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REGISTERED NUMBER: 05764775 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

NIBE ENERGY SYSTEMS LIMITED

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)






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 Profit and Loss and Other Comprehensive
Income

9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


NIBE ENERGY SYSTEMS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: P Smith
R Adderley
J M Gunnarsson
L S Nordenfors
Ms L Rawson





REGISTERED OFFICE: Unit 3c
Broom Business Park
Bridge Way
Chesterfield
Derbyshire
S41 9QG





REGISTERED NUMBER: 05764775 (England and Wales)





AUDITORS: Haines Watts Leeds LLP
Chartered Accountants and Statutory Auditor
3rd Floor
56 Wellington Street
Leeds
LS1 2EE

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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
Driven mainly by the reduction in Government subsidies for Ground Source Heat Pumps, 2023 proved to be a challenging year in terms of sales and business profitability. Supply chain shortages and delivery issues, we encountered in 2022, have had a longer lasting impact on repeat business and sales. The enhancements to the boiler upgrade scheme however launched in Q4 2023 had minimal time to impact 2023, the benefit we are now seeing in 2024, on increased orders. 2023 was also a year of investment in staff training and actions put in place to improve our customer experience. NIBE Energy Systems Ltd have a clear plan for the next 5 years to address the UK heat pump market for now and the future and have key initiatives in place for growth.

PRINCIPAL RISKS AND UNCERTAINTIES
While the government is committed to achieving net zero by 2050, progress towards this for our core business of transition to fossil free heating, in the form of heat pumps, has been slower than expected. With many U turns in Government policy, along with a 2024 General Election, this is causing market uncertainty. The introduction of standards for new homes from 2025 provides significant opportunities for the business for 2024 and beyond in addition to other areas of funding. The Boiler Upgrade Scheme subsidy rose from £5,000 to £7,500 which will provide additional sale opportunities.

KEY PERFORMANCE INDICATORS
The directors consider turnover and profit after tax as the principle KPI used to measure overall company performance.

Key financial performance indicators during the period are as follows:


2023 2022 % Change
Turnover 14,162,411 15,668,434 -9.61
Operating Profit (1,167,951) 688,032 -269.75
Profit after tax (1,214,763) 574,305 -310.65

Current asset as
percentage of current
liabilities


217.03


216,.98%


Average trade days 26.25 60.70
Average number of
employees

43

39


ON BEHALF OF THE BOARD:





P Smith - Director


7 May 2024

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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 the import and sale of heating systems and ancillary items.

DIVIDENDS
A final dividend of £3,000 per Ordinary Share was proposed for the year ended 31 December 2022 and paid during 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.

R Adderley
J M Gunnarsson
L S Nordenfors

Other changes in directors holding office are as follows:

P Smith - appointed 16 October 2023
Ms L Rawson - appointed 3 July 2023
P Hurley - resigned 6 September 2023

DISCLOSURE IN THE STRATEGIC REPORT
Certain items required under section 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the directors report are set out in the Strategic Report in accordance with S414C(1l) Companies Act 2006.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 AUDITOR
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Haines Watts Leeds LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





P Smith - Director


7 May 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NIBE ENERGY SYSTEMS LIMITED

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

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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
NIBE ENERGY SYSTEMS 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NIBE ENERGY SYSTEMS LIMITED


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:

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.

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 heating product 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 laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit
- use of Data Analytics to identify risk areas to focus our work on

We assessed the susceptibility of the company's financial statements to 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;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
- understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, including the impact on revenue recognition, 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 the accounting estimates set out in the notes to the financial statements 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 disclosure to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NIBE ENERGY SYSTEMS LIMITED


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.




