Company registration number 04307123 (England and Wales)
TADANO UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TADANO UK LIMITED
COMPANY INFORMATION
Directors
T Motoyama
(Appointed 14 February 2023)
L Gee-Nyland
(Appointed 31 October 2023)
Company number
04307123
Registered office
14 Hikers Way
Long Credon Industrial Estate
Long Credon
Aylesbury
Buckinghamshire
England
HP189RW
Auditor
Rowland Hall
44-54 Orsett Road
Grays
Essex
RM17 5ED
Business address
14 Hikers Way
Long Credon Industrial Estate
Long Credon
Aylesbury
Buckinghamshire
England
HP189RW
TADANO UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
TADANO UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The result for the year and the financial position of the company are shown in the financial statements.

 

Trading performance

Total turnover for the year was £17,999,113, compared with £15,842,770 in the previous year, an increase of £2,156,343.

 

The company achieved a gross profit margin of £2,568,808 compared with £1,812,612 in 2022, and reported pre-tax profits for the year of £491,306 compared with losses of £1,534,264 in 2022.

Principal risks and uncertainties

The directors acknowledge that the management of the business and the execution of company's strategies are subject to a number of risks. The key business risks identified relate to the current external economic climate, including the COVID-19 pandemic, inflation, global market supply chains, availability of external finance to customers, cash-flow, foreign exchange movements and retention of key management staff. Forward exchange contracts are entered into to address foreign exchange risk. Management accounts and financial forecasts are prepared on a regular basis to enable the directors to assess and manage the impact of the identified financial risks. Credit risks are minimized by ensuring cranes are sold with payment received prior to delivery and the obtaining of upfront deposits. Customer accounts are regularly reviewed to help reduce the risk of default.

Development and performance

The company undertook a significant restructuring program towards the end of 2022 and into 2023, which the directors are confident will streamline operations further and enable the company to operate more efficiently in the longer term. As a result of the pandemic and supply issues the company was unable to meet current demand for cranes which curtailed operations. This has continued into 2023, however the directors are confident that the availability of units is now improving which will help future demand to be met. The directors remain confident that the company will continue to be profitable in the medium term. 2023 results confirm the success of the restructuring program in reducing fixed costs and 2023 deliveries have improved on the previous year. 2024 is expected to continue along the same path as 2023 with good forward order book and competitive products.

 

Following the restructure the parts and servicing departments continue to remain well placed to provide an efficient and effective service to customers.

 

Whilst the external economic environment remains unpredictable, the company continues to adapt to the ever-changing climate and the directors remain confident that the company is in a strong position to weather the current economic changes in the short term and ultimately be in a position to prosper in the medium to long term.

Key performance indicators

The directors use Key Performance Indicators (KPIs) to measure the company's performance in a number of different ways at various levels in the organization. The highest level KPIs are:

 

Turnover growth:

An increase in the year of 13.6% primarily due to the increase in units sold in the year arising from prior year supply chain issues.

 

Operating profit to sales ratio:

3.11% in the year, compared to -8.98% in the previous year.

 

Share issue

During the previous year the company issued an additional share to the parent company, Tadano Faun GmbH, and received a cash injection of £4,300,000.

TADANO UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

L Gee-Nyland
Director
4 September 2024
TADANO UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activities of the company in the year under review were those of retailing and repairing cranes and supplying spare parts. The company is the sole authorised distributor in the UK and Ireland of Tadano Faun products.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

JK Kroppel
(Resigned 17 February 2023)
H Harnack
(Resigned 31 October 2023)
T Motoyama
(Appointed 14 February 2023)
L Gee-Nyland
(Appointed 31 October 2023)
Statement of directors' responsibilities

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.

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.

TADANO UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
L Gee-Nyland
Director
4 September 2024
TADANO UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TADANO UK LIMITED
- 5 -
Opinion

We have audited the financial statements of Tadano UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

TADANO UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TADANO UK LIMITED (CONTINUED)
- 6 -
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 specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- Obtaining an understanding of the legal and regulatory frameworks applicable to the entity including, but not limited to, the Companies Act 2006, The Financial Reporting Standard 102 and UK Tax Legislation and considering the culture and control environment of the organisation.

