REGISTERED NUMBER: |
AL-KO Gardentech UK Ltd |
Strategic Report, Report of the Director and |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
AL-KO Gardentech UK Ltd |
Strategic Report, Report of the Director and |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 16 |
AL-KO Gardentech UK Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
4 King Square |
Bridgwater |
Somerset |
TA6 3YF |
BANKERS: |
2 Hendford |
Yeovil |
Somerset |
BA20 1TN |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Strategic Report |
for the Year Ended 31 December 2023 |
The director presents his strategic report for the year ended 31 December 2023. |
The results reflect the continued evolution of the company despite the continued uncertain economic and political climate during the year. The director remains convinced that we are continuing to build a company that has a firm foundation from which we can deliver future expansion and profits. All employees and management have worked hard during the year to offer an industry leading level of service and support to our customers. |
One of the greatest factors in the success of the business is the weather, with the product range being seasonal gardening products it is vital that the weather conditions are favourable to allow consumers to purchase and use the products. 2023 started very cold and mild in the spring delaying the start of the season, then followed up by periods of extreme heat with the end of the year ending with vast rainfall around the UK. As a result the natural demand in the market was not seen, with footfall and demand across the full market down. |
Throughout 2023 the company focused on service to its customers, increasing its spare parts holding and vastly improving the service and availability of spare parts in 2023 compared to previous years. This allowed for increased efficiency and cost savings in freight helping to maintain the gross margin %. |
The turnover for the year was down on the previous year, when comparing like for like sales with the brands the company was down 14%. This was impacted by customers having larger stock holdings and due to the nature of the business in the year we did not see the typical spike and re-order in Spring time. However in the last 3 months of the year the company started our product launch for 2024 and are pleased to say that this was a success and are fortunate to have orders on hand for new products that will be produced and delivered in the new financial year. This shows that the commitment from the market is firmly behind the company and external factors were the largest factor in the sales results in 2023. |
REVIEW OF BUSINESS |
Financial Performance |
2023 £'000 |
2022 £'000 |
Change £'000 |
% |
Turnover | 8,748 | 10,193 | (1,445) | (14)% |
Gross Profit | 3,002 | 3,543 | (541) | (15)% |
Profit/(loss) before tax | 304 | 677 | (419) | (55)% |
Strategy |
Going forward we will continue with our plans to focus on our customers, and work with committed partners who have goals and values aligned with ours. Our aim is to be regarded as a trusted and reliable supplier by our customers in the industry. Offering a comprehensive range of garden machinery at competitive prices and of a high quality. |
The director is confident that the company has an excellent range of garden machinery and associated products, although we are always looking to review and strengthen the product portfolio including investing in R&D for new products for the UK market designed specifically for the UK market we believe there continues to be large opportunities to offer a quality product, with back up and support of our specialist dealer network. |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Strategic Report |
for the Year Ended 31 December 2023 |
Ongoing Brexit implications |
The company continues to review the implications for trade as a result of Brexit and has addressed all areas relating to imports, exports and foreign exchange which may be impacted. The companys' key suppliers and customers are situated in the EEC, therefore this has been addressed as a priority. The Republic of Ireland sales area continues to be managed by our parent company. |
Turnover and gross profit |
Turnover is down on last year by 14%, it is the belief of the directors and management that this is driven by market demand and consumer spending. For previous years we have seen supply chain issues in our business and the market, this has lead to some what of a flooding of the market place with gardening products towards the end of 2022. This on top of an unfavorable weather conditions in 2023 has meant that the 'sell out' of the goods in our customers has not happened at the pace anticipated. |
As a business we have worked to maintain our margin and product mix though out 2023, this has meant that the gross margin % has remained consistent however there was a directly co-related drop in monetary terms due to the drop in turnover. It is the belief that 2023 was a year that could be described as some what of a correction in the market after the past positive years and demand driven by COVID 19, home working and lockdown renovations. |
Operating costs |
Due to the downturn in turnover in 2023, continuous measures were put in place to ensure that operating costs were kept to a level that reflected turnover. Where possible operating costs were reduced while maintaining the service and continuing to invest in the parts of the business that will continue to provide long term sustainability and growth. |
Capital expenditure |
We continue to invest to improve the company. Our main expenditure during the year was the upgrade of the company vehicles and plant & equipment for use in the warehouse to increase efficiency. We invested in warehouse with specialist equipment to allow goods to be unloaded faster and more importantly safer for our staff with less manual handling. |
Performance indicators |
