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Company Registered Number: 04111437










LIEBHERR SUNDERLAND WORKS LIMITED










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
COMPANY INFORMATION


 
Directors
R Cherdron 
A Krajewski 




Company secretary
J Simmons



Registered number
04111437



Registered office
Ayres Quay
Deptford Terrace

Sunderland

SR4 6DD




Independent auditor
MHA

6th Floor

2 London Wall Place

London

EC2Y 5AU





 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
CONTENTS



Page
Strategic Report
 
1 - 4
Directors' Report
 
5 - 8
Independent Auditor's Report
 
9 - 12
Statement of Profit or Loss and Other Comprehensive Income
 
13
Statement of Financial Position
 
14 - 15
Statement of Changes in Equity
 
16
Statement of Cash Flows
 
17
Notes to the Financial Statements
 
18 - 44
 
 

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their Strategic Report for Liebherr Sunderland Works Limited (the "Company") for the year ended 31 December 2023.

Principal activity
 
Liebherr Sunderland Works Limited (LSW) is a production facility within the maritime division of companies that manufactures ship and offshore cranes as well as port equipment. 

Business review
 
Business environment
Since 2014 LSW is owned by Liebherr-MCCtec GmbH (MCC) in Austria who acts as the divisional headquarter of the Maritime Division within the Liebherr Group of companies.
MCC is responsible for and organises the marketing, sales, research and development, design and technology as well as the strategic purchasing of LSW’s product range. Production targets are also set by MCC.
LSW is responsible for achieving the planned production targets and to operate within the planned budget.
Strategy
The Maritime Division (of which LSW is a member) operates on a rolling five year plan which has been adjusted to reflect the present global economic situation. LSW and its sister factories Liebherr-MCCtec Rostock GmbH (MCR) in Germany and Liebherr Werk Nenzing GmbH (LWN) are set up with identical machineries, control systems and planning tools to allow flexibility in manufacturing of the product range. LSW is currently manufacturing four of the group’s crane products, namely ship / dock side, offshore, harbour mobile and reach stacker.
Review of the year
Activities and performance were pre-planned in autumn of the previous year based on the envisaged sales outlook. Based on the Covid-developments and impacts on supply chain and lockdown not only in the United Kingdom, the production plan had to be reviewed and adapted continuously. 

Key performance indicators ("KPIs")

The profit of LSW is defined by the transfer pricing policy with the affiliated company LWN and MCR to whom the majority of sales are made.
LSW's financial KPIs are shown below:
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Non-financial KPIs include efficiency rate, the number of units produced and production hours achieved. Since 2016 there is a focus on Working Capital Management which is looking into areas of stock keeping, purchasing and production processes mainly.

Page 1

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Product range

The volume of sales within the product range enables MCC to mix the products within the manufacturing facilities in Nenzing, Sunderland and Rostock to suit the resources at each site and customer demands. 

Training and development
 
The skills of the employees are the foundation of the success of LSW. The already existing apprenticeship scheme in cooperation with an external training centre and local colleges for steel shop and assembly occupations has been continued and further developed.
In addition LSW encourages all employees to improve their skills and competencies, by supporting further education, higher education courses and on the job training wherever possible. 
The factories within the Maritime Division are constantly exchanging personnel to improve expertise, quality and efficiency. 

Research and development

The design and latest technology behind the Liebherr products is of paramount importance as design build and product reliability are key for its customers. It is considered crucial to keep this work in-house wherever possible in order to maintain the high quality standards. All research and development is carried out by MCC in the facilities in Rostock, Nenzing and Killarney.

Directors' statement of compliance with duty to promote the success of the Group
 
The Directors continue to have regard to the interests of the Company’s wider stakeholders, in accordance withsection 172(1) of the Companies Act 2006. This is achieved by working with the management team and staff to formulate long term plans and strategic imperatives, which are monitored and updated regularly.
Employee involvement
Regular meetings are held between senior management and employee representatives to discuss matters of concern. Employees are kept well-informed about the progress and position of the Company by means of regular written and verbal communication.
Engagement with suppliers, customers and others
The Company’s strategy is to build additional value by seeking long-term partnerships with both its customers and suppliers.

Future outlook

In accordance with our five year plan LSW will continuously invest in the manufacturing and supporting administration facilities as well as in staff training in order to remain flexible and competitive. 
It is one of the strengths not only of LSW but the whole division and Liebherr group, to have a widely diversified portfolio which is constantly adapted in the production planning to cover for dips in demand and cater to the strongest markets.

