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REGISTERED NUMBER: 01114577 (England and Wales)







STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

GUHRING LIMITED

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 14


GUHRING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: C Weston
O A Guhring
B Schwanz





SECRETARY: C Weston





REGISTERED OFFICE: Estone Drive
Aston Hall Road
Aston
Birmingham
B6 6BQ





REGISTERED NUMBER: 01114577 (England and Wales)





AUDITORS: Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

REVIEW OF BUSINESS
Guhring Limited is a wholly owned subsidiary of Guehring KG and their primary objective is to support and supply the engineering companies located in the British Isles. Standard cutting tools are manufactured in Europe, warehoused, and distributed from a purpose-built factory in Aston, Birmingham where Guhring Limited also design, manufacture and service standard and special engineering cutting tools.

Guhring Limited has been established in the UK for 50 years and offers a large range of quality products from a large modern centrally located facility.

PRINCIPAL RISKS AND UNCERTAINTIES
The reduction in the Automotive supply chain due to EV's (mainly imported rather than made in the UK) will be seen in the next 3-5 years limiting the number of large automotive customers Guhring Limited can service.

The lack of confidence seen throughout the country has seen industry growth stagnate with no projections that things will get better anytime soon.

The cost increases and instability in the world as a whole look like they will continue into 2024 and beyond.

DEVELOPMENT AND PERFORMANCE
Costs have been closely controlled with the assistance of Guehring KG and the push towards net zero carbon emissions continue with the installation of a large solar array and the conversion of the company car fleet to EV's where possible.

The Directors confirm that they are happy that the Company is still well placed to grow increasing sales, profitability, and market share in 2024. The continually expanding range, retention of the highly skilled workforce and continuous training will assist in reaching this target.

FINANCIAL KEY PERFORMANCE INDICATORS
The Company has performed well in the current climate recording double digit growth in 2023 with overall sales increasing by 18.2% year on year with gross profit reducing to 29.7% due to the unusually large cost increases but returning an increased net profit of £559k.

ON BEHALF OF THE BOARD:





O A Guhring - Director


28 February 2024

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacture and distribution of engineering cutting tools and allied products.

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

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

C Weston
O A Guhring

Other changes in directors holding office are as follows:

B W Schatz - resigned 14 November 2023
B Schwanz - appointed 14 November 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Prime, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





O A Guhring - Director


28 February 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUHRING LIMITED


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

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

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

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUHRING LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUHRING LIMITED


To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

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

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

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

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

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




Morgan Davies FCA (Senior Statutory Auditor)
for and on behalf of Prime
Chartered Accountants
Statutory Auditor
161 Newhall Street
Birmingham
B3 1SW

28 February 2024

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 4 19,787,816 16,743,585

Cost of sales 13,916,230 11,598,210
GROSS PROFIT 5,871,586 5,145,375

Distribution costs 441,641 446,126
Administrative expenses 4,513,697 4,289,563
4,955,338 4,735,689
916,248 409,686

Other operating income - 8,107
OPERATING PROFIT 6 916,248 417,793

Interest receivable and similar income 23,078 9,974
939,326 427,767

Interest payable and similar expenses 7 223,061 112,427
PROFIT BEFORE TAXATION 716,265 315,340

Tax on profit 8 157,431 97,548
PROFIT FOR THE FINANCIAL YEAR 558,834 217,792

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

558,834

217,792

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 117,029 149,687
Tangible assets 10 6,412,240 6,556,727
6,529,269 6,706,414

CURRENT ASSETS
Stocks 11 4,361,951 3,767,623
Debtors 12 5,037,242 4,471,529
Cash at bank and in hand 331,428 429,426
9,730,621 8,668,578
CREDITORS
Amounts falling due within one year 13 3,304,266 2,722,522
NET CURRENT ASSETS 6,426,355 5,946,056
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,955,624

12,652,470

CREDITORS
Amounts falling due after more than one
year

14

2,475,841

2,731,521
NET ASSETS 10,479,783 9,920,949

CAPITAL AND RESERVES
Called up share capital 19 100,000 100,000
Retained earnings 20 10,379,783 9,820,949
SHAREHOLDERS' FUNDS 10,479,783 9,920,949

The financial statements were approved by the Board of Directors and authorised for issue on 28 February 2024 and were signed on its behalf by:





O A Guhring - Director


GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100,000 9,603,157 9,703,157