Matthew Barton BA(Hons) FCA CTA (Senior Statutory Auditor)
for and on behalf of Haines Watts Leeds LLP
Chartered Accountants and Statutory Auditor
Leeds

8 May 2024

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
as restated
Notes £    £   

TURNOVER 3 14,162,411 15,668,434

Cost of sales 11,610,476 11,721,028
GROSS PROFIT 2,551,935 3,947,406

Administrative expenses 3,726,757 3,273,458
(1,174,822 ) 673,948

Other operating income 6,871 14,084
OPERATING (LOSS)/PROFIT (1,167,951 ) 688,032

Interest receivable and similar income 48,774 15,249
(1,119,177 ) 703,281

Interest payable and similar expenses 5 - 208
(LOSS)/PROFIT BEFORE TAXATION 6 (1,119,177 ) 703,073

Tax on (loss)/profit 7 95,586 128,768
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(1,214,763

)

574,305

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE
(LOSS)/INCOME FOR THE YEAR

(1,214,763

)

574,305

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 144,711 163,269

CURRENT ASSETS
Stocks 11 3,753,907 4,273,867
Debtors 12 2,347,037 4,134,082
Cash at bank and in hand 1,264,040 1,843,560
7,364,984 10,251,509
CREDITORS
Amounts falling due within one year 13 3,329,233 4,724,542
NET CURRENT ASSETS 4,035,751 5,526,967
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,180,462

5,690,236

PROVISIONS FOR LIABILITIES 16 33,883 28,894
NET ASSETS 4,146,579 5,661,342

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 4,146,479 5,661,242
SHAREHOLDERS' FUNDS 4,146,579 5,661,342

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 7 May 2024 and were signed on its behalf by:





P Smith - Director


NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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 6,086,937 6,087,037

Changes in equity
Dividends - (1,000,000 ) (1,000,000 )
Total comprehensive income - 574,305 574,305
Balance at 31 December 2022 100 5,661,242 5,661,342

Changes in equity
Dividends - (300,000 ) (300,000 )
Total comprehensive loss - (1,214,763 ) (1,214,763 )
Balance at 31 December 2023 100 4,146,479 4,146,579

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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

1. STATUTORY INFORMATION

NIBE Energy Systems 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.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

Related party exemption
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.

Significant judgements and estimates
In determining the carrying amounts of certain assets and liabilities, the company makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The company's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically.These include the assessment of provisions against stock.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 33% on cost and 25% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost and 20% on cost

Depreciation is charged from the month of purchase.

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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

2. ACCOUNTING POLICIES - continued

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

Cost is based on the weighted average principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other cost incurred in bringing them to their existing location and condition.

Debtors
Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Profit and Loss and Other 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.

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.

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

Employee benefits
Short term employee benefits, including holiday pay and other similar non monetary benefits, are recognised as an expense in the period in which they are incurred.

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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

2. ACCOUNTING POLICIES - continued

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.

Operating lease 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
A provision is recognised in the balance sheet when the company has a present legal or constructive obligation as a result of a past event that can be reliability measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

3. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

All turnover arose from activities in the UK.

4. EMPLOYEES AND DIRECTORS
2023 2022
as restated
£    £   
Wages and salaries 2,043,202 1,652,496
Social security costs 252,436 214,507
Other pension costs 128,491 78,621
2,424,129 1,945,624

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

Maintenance and service 14 8
Sales and marketing 26 28
Administration 3 3
43 39

2023 2022
as restated
£    £   
Directors' remuneration 382,940 305,280
Directors' pension contributions to money purchase schemes 39,904 24,732

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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

4. EMPLOYEES AND DIRECTORS - continued

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

Money purchase schemes 3 2

Information regarding the highest paid director is as follows:
2023 2022
as restated
£    £   
Emoluments etc 212,315 200,697
Pension contributions to money purchase schemes 19,792 18,252

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
as restated
£    £   
HMRC interest - 208

6. (LOSS)/PROFIT BEFORE TAXATION

The loss (2022 - profit) is stated after charging:

2023 2022
as restated
£    £   
Other operating leases 259,203 190,521
Depreciation - owned assets 85,537 64,667
Auditors' remuneration 14,000 13,000
Foreign exchange differences 10,739 19,364

7. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
as restated
£    £   
Current tax:
UK corporation tax - 117,969
Prior year tax adjustment 90,597 -
Total current tax 90,597 117,969

Deferred tax 4,989 10,799
Tax on (loss)/profit 95,586 128,768

UK corporation tax has been charged at 25% (2022 - 19%).

