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REGISTERED NUMBER: 04704318 (England and Wales)















WATERCO (EUROPE) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024






WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 15


WATERCO (EUROPE) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2024







DIRECTORS: Mr S S Goh
Mr A L Fisher
Mr B W K Goh





SECRETARY: G M Doumit





REGISTERED OFFICE: Radfield
London Road
Teynham
SITTINGBOURNE
ME9 9PS





REGISTERED NUMBER: 04704318 (England and Wales)





AUDITORS: McCabe Ford Williams
Statutory Auditors and Chartered Accountants
Building 1063
Cornforth Drive
Kent Science Park
Sittingbourne
Kent
ME9 8PX

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The Company's principal activity during the period was based upon the distribution of swimming pool and water treatment products throughout Europe and the Middle East. The Company continues to supply products and services to OEM, trade and distribution sectors.

The Company's main areas of activity are:

- Swimming Pool
- Water Treatment
- Aquaculture

The swimming industry continues to be the largest sector for which the business provides a wide and diverse range of product lines. Within the water treatment and aquaculture markets growth has exceeded expectations within the company due to its ability to offer bespoke products lines within these sectors.
Our high quality range of products along with exceptional customer service levels have enabled us to continue to support and expand our business.

The Company operations are reviewed on a regular basis by the management team so we ensure that company procedures are being followed or upgraded where necessary.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing Waterco Europe are broadly grouped as competitive along with the unknown trading terms with Europe and forex as a result of the ongoing Brexit negotiations.

COMPETITIVE RISK
The Company competes in an open market environment across the above named sectors. The Company's customers select suppliers based on a combination of factors including price, terms, quality and customer service. The Company has mitigated these risks by, wherever possible, entering into long-term partnerships with a number of its key accounts.

CREDIT RISK
The Company has external debtors; however, the Company undertakes credit insurance and assessments of its customers in order to ensure that credit is not extended where there is a likelihood of default.

CASH FLOW RISK
The Company manages this risk, by tracking cash on a daily basis, forecasting on a monthly basis and ensuring facilities are available in excess of that forecast.

ON BEHALF OF THE BOARD:





Mr A L Fisher - Director


29 August 2024

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacture and marketing of pool pumps and filters.

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

Mr S S Goh
Mr A L Fisher
Mr B W K Goh

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

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

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

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

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


WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2024

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:




Mr A L Fisher - Director


29 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WATERCO (EUROPE) LIMITED

Opinion
We have audited the financial statements of Waterco (Europe) Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WATERCO (EUROPE) LIMITED


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.

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; or
- the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

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
WATERCO (EUROPE) 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:

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
management and our experience of the 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, but not limited to, the Companies
Act 2006 and UK tax legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making
enquiries of management; 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.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:


- making enquiries of management as to where they considered there was susceptibility to fraud, their
knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were
indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and Companies House records.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WATERCO (EUROPE) LIMITED

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 management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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




Ashley Phillips FCCA (Senior Statutory Auditor)
for and on behalf of McCabe Ford Williams
Statutory Auditors and Chartered Accountants
Building 1063
Cornforth Drive
Kent Science Park
Sittingbourne
Kent
ME9 8PX

29 August 2024

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

30.6.24 30.6.23
Notes £    £   

TURNOVER 4 7,125,257 6,923,780

Cost of sales 5,055,133 4,203,262
GROSS PROFIT 2,070,124 2,720,518

Administrative expenses 1,562,119 1,508,046
508,005 1,212,472

Other operating income 20,698 -
OPERATING PROFIT 6 528,703 1,212,472

Interest receivable and similar income 6,236 1,043
534,939 1,213,515

Interest payable and similar expenses 7 58 -
PROFIT BEFORE TAXATION 534,881 1,213,515

Tax on profit 8 137,478 229,621
PROFIT FOR THE FINANCIAL YEAR 397,403 983,894

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

30.6.24 30.6.23
Notes £    £   

PROFIT FOR THE YEAR 397,403 983,894


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

397,403

983,894

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

STATEMENT OF FINANCIAL POSITION
30 JUNE 2024

30.6.24 30.6.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 201,351 131,532

CURRENT ASSETS
Stocks 10 2,335,723 3,384,864
Debtors 11 5,987,858 3,758,954
Cash at bank and in hand 279,293 330,344
8,602,874 7,474,162
CREDITORS
Amounts falling due within one year 12 3,347,039 2,551,567
NET CURRENT ASSETS 5,255,835 4,922,595
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,457,186