- Enquiry of management and those charged with governance around actual and potential litigation and claims..

- Review of legal costs to ascertain the nature of the costs and possible related non-compliance.

- Performing audit work over the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.  This 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.

TADANO UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TADANO UK LIMITED (CONTINUED)
- 7 -

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.

Wayne Smith FCCA
Senior Statutory Auditor
For and on behalf of Rowland Hall
9 September 2024
Chartered Certified Accountants
Statutory Auditor
44-54 Orsett Road
Grays
Essex
RM17 5ED
TADANO UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,999,113
15,842,770
Cost of sales
(15,430,305)
(14,030,158)
Gross profit
2,568,808
1,812,612
Administrative expenses
(2,008,109)
(3,235,101)
Operating profit/(loss)
4
560,699
(1,422,489)
Interest receivable and similar income
7
2,495
-
0
Interest payable and similar expenses
8
(71,888)
(111,775)
Profit/(loss) before taxation
491,306
(1,534,264)
Tax on profit/(loss)
9
1,089,259
-
0
Profit/(loss) for the financial year
1,580,565
(1,534,264)

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

TADANO UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
36,817
49,645
Current assets
Stocks
11
818,571
3,070,444
Debtors
12
3,063,919
3,020,059
Cash at bank and in hand
6,160,558
7,492,293
10,043,048
13,582,796
Creditors: amounts falling due within one year
13
(4,001,924)
(9,135,065)
Net current assets
6,041,124
4,447,731
Net assets
6,077,941
4,497,376
Capital and reserves
Called up share capital
16
2,001
2,001
Share premium account
17
4,347,999
4,347,999
Profit and loss reserves
18
1,727,941
147,376
Total equity
6,077,941
4,497,376

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 4 September 2024 and are signed on its behalf by:
L Gee-Nyland
Director
Company registration number 04307123 (England and Wales)
TADANO UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
2,000
48,000
1,681,640
1,731,640
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(1,534,264)
(1,534,264)
Issue of share capital
16
1
4,299,999
-
4,300,000
Balance at 31 December 2022
2,001
4,347,999
147,376
4,497,376
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,580,565
1,580,565
Balance at 31 December 2023
2,001
4,347,999
1,727,941
6,077,941
TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Tadano UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14 Hikers Way, Long Credon Industrial Estate, Long Credon, Aylesbury, Buckinghamshire, England, HP189RW.

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 under 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 financial statements of the company are consolidated in the financial statements of Tadano Ltd. These consolidated financial statements are available from www.tadano.com.

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.

TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover

Turnover is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Turnover represents the amounts derived from the provision of goods and services which fall within the company's ordinary activities stated net of VAT.

 

The following criteria must also 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 have been passed to the buyer. In respect of crane sales the revenue is recognised when the crane has been delivered and accepted by the customer. In respect of spare parts the sale is recognised on despatch.

 

Rendering of services

Revenue from the provision of repair and servicing is recognised based on the stage of completion at the year end reporting date. The stage of completion is determined by comparing the costs incurred for work performed to date to the total estimated contract costs. Revenue is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

 

Hire of equipment

Revenue from the hire of equipment is recognised in the accounting period in which the hire occurs.

 

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:

Leasehold land and buildings
over the duration of the lease.
Plant and equipment
33% on cost
Fixtures and fittings
33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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 debtors 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.

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.

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.

TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 method.

Other financial liabilities

Derivatives, including interest rate swaps and 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, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Derivatives

The company uses forward foreign currency contracts to reduce exposure to foreign exchange rates. These derivative financial instruments are recognised at quoted market prices with any gains or losses being reported in profit and loss. Outstanding derivatives at the reporting date are included under the appropriate format heading depending on the nature of the derivative.

1.10
Taxation

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

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.

TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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.

1.11
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Foreign exchange

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, or at an average rate where this rate approximates the actual rate at the date of the transaction. Exchange differences are recognised in the income statement in the period in which they arise.

