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Registration number: 05048767

Hartridge Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Hartridge Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 20

 

Hartridge Limited

Company Information

Directors

C J Bird

J I Oakenfull

Company secretary

Pinsent Masons Secretarial Limited

Registered office

The Hartridge Building Network 421
Radclive Road
Gawcott
Buckingham
Buckinghamshire
MK18 4FD

Solicitors

Pinsent Masons LLP
1 Park Row
Leeds
LS1 5AB

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

 

Hartridge Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is the design, manufacture and sale of test equipment for testing diesel fuel injection equipment mainly to the automotive market.

Fair review of the business

Hartridge Limited (the "Company") was a wholly owned subsidiary of BorgWarner Inc.. On 3 July BorgWarner Inc. executed a spin-off of its Fuel Systems and Aftermarket segments into a separate, publicly traded company – PHINIA Inc. ("PHINIA"). As of 3 July 2023 the Company is a wholly owned subsidiary of PHINIA Inc.

The results for the year which are set out in the profit and loss account show turnover of £10,671,000 (2022: £7,611,000) and an operating profit of £80,000 (2022: operating loss of £362,000). At 31 December 2023 the company had net assets of £10,093,000 (2022: £9,843,000). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

Principal and financial risks and uncertainties

Financial risk management
The Company does not use derivatives to manage its financial risk. The most important components of financial risk are interest rate risk, currency risk, credit risk, liquidity risk, cash flow risk and price risk. Due to the nature of the Company's business and the assets and liabilities contained within the Company's balance sheet, the only financial risks that the directors consider relevant to this Company are credit risk and currency risk.

Currency risk management
The Company undertakes some trade in foreign currencies, primarily Euros, and is therefore exposed to a level of currency risk. Currency risk for PHINIA (and previously for the BorgWarner) Group is managed by the central treasury function on a portfolio basis across all of its subsidiaries, mainly through cash pooling.

Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge the obligation. The company offers credit to certain number of its customers. Before credit terms are agreed, an assessment of the customer's credit rating is undertaken to ensure that the customer does not represent a major credit risk to the company. Credit limits are set accordingly.

Other uncertainties
Automotive sales and production can be affected by labour relations issues, regulatory requirements, trade agreements, the availability of consumer financing and other factors.

Key performance indicators

The Company's key performance indicators during the year are turnover and operating profit. Turnover in the year was £3,060,000 higher than 2022 (2023: £10,671,000, 2022: £7,611,000) . This was as a result of growth in sales of machines outside the UK market. Gross profit was 18.8% (2022: 14.2%) increasing due to revenue growth which was offset by the impact of inflation. Operating profit was £80,000 (2022: loss £362,000).

Future prospects
PHINIA continues to invest in next generation technology to support the growth of the business. Price recovery in the market has positively impacted margins during 2023. Whilst there is political unrest following the war in Ukraine and increasing cost of living, the Company is managing to adjust price in the market and control costs through efficiency programs in order to maintain profitability.
 

Approved by the Board on 14 August 2024 and signed on its behalf by:


C J Bird
Director

 

Hartridge Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

The directors who held office during the year were as follows:

C J Bird (appointed 8 June 2023)

J I Oakenfull (appointed 3 August 2023)

W B J Allen (ceased 8 June 2023)

Going concern

The financial statements have been prepared on a Going Concern basis which assumes the Company will continue in operational existence for the foreseeable future.

The directors have reviewed the forecasts for future trading and the forecast cash requirements and have confirmed that adequate financing is available to enable the Company to continue to meet its liabilities as they fall due for a period of at least 12 months from the date of signing of the financial statements.

Dividends
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

In accordance with the company's articles, a resolution proposing that Hazlewoods LLP be reappointed as auditor of the company will be put at a General Meeting.

Approved by the Board on 14 August 2024 and signed on its behalf by:


C J Bird
Director

 

Hartridge Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

 

Hartridge Limited

Independent Auditor's Report to the Members of Hartridge Limited

Opinion

We have audited the financial statements of Hartridge Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Hartridge Limited

Independent Auditor's Report to the Members of Hartridge Limited

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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 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:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

 

Hartridge Limited

Independent Auditor's Report to the Members of Hartridge Limited

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of this 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.