Changes in equity
Total comprehensive income - 217,792 217,792
Balance at 31 December 2022 100,000 9,820,949 9,920,949

Changes in equity
Total comprehensive income - 558,834 558,834
Balance at 31 December 2023 100,000 10,379,783 10,479,783

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 338,959 (293,144 )
Interest paid (223,061 ) (111,938 )
Interest element of hire purchase or
finance lease rental payments paid

-

(489

)
Tax paid 36,764 (254,813 )
Net cash from operating activities 152,662 (660,384 )

Cash flows from investing activities
Purchase of intangible fixed assets - (163,294 )
Purchase of tangible fixed assets (498,382 ) (56,396 )
Interest received 23,078 9,974
Net cash from investing activities (475,304 ) (209,716 )

Cash flows from financing activities
Loan repayments in year (253,052 ) (274,720 )
Capital repayments in year - (114,030 )
Net cash from financing activities (253,052 ) (388,750 )

Decrease in cash and cash equivalents (575,694 ) (1,258,850 )
Cash and cash equivalents at
beginning of year

2

(792,931

)

465,919

Cash and cash equivalents at end of
year

2

(1,368,625

)

(792,931

)

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 716,265 315,340
Depreciation charges 675,527 716,660
Government grants - 8,107
Finance costs 223,061 112,427
Finance income (23,078 ) (9,974 )
1,591,775 1,142,560
Increase in stocks (594,328 ) (1,046,668 )
Increase in trade and other debtors (721,925 ) (551,587 )
Increase in trade and other creditors 63,437 162,551
Cash generated from operations 338,959 (293,144 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 331,428 429,426
Bank overdrafts (1,700,053 ) (1,222,357 )
(1,368,625 ) (792,931 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 429,426 465,919
Bank overdrafts (1,222,357 ) -
(792,931 ) 465,919


GUHRING LIMITED (REGISTERED NUMBER: 01114577)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 429,426 (97,998 ) 331,428
Bank overdrafts (1,222,357 ) (477,696 ) (1,700,053 )
(792,931 ) (575,694 ) (1,368,625 )
Debt
Debts falling due within 1 year (269,225 ) (2,628 ) (271,853 )
Debts falling due after 1 year (2,731,521 ) 255,680 (2,475,841 )
(3,000,746 ) 253,052 (2,747,694 )
Total (3,793,677 ) (322,642 ) (4,116,319 )

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


1. STATUTORY INFORMATION

Guhring 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.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets
Depreciation is provided, after taking account of any grants receivable, at the following annual rates, in order to write off each asset over its estimated useful life:

Freehold Property4% straight line on freehold buildings
Equipment 4% to 20% straight line basis
Motor Vehicles 25% per annum straight line basis

Freehold property consists of land and buildings. Of this amount, £803,030 relates to land and has not been depreciated.

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

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions for liabilities
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value.

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The company makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believe to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the directors have made the following judgements:

Impairment of fixed assets
The company assess the impairment of fixed assets subject to depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
Factors considered important that could trigger an impairment review include the following:
- Significant underperformance relative to historical or projected future operating results;
- Significant changes in the manner of the use of the acquired assets or the strategy for the overall
business; and
- Significant negative industry or economic trends.

Depreciation and residual values
The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and project disposal values.

Carrying value of stock
The company follows a group policy to make a provision against its stock. This takes into account slow moving; damaged and obsolete stock, current market conditions and historical sales performance. Various rates are applied depending on the type and age of the stock.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 16,107,127 15,043,687
Other European markets 3,547,826 1,489,730
Non-European markets 132,863 210,168
19,787,816 16,743,585

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,388,356 3,372,033
Social security costs 375,298 395,704
Other pension costs 126,680 121,723
3,890,334 3,889,460

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

Production 53 53
Sales and administration 37 38
90 91

2023 2022
£    £   
Directors' remuneration 103,442 100,186
Directors' pension contributions to money purchase schemes 9,250 9,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

6. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 59,585 37,478
Depreciation - owned assets 642,869 694,944
Computer software amortisation 32,658 13,607
Auditors' remuneration 34,350 34,000
Foreign exchange differences 16,181 (19,148 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Short-term interest 94,628 16,977
Bank loan interest 128,433 94,961
Hire purchase - 489
223,061 112,427