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.

TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Crane sales
12,686,252
10,687,827
Parts sales
3,864,491
3,811,948
Servicing and repairs
1,448,370
1,342,995
17,999,113
15,842,770
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
16,634,323
12,892,763
Other EC
526,299
2,155,618
Outside EC
838,491
794,389
17,999,113
15,842,770
2023
2022
£
£
Other revenue
Interest income
2,495
-
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(57,582)
187,672
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
35,000
Depreciation of owned tangible fixed assets
12,828
15,614
Loss/(profit) on disposal of tangible fixed assets
333
(3,000)
Operating lease charges
550,215
537,272
5
Employees

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

2023
2022
Number
Number
Parts, service and repairs
15
24
Sales
4
4
Management and administration
2
4
Total
21
32
TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,284,113
1,660,339
Social security costs
165,809
224,145
Pension costs
116,269
192,130
1,566,191
2,076,614
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
23,172
132,964
Company pension contributions to defined contribution schemes
759
13,645
23,931
146,609

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
2,495
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
71,888
111,775
9
Taxation
2023
2022
£
£
Deferred tax
Tax losses carried forward
(1,089,259)
-
0
TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 18 -

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

2023
2022
£
£
Profit/(loss) before taxation
491,306
(1,534,264)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
115,555
(291,510)
Tax effect of expenses that are not deductible in determining taxable profit
25,855
10,560
Tax effect of utilisation of tax losses not previously recognised
(143,028)
-
0
Unutilised tax losses carried forward
-
0
281,826
Other permanent differences
1,618
(876)
Deferred tax on Carried forward losses
(1,077,091)
-
0
Deferred tax on decelarated capital allowances
(12,168)
-
0
Taxation credit for the year
(1,089,259)
-

As at the 1st March 2023 the main rate of corporation tax increased from 19% to 25% and the above rates represent the hybrid rate for this period. Deferred taxes at the balance sheet date have been measured at 25%.

 

As at the year end the company had tax losses available to carry forward against future profits of £4.3m. As it is considered probable that future profits will arise a deferred tax asset has been provided for.

10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
33,811
87,370
120,439
241,620
Disposals
-
0
(55,629)
(111,361)
(166,990)
At 31 December 2023
33,811
31,741
9,078
74,630
Depreciation and impairment
At 1 January 2023
3,757
72,509
115,709
191,975
Depreciation charged in the year
3,757
6,707
2,364
12,828
Eliminated in respect of disposals
-
0
(55,629)
(111,361)
(166,990)
At 31 December 2023
7,514
23,587
6,712
37,813
Carrying amount
At 31 December 2023
26,297
8,154
2,366
36,817
At 31 December 2022
30,054
14,861
4,730
49,645
TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
818,571
3,070,444

An impairment loss of £nil (2022 - £144,040) was recognized in cost of sales against stock during the year due to stock write downs including slow-moving and obsolete stock.

 

The replacement cost of stock is not materially different from the amounts shown above.

12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,645,052
1,032,584
Gross amounts owed by contract customers
126,748
272,281
Corporation tax recoverable
-
0
83,000
Amounts owed by group undertakings
54,932
1,185,518
Other debtors
-
0
305,022
Prepayments and accrued income
147,928
141,654
1,974,660
3,020,059
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
1,089,259
-
0
Total debtors
3,063,919
3,020,059
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,262,986
2,838,111
Amounts owed to group undertakings
274,348
5,677,926
Taxation and social security
803,057
2,246
Other creditors
250,807
82,207
Accruals and deferred income
410,726
534,575
4,001,924
9,135,065
TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Deccelerated capital allowances
12,168
-
Tax losses
1,077,091
-
1,089,259
-
2023
Movements in the year:
£
Liability at 1 January 2023
-
Credit to profit or loss
(1,089,259)
Asset at 31 December 2023
(1,089,259)

The deferred tax asset set out above is expected to reverse in more than one year and relates to the utilisation of tax losses against future expected profits of the same period.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
116,269
192,130

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 shares of £1 each
2,001
2,001
2,001
2,001

1 Ordinary share of £1 was allotted as fully paid at a premium of £4,299,999 during the comparative year.

 

Called up share capital - represents the nominal value of shares that have been issued.