Page 2

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties

The Liebherr Group is fully aware of the different risks and uncertainties that face its industry. Key risks are set out below:
Global economic situation
To tackle the continuous uncertainties of the present economic climate the Maritime Division has further strengthened its already existing Direct Sales strategy. 
The ongoing shortage of products for production poses a challenge also for 2023 but is well under control through the strategic and combined purchasing organisation within the maritime division and the Liebherr group of companies. As in prior years, Liebherr Sunderland’s production focus lies mainly on port equipment such as Harbour Mobile Cranes. 
Employees
LSW’s operation requires skilled personnel at every level. To counter the erosion and the lack of availability of skilled workers and staff LSW has further advanced its successful apprenticeship scheme with continuously rising numbers of new apprentices in different trades and has successfully encouraged other employees to participate in FE, HE and other training.
Supply chain
The Liebherr Group has an approved supply chain for critical components that requires the supplier to have a worldwide service back-up for parts. Also, the Liebherr Group is constantly assessing sub-contractors who can attain the correct standard for our products. The Liebherr Group manufactures a number of key components itself to minimise the risk of dependency. In order to improve the flexibility LSW has invested in further manufacturing equipment.
Competition
The Maritime Division of the Liebherr Group operates in a highly competitive market. Liebherr can secure sales and profit when the selection criteria of potential clients include product build quality, delivery within a fixed time limit and a proven improvement of life cycle costs.
Currency
The Company are exposed to currency risk on purchases, borrowings and cash and cash equivalents that are denominated in a currency other than EUR, primarily GBP. Foreign exchange risk arises from transactions and recognised assets and liabilities. Currency risk is mitigated through the use of foreign exchange derivatives.

Exposure to market risk

The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial performance.

Page 3

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Creditor payment policy

In the absence of disputes, amounts due to trade and other suppliers are settled within the payment terms laid down by those suppliers.


This report was approved by the Board and signed on its behalf.





................................................
R Cherdron
Director
Date: 29 April 2024

Page 4

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The Directors who served during the year were:

R Cherdron 
A Krajewski 

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements, in accordance with applicable law.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted in the United Kingdom ('UK-adopted IFRS').

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 the financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted in the United Kingdom ('UK-adopted IFRS'), subject to any material departures disclosed and explained in the financial statements;

assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

Dividends

The profit for the year, after taxation, amounted to 1,011,024 (2022 - 1,114,545).

Dividends of €1,000,000 (2022 - €1,700,000) were paid during the year.

Post year end events

There have been no significant events affecting the Company since the year end.

Future developments

The future developments of the Company are covered in the Business review section of the Strategic Report.

Page 5

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Energy and carbon reporting

As a family-owned Company active throughout the world, Liebherr carries considerable responsibility for society and the environment. The group is convinced that we shall only achieve long-term success if we remain aware of this responsibility in all our activities. Protection of humanity and the environment is of special importance in our business activities. Liebherr Sunderland Works Ltd is committed to using energy efficiently to minimise our environmental impact and contribute to global sustainability. Our efforts to continually reduce energy wastage will also show our commitment to our employees, our local community, and the environment.

This report covers all energy usage in our buildings, processes and all fuel consumed in vehicles that is a cost to the business.

Total Emissions Data kgCO2e  
   
Emissions by Scope              2023                                              2022
Scope 1 (Direct)                       117,267                                          201,353
Scope 2 (Indirect                    1,092,550                                       1,164,262
Total carbon emmissions        1,211,840                                       1,367,637
Total Energy Consumption   
Intensity Ratio 1 (Buildings)              16.06 kgCO2e / SQM                      17.12 kgCO2e / SQM
Intensity Ratio 2 (C Revenue)           0.0219 kgCO2e / € C Revenue       0.0332 kgCO2e / € C Revenue
 
Supporting Source Data 1   
Building Fuel Categories               
                                                         Total 2023               kgCO2e
Scope 2 Electricity                     1,364,865 kWh        282,628
Scope 2 Natural Gas                 4,499,568 kWh       809,922
                                                                                      1,092,550
   
Total for Buildings               68,000 SQM 
Intensity Ratio 1 Buildings   16.06 kgCO2e /SQM 
   
Supporting Source Data 2   
Transport Fuel Categories                     Total 2023              kgCO2e
Scope 1 LPG                          40,177 Litres     62,676
Scope 1 HVO Diesel               31,988 Litres              1,138
Scope 1 White Diesel (site use) 17,572 Litres            44,106
Scope 1  Diesel (cars)            3,724 Litres                9,347
                                                                 117,267
   
C Revenue                                   55,200,000 € kgCO2e = 1,209,818
Inensity Ratio 2 (C Revenue)  0.0219 kgCO2e / € C Revenue 
 

Page 6

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Energy efficient actions

Identification of our major energy consumers in the organisation; risks that may prevent us from reducing energy consumption and opportunities to improve efficiency. Liebherr Sunderland aims to motivate and empower all employees by encouraging ownership of the scheme through the sharing of expertise and experience. this promotes expected behaviours and a company-wide ethos. Around the business, energy champions to improve participation and consultation on environmental matters around the business are identified. Furthermore visual controls at our site are created to raise awareness and to improve competency concerning protecting the environment. This will create a robust company-wide scheme that engages with staff at all levels providing them the opportunity to be part of the continual improvement and success of Liebherr Sunderland Works Limited.

Scope and operational boundaries

All emission that the Company has operational and financial control over have been included. The usage included in the report are:
 
LPG is used in the manufacturing process and powers onsite forklift machinery.
Diesel Fuel is used for heavy machinery onsite.
CO2 is used during our manufacturing process.
Fleet mileage in diesel vans.
Business mileage in privately owned vehicles.

Qualifying third party indemnity provisions

There were no qualifying third party indemnity provisions in place during the year or at the year end.

Matters covered in the Strategic Report

In accordance with Section 414c (11) of the Companies Act 2006, the Directors have chosen to include the following items in the Strategic Report:

Principal activity
Business review
Future outlook
Principal risks and uncertainties
Employee involvement
Engagement with suppliers, customers and others

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 7

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor

Following a rebranding exercise, on 15 May 2023 the trading name of the company's independent auditor
changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be
proposed at the next Annual General Meeting.

This report was approved by the Board and signed on its behalf.
 



................................................
R Cherdron
Director
Date: 29 April 2024
Page 8

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIEBHERR SUNDERLAND WORKS LIMITED
 

Opinion


We have audited the financial statements of Liebherr Sunderland Works Limited for the year ended 31 December 2023 which comprise the Statement of Profit or Loss and Other Comprehensive Incomethe Statement of Financial Positionthe Statement of Cash Flowsthe Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 18 - 25. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

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 IFRSs as adopted by the United Kingdom; and

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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor'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 United Kingdom, including the Financial Reporting Council'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. Our evaluation of the Directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:
[Explanation of how the auditor evaluated management's assessment and the key observations arising with respect to that evaluation.]

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.

Page 9

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIEBHERR SUNDERLAND WORKS LIMITED (CONTINUED)


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 ReportOur 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.

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

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


Page 10

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIEBHERR SUNDERLAND WORKS LIMITED (CONTINUED)


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:

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 Directors' responsibilities statement on page 59, 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management and those charged with governance around actual and potential litigation and claims;

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 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 auditor's report.

Page 11

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIEBHERR SUNDERLAND WORKS LIMITED (CONTINUED)


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.




 
 
Atul Kariya FCCA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditor
London, United Kingdom

30 April 2024
Page 12

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note

  

Revenue
 5 
55,203,562
41,137,199

Cost of sales
  
(47,820,038)
(35,501,164)

Gross profit
  
7,383,524
5,636,035

  

Other operating income
  
36,612
127,191

Administrative expenses
  
(5,128,875)
(4,309,846)

Profit from operations
  
2,291,261
1,453,380

  

Finance income
 10 
2,697
-

Finance expense
 10 
(745,897)
(210,326)

Amounts written off and p/l on disposals
  
(30,915)
14,828

Profit before tax
  
1,517,146
1,257,882

  

Tax expense
 12 
(506,122)
(143,337)

Profit for the year
  
1,011,024
1,114,545


Total comprehensive income
  
1,011,024
1,114,545

The notes on pages 18 to 44 form part of these financial statements.

All activities are from continuing operations.
There were no items of other comprehensive income for the year ended 31 December 2023 or for the prior year.

Page 13

 
LIEBHERR SUNDERLAND WORKS LIMITED
REGISTERED NUMBER: 04111437
 
 
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


2023
2022
Note


Assets

Non-current assets
  

Property, plant and equipment
 14 
2,020,234
2,079,208

Intangible assets
 15 
21,999
22,239

Deferred tax assets
 12 
55,240
172,657

  
2,097,473
2,274,104

Current assets
  

Inventories
 16 
20,753,829
20,505,753

Trade and other receivables
  
3,687,400
3,178,668

Prepayments
  
509,620
478,207

Other assets
  
14,792
65,802

Corporation tax repayable
  
268,090
-

Cash and cash equivalents
 18 
1,504,799
1,335,755

  
26,738,530
25,564,185

  

Total assets

  

28,836,003
27,838,289

Liabilities

Non-current liabilities
  

Obligations under leases
  
26,320
-

  
26,320
-

Current liabilities
  

Trade and other payables
  
20,417,064
19,443,848

Current tax payable
  
-
13,795

Obligation under leases
  
6,090
5,141

  
20,423,154
19,462,784

  

  

Net assets
  
8,386,529
8,375,505
Page 14

 
LIEBHERR SUNDERLAND WORKS LIMITED
REGISTERED NUMBER: 04111437
 
 
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


2023
2022
Note


Issued capital and reserves
 22 

Share capital
 21 
3,977,750
3,977,750

Other reserves
  
2,408,977
2,408,977

Retained earnings
  
1,999,802
1,988,778

TOTAL EQUITY
  
8,386,529
8,375,505

The financial statements on pages 13 to 44 were approved and authorised for issue by the board of Directors on 29 April 2024 and were signed on its behalf by:




................................................
R Cherdron
Director
Date:

The notes on pages 18 to 44 form part of these financial statements.