5,054,127

PROVISIONS FOR LIABILITIES 15 26,138 20,482
NET ASSETS 5,431,048 5,033,645

CAPITAL AND RESERVES
Called up share capital 16 250,000 250,000
Retained earnings 17 5,181,048 4,783,645
SHAREHOLDERS' FUNDS 5,431,048 5,033,645

The financial statements were approved by the Board of Directors and authorised for issue on 29 August 2024 and were signed on its behalf by:





Mr A L Fisher - Director


WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2022 250,000 3,799,751 4,049,751

Changes in equity
Total comprehensive income - 983,894 983,894
Balance at 30 June 2023 250,000 4,783,645 5,033,645

Changes in equity
Total comprehensive income - 397,403 397,403
Balance at 30 June 2024 250,000 5,181,048 5,431,048

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

30.6.24 30.6.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,524,193 1,323,004
Interest paid (58 ) -
Tax paid (335,409 ) (220,437 )
Net cash from operating activities 1,188,726 1,102,567

Cash flows from investing activities
Purchase of tangible fixed assets (103,572 ) (52,876 )
Sale of tangible fixed assets 28,000 -
Interest received 6,236 1,043
Net cash from investing activities (69,336 ) (51,833 )

Cash flows from financing activities
(Decrease)/Increase in inter-group loans (1,170,441 ) (1,034,077 )
Net cash from financing activities (1,170,441 ) (1,034,077 )

(Decrease)/increase in cash and cash equivalents (51,051 ) 16,657
Cash and cash equivalents at beginning
of year

2

330,344

313,687

Cash and cash equivalents at end of year 2 279,293 330,344

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
30.6.24 30.6.23
£    £   
Profit before taxation 534,881 1,213,515
Depreciation charges 33,754 33,585
Profit on disposal of fixed assets (28,000 ) -
Finance costs 58 -
Finance income (6,236 ) (1,043 )
534,457 1,246,057
Decrease/(increase) in stocks 1,049,141 (700,132 )
Decrease in trade and other debtors 338,040 963,939
Decrease in trade and other creditors (397,445 ) (186,860 )
Cash generated from operations 1,524,193 1,323,004

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 279,293 330,344
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 330,344 313,687


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank and in hand 330,344 (51,051 ) 279,293
330,344 (51,051 ) 279,293
Total 330,344 (51,051 ) 279,293

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1. STATUTORY INFORMATION

Waterco (Europe) 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. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements
The financial statements contain information about Waterco (Europe) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Waterco Limited, 36 South Street, Rydalmere, NSW, 2116, Australia.

Significant judgements and estimates
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period to which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are the depreciation charges that are calculated with reference to the useful economic life of fixed assets.

Turnover
Turnover represents net invoiced sales of goods after taking account of any trade discounts and volume rebates, excluding value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Buildings - 2% on cost
Plant and machinery - 10% on cost
Office equipment - straight line over 5 years and straight line over 10 years
Motor vehicles - 25% on cost
Computer equipment - 25% on cost

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

3. ACCOUNTING POLICIES - continued

Stocks
All stocks are valued at the lower of cost and net realisable value, using the FIFO method, after making due allowance for obsolete and slow moving items. Cost is valued after apportioning expenditure incurred in bringing the items to their present location.

Financial instruments
The company enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

a) Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

b) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.

c) Impairment of financial assets
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

d) Trade and other creditors
Debt instruments like loans and other accounts payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable within one year, typically trade payables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

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

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

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit 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.

Impairment of non-financial assets
At each reporting date non-financial assets not carried at fair value, like plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss.

Inventories are also assessed for impairment at each reporting date. Each item of inventory is compared to the last sold date and an impairment loss recognised on a percentage basis in profit and loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit and loss.

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

30.6.24 30.6.23
£    £   
United Kingdom 3,324,455 3,103,000
European Community 2,661,359 2,637,312
Rest of the World 1,139,443 1,183,468
7,125,257 6,923,780

5. EMPLOYEES AND DIRECTORS
30.6.24 30.6.23
£    £   
Wages and salaries 872,786 906,317
Social security costs 104,633 107,872
Other pension costs 51,826 47,848
1,029,245 1,062,037

The average number of employees during the year was as follows:
30.6.24 30.6.23

Production 5 6
Administration 12 12
17 18

30.6.24 30.6.23
£    £   
Directors' remuneration 260,979 366,853

Information regarding the highest paid director is as follows:
30.6.24 30.6.23
£    £   
Emoluments etc 260,979 366,853

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

6. OPERATING PROFIT

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

30.6.24 30.6.23
£    £   
Plant hire 2,514 2,167
Depreciation - owned assets 33,753 33,583
Profit on disposal of fixed assets (28,000 ) -
Auditors remuneration 19,358 16,365

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.24 30.6.23
£    £   
Bank interest 58 -

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.6.24 30.6.23
£    £   
Current tax:
UK corporation tax 131,113 233,065
Underprovision previous year 709 -
Overprovision previous year - (13,842 )
Corporation tax interest - 1,214
Total current tax 131,822 220,437

Deferred taxation 5,656 9,184
Tax on profit 137,478 229,621

UK corporation tax was charged at 20.50%) in 2023.