 

There is a single class of ordinary shares ranking pari passu. There are no restrictions on the distribution of dividends or the repayment of capital.

TADANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Share premium account

Share premium account - includes any premiums received on issue of share capital.

18
Profit and loss reserves

Retained earnings account - includes all current and prior period retained profits and losses.

19
Operating lease commitments

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
519,740
463,748
Between two and five years
1,671,808
1,706,165
In over five years
787,917
1,044,629
2,979,465
3,214,542
20
Related party transactions

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

21
Ultimate controlling party

The controlling party is Tadano Faun GmbH, a company incorporated in Germany.

 

The ultimate controlling party is Tadano Ltd, a company incorporated in Japan.

 

The parent undertaking of the smallest group for which consolidated financial statements are prepared is Tadano Faun GmbH. The registered office of Tadano Faun GmbH is Faunberg 2, 91207, Lauf a.d. Pegnitz, Germany.

 

The parent undertaking of the largest group for which consolidated financial statements are prepared is Tadano Ltd, the group's financial statements are available to the public at www.tadano.com. The registered office of Tadano Ltd is Ko-34, Shinden-cho, TAKAMATSU-SHI 761-0185, Japan.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200JK KroppelH HarnackT MotoyamaL Gee-Nylandfalsefalse043071232023-01-012023-12-3104307123bus:Director32023-01-012023-12-3104307123bus:Director42023-01-012023-12-3104307123bus:Director12023-01-012023-12-3104307123bus:Director22023-01-012023-12-3104307123bus:RegisteredOffice2023-01-012023-12-31043071232023-12-31043071232022-01-012022-12-3104307123core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3104307123core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31043071232022-12-3104307123core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3104307123core:PlantMachinery2023-12-3104307123core:FurnitureFittings2023-12-3104307123core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3104307123core:PlantMachinery2022-12-3104307123core:FurnitureFittings2022-12-3104307123core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3104307123core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3104307123core:CurrentFinancialInstruments2023-12-3104307123core:CurrentFinancialInstruments2022-12-3104307123core:ShareCapital2023-12-3104307123core:ShareCapital2022-12-3104307123core:SharePremium2023-12-3104307123core:SharePremium2022-12-3104307123core:RetainedEarningsAccumulatedLosses2023-12-3104307123core:RetainedEarningsAccumulatedLosses2022-12-3104307123core:ShareCapital2021-12-3104307123core:SharePremium2021-12-3104307123core:RetainedEarningsAccumulatedLosses2021-12-3104307123core:ShareCapital2022-01-012022-12-3104307123core:SharePremium2022-01-012022-12-3104307123core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3104307123core:PlantMachinery2023-01-012023-12-3104307123core:FurnitureFittings2023-01-012023-12-310430712312023-01-012023-12-310430712312022-01-012022-12-3104307123core:UKTax2023-01-012023-12-3104307123core:UKTax2022-01-012022-12-310430712322023-01-012023-12-310430712322022-01-012022-12-310430712332023-01-012023-12-310430712332022-01-012022-12-3104307123core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3104307123core:PlantMachinery2022-12-3104307123core:FurnitureFittings2022-12-31043071232022-12-3104307123core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3104307123core:Non-currentFinancialInstruments2023-12-3104307123core:Non-currentFinancialInstruments2022-12-3104307123core:WithinOneYear2023-12-3104307123core:WithinOneYear2022-12-3104307123core:BetweenTwoFiveYears2023-12-3104307123core:BetweenTwoFiveYears2022-12-3104307123core:MoreThanFiveYears2023-12-3104307123core:MoreThanFiveYears2022-12-3104307123bus:PrivateLimitedCompanyLtd2023-01-012023-12-3104307123bus:FRS1022023-01-012023-12-3104307123bus:Audited2023-01-012023-12-3104307123bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP