Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-312023-04-01Manufacture of bearings, gears, gearing and driving elementsfalsefalsefalse5352false 07397993 2023-04-01 2024-03-31 07397993 2022-04-01 2023-03-31 07397993 2024-03-31 07397993 2023-03-31 07397993 2022-04-01 07397993 1 2023-04-01 2024-03-31 07397993 1 2022-04-01 2023-03-31 07397993 d:Director1 2023-04-01 2024-03-31 07397993 d:Director2 2023-04-01 2024-03-31 07397993 d:Director3 2023-04-01 2024-03-31 07397993 d:Director4 2023-04-01 2024-03-31 07397993 d:RegisteredOffice 2023-04-01 2024-03-31 07397993 e:PlantMachinery 2023-04-01 2024-03-31 07397993 e:PlantMachinery 2024-03-31 07397993 e:PlantMachinery 2023-03-31 07397993 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 07397993 e:ComputerEquipment 2023-04-01 2024-03-31 07397993 e:ComputerEquipment 2024-03-31 07397993 e:ComputerEquipment 2023-03-31 07397993 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 07397993 e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 07397993 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-03-31 07397993 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-03-31 07397993 e:Goodwill 2023-04-01 2024-03-31 07397993 e:Goodwill 2024-03-31 07397993 e:Goodwill 2023-03-31 07397993 e:CurrentFinancialInstruments 2024-03-31 07397993 e:CurrentFinancialInstruments 2023-03-31 07397993 e:Non-currentFinancialInstruments 2024-03-31 07397993 e:Non-currentFinancialInstruments 2023-03-31 07397993 e:CurrentFinancialInstruments e:WithinOneYear 2024-03-31 07397993 e:CurrentFinancialInstruments e:WithinOneYear 2023-03-31 07397993 e:Non-currentFinancialInstruments e:AfterOneYear 2024-03-31 07397993 e:Non-currentFinancialInstruments e:AfterOneYear 2023-03-31 07397993 f:UnitedKingdom 2023-04-01 2024-03-31 07397993 f:UnitedKingdom 2022-04-01 2023-03-31 07397993 f:RestWorldOutsideUK 2023-04-01 2024-03-31 07397993 f:RestWorldOutsideUK 2022-04-01 2023-03-31 07397993 e:UKTax 2023-04-01 2024-03-31 07397993 e:UKTax 2022-04-01 2023-03-31 07397993 e:ShareCapital 2023-04-01 2024-03-31 07397993 e:ShareCapital 2024-03-31 07397993 e:ShareCapital 2022-04-01 2023-03-31 07397993 e:ShareCapital 2023-03-31 07397993 e:ShareCapital 2022-04-01 07397993 e:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 07397993 e:RetainedEarningsAccumulatedLosses 2024-03-31 07397993 e:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 07397993 e:RetainedEarningsAccumulatedLosses 2023-03-31 07397993 e:RetainedEarningsAccumulatedLosses 2022-04-01 07397993 e:AcceleratedTaxDepreciationDeferredTax 2024-03-31 07397993 e:AcceleratedTaxDepreciationDeferredTax 2023-03-31 07397993 e:OtherDeferredTax 2024-03-31 07397993 e:OtherDeferredTax 2023-03-31 07397993 d:OrdinaryShareClass1 2023-04-01 2024-03-31 07397993 d:OrdinaryShareClass1 2024-03-31 07397993 d:OrdinaryShareClass1 2023-03-31 07397993 d:FRS102 2023-04-01 2024-03-31 07397993 d:Audited 2023-04-01 2024-03-31 07397993 d:FullAccounts 2023-04-01 2024-03-31 07397993 d:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 07397993 e:Subsidiary1 2023-04-01 2024-03-31 07397993 e:Subsidiary1 1 2023-04-01 2024-03-31 07397993 e:Subsidiary2 2023-04-01 2024-03-31 07397993 e:Subsidiary2 1 2023-04-01 2024-03-31 07397993 e:WithinOneYear 2024-03-31 07397993 e:WithinOneYear 2023-03-31 07397993 e:BetweenOneFiveYears 2024-03-31 07397993 e:BetweenOneFiveYears 2023-03-31 07397993 e:MoreThanFiveYears 2024-03-31 07397993 e:MoreThanFiveYears 2023-03-31 07397993 2 2023-04-01 2024-03-31 07397993 6 2023-04-01 2024-03-31 07397993 e:Goodwill e:OwnedIntangibleAssets 2023-04-01 2024-03-31 07397993 e:DevelopmentCostsCapitalisedDevelopmentExpenditure e:OwnedIntangibleAssets 2023-04-01 2024-03-31 07397993 g:PoundSterling 2023-04-01 2024-03-31 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 07397993