The director monitors key performance indicators in addition to the more traditional financial statements and sales pipeline information that is provided to the parent each month. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Credit risk |
The company's principal financial assets are cash, trade debtors and related party inter-company balances. The credit risk associated with cash is limited. The principal credit risk arises therefore from its trade debtors which are widely spread and again the risk is limited. |
The company, and group generally, maintains significant cash reserves to mitigate any future perceived risk. |
Foreign exchange risk |
Foreign exchange risk is a key area of operations as a result of significant trade undertaken in Euros and US Dollars. The company has processes in place to minimise this risk, in conjunction with group policies and procedures, to reduce exposure to currency fluctuations. |
Climate sustainability |
As a business supplying products for use in the garden and outdoor space we feel a need to take actions where possible to reduce our impact on the climate and work towards being a sustainable business. We generate power from Solar Panels at our site in Wincanton to generate over 25,000 kW's of electricity in the financial year 2023. Additionally we have made the business decision that where possible for all packaging and paper materials we will try to purchase recyclable products to reduce the amount of waste going to landfill. For shipments leaving our warehouse we have worked with our packaging supplier to develop new boxes that minimise the volumetric space of package, this means we are able to increase the amount of packages that can be loaded on to each truck and reduce the total carbon footprint of the goods from our company to our customers. These are small actions along with working to optimise our product packaging to increase pallet and container quantities to reduce the CO2 in the product life cycle by increasing the quantity that can be shipped in the same space. |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Strategic Report |
for the Year Ended 31 December 2023 |
Principal risks |
We recognise that stock valuation and stock turnover are the key to our profitability and management monitors these areas on a regular basis. Our fixed overheads and staffing levels are under constant review to enable us to respond to any downturn or upturn in the market that may require an overhead adjustment. All areas of our business review stock values on a regular basis, and adjustments are and will be made for slow moving and obsolete items. |
The company uses various financial instruments. These include financing, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. |
The existence of these financial instruments exposes the company to a number of financial risks, which are described below in more detail. |
The main risks arising are cash flow interest rate risk, credit risk and liquidity risk. The director reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. |
Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The maturity of any borrowings is set out in the notes to the financial statements. |
Interest rate risk |
The company finances its operations through a mixture of retained profits and asset finance. The exposure to interest rate fluctuations on borrowings is managed by the use of fixed facilities. |
ON BEHALF OF THE BOARD: |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Report of the Director |
for the Year Ended 31 December 2023 |
The director presents his 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 the import, distribution and sales of commercial and consumer horticultural machinery and associated spare parts. The core business activities take place in the UK. |
DIVIDENDS |
The company paid a dividend to its parent of £3,500,000 during the year. |
RESEARCH AND DEVELOPMENT |
During the period the company continues to invest in research and development projects. |
DIRECTOR |
The director shown below was in office at 31 December 2023 but did not hold any interest in the following: |
A Ordinary shares of £1 each |
B Ordinary shares of £1 each |
at 1 January 2023 or 31 December 2023. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Report of the Director |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Maxwells, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
AL-KO Gardentech UK Ltd |
Opinion |
We have audited the financial statements of AL-KO Gardentech UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
AL-KO Gardentech UK Ltd |
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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
AL-KO Gardentech UK Ltd |
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: |
Identifying and assessing potential risks to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- Obtaining an understanding of the nature of the industry and sector in which the business operates and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. |
- Enquiring of management, including reviewing supporting documentation concerning the company's policies and procedures relating to: |
a) Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance. |
b) Detecting and responding to the risks of fraud and whether they have knowledge of any factual, suspected or alleged fraud. |
c) The internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations |
- Discussing with the audit engagement team regarding how and where fraud might occur in the financial statements and potential indications of fraud. |
Audit response to risks identified |
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations. |
Our procedures to respond to risks identified included the following: |
- Enquiring of management and those charged with governance concerning actual and potential litigation and claims. |
- Reviewing minutes of meetings of those charged with governance and reviewing correspondence with HMRC. |