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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

7. TAXATION - continued

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

2023 2022
as restated
£    £   
(Loss)/profit before tax (1,119,177 ) 703,073
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

(279,794

)

133,584

Effects of:
Expenses not deductible for tax purposes 31,299 1,783
Capital allowances in excess of depreciation - (6,599 )
Depreciation in excess of capital allowances 3,565 -
Deferred tax not provided on loss carried forward 244,930 -
Prior year adjustment 95,586 -
Total tax charge 95,586 128,768

8. DIVIDENDS
2023 2022
as restated
£    £   
Ordinary shares of £1 each
Final 300,000 1,000,000

9. PRIOR YEAR ADJUSTMENT

Certain comparative costs have been reanalysed in line with activities to provide a more appropriate comparison. There has been no changes to the Balance Sheet and no change to the total profit for the financial year.

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 337,833 345,640 5,339 246,591 935,403
Additions 14,735 23,852 10,841 17,551 66,979
At 31 December 2023 352,568 369,492 16,180 264,142 1,002,382
DEPRECIATION
At 1 January 2023 301,071 262,658 5,339 203,066 772,134
Charge for year 23,007 33,045 984 28,501 85,537
At 31 December 2023 324,078 295,703 6,323 231,567 857,671
NET BOOK VALUE
At 31 December 2023 28,490 73,789 9,857 32,575 144,711
At 31 December 2022 36,762 82,982 - 43,525 163,269

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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

11. STOCKS
2023 2022
as restated
£    £   
Finished goods 3,753,907 4,273,867

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
as restated
£    £   
Trade debtors 899,286 2,605,605
Amounts owed by group undertakings 67,992 71,396
Other debtors 277,404 210,486
Corporation tax 93,640 -
Prepayments 1,008,715 1,246,595
2,347,037 4,134,082

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
as restated
£    £   
Trade creditors 186,046 1,013,508
Amounts owed to group undertakings 2,206,688 2,379,545
Corporation tax - 51,097
Social security and other taxes 85,802 67,404
VAT 118,339 641,297
Other creditors 129,285 61,184
Accruals and deferred income 603,073 510,507
3,329,233 4,724,542

Group balances are repayable on demand and are interest free.

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
as restated
£    £   
Within one year 291,997 192,829
Between one and five years 283,836 150,658
575,833 343,487

15. PENSION COMMITMENTS

Pension liability of £18,407 was due at year end (2022 £nil).

16. PROVISIONS FOR LIABILITIES
2023 2022
as restated
£    £   
Deferred tax 33,883 28,894

NIBE ENERGY SYSTEMS LIMITED (REGISTERED NUMBER: 05764775)

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

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 28,894
Provided during year 4,989
Balance at 31 December 2023 33,883

The charge to the profit and loss account relates to capital allowances in excess of depreciation.

17. CALLED UP SHARE CAPITAL

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

18. RESERVES
Retained
earnings
£   

At 1 January 2023 5,661,242
Deficit for the year (1,214,763 )
Dividends (300,000 )
At 31 December 2023 4,146,479

19. ULTIMATE PARENT COMPANY

The ultimate parent company is NIBE Industrier AB, a company incorporated in Sweden. Its registered address is Box 14, SE-285 21 Markaryd, Sweden.

The parent undertaking of the largest and smallest group for which consolidated accounts are prepared is NIBE Industrier AB. Consolidated accounts are available from NIBE Industrier AB, Box 14, Jarnvagsgaten 40, 285 21 Markaryd, Sweden or www.nibe.com.

20. 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 its parent and fellow subsidiary undertakings.

21. ULTIMATE CONTROLLING PARTY

The controlling party is NIBE AB, a company incorporated in Sweden.

The ultimate controlling party is NIBE Industrier AB, a company incorporated in Sweden.