Scott Lawrence (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

22 August 2024

 

Hartridge Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£ 000

2022
£ 000

Turnover

3

10,671

7,611

Cost of sales

 

(8,666)

(6,534)

Gross profit

 

2,005

1,077

Distribution costs

 

(397)

(286)

Administrative expenses

 

(1,318)

(1,153)

Administrative expenses - exceptional

5

(290)

-

Other operating income

80

-

Operating profit/(loss)

4

80

(362)

Other interest receivable and similar income

6

257

81

Profit/(loss) before tax

 

337

(281)

Taxation

9

(87)

(25)

Profit/(loss) for the financial year

 

250

(306)

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Hartridge Limited

(Registration number: 05048767)
Balance Sheet as at 31 December 2023

Note

2023
£ 000

2022
£ 000

Fixed assets

 

Tangible assets

10

951

1,070

Current assets

 

Stocks

11

3,656

3,319

Debtors

12

9,083

8,529

Cash at bank and in hand

 

66

38

 

12,805

11,886

Creditors: Amounts falling due within one year

14

(3,612)

(3,051)

Net current assets

 

9,193

8,835

Total assets less current liabilities

 

10,144

9,905

Provisions for liabilities

15

(51)

(62)

Net assets

 

10,093

9,843

Capital and reserves

 

Called up share capital

30

30

Share premium reserve

1

1

Profit and loss reserves

10,062

9,812

Total equity

 

10,093

9,843

Approved and authorised by the Board on 14 August 2024 and signed on its behalf by:
 


C J Bird
Director

 

Hartridge Limited

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

Share capital
£ 000

Share premium
£ 000

Profit and loss account
£ 000

Total
£ 000

At 1 January 2023

30

1

9,812

9,843

Profit for the year

-

-

250

250

At 31 December 2023

30

1

10,062

10,093

Share capital
£ 000

Share premium
£ 000

Profit and loss account
£ 000

Total
£ 000

At 1 January 2022

30

1

10,118

10,149

Loss for the year

-

-

(306)

(306)

At 31 December 2022

30

1

9,812

9,843

 

Hartridge Limited

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

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Hartridge Building Network 421
Radclive Road
Gawcott
Buckingham
Buckinghamshire
MK18 4FD

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

Hartridge Limited meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to financial instruments and presentation of a cash flow statement.

Name of parent of group

These financial statements are consolidated in the financial statements of Phinia Inc.

The financial statements of Phinia Inc may be obtained from Securities and Exchange Commission in the U.S.A..

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

 

Hartridge Limited

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

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Revenue is recognised to the extent that the Company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales tax or duty. The following criteria must be met before revenue is recognised:
Sale of goods: 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.
Short term contracts: Short term contracts are accounted using the completed contract method under which revenue is recognised on substantial completion. Revenues derived from variations on contracts are recognised only when they have been accepted by the buyer.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

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 taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

Land indefinite, buildings 16 - 20 years

Plant and machinery

3 - 15 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Hartridge Limited

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

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Hartridge Limited

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

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 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 debtor and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

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
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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. Amounts payable 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 and subsequently measured at amortised cost using the effective interest rate method.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.


Termination benefits
The Company recognises termination benefits as a liability and an expense only when it is demonstrably committed to either terminate the employment of an employee (or group of employees) before the normal retirement date or provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

Termination benefits are measured at the best estimate of the expenditure that would be required to settle the obligation at the reporting date. In the case of an offer made to encourage voluntary redundancy, the measurement of termination benefits shall be based on the number of employees expected to accept the offer.

 

Hartridge Limited

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

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£ 000

2022
£ 000

Sale of goods

9,843

6,880

Rendering of services

828

731

10,671

7,611

The analysis of the company's turnover for the year by market is as follows:

2023
£ 000

2022
£ 000

UK

3,061

3,414

Europe

3,554

1,481

Rest of world

4,056

2,716

10,671

7,611

 

4

Operating profit

Arrived at after charging/(crediting)

2023
£ 000

2022
£ 000

Depreciation expense

216

234

Research and development cost

512

453

Foreign exchange gains

(7)

(18)

Audit of the financial statements

14

13

Operating lease charges

21

21

 

5

Exceptional items

2023
 £ 000

2022
 £ 000

Exceptional expenses

290,000

-

Exceptional expenses relate to costs incurred to resolve an IT breach.

 

6

Other interest receivable and similar income

2023
£ 000

2022
£ 000

Interest income from group undertakings

257

81

 

Hartridge Limited

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

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£ 000

2022
£ 000

Wages and salaries

2,115

2,489

Social security costs

240

248

Pension costs, defined contribution scheme

150

154

2,505

2,891

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Manufacturing

14

14

Administration

16

19

Development

17

14

Sales and marketing

4

5

51

52

 

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£ 000

2022
£ 000

Remuneration

53

-

Contributions paid to money purchase schemes

5

-

58

-

 

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£ 000

2022
£ 000

Current taxation

UK corporation tax

53

(17)

Deferred taxation

Arising from origination and reversal of timing differences

34

42

Tax expense in the income statement

87

25

 

Hartridge Limited

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

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£ 000

2022
£ 000

Profit/(loss) before tax

337

(281)

Corporation tax at standard rate

79

(53)

Tax effect of expenses that are not deductible

8

61

Under/(over) provided in prior years

-

17

Total tax charge

87

25

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£ 000

Fixed asset timing differences

(20)

Short term timing differences

43

23

2022

Asset
£ 000

Fixed asset timing differences

13

Short term timing differences

38

Losses

7

58

Finance Act 2021 increased the main rate of UK corporation tax to 25%, effective from 1 April 2023. Therefore the substantively enacted rate at the balance sheet date of 31 December 2022 is 25%.

