Company Registration No. 04359938 (England and Wales)
INTATEC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INTATEC LIMITED
COMPANY INFORMATION
Directors
Mr S Gizzi
Mrs CK Fisher
Mr D Bougourd
Secretary
Mrs CK Fisher
Company number
04359938
Registered office
c/o Intatec Ltd
Airfield Industrial Estate
Hixon
Stafford
Staffordshire
ST18 0PF
Auditor
Geens Limited
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
INTATEC LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
INTATEC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

Intatec’s principal activities during the year continued to be the supply of components and allied products to the heating and plumbing industry.

 

The key financial and other performance indicators during the year were as follows:

 

2023

2022

% Change

 

 

 

 

Turnover

39,159,389

35,882,363

9.1%

 

Operating profit

 

782,410

 

1,003,138

 

-22.0%

 

Profit before tax

 

800,289

 

1,003,138

 

-20.2%

 

Equity shareholders’ funds

 

6,134,411

 

5,611,662

 

9.3%

 

 

 

 

Current assets as % of current liabilities ('quick ratio')

144%

139%

3.6%

Average number of employees

66

62

6.5%

 

Turnover increased by 9.1% during the year primarily due to growth into new geographic markets. Turnover for the company in the next financial year is expected to grow between 6% and 9%. Operating costs increased by 18.7% during the year and include investment in our people to support a changing market and operational growth.

 

Profit before tax decreased as a result of the decrease in operating profit.

Shareholders’ funds increased by 9.3% due to retained earnings.

 

The company’s “quick ratio” (current assets as a percentage of current liabilities) has increased as a result of ongoing management and improvement of the cash cycle.

 

Customer satisfaction remains our key indicator, given the company’s steady growth with own branded and OEM products. This is monitored by informal, feedback. The results of our questionnaires showed consistency in customer satisfaction compared to last year, focus for the coming year is to move this performance to 95%.

 

The total average number of employees has increased by 6.5% from 62 to 66 employees. Employee retention continues to be a focus for the company.

 

The products sold by the company have minimal environmental impact. However, the board believes that good environmental practices support the board’s strategy by enhancing the reputation of the company, the efficiency of operations. Consequently, the company continues to put environmental responsibilities high on the agenda and increased the percentage of items recycled. In terms of a direct impact on the environment the company maintains its carbon neutral status. This was achieved by increasing energy efficiency and reducing wastage.

 

The company is committed to continuous improvement and to maintain certifications for its quality management systems under the ISO 9001:2015 (Quality Management Systems), ISO 14001:2015 (Environmental Management Systems) and ISO45001:2018 (Occupational Health and Safety Management Systems).

 

 

 

INTATEC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The company has established a risk committee that meets quarterly and which evaluates the company’s risk appetite. The principal risks and uncertainties facing the company are broadly grouped as – competitive, legislative and financial instrument risk.

 

The company is reliant on certain major contracts which are subject to periodic competitive tender. Renewal of these contracts is uncertain and based on financial and performance criteria.

 

Intatec is constantly aware of changing market conditions. The company is developing new products and entering new geographical markets to guard against market fluctuations and deliver the planned increased turnover in 2024.

 

In the UK and Europe, products must be manufactured to strict industry and EU standards. These standards are subject to continuous revision and any new Directive may have a material impact on the ability of the company to supply products at a profit. In addition, compliance imposes costs and failure to comply with the standards could materially affect the company’s ability to operate. The company has also looked at additional risks with legislative demands post Brexit where products need to have dual approvals.

 

The company has established a risk and financial management framework whose primary objectives are to protect the company from events that hinder the achievement of the company’s performance objectives.

 

The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level.

The company uses forward foreign currency contracts to reduce exposure to the variability of foreign exchange rates by fixing the rate of any material payments in a foreign currency.

Price risk arises on financial instruments because of changes in, for example, commodity prices or equity prices. The company’s major associate investments, which the company does not intend to sell in the short-term, are held at net asset value and are therefore not exposed to price risk.

 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the company’s debtors are shown in Note 12 to the financial statements.

 

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets throughout the company. The company also manages liquidity risk via revolving credit.

 

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability. The company manages this risk, where significant, by use of derivatives as explained above. The company is looking to further controls within our IT system to highlight any problems caused by liquidity issues.

 

 

INTATEC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Mrs CK Fisher
Director
30 April 2024
INTATEC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company continued to be the supply of components and allied products to the heating and plumbing industry.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £nil (2022: £nil).

 

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S Gizzi
Mrs CK Fisher
Mr D Bougourd
Auditor

Pursuant to section 487 of the Companies Act 2006 Geens Limited will continue in office as auditors.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs CK Fisher
Mr D Bougourd
Director
Director
30 April 2024
INTATEC LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual 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 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:

 

 

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.

INTATEC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTATEC LIMITED
- 6 -
Opinion

We have audited the financial statements of Intatec Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

INTATEC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTATEC LIMITED (CONTINUED)
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

INTATEC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTATEC LIMITED (CONTINUED)
- 8 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Karen Staley FCA BSc (Hons)
Senior Statutory Auditor
For and on behalf of Geens Limited
30 April 2024
Chartered Accountants
Statutory Auditor
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
INTATEC LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
39,159,389
35,882,363
Cost of sales
(32,703,244)
(30,099,184)
Gross profit
6,456,145
5,783,179
Administrative expenses
(5,673,735)
(4,781,737)
Operating profit
4
782,410
1,001,442
Interest receivable and similar income
17,879
1,696
Profit before taxation
800,289
1,003,138
Tax on profit
7
(277,540)
(155,600)
Profit for the financial year
522,749
847,538
Retained earnings brought forward
5,353,887
4,506,349
Retained earnings carried forward
5,876,636
5,353,887

The profit and loss account has been prepared on the basis that all operations are continuing operations.

INTATEC LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
489,804
367,157
Investments
9
25,400
25,400
515,204
392,557
Current assets
Stocks
11
7,557,079
7,886,893
Debtors
12
9,477,947
9,930,700
Cash at bank and in hand
1,834,895
1,069,928
18,869,921
18,887,521
Creditors: amounts falling due within one year
13
(13,131,376)
(13,601,468)
Net current assets
5,738,545
5,286,053
Total assets less current liabilities
6,253,749
5,678,610
Provisions for liabilities
Deferred tax liability
14
119,338
66,948
(119,338)
(66,948)
Net assets
6,134,411
5,611,662
Capital and reserves
Called up share capital
16
66,377
66,377
Share premium account
187,510
187,510
Capital redemption reserve
3,888
3,888
Profit and loss reserves
5,876,636
5,353,887
Total equity
6,134,411
5,611,662

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 30 April 2024 and are signed on its behalf by:
Mrs CK Fisher
Mr D Bougourd
Director
Director
Company registration number 04359938 (England and Wales)
INTATEC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
66,377
187,510
3,888
4,506,349
4,764,124
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
847,538
847,538
Balance at 31 December 2022
66,377
187,510
3,888
5,353,887
5,611,662
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
522,749
522,749
Balance at 31 December 2023
66,377
187,510
3,888
5,876,636
6,134,411
INTATEC LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1,215,362
744,676
Income taxes (paid)/refunded
(174,639)
71,054
Net cash inflow from operating activities
1,040,723
815,730
Investing activities
Purchase of tangible fixed assets
(293,635)
(81,716)
Interest received
17,879
1,696
Net cash used in investing activities
(275,756)
(80,020)
Net increase in cash and cash equivalents
764,967
735,710
Cash and cash equivalents at beginning of year
1,069,928
334,218
Cash and cash equivalents at end of year
1,834,895
1,069,928
INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Intatec Limited is a company limited by shares incorporated in England and Wales. The registered office is c/o Intatec Ltd, Airfield Industrial Estate, Hixon, Stafford, Staffordshire, ST18 0PF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Intatec Limited is a wholly owned subsidiary of Ugo Benettolo S.P.A. The ultimate parent company is Palfin S.A.P.A. The results of Intatec Limited are included in the consolidated financial statements of Palfin S.A.P.A. which are available from 242 Via Del Santo, Limena (PD), Italy, 35010.

 

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
between 10% and 50% straight line
Fixtures, fittings & equipment
10% straight line
Computer equipment
25% straight line
Motor vehicles
20% straight line - residual value of £4,000

The gain or loss arising on the disposal of an asset is determined as the difference between the cost and the depreciation charge, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indications of impairment at each reporting date. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price.

Other financial liabilities

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the property plant and equipment, and note 1.4 for the useful economic lives for each class of assets.

Stock provisioning

The company supplies components and allied products to the plumbing industry. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods particularly where the units have been in stock for some time.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 12 for the net carrying amount of the debtors and associated impairment provision.

Carriage Inwards provision

The company imports stock from Europe and Asia. As a result appropriate estimates are made as at the year end date of the associated costs to bring the appropriate stock to the company's premises.

 

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
35,907,705
32,646,605
Overseas
3,251,684
3,235,758
39,159,389
35,882,363
2023
2022
£
£
Other revenue
Interest income
17,879
1,696
INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,950
14,175
Depreciation of owned tangible fixed assets
170,988
181,532
Operating lease charges
280,486
219,464
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
67
62

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,927,162
2,429,254
Social security costs
318,832
260,179
Pension costs
86,160
78,193
3,332,154
2,767,626
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
341,822
316,602
Company pension contributions to defined contribution schemes
16,935
15,855
358,757
332,457

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
181,740
149,862
Company pension contributions to defined contribution schemes
9,235
8,085
INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
158,086
174,545
Adjustments in respect of prior periods
67,064
(521)
Total current tax
225,150
174,024
Deferred tax
Origination and reversal of timing differences
52,390
(18,424)
Total tax charge
277,540
155,600

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
800,289
1,003,138
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
200,072
190,596
Tax effect of expenses that are not deductible in determining taxable profit
89
5,810
Permanent capital allowances in excess of depreciation
(883)
(4,658)
Corporation tax charged at lower rate of 19%
(9,951)
-
0
Deferred tax brought forward charged at higher rate
21,149
-
0
R & D tax credit to be repaid
67,064
-
0
R & D Tax Claim
-
0
(35,627)
Adjustment in respect of prior years
-
0
(521)
Taxation charge for the year
277,540
155,600
INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
864,664
177,342
400,664
19,683
1,462,353
Additions
89,466
142,001
62,168
-
0
293,635
Disposals
(34,294)
-
0
(48,908)
-
0
(83,202)
At 31 December 2023
919,836
319,343
413,924
19,683
1,672,786
Depreciation and impairment
At 1 January 2023
690,389
112,071
289,077
3,659
1,095,196
Depreciation charged in the year
100,054
15,066
52,731
3,137
170,988
Eliminated in respect of disposals
(34,294)
-
0
(48,908)
-
0
(83,202)
At 31 December 2023
756,149
127,137
292,900
6,796
1,182,982
Carrying amount
At 31 December 2023
163,687
192,206
121,024
12,887
489,804
At 31 December 2022
174,275
65,271
111,587
16,024
367,157
9
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
10
25,400
25,400
10
Subsidiaries

These financial statements are separate company financial statements for Intatec Limited.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Inta Eco Limited
England
Dormant
Ordinary
100.00
0
Solar Spares Limited
England
Dormant
Oridnary
100.00
0
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Inta Eco Limited
25,400
Solar Spares Limited
1
INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
7,557,079
7,886,893
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,364,916
8,404,013
Amounts owed by group undertakings
203,412
178,142
Other debtors
118,312
260,840
Prepayments and accrued income
791,307
1,087,705
9,477,947
9,930,700
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
5,593,937
7,068,159
Amounts owed to group undertakings
3,700,177
3,117,132
Corporation tax
225,056
174,545
Other taxation and social security
1,090,476
922,852
Other creditors
422,820
148,230
Accruals and deferred income
2,098,910
2,170,550
13,131,376
13,601,468
14
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
119,338
66,948
INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Deferred taxation
(Continued)
- 22 -
2023
Movements in the year:
£
Liability at 1 January 2023
66,948
Charge to profit or loss
52,390
Liability at 31 December 2023
119,338
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,160
78,193

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
63,367
63,367
63,367
63,367
Ordinary B shares of £1 each
300
300
300
300
Ordinary D shares of £1 each
100
100
100
100
Ordinary E shares of £1 each
100
100
100
100
Ordinary G shares of £1 each
10
10
10
10
Ordinary C shares of £1 each
2,500
2,500
2,500
2,500
66,377
66,377
66,377
66,377
17
Financial commitments

The company purchases stock from suppliers in US dollars and Euros and has entered in to forward foreign currency contracts to hedge its exchange rate risk arising from these anticipated transactions. As at 31 December 2023 the company is committed to purchasing $1,400,000 (2022 - $1,400,000 ) and €400,000 (2022 - €nil) from a financial institution. No gains or losses have been recognised in the profit and loss to reflect changes in the fair value of the hedging instrument at the period end.

INTATEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
293,227
117,144
Between two and five years
720,333
67,483
1,013,560
184,627
19
Related party transactions
Transactions with related parties

 

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

 

During the year the company entered into transactions with companies that share key management personnel with Intatec Limited.

 

Sales to these companies in the year - £18,970 (2022 - £22,394).

 

Purchases from these companies were as follows:

Purchases - £444,713 (2022 - £347,018);

Management charges - £167,701 (2022 - £100,500);

Rent - £162,104 (2022 - £112,654);

Consultancy fees - £56,000 (2022 - £56,000).

 

Included within debtors are amounts owed to these companies of £71,100 (2022 - £20,330)

 

Included within creditors are amounts owed to these companies of £224,894 (2022 - £278,094).

20
Ultimate controlling party

The immediate parent company is Ugo Benettolo s.p.a. which is a company incorporated in Italy. The ultimate parent company is Palfin s.a.p.a. which is a company incorporated in Italy. Intatec Limited is included in the group accounts of Palfin s.a.p.a. which are available from the following registered office address:

242 Via Del Santo

Limena (PD)

Italy

35010

 

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