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024


RADICON TRANSMISSION UK LIMITED






































img2c96.png                        

 


RADICON TRANSMISSION UK LIMITED
 


 
COMPANY INFORMATION


Directors
C Patel 
D Patel 
P Patel 
P Patel 




Registered number
07397993



Registered office
Unit J3 Lowfields Way
Lowfields Business Park

Elland

West Yorkshire

HX5 9DA




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY





 


RADICON TRANSMISSION UK LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 25


 


RADICON TRANSMISSION UK LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their strategic report for the year ended 31st March 2024. 

Introduction
 
The company is a producer of highly engineered gear systems, including gear units, geared pumps, screwjacks, and couplings, as well as having a service and repair business. These systems are used by customers from a wide variety of industries and employed in several different applications.

Business review
 
The trading performance and a review of the strategy and achievements through 2023/24 are discussed below:
The last year has seen further development and milestones within the Benzlers Radicon group (B-R Group). We have continued to develop processes that will enable us to grow aggressively into a world player within the power transmission market.
The year has been challenging as the global economy has been affected by high interest rates. We however continue to develop our reach, whilst systematically reducing costs.
We are continuously working towards implementing strategies which will optimise our business processes, progress along the path of aggressive growth and achieve our ambition of becoming a major power transmission supplier in the world.
We continue to work closely with our sister companies and, wherever possible, leverage cost saving from these suppliers.
With regards to our stock, we continue to balance the stock to ensure the money we invest in inventory is offering our customers the best availability and shortest lead times.
The 2023/24 turnover decreased by 4% compared with 2022/23, as the market recovers following global disruptions from the previous 2 years.
We are continuing a group focus when looking at suppliers, to enable efficiencies from a larger more co-ordinated purchasing profile. We are also looking at new and existing suppliers, and what they can offer to both Benzlers and Radicon.
We are currently creating further synergies between technical and engineering departments throughout the group. This is increasing knowledge sharing and experience throughout the group companies and locations, so that the group can fully utilise its technical expertise worldwide.
We are still striving to significantly grow the business by expanding our product ranges and services, along with targeted industry/sector growth with our increased capabilities, whilst maximising our sales within existing customers, industries, and territories. Our external sales team continue to improve coverage throughout the UK. There is a focus on major end users within the steel, water, energy and aggregates markets, we already have made great strides into the steel industry. We are also adapting to the changes in UK manufacturing profiles, and emerging markets.

Page 1

 


RADICON TRANSMISSION UK LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties
 
2024/25 will see a significant focus on the service and repair business, the aim is to be the preferred supplier for industrial gearbox repairs within the UK. There continues to be significant investment in people, processes and equipment.
Whilst having successfully moved to ISO9001 (2015), we will continue to improve our processes and management systems in line with the ISO requirements.
The principal risks and uncertainties going into 2024/25 are:
Competition: The UK is an extremely competitive market from both domestic and international competitors. The market is mature with some established manufacturers. Therefore, this adds importance to providing customer service, with lead times and product support being important in the market alongside price.
Global economic uncertainty: Following the high interest rates it is likely to lead to our customers and suppliers facing liquidity issues. Radicon as a group has a strong positive balance sheet and adequate liquid resources to continue to operate effectively throughout this turbulent period.  The directors feel that they are well placed to continue to adapt to the changing road map whilst maintaining excellent service levels to our customers.
The management are aware of the above risk factors and are well placed to cope with them.

Financial key performance indicators
 
The company's key financial and other performance indicators during the year were as follows:
Turnover (£'000): £10,978
Gross profit margin: 29%
Operating profit margin (before amortisation): 13%
Average number of employees: 53
The profit for the year amounted to (£'000) £3,456. The directors have not recommended a dividend.





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



C Patel
Director

Page 2

 


RADICON TRANSMISSION UK LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

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

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


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

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £3,455,941 (2023 - £754,887).



Directors

The directors who served during the year were:

C Patel 
D Patel 
P Patel 
P Patel 

Future developments

We are striving to significantly grow the business by focusing on OEM business, whilst maximising our sales within existing customer, industries and territories.
2024/25 will see a significant focus on the newer products of series EON2, planetary,service and repairs and compact motors.

Page 3

 


RADICON TRANSMISSION UK LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

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.

Auditors

The auditorsMenzies LLPwill 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.
 





C Patel
Director

Page 4

 


RADICON TRANSMISSION UK LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADICON TRANSMISSION UK LIMITED

Opinion


We have audited the financial statements of Radicon Transmission UK Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 March 2024 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 5

 


RADICON TRANSMISSION UK LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADICON TRANSMISSION UK 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 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 


RADICON TRANSMISSION UK LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADICON TRANSMISSION UK 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:
- We obtained an understanding of the legal and regulatory framework applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006 and UK corporate taxation laws.
- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of board minutes and papers provided by those charged with governance.
- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team include:
- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
- challenging assumptions and judgments made by management in its significant accounting estimates;
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and
- assessing the extent of compliance with the relevant laws and regulations.
- We have reviewed the financial statements and considered whether they are consistent with our
understanding of the entity or indicate a previously unrecognised risk of material misstatement that could
be due to fraud.


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.


Page 7

 


RADICON TRANSMISSION UK LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADICON TRANSMISSION UK LIMITED (CONTINUED)




Andrew Hookway FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

1 August 2024
Page 8

 


RADICON TRANSMISSION UK LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
10,977,810
11,471,782

Cost of sales
  
(7,786,172)
(8,692,485)

Gross profit
  
3,191,638
2,779,297

Administrative expenses
  
(2,076,409)
(1,809,117)

Other operating income
  
7,877
8,318

Operating profit
 5 
1,123,106
978,498

Income from fixed assets investments
 8 
2,632,498
-

Interest receivable and similar income
 9 
19,296
230

Interest payable and similar expenses
 10 
(28,414)
(65,156)

Profit before tax
  
3,746,486
913,572

Tax on profit
 11 
(290,545)
(158,685)

Profit for the financial year
  
3,455,941
754,887

Other comprehensive income for the year
  

Total comprehensive income for the year
  
3,455,941
754,887

The notes on pages 12 to 25 form part of these financial statements.

Page 9

 


RADICON TRANSMISSION UK LIMITED
REGISTERED NUMBER:07397993



STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
2,004,262
2,306,901

Tangible assets
 13 
93,699
133,065

Investments
 14 
14,793,350
14,793,350

  
16,891,311
17,233,316

Current assets
  

Stocks
 15 
2,758,825
3,832,863

Debtors: amounts falling due within one year
 16 
2,915,245
2,460,090

Cash at bank and in hand
  
1,337,509
456,816

  
7,011,579
6,749,769

Creditors: amounts falling due within one year
 17 
(1,729,945)
(2,568,211)

Net current assets
  
 
 
5,281,634
 
 
4,181,558

Total assets less current liabilities
  
22,172,945
21,414,874

Creditors: amounts falling due after more than one year
 18 
(7,717)
(2,696,308)

Provisions for liabilities
  

Deferred tax
 19 
(10,983)
(20,262)

  
 
 
(10,983)
 
 
(20,262)

Net assets
  
22,154,245
18,698,304


Capital and reserves
  

Called up share capital 
 20 
12,486,287
12,486,287

Profit and loss account
  
9,667,958
6,212,017

  
22,154,245
18,698,304


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




C Patel
Director

The notes on pages 12 to 25 form part of these financial statements.

Page 10

 


RADICON TRANSMISSION UK LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
12,486,287
5,457,130
17,943,417


Comprehensive income for the year

Profit for the year

-
754,887
754,887


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
754,887
754,887


Total transactions with owners
-
-
-



At 1 April 2023
12,486,287
6,212,017
18,698,304


Comprehensive income for the year

Profit for the year

-
3,455,941
3,455,941


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
3,455,941
3,455,941


Total transactions with owners
-
-
-


At 31 March 2024
12,486,287
9,667,958
22,154,245


The notes on pages 12 to 25 form part of these financial statements.

Page 11

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Radicon Transmission 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.

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 judgment in applying the Company's accounting policies (see note 3).

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption 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
Preparation of consolidated financial statements
The financial statements contain information about Radicon Transmission UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 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, Elecon Engineering Co Ltd, Anand Sojitra Road, Vallabh Vidyanagar - 381120, India.

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

Page 12

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Revenue

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

Sale of goods

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

Rendering of services

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

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

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

 
2.6

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.

Page 13

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

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

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

 
2.8

Current and deferred taxation

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

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

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

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

 
2.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life of 20 years.

Other 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.

All other intangible assets are considered to have a finite useful life and amortised at 8% straight line.

Page 14

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.10

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 charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
 4 to 10 years
Computer equipment
-
 2 to 3 years

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

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

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.12

Stocks

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

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

 
2.13

Debtors

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

Page 15

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

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

 
2.15

Creditors

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

 
2.16

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:
- Determined whether there are indicators of impairment of inventory items that are slow moving or have no orders against them.


4.


Turnover

The whole of the turnover is attributable to the one principal activity of the company.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
8,097,864
8,555,599

Rest of the world
2,879,946
2,916,183

10,977,810
11,471,782


Page 16

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
12,854
13,535

Other operating lease rentals
238,060
239,284

Depreciation - owned assets
44,118
52,861

Goodwill amortisation
222,639
222,639

Licences amortisation
80,000
80,000


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,000
12,500


Total fees payable to the Company's auditors for non audit services were £3,750 (2023: £3,450).



Page 17

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
1,903,958
1,764,528

Social security costs
201,869
199,197

Cost of defined contribution scheme
75,562
78,976

2,181,389
2,042,701


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


        2024
        2023
            No.
            No.







Production staff
30
27



Distribution staff
14
16



Administrative staff
5
5



Directors
4
4

53
52


8.


Income from investments

2024
2023
£
£





Dividends received from group undertakings
2,632,498
-

2,632,498
-



9.


Interest receivable

2024
2023
£
£


Bank and other interest receivable
19,296
230

19,296
230

Page 18

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
28,414
65,156

28,414
65,156


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
299,004
150,287

Adjustments in respect of previous periods
820
-


299,824
150,287


Total current tax
299,824
150,287

Deferred tax


Origination and reversal of timing differences
(9,279)
8,398

Total deferred tax
(9,279)
8,398


Tax on profit
290,545
158,685
Page 19

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
3,746,486
913,572


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
936,622
173,579

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
13,006
(34,638)

Capital allowances for year in excess of depreciation
7,501
(7,430)

Adjustments to tax charge in respect of prior periods
820
18,776

Other timing differences leading to an increase (decrease) in taxation
(9,279)
8,398