 

Hartridge Limited

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

 

10

Tangible assets

Land and buildings
£ 000

Fixtures and fittings
£ 000

Total
£ 000

Cost or valuation

At 1 January 2023

1,245

1,554

2,799

Additions

-

151

151

Disposals

-

(87)

(87)

At 31 December 2023

1,245

1,618

2,863

Depreciation

At 1 January 2023

667

1,062

1,729

Charge for the year

87

129

216

Eliminated on disposal

-

(33)

(33)

At 31 December 2023

754

1,158

1,912

Carrying amount

At 31 December 2023

491

460

951

At 31 December 2022

578

492

1,070

Included within the net book value of land and buildings above is £490,848 (2022 - £578,643) in respect of freehold land and buildings.
 

 

11

Stocks

2023
£ 000

2022
£ 000

Work in progress

449

424

Finished goods and goods for resale

3,207

2,895

3,656

3,319

 

Hartridge Limited

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

 

12

Debtors

Current

2023
£ 000

2022
£ 000

Trade debtors

847

858

Amounts owed by related parties

6,998

7,153

Other debtors

1,137

330

Prepayments

78

130

Deferred tax assets

23

58

 

9,083

8,529

 

13

Cash and cash equivalents

2023
£ 000

2022
£ 000

Cash at bank

66

38

 

14

Creditors

2023
 £ 000

2022
 £ 000

Due within one year

Amounts due to related parties

1,539

1,606

Trade payables

1,248

953

Accrued expenses

732

378

Other payables

94

114

3,612

3,051

 

15

Deferred tax and other provisions

Warranty provision
£ 000

At 1 January 2023

62

Increase (decrease) in existing provisions

(11)

At 31 December 2023

51

Provision is made for liabilities arising in respect of customer claims based on the prior 12 months experience.

 

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £149,919 (2022 - £154,564).

 

Hartridge Limited

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

 

17

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No. 000

£ 000

No. 000

£ 000

Ordinary shares of £1 each of £1 each

30

30

30

30

         
 

18

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£ 000

2022
£ 000

Not later than one year

11

21

Later than one year and not later than five years

1

12

12

33

The amount of non-cancellable operating lease payments recognised as an expense during the year was £21,007 (2022 - £21,007).

 

19

Related party transactions

The Company was a wholly owned subsidiary of BorgWarner Inc. until 3 July 2023. On 3 July BorgWarner Inc. executed a spin-off of its Fuel Systems and Aftermarket segments into a separate, publicly traded company -
PHINIA Inc. ("PHINIA"). As of 3 July 2023 the Company is a wholly owned subsidiary of PHINIA Inc., whose consolidated accounts are publicly available. The company has taken advantage of the exemption with FRS102 Section 33, not to disclose transactions directly or indirectly related to wholly owned group companies.

During the year, there were no transactions with associates that were not directly or indirectly wholly owned
companies of the BorgWarner Group and PHINIA Group.

 

 

20

Parent and ultimate parent undertaking

PHINIA Holdings UK Ltd (previously BorgWarner Automotive Operations UK Limited) is the immediate parent undertaking of the Company, with the registered address 1 Park Row, Leeds, United Kingdom, LS1 5AB.

The Company was a wholly owned subsidiary of BorgWarner Inc. until 3 July 2023. On 3 July BorgWarner Inc. executed a spin-off of its Fuel Systems and Aftermarket segments into a separate, publicly traded company -
PHINIA Inc. ("PHINIA"). As of 3 July 2023 the Company is a wholly owned subsidiary of PHINIA Inc., whose consolidated accounts are publicly available.

PHINIA Inc. is the ultimate parent undertaking of the company PHINIA Holdings UK Ltd and is incorporated in the United States of America and is traded on the New York Stock Exchange. Its registered address is: 3000 University Dr, Auburn Hills, MI 48326, USA.

The Parent of both the smallest and the largest group for which the results of the company have been consolidated is PHINIA Inc. The group financial statements of PHINIA Inc. are available from the Securities and Exchange Commission in the U.S.