- Performing analytical review procedures to identify and unusual or unexpected transactions that may indicate risks of material misstatement due to fraud. |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business. |
There are inherent limitations in our audit procedures described above. The more removed those 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. |
Report of the Independent Auditors to the Members of |
AL-KO Gardentech UK Ltd |
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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
4 King Square |
Bridgwater |
Somerset |
TA6 3YF |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,751,711 | 2,952,823 |
250,086 | 590,439 |
Other operating income |
OPERATING PROFIT and |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Statement of Financial Position |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
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 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Statement of Cash Flows |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
695,922 |
Cash and cash equivalents at end of year | 2 | 790,961 | 874,017 |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Statement of Cash Flows |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Government grants | ( |
) |
386,625 | 706,231 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 790,961 | 874,017 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 874,017 | 695,922 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 874,017 | (83,056 | ) | 790,961 |
874,017 | ( |
) | 790,961 |
Total | 874,017 | (83,056 | ) | 790,961 |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
AL-KO Gardentech UK Ltd is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable Accounting Standards and estimation techniques, and on a going concern basis. |
The director has reviewed cash-flow forecasts for at least 12 months from the date of the accounts signing to ensure the company can maintain its day-to-day services, fulfill its statutory obligations and meet future obligations to creditors and other stakeholders. |
The director believes the company to be a going concern. |
Critical accounting judgements and key sources of estimation uncertainty |
In applying the company's accounting policies, which are described in note 3, management is required to make: |
- judgements (other than those involving estimations) that have a significant impact on the amounts recognised; and |
- estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised on the despatch of goods and subsequent invoicing. |
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. |
Tangible fixed assets |
Plant and machinery | - |
Office equipment | - |
Motor vehicles | - |
Assets are disclosed in the financial statements at cost based on invoiced values. |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of average cost and net realisable value, after making due allowance of obsolete and slow moving items based on established formula and oversight. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 statement of financial position 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 and loss on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
Warranty provision |
Provision is made where appropriate for warranty costs on products sold. The provision is calculated by reference to the length of the warranty period and the costs incurred in the previous 12 months. |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Management and administration | 4 | 4 |
Sales, marketing & distribution | 14 | 18 |
31.12.23 | 31.12.22 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Patents and licences amortisation |
Computer software amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Tax credit | (32,786 | ) | (28,265 | ) |
Total current tax | ( |
) | ( |
) |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% (2022 - 19%). |
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: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) | ( |
) |
R&D tax credit received | (32,786 | ) | (28,265 | ) |
Deferred tax movement for loss relief | 56,000 | 153,764 |
Total tax charge | 42,826 | 125,499 |
8. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
A Ordinary shares of £1 each |
Interim |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | INTANGIBLE FIXED ASSETS |
Patents |
and | Computer |
licences | software | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | TANGIBLE FIXED ASSETS |
Plant and | Office | Motor |
machinery | equipment | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Goods for resale |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Deferred tax asset |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade creditors |
Corporation Tax |
Social security and other taxes |
Accruals and deferred income |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
15. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 44,000 | - |
Warranty provision | 394,886 | 437,532 |
Deferred |
tax |
£ |
Balance at 1 January 2023 | ( |
) |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
AL-KO Gardentech UK Ltd (Registered number: 02311359) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
A Ordinary | £1 | 100 | 100 |
B Ordinary | £1 | 100 | 100 |
200 | 200 |
The different classes of ordinary share rank equally in all respects. |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
18. | 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 group entities. |
The company's immediate parent company is AL-KO Gardentech UK Holdings Limited, a company incorporated in England & Wales. |
19. | ULTIMATE CONTROLLING PARTY |
The controlling party is AL-KO Gardentech UK HoldingsLimited. |
The companys' ultimate parent company is Primepulse SE, a company incorporated in Germany. Its registered office is Promenadeplatz 12, 80333 Munchen, Germany. This company is deemed the ultimate controlling party. |