Page 15

 
LIEBHERR SUNDERLAND WORKS LIMITED

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



Share capital
Other reserves
Retained earnings
Total equity



At 1 January 2022
3,977,750
2,408,977
2,574,233
8,960,960

Comprehensive income for the year


Profit for the year
-
-
1,114,545
1,114,545

Total comprehensive income for the year
-
-
1,114,545
1,114,545

Contributions by and distributions to owners





Dividends
-
-
(1,700,000)
(1,700,000)

Total contributions by and distributions to owners
-
-
(1,700,000)
(1,700,000)

At 31 December 2022
3,977,750
2,408,977
1,988,778
8,375,505

At 1 January 2023
3,977,750
2,408,977
1,988,778
8,375,505

Comprehensive income for the year


Profit for the year
-
-
1,011,024
1,011,024

Total comprehensive income for the year
-
-
1,011,024
1,011,024

Equity dividends





Dividends
-
-
(1,000,000)
(1,000,000)

Total contributions by and distributions to owners
-
-
(1,000,000)
(1,000,000)

At 31 December 2023
3,977,750
2,408,977
1,999,802
8,386,529

The notes on pages 18 to 44 form part of these financial statements.

Page 16

 
LIEBHERR SUNDERLAND WORKS LIMITED

 
 
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note

Cash flows from operating activities
  

Profit for the year
  
1,011,024
1,114,545

Depreciation of property, plant and equipment
 14 
506,705
605,295

Finance expense
 10 
745,897
210,326

Loss on sale of property, plant and equipment
  
5,722
103,444

Income tax expense
 12 
506,122
143,337

  
2,775,470
2,176,947

Movements in working capital:
  

(Increase)/decrease in trade and other receivables
  
(489,135)
2,542,273

Increase in inventories
  
(248,076)
(5,706,645)

Increase in trade and other payables
  
987,144
3,055,494

Cash generated from operations
  
3,025,403
2,068,069

Income taxes paid
  
(670,591)
(434,877)

Net cash from operating activities

  
2,354,812
1,633,192

Cash flows from investing activities
  

Purchases of property, plant and equipment
  
(467,140)
(379,495)

Net cash used in investing activities

  
(467,140)
(379,495)

Cash flows from financing activities
  

Payments of finance lease creditors
  
27,269
-

Interest paid on convertible loan notes
  
(745,897)
(210,326)

Dividends paid to the holders of the parent
  
(1,000,000)
(1,700,000)

Payment of lease liabilities
  
-
(15,373)

Net cash used in financing activities
  
(1,718,628)
(1,925,699)

Net increase/(decrease) in cash and cash equivalents
  
169,044
(672,002)

  

Cash and cash equivalents at the beginning of year
  
1,335,755
2,007,757

Cash and cash equivalents at the end of the year
 18 
1,504,799
1,335,755

The notes on pages 18 to 44 form part of these financial statements.

Page 17

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Liebherr Sunderland Works Limited is a private company limited by shares incorporated and domiciled in England and Wales. The Company Registered Number is 04111437. The registered office and principal place of business is Ayres Quay, Deptford Terrace, Sunderland, SR4 6DD.
The principal activity of the Company is the manufacture of ship and offshore cranes as well as port equipment.


2.Accounting policies


2.1

Basis of preparation

The financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards ("collectively IFRSs") as adopted in the United Kingdom ("UK-adopted IFRS").
The financial statements are rounded to the nearest Euro. The exchange rate used at 31 December 2023 was €1.151:£1 
(2022 - €1.127:£1).
The financial statements have been prepared on a going concern basis, under the historical cost convention, modified to include investment properties measured at fair value.
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgements and estimates have been made in preparing the financial statements and their effects are disclosed in Note 3.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.


2.2

Going concern

The financial statements have been prepared on a going concern basis. Management believes that the Company will continue as a going concern for the foreseeable future.

Page 18

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control over a product or service to a customer.

Sale of goods
The Company manufactures and sells a range of cranes. The Company has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Revenue is recognised when control of the products has transferred, being when the products are delivered to the customer. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.
Interest, royalties and dividends
Revenue for interest, royalties and dividends is recognised provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably, as follows:


2.4

Foreign currency exchange

Transactions in currencies other than the functional and presentational currency of the Company, the Euro, are recorded at the rates of exchange prevailing on the dates of the transactions. At each Statement of Financial Position date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the Statement of Financial Position date. Non-monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined.
Gains and losses arising on retranslation of monetary assets and liabilities are included in net profit or loss for the period. Gains and losses on the retranslation of non-monetary assets and liabilities are recognised directly in other comprehensive income. Where non-monetary assets and liabilities are held at fair value any subsequent gains and losses are included in net profit or loss for the period.


2.5

Finance costs

Finance costs are calculated using the effective interest method.

 
2.6

Taxation

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


(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Page 19

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.6
Taxation (continued)


(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.


(iii) Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Page 20

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:

Freehold land
not depreciated
Freehold property
over 14 - 30 years
Plant and equipment
over 3 - 20 years
Motor vehicles
over 8 - 11 years
Assets in course of construction and buildings in production
not depreciated

 
2.8

Intangible assets


Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

Licences and franchises
over 3 years

Gains or losses arising from disposals of intangible assets are included in profit or loss in the period in which they arise.