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 125,865 111,657
Over provision in prior years - 377
Total current tax 125,865 112,034

Deferred tax 31,566 (14,486 )
Tax on profit 157,431 97,548

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

2023 2022
£    £   
Profit before tax 716,265 315,340
Profit multiplied by the standard rate of corporation tax in the UK of
23.894% (2022 - 19%)

171,144

59,915

Effects of:
Expenses not deductible for tax purposes 11,581 5,244
Capital allowances in excess of depreciation (56,860 ) -
Depreciation in excess of capital allowances - 46,438
Adjustments to tax charge in respect of previous periods - 377
Deferred tax 31,566 (14,426 )

Total tax charge 157,431 97,548

The main rate of corporation tax increased from 19% to 25% from 1 April 2023.

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


9. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2023
and 31 December 2023 163,294
AMORTISATION
At 1 January 2023 13,607
Amortisation for year 32,658
At 31 December 2023 46,265
NET BOOK VALUE
At 31 December 2023 117,029
At 31 December 2022 149,687

10. TANGIBLE FIXED ASSETS
Equipment
Freehold and Motor
property machinery vehicles Totals
£    £    £    £   
COST
At 1 January 2023 5,433,333 10,122,962 1,700 15,557,995
Additions - 498,382 - 498,382
At 31 December 2023 5,433,333 10,621,344 1,700 16,056,377
DEPRECIATION
At 1 January 2023 1,035,279 7,964,289 1,700 9,001,268
Charge for year 185,195 457,674 - 642,869
At 31 December 2023 1,220,474 8,421,963 1,700 9,644,137
NET BOOK VALUE
At 31 December 2023 4,212,859 2,199,381 - 6,412,240
At 31 December 2022 4,398,054 2,158,673 - 6,556,727

Included in cost of land and buildings is freehold land of £ 803,030 (2022 - £ 803,030 ) which is not depreciated.

Included in equipment and machinery is an amount totalling £492,617 (2022: £Nil) for solar panels under construction. These were not in use as at the year end and therefore no depreciation has been charged against them.

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


11. STOCKS
2023 2022
£    £   
Work-in-progress 101,336 51,515
Finished goods 4,260,615 3,716,108
4,361,951 3,767,623

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,672,416 3,608,112
Other debtors 515 548
Inter - company balances 5,512 451,863
Tax - 124,646
Deferred tax asset 76,468 108,034
Prepayments 282,331 178,326
5,037,242 4,471,529

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 1,971,906 1,491,582
Trade creditors 421,458 391,868
Tax 37,983 -
Social security and other taxes 626,563 697,922
Inter - company balances 71,545 -
Accrued expenses 174,811 141,150
3,304,266 2,722,522

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 15) 2,475,841 2,731,521

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,700,053 1,222,357
Bank loans 271,853 269,225
1,971,906 1,491,582

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


15. LOANS - continued
2023 2022
£    £   
Amounts falling due between one and two years:
Bank loans - 1-2 years 285,722 280,435

Amounts falling due between two and five years:
Bank loans - 2-5 years 949,023 913,803

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 1,241,096 1,537,283

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 122,688 84,446
Between one and five years 198,515 53,763
321,203 138,209

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 1,700,053 1,222,357
Bank loans 2,747,694 3,000,746
4,447,747 4,223,103

Lloyds Bank Commercial Finance Ltd hold a debenture charge dated 3 August 2015 over all assets of the company.

Lloyds Bank PLC hold a mortgage charge dated 15 March 2016 over the freehold property.

Lloyds Bank PLC hold a debenture charge dated 3 March 2016 over all assets of the company.

18. DEFERRED TAX
£   
Balance at 1 January 2023 (108,034 )
Movement in year 31,566
Balance at 31 December 2023 (76,468 )

GUHRING LIMITED (REGISTERED NUMBER: 01114577)

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


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100,000 Ordinary £1 100,000 100,000

20. RESERVES
Retained
earnings
£   

At 1 January 2023 9,820,949
Profit for the year 558,834
At 31 December 2023 10,379,783

21. ULTIMATE PARENT COMPANY

Gühring KG is regarded by the directors as being the company's ultimate parent company, a company incorporated in Germany, registered office Herderstraße 50-54 72458 Albstadt.

22. RELATED PARTY DISCLOSURES

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

23. ULTIMATE CONTROLLING PARTY

The controlling party is O A Guhring.