 2,512,517

Distribution costs 115,455 103,598
Administrative expenses 2,433,889 2,186,044
2,549,344 2,289,642
444,480 222,875

Other operating income 409,750 229,028
OPERATING PROFIT 7 854,230 451,903

Income from shares in group
undertakings

-

130,000
Interest receivable and similar income 9,421 25
9,421 130,025
863,651 581,928

Interest payable and similar expenses 8 206,994 109,579
PROFIT BEFORE TAXATION 656,657 472,349

Tax on profit 9 (27,014 ) -
PROFIT FOR THE FINANCIAL YEAR 683,671 472,349

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

683,671

472,349

Heatrod Elements Limited (Registered number: 00766637)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 1,072,046 323,189
Tangible assets 11 638,304 645,724
Investments 12 1,675,463 1,675,076
3,385,813 2,643,989

CURRENT ASSETS
Stocks 13 2,817,843 2,509,483
Debtors 14 2,001,746 1,503,059
Cash at bank and in hand 61,769 36,377
4,881,358 4,048,919
CREDITORS
Amounts falling due within one year 15 2,961,866 2,525,474
NET CURRENT ASSETS 1,919,492 1,523,445
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,305,305

4,167,434

CREDITORS
Amounts falling due after more than one
year

16

(4,444,050

)

(3,984,850

)

PROVISIONS FOR LIABILITIES 19 (15,000 ) (20,000 )
NET ASSETS 846,255 162,584

CAPITAL AND RESERVES
Called up share capital 20 50,000 50,000
Retained earnings 21 796,255 112,584
SHAREHOLDERS' FUNDS 846,255 162,584

The financial statements were approved by the Board of Directors and authorised for issue on 2 August 2024 and were signed on its behalf by:





S Ellam - Director


Heatrod Elements Limited (Registered number: 00766637)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 50,000 (359,765 ) (309,765 )

Changes in equity
Total comprehensive income - 472,349 472,349
Balance at 31 December 2022 50,000 112,584 162,584

Changes in equity
Total comprehensive income - 683,671 683,671
Balance at 31 December 2023 50,000 796,255 846,255

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Heatrod Elements 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.

2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b)
and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7;
the requirements of paragraph 24(b) of IFRS 6.

This information is included in the consolidated statements of NIBE INdustrier AB as at 31 December 2023 and these financial statements may be obtained from Nibe Industrier AB, Hannabadsvagen 5, Markaryd, Sweden (visitors address), Box 14, SE 285 21, Markaryd, Sweden (postal address).

Exemption from preparing consolidated financial statements
The financial statements contain information about Heatrod Elements Limited as an individual company and so not contain consolidated financial information as the parent of a group. The company is exempt under Section 400/401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Nibe Industrier AB, whose registered office is: Hannabadsvägen 5, Markaryd, Sweden (visitors address), Box 14, SE 285 21, Markaryd, Sweden (postal address).

Going concern
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. Those forecasts are dependent on the continued provision of facilities and support from Backer AB. 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.

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

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

The whole of the turnover is attributable to the Company's principle activity being sales of electric heating components and finished products.

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

Sale of goods:

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

Goodwill
Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets, liabilities and contingent liabilities acquired.

Cost comprises the fair value of assets given, liabilities assumed and equity instruments issued.

When a business combination agreement provides for an adjustment to the cost of the combination which is contingent on future events, the Company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can measured reliably. However, if the potential adjustment is not recognised at the acquisition date but subsequently becomes probable and can be measured reliably, the additional consideration shall be treated as an adjustment to the cost of the combination. Changes in the estimated value of the contingent consideration arising on business combinations completed as a consequence result in a change in the carrying value of the related goodwill.

The estimated useful lives range as follows:

Goodwill - 10% straight line

Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the assets is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Intangible assets are considered to have a finite useful life of 7 years. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 1-10 years

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currency translation
Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

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.

Operating leases
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense.

Finance leases
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each year during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension plan
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.

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 in a separate entity. Once the contributions have been paid the Company has not further payment obligations.

The contribution are recognised as an expense in the Statement of comprehensive income 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.

Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense of the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Financial instruments
The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Financial assets are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Debtors
Short term debtors are measured at the 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.

Cash and cash equivalents

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

Creditors

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

Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an
expense in the period in which they are incurred.

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the
balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. 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:

2023 2022
£    £   
Sale of goods 7,691,138 6,621,250
7,691,138 6,621,250

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 6,920,483 6,120,136
Europe 465,830 290,753
Rest of World 304,825 210,361
7,691,138 6,621,250

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,815,464 1,606,570
Social security costs 168,634 146,147
Other pension costs 79,375 64,909
2,063,473 1,817,626

The average number of employees during the year was as follows:
2023 2022

67 58

6. DIRECTORS' REMUNERATION

2023 2022
£    £   
Directors' emoluments 118,029 131,536
Company contributions to defined contribution pension scheme 43,059 37,000
161,088 168,536

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

7. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery - 576
Other operating leases - 186,744
Depreciation - owned assets 113,671 126,076
Loss on disposal of fixed assets - 3,302
Goodwill amortisation 62,682 62,682
Patents and licences amortisation 10,751 7,400
Auditors' remuneration 9,925 9,450
Foreign exchange differences (15,779 ) 1,599
Other operating leases 260,656 -

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 206,994 109,579

9. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax (27,014 ) -
Tax on profit (27,014 ) -

UK corporation tax was charged at 19%) in 2022.

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TAXATION - continued

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 656,657 472,349
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

164,164

89,746

Effects of:
Expenses not deductible for tax purposes 2,920 301
Capital allowances in excess of depreciation - (12,164 )
Depreciation in excess of capital allowances 8,957 -
Utilisation of tax losses (168,134 ) (53,183 )
Adjustments to tax charge in respect of previous periods (21,107 ) -
Income from shares in group undertakings - (24,700 )
Change in tax rates (11,598 ) -
Allowed expenses (2,216 ) -
Total tax credit (27,014 ) -

Factors that may affect future tax charges

Deferred tax

The Company has unused tax losses of approximately £5,998,778 (2022: £6,724,123) available to carry forward against future trading profits. A potential deferred tax asset of £1,471,858, relating to tax losses, has not been recognised in these financial statements due to uncertainty as to its recoverability.

10. INTANGIBLE FIXED ASSETS
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 January 2023 626,820 37,000 663,820
Additions 810,227 12,063 822,290
At 31 December 2023 1,437,047 49,063 1,486,110
AMORTISATION
At 1 January 2023 312,231 28,400 340,631
Amortisation for year 62,682 10,751 73,433
At 31 December 2023 374,913 39,151 414,064
NET BOOK VALUE
At 31 December 2023 1,062,134 9,912 1,072,046
At 31 December 2022 314,589 8,600 323,189

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. TANGIBLE FIXED ASSETS
Plant and
machinery
£   
COST
At 1 January 2023 1,830,558
Additions 106,251
At 31 December 2023 1,936,809
DEPRECIATION
At 1 January 2023 1,184,834
Charge for year 113,671
At 31 December 2023 1,298,505
NET BOOK VALUE
At 31 December 2023 638,304
At 31 December 2022 645,724

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023 1,675,076
Additions 387
At 31 December 2023 1,675,463
NET BOOK VALUE
At 31 December 2023 1,675,463
At 31 December 2022 1,675,076

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Graybar Limited
Registered office: Unit 10 Top Deck, Smethurst Lane, Farnworth, Bolton, Lancashire, BL4 0AN
Nature of business: Manufacture of electronic industrial process
%
Class of shares: holding
Ordinary 100.00

E. Braude (London) Limited
Registered office: Unit 10 Top Deck, Smethurst Lane, Farnworth, Bolton, Lancashire, BL4 0AN
Nature of business: Manufacture of other electrical equipment
%
Class of shares: holding
Ordinary shares 100.00

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

13. STOCKS
2023 2022
£    £   
Raw materials 994,727 887,277
Work-in-progress 61,471 50,528
Finished goods 1,761,645 1,571,678
2,817,843 2,509,483

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,438,112 1,261,611
Amounts owed by group undertakings 376,437 124,350
Deferred tax asset 7,206 7,206
Prepayments and accrued income 179,991 109,892
2,001,746 1,503,059

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 957,424 742,385
Trade creditors 1,010,947 864,380
Amounts owed to group undertakings 394,902 475,713
Social security and other taxes 123,440 64,094
VAT 211,496 233,345
Other creditors (1,200 ) 1,184
Accruals and deferred income 264,857 144,373
2,961,866 2,525,474

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 17) 3,315,300 3,806,100
Other loans (see note 17) 1,128,750 178,750
4,444,050 3,984,850

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 957,424 742,385

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

17. LOANS - continued
2023 2022
£    £   
Amounts falling due between two and five years:
Bank loans - 2-5 years 3,315,300 3,806,100
Other loans - 2-5 years 1,128,750 178,750
4,444,050 3,984,850

The loans are secured against the assets of the company.

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 200,894 182,637
Between one and five years 728,975 567,266
In more than five years - 137,142
929,869 887,045

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Other provisions
Warranty provision 15,000 20,000

Deferred Other
tax provisions
£    £   
Balance at 1 January 2023 (7,206 ) 20,000
Credit to Statement of Comprehensive Income during year - (5,000 )
Balance at 31 December 2023 (7,206 ) 15,000

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
50,000 Ordinary 1 50,000 50,000

21. RESERVES
Retained
earnings
£   

At 1 January 2023 112,584
Profit for the year 683,671
At 31 December 2023 796,255

Heatrod Elements Limited (Registered number: 00766637)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

22. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 246,354 (2022 - £ 224,280 ) was paid.

No transactions with related parties were undertaken such as are required to be disclosed under FRS 102.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

23. PENSION COMMITMENTS

The Company operates a defined contribution pension plan.

The total expense relating to this plan in the current year was £79,375 (2022: £64,909)

24. CONTROLLING PARTY

The Company is a subsidiary undertaking of Backer AB. The ultimate controlling party is Nibe Industrier AB.

The largest an smallest group in which the results of the Company are consolidated is that headed by Nibe Industrier AB. No other group financial statements include the results of the Company. The consolidated financial statements of these groups are available to the public and may be obtained from Nibe Industrier AB, Hannabadsvägen 5, Markaryd, Sweden (visitors address), Box 14, SE 285 21, Markaryd, Sweden (postal address).