Non-taxable income
(658,125)
-

Total tax charge for the year
290,545
158,685

Page 20

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Intangible assets




Patents, Trademarks and Licences
Goodwill
Total

£
£
£



Cost


At 1 April 2023
1,000,000
4,452,782
5,452,782



At 31 March 2024

1,000,000
4,452,782
5,452,782



Amortisation


At 1 April 2023
400,000
2,745,881
3,145,881


Charge for the year on owned assets
80,000
222,639
302,639



At 31 March 2024

480,000
2,968,520
3,448,520



Net book value



At 31 March 2024
520,000
1,484,262
2,004,262



At 31 March 2023
600,000
1,706,901
2,306,901



Page 21

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Tangible fixed assets





Plant and machinery
Computer equipment
Total

£
£
£



Cost or valuation


At 1 April 2023
791,406
296,112
1,087,518


Additions
-
4,752
4,752



At 31 March 2024

791,406
300,864
1,092,270



Depreciation


At 1 April 2023
707,516
246,937
954,453


Charge for the year on owned assets
18,628
25,490
44,118



At 31 March 2024

726,144
272,427
998,571



Net book value



At 31 March 2024
65,262
28,437
93,699



At 31 March 2023
83,890
49,175
133,065


14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
14,793,350



At 31 March 2024
14,793,350




Page 22

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Benzler Systems AB
Porfyrgatan 7, 254 68 Helsingborg, Sweden
Ordinary
100%
Radicon Drive System Inc
2475 Alft Ln, Elgin, IL 60124, United States
Ordinary
100%

Nature of business
Benzler Systems AB: Production, service and repair of gear systems.
Radicon Drive System Inc: Production, service and repair of gear systems.


15.


Stocks

2024
2023
£
£

Raw materials and consumables
2,500,451
3,531,010

Work in progress
2,444
2,128

Finished goods and goods for resale
255,930
299,725

2,758,825
3,832,863



16.


Debtors

2024
2023
£
£


Trade debtors
2,286,958
2,138,762

Amounts owed by group undertakings
94,605
79,573

Amounts owed by connected companies
261,705
28,758

Other debtors
-
65,178

Prepayments and accrued income
271,977
147,819

2,915,245
2,460,090


Page 23

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
442,066
782,813

Amounts owed to group undertakings
257,981
503,477

Amounts owed to connected company
41,578
320,055

Corporation tax
299,004
131,511

Other taxation and social security
104,634
47,113

Other creditors
304,635
491,805

Accruals and deferred income
280,047
291,437

1,729,945
2,568,211



18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Amounts owed to group undertakings
7,717
2,696,308

7,717
2,696,308



19.


Deferred taxation




2024


£






At beginning of year
(20,262)


Charged to profit or loss
9,279



At end of year
(10,983)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(12,762)
(20,262)

Other short term timing differences
1,779
-

(10,983)
(20,262)

Page 24

 


RADICON TRANSMISSION UK LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



12,486,287 (2023 - 12,486,287) Ordinary shares shares of £1.00 each
12,486,287
12,486,287



21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £75,562 (2023 - £78,976) . Contributions totalling £9,778 (2023 - £14,076) were payable to the fund at the reporting date and are included in creditors.


22.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
219,853
217,667

Later than 1 year and not later than 5 years
802,044
805,054

Later than 5 years
517,333
711,333

1,539,230
1,734,054


23.


Related party transactions

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.
During the year the company made sales of goods and services to companies under the control of a director amounting to £131,714 (2023: £167,367) and purchases amounting to £1,721,425 (2023: £3,218,287). At the reporting date the company was owed £261,705 (2023: £28,758) from connected companies and owed £41,578 (2023: £320,055).
These transactions are considered to be at arms length.


24.


Controlling party

The parent undertaking and the ultimate holding company is Elecon Engineering Co Ltd, a company registered in India. The registered office of the parent undertaking is Anand Sojitra Road, Vallabh Vidyanagar - 381120, India. The smallest and largest group financial statements in which the company's results are included are available from this address.

Page 25