Page 21

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.9


Impairment of non-financial assets (excluding inventories, investment properties and deferred tax assets)

Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs'). Goodwill is allocated on initial recognition to each of the Group's CGUs that are expected to benefit from a business combination that gives rise to the goodwill.

Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed.


2.10

Employee benefits

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Profit or Loss and Other Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.


2.11

Capital management

Capital consists of ordinary shares and retained earnings and other reserves. The Board monitors the return on capital. The Company is not subject to any externally imposed capital requirements.

 
2.12

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a weighted average basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.


2.13

Work in progress

Work in progress is valued on the basis of direct costs plus attributable overheads based on a normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.


2.14

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Page 22

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.15

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.


The Company as a lessee

The Company recognises right-of-use assets under lease agreements in which it is the lessee. The underlying assets mainly include property, plant and equipment. The right-of-use assets comprise the initial measurement of the corresponding lease liability and payments made at or before the commencement day as well as any initial direct costs. The corresponding lease liability is included in the Statement of Financial Position as a lease liability.

The right-of-use asset will be depreciated over the shorter of the lease term or the useful economic life of the asset and are reviewed annually for indicators of impairment (see impairment policy). The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability and by reducing the carrying amount to reflect the lease payments made.

The lease liability is presented as a separate line in the Statement of Financial Position.

As allowed by IFRS 16, when the Company enters into a lease where the asset has a low underlying asset value or the lease term is less than 12 months, the Company does not recognise this as a right-of-use-asset. These payments are recognised as an expense in profit or loss on a straight-line basis over the lease term.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in the 'Property, Plant and Equipment' and 'Investment Property' lines, as applicable, in the Statement of Financial Position.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in Note 2.7.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has not used this practical expedient where these non-lease components are separately identifiable.

Page 23

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual term expires. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value except for trade receivables and payables which are measured at the transaction price.
Financial assets:
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets. The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial asset that is created or retained by the Company is recognised as a separate asset or liability.
All revenue and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses.
Fair value through profit or loss
All of the Company's financial assets other than those which meet the criteria to be measured at amortised cost are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. Fair values are derived using the market comparison approach where an active market exists. Where no active market exists, fair values are derived from valuation methods determined by independent specialists of the Directors. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.
Debt instruments at amortised cost
Debt instruments are subsequently measured at amortised cost where they are financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortised cost is calculated using the effective interest method and represents the amount measured at initial recognition less repayments of principal plus the cumulative amortisation using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.
Impairment of financial assets
The Company recognises a loss allowance for expected credit losses ("ECL") on receivables that are measured at amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.
 
Page 24

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)

The Company recognises lifetime ECL on all financial instruments where there has been a significant increase in credit risk since initial recognition. The assessment of whether lifetime ECL should be recognised is based on significant increase in the likelihood or risk of a default occurring since initial recognition instead of on evidence of a financial asset being credit-impaired at the reporting date or an actual default occurring.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contract, 12 month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
In assessing whether the credit risk on a financial instrument has increased, the following shall be taken into account:


2.17

Trade and other payables

Trade and other payables are initially recognised at fair value and are subsequently recognised at amortised cost. This is normally the invoice amount.

 
2.18

Dividends

Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the AGM.

Page 25

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Accounting estimates and judgements

3.1 Judgements

Provision for slow moving and obsolete stock

Provision is made in accordance with Group guidelines. See Note 16.


3.2 Estimates and assumptions

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The critical accounting estimates or judgements relevant to the financial statements are embedded within the relevant notes to the financial statements:

Depreciation of property, plant and equipment

Depreciation is charged in accordance with Group guidelines to reflect the pattern in which the assets' future economic benefits are expected to be consumed by the enterprise, see details in Policy 2.7. See Note 14.

Amortisation of intangible assets

Amortisation is charged in accordance with Group guidelines to reflect the pattern in which the assets' future economic benefits are expected to be consumed by the enterprise, see details in Policy 2.8. See Note 15.

Page 26

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Financial risk management


4.1 Financial risk factors

The Company's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's financial performance.


4.2 Market risk

Market risk arises from the Company's use of interest bearing, tradable and foreign currency financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) or foreign exchange rates (foreign exchange risk).


4.3 Interest rate risk

The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts and forward interest rate contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.


4.4 Foreign exchange risk

The Company is exposed to foreign exchange risk on purchases, borrowings and cash and cash equivalents that are denominated in a currency other than EUR, primarily GBP. Foreign exchange risk arises from transactions and recognised assets and liabilities. The Company manages this risk through the use of currency forwards.


4.5 Credit risk

The Company is responsible for managing and analysing the credit risk for each of its new customers before standard payment and delivery terms and conditions are offered. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored.


4.6 Liquidity risk

Cash flow forecasting is performed and the Company monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company's debt financing plans, covenant compliance, compliance with internal Statement of Financial Position ratio targets and, if applicable external regulatory or legal requirements - for example, currency restrictions.

Page 27

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Revenue


The following is an analysis of the Company's revenue for the year from continuing operations:


2023
2022


Income from repairs
48,746
18,028

Income from product sales
54,698,581
40,640,736

Other sales income
456,235
478,435

55,203,562
41,137,199


Analysis of revenue by country of destination:

2023
2022


United Kingdom
430,544
405,831

Rest of Europe
54,773,018
40,731,368

55,203,562
41,137,199

Timing of revenue recognition:

2023
2022

Goods and services transferred at a point in time
55,203,562
41,137,199

55,203,562
41,137,199

Page 28

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Expenses by nature

2023
2022

Included in cost of sales


Raw materials and consumables used
37,143,815
31,593,490

Change in inventories
(248,076)
(5,706,644)

Own work capitalised
(26,838)
(37,358)

Employee expenses
10,072,437
9,012,059

Other expenses
878,700
639,617

47,820,038
35,501,164

Included in administrative expenses


Depreciation and amortisation
506,705
605,295

Auditor's remuneration - audit services
24,500
25,500

Auditor's remuneration - other services
10,200
5,900

Other expenses
4,576,637
3,673,151

5,118,042
4,309,846

52,938,080
39,811,010


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022

Fees payable to the Group's auditor for the audit of the Group's financial statements
24,500
22,200

Fees payable to the Group's auditor in respect of:

Taxation compliance services
6,500
5,900

All non-audit services not included above
3,700
3,300

Page 29

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employee benefit expenses

Employee benefit expenses (including Directors) comprise:


2023
2022

Wages and salaries
8,280,407
7,679,707

Social security costs
778,098
752,363

Contribution to defined pension scheme
303,660
272,626

9,362,165
8,704,696

Key management personnel compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. The Directors the Company listed on page  are considered to be the key management personnel.
The compensation for the key management personnel is detailed below:


2023
2022


Salary
326,405
326,131

Other long-term benefits
-
40,098

Defined contribution scheme costs
14,427
21,806

340,832
388,035

The monthly average number of persons, including the Directors, employed by the Company during the year was as follows:


2023
2022
No.
No.

Administration, sales and marketing
46
44

Manufacturing
157
142

203
186

Page 30

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022


Directors' emoluments
326,405
326,131

Company contributions to pension schemes
14,427
21,806

340,832
347,937

There were 2 Directors in the Company's defined contribution pension scheme during the year (2022 - 3).



10.


Finance costs

Recognised in profit or loss


2023
2022

Interest received on bank deposits
2,697
-


Interest payable
745,897
210,326


Net finance expense recognised in profit or loss
(743,200)
(210,326)


11.


Other gains and losses

2023
2022



Foreign currency gains
213,250
187,598

Foreign currency losses
(244,165)
(172,770)

(30,915)
14,828

Page 31

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tax expense

12.1 Income tax recognised in profit or loss



2023
2022

Current tax

Current tax on profits for the year
414,264
219,231

Adjustments in respect of prior years
(25,558)
-

Total current tax
388,706
219,231


Deferred tax expense

Origination and reversal of timing differences
117,416
(75,894)

Total deferred tax
117,416
(75,894)


506,122
143,337

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:


2023
2022


Profit for the year
1,011,024
1,114,545

Income tax expense (including income tax on associate, joint venture and discontinued operations)
506,122
143,337

Profit before income taxes
1,517,146
1,257,882


Tax using the Company's domestic tax rate of 19% (2022:19%)
288,258
238,998

Expenses not deductible for tax purposes, other than goodwill, amortisation and impairment
1,488
5,067

Capital allowances for the year in excess of depreciation
(23,049)
-

Utilisation of tax losses
87,522
-

Other tax charge/(relief) on exceptional items
-
7,843

Other differences leading to an increase/(decrease) in the tax charge
-
3,235

Transfer pricing adjustments
151,903
(111,806)

Total tax expense
506,122
143,337

Page 32

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.Tax expense (continued)


12.1 Income tax recognised in profit or loss (continued)

Changes in tax rates and factors affecting the future tax charges

An increase in the UK corporation tax rate from 19% to 25% was substantively enacted in June 2021 and took effect from 1 April 2023 for profits over £250,000. For profits under £50,000 the tax rate remained the same at 19% and for profits between these figures it will be subject to 25% but reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.


13.


Dividends

2023
2022



Equity dividends on ordinary shares - €0.40 per share (2022 - €1,700,000)
1,000,000
1,700,000


14.


Property, plant and equipment







Freehold land
Freehold property
Plant and equipment
Motor vehicles
Buildings in production
Total



At 1 January 2022
360,066
4,825,088
11,610,011
114,033
286,809
17,196,007


Additions
-
-
342,079
37,416
-
379,495


Disposals
-
-
(706,056)
-
-
(706,056)



At 31 December 2022
360,066
4,825,088
11,246,034
151,449
286,809
16,869,446


Additions
-
-
467,140
-
-
467,140


Disposals
-
-
(373,749)
-
-
(373,749)



At 31 December 2023
360,066
4,825,088
11,339,425
151,449
286,809
16,962,837

Page 33

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.Property, plant and equipment (continued)


Freehold land
Freehold property
Plant and equipment
Motor vehicles
Buildings in production
Total




Accumulated depreciation and impairment








At 1 January 2022
-
4,355,474
10,221,229
93,406
123,965
14,794,074


Charge owned for the year
-
115,966
448,844
16,355
-
581,165


Charged financed for the year
-
-
17,611
-
-
17,611


Disposals
-
-
(602,612)
-
-
(602,612)



At 31 December 2022
-
4,471,440
10,085,072
109,761
123,965
14,790,238


Charge owned for the year
-
113,667
374,303
12,711
-
500,681


Charged financed for the year
-
-
19,711
-
-
19,711


Disposals
-
-
(368,027)
-
-
(368,027)



At 31 December 2023
-
4,585,107
10,111,059
122,472
123,965
14,942,603



Net book value


At 1 January 2022
360,066
469,614
1,388,782
20,627
162,844
2,401,933


At 31 December 2022

360,066
353,648
1,160,962
41,688
162,844
2,079,208


At 31 December 2023
360,066
239,981
1,228,366
28,977
162,844
2,020,234

Page 34

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.Property, plant and equipment (continued)



14.1. Assets held under leases


The net book value of owned and leased assets included as "Property, plant and equipment" in the Statement of Financial Position is as follows:

 2023
2022


Property, plant and equipment owned
1,988,227
2,061,192

Right-of-use assets, excluding investment property
32,007
18,016

2,020,234
2,079,208

Information about right-of-use assets is summarised below:

Net book value

2023
2022

Plant and equipment
32,007
18,016

32,007
18,016

Depreciation charge for the year

2023
2022

Plant and equipment
19,711
17,611

19,711
17,611

There were additions of €33,701 to right-of-use assets during the year ended 31 December 2023 (2022 - €NIL).

Page 35

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Intangible assets






Licences and franchises




Cost



At 1 January 2022
226,303


Disposals
(23,011)



At 31 December 2022
203,292



At 31 December 2023
203,292


Licenses and franchises




Accumulated amortisation and impairment



At 1 January 2022
197,545


Charge for the year
6,519


Disposals
(23,011)



At 31 December 2022
181,053


Charge for the year
240


At 31 December 2023
181,293



Net book value


At 1 January 2022

28,758


At 31 December 2022

22,239


At 31 December 2023
21,999

The Company has no internaly generated intangible assets.

Page 36

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Inventories



2023
2022



Raw materials at cost
11,664,747
10,897,405

Work in progress at cost
10,189,328
10,825,637

Provision
(1,100,246)
(1,217,289)

20,753,829
20,505,753

Included within the changes in inventories, contained within cost of sales, is movements in the provision for slow moving and obsolete stock as follows:

2023
2022



At 1 January
1,217,289
1,626,733

Movement in provision
(117,043)
(409,444)

At 31 December
1,100,246
1,217,289

Page 37

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Trade and other receivables

2023
2022



Trade receivables
23,264
11,244

Receivables from related parties
3,664,136
3,167,424

3,687,400
3,178,668

Amounts receivable from trade customers are non-interest bearing and are generally on 30-90 day terms.
The fair value of trade and other receivables is not materially different from the carrying value.
There are no material expected credit losses. All debts, net of individual allowances, are considered recoverable.
Included within receivables from trade customers is a total of €16,873 receivable in foreign currency 
(2022 - €983).
Exposure to foreign currency exchange rate fluctuations is naturally hedged by the existence of foreign currency receivables and payables. An estimation of the impact of a 10% swing in exchange rates is detailed below.
 
               10% increase in 2023 FX  10% decrease in 2023 FX   
                                          2023        
                                             £             Rate     €           Rate            €
         
Trade receivables - GBP    16,665     1.26566      21,092         1.0355      17,257 
         
                  
    10% increase in 2022 FX   10% decrease in 2022 FX   
                                  2022        
                                             £   Rate   €  Rate  €
         
Trade receivables - GBP       872       1.0150          885          1.2403       1,082 
 

Page 38

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.

Cash and cash equivalents



2023
2022


Cash at bank available on demand
1,504,799
1,335,755

Cash and cash equivalents in the statement of financial position

1,504,799
1,335,755


Cash and cash equivalents in the statement of cash flows
1,504,799
1,335,755

The fair value of cash and cash equivalents is not materially different from the carrying value.
Included in the amount of cash at bank is held in foreign currency €354,427 
(2022 - €128,099).
Exposure to foreign currency exchange rate fluctuations is naturally hedged by the existence of foreign currency receivables and payables. An estimation of the impact of a 10% swing in exchange rates is detailed below.
             
 10% increase in 2023 FX   10% decrease in 2023 FX   
                                  2023        
                                          £    Rate           €          Rate          €
         
Cash at bank - GBP       308,015         1.2656      389,870           1.0355      318,985 
         
            
 10% increase in 2022 FX   10% decrease in 2022 FX   
                                 2022        
                                         £     Rate       €          Rate            €
         
Cash at bank - GBP      113,614             1.0150             115,318          1.2403      140,915 

Page 39

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Trade and other payables

2023
2022



Trade payables
3,469,187
2,326,465

Other payables
268,125
289,309

Accruals
659,951
548,162

Tax payables
1,568,859
2,777,170

Payables to related parties
14,450,942
13,502,742

20,417,064
19,443,848

The fair value of trade and other payables is not materially different to the carrying value.
Exposure to foreign currency exchange rate fluctuations is naturally hedged by the existence of foreign currency receivables and payables. An estimation of the impact of a 10% swing in exchange rates is detailed below.
     
           10% increase in 2023 FX    10% decrease in 2023 FX  
                                          2023        
                                          £   Rate               €             Rate      €
         
Trade payables - GBP  613,035  1.2656  775,894   1.0355 634,822 
Trade payables - DKK  107,863  0.1476    15,923   0.1208   13,028 
Trade payables - USD        757 0.9955        754  0.8145       617 
         
             10% increase in 2022 FX    10% decrease in 2022 FX   
                                  2022                                                      2023     
                                          £      Rate  €  Rate             €
         
Trade payables - GBP      2,467       1.0150       2,504   1.2403       3,060 
Trade payables - DKK  101,305        0.1073     10,870   0.1312      13,291 


20.


Deferred tax

2023
2022

Deferred tax asset


Accelerated depreciation
55,242
172,656

55,242
172,656

Page 40

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
21.


Share capital

Authorised

2023
2023
2022
2022
Number
Number

Shares treated as equity
Ordinary shares shares of €1.00 each

2,500,000

3,977,750

2,500,000
 
3,977,750
 
2,500,000

3,977,750

2,500,000
 
3,977,750
 

Issued and fully paid


2023
2023
2022
2022
Number
Number

Ordinary shares shares of €1.00 each

At 1 January and 31 December
2,500,000

3,977,750

2,500,000
 
3,977,750
 


22.


Reserves


Other reserves

Other reserves represents the adjustment to retained earnings following the first time adoption of International Financial Reporting Standards (IFRS). The reserve is not distributable.

Retained earnings

Retained earnings represent the accumulation of retained profits, net of dividends, which are in the form of distributable reserves.

Page 41

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Leases






(i) Leases as a lessee



The Company holds right of use assets. The lease commitments relate primarily to property, equipment and vehicles. The leases have various terms and renewal rights.


Lease liabilities are due as follows:

2023
2022

Lease liabilities due

Not later than one year
6,090
5,141

Between one year and five years
26,319
-

32,409
5,141



The fair value of the Company's lease obligations is approximately equal to their carrying amount.
The Company's obligations under lease obligations are secured by the lessors' rights over the leased assets.


The following amounts in respect of leases have been recognised in the Statement of Profit or Loss and Other Comprehensive Income:

2023
2022

Interest expense on lease liabilities
512
191

Expenses relating to short-term leases
5,783
9,230

The total cash outflow for leases during the year was €4,913 (2022 - €15,373).
Information regarding the right-of-use assets can be found in Note 14.

Page 42

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Financial instruments

2023
2022

Financial assets


Amortised cost

Trade and other receivables
3,687,400
3,178,668

Cash and cash equivalents
1,504,799
1,335,755


5,192,199
4,514,423

Financial liabilities


Amortised cost

Trade and other payables
20,417,064
19,443,848


20,417,064
19,443,848


25.


Related party transactions

The immediate parent company is Liebherr-MCCtec GmbH. At the 31 December 2023, the Company had a loan due to Liebherr-MCCtec GmbH of €13,550,000 (2022 - €12,350,0000).
During the year ended 31 December 2023, the Company entered into the following transactions with other group companies controlled by Liebherr International AG, the ultimate parent company. 
Disclosure of Group companies that Lieherr Sunderland Works Limited entered transactions with during the year ended 31 December 2023 is not required under IAS 24.
Sales of goods total value of €54,863,731 
(2022 - €41,137,199). Details of amounts outstanding in respect of those transactions can be found in the trade and other receivables note (Note 17).
Purchase of goods total value of €11,051,754 
(2022 - €9,244,072). Details of amounts outstanding in respect of these transactions can be found in the trade and other payables note (Note 19).
No amounts owed to/due from group companies were written off or provided against during the year ended 31 December 2023.


26.


Pension commitments

The Company operates a defined contribution pension scheme for the benefit of the Company's employees. The unpaid contributions outstanding at the year end, included within accrued liabilities were €49,091 (2022 - €43,586).

Page 43

 
LIEBHERR SUNDERLAND WORKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Controlling party

The immediate parent company is Liebherr-MCCtec GmbH, a company incorporated in Austria. This is the smallest group for which consolidated financial statements are drawn up. The consolidated financial statements can be obtained from the Austria Company Registry.
The ultimate holding company is Liebherr-International AG, a company incorporated in Switzerland. This is the largest group for which consoldiated financial statements are drawn up. The consolidated financial statements can be obtained from the Company's website: https://www.liebherr .com.
The Directors consider the ultimate controlling party to be the Liebherr family, who own 100% of the share capital of Liebherr International AG.


28.

Events after the reporting date

There have been no significant events affecting the Company since the year end.

Page 44