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

8. 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:

30.6.24 30.6.23
£    £   
Profit before tax 534,881 1,213,515
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 20.500%)

133,720

248,771

Effects of:
Expenses not deductible for tax purposes 1,235 418
Capital allowances in excess of depreciation - (6,852 )
Depreciation in excess of capital allowances 3,158 -
Under/(Over)provision in previous year 709 (13,842 )

Profit on asset disposal (7,000 ) -
Deferred tax provision 5,656 9,184
Marginal relief - (8,058 )
Total tax charge 137,478 229,621

9. TANGIBLE FIXED ASSETS
Plant and Office
Buildings machinery equipment
£    £    £   
COST
At 1 July 2023 33,105 224,234 99,978
Additions - - 15,072
Disposals - - -
At 30 June 2024 33,105 224,234 115,050
DEPRECIATION
At 1 July 2023 12,580 152,317 75,467
Charge for year 662 4,772 12,732
Eliminated on disposal - - -
At 30 June 2024 13,242 157,089 88,199
NET BOOK VALUE
At 30 June 2024 19,863 67,145 26,851
At 30 June 2023 20,525 71,917 24,511

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

9. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 July 2023 62,550 8,952 428,819
Additions 88,500 - 103,572
Disposals (62,550 ) - (62,550 )
At 30 June 2024 88,500 8,952 469,841
DEPRECIATION
At 1 July 2023 54,732 2,191 297,287
Charge for year 13,349 2,238 33,753
Eliminated on disposal (62,550 ) - (62,550 )
At 30 June 2024 5,531 4,429 268,490
NET BOOK VALUE
At 30 June 2024 82,969 4,523 201,351
At 30 June 2023 7,818 6,761 131,532

10. STOCKS
30.6.24 30.6.23
£    £   
Stocks 367,938 662,028
Work-in-progress - 295
Finished goods 1,967,785 2,722,541
2,335,723 3,384,864

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 1,386,091 1,862,814
Amounts owed by group undertakings 3,869,984 1,506,627
Other debtors 458,250 -
VAT 101,383 231,034
Accrued income 23,545 -
Prepayments 148,605 158,479
5,987,858 3,758,954

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade creditors 189,702 263,374
Amounts owed to group undertakings 3,110,359 1,917,442
Other Taxes and PAYE (2,950 ) 221,360
Other creditors 1,095 11,545
Accruals and deferred income 48,833 137,846
3,347,039 2,551,567

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
30.6.24 30.6.23
£    £   
Within one year 186,095 181,420
Between one and five years 339,749 528,079
525,844 709,499

14. SECURED DEBTS

HSBC Bank Australia Limited had fixed and floating charges over the undertaking and all property and assets present and future, including goodwill, book debts uncalled, buildings, fixture and fittings and plant and machinery. This charge was satisfied in full on 27 July 2023.

Westpac Banking Corporation now has a fixed and floating charge over all the property or undertaking of the company. The charge was registered on 23 August 2023.

15. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred taxation 26,138 20,482

Deferred
tax
£   
Balance at 1 July 2023 20,482
Provided during year 5,656
Balance at 30 June 2024 26,138

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £    £   
250,000 Ordinary £1 250,000 250,000

17. RESERVES
Retained
earnings
£   

At 1 July 2023 4,783,645
Profit for the year 397,403
At 30 June 2024 5,181,048

18. ULTIMATE PARENT COMPANY

The company is a wholly owned subsidiary of Waterco Limited, a company registered in Australia, which is the ultimate holding company. The group accounts are kept at the Head-office, 36 South Street, Rydalmere NSW 2116.

Ultimate control rests with the director S. S. Goh, who is also the Managing Director of the parent company.

WATERCO (EUROPE) LIMITED (REGISTERED NUMBER: 04704318)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024

19. RELATED PARTY DISCLOSURES

£ £
2024 2023

Sales to Waterco USA Inc fellow subsidiary 7,515 27,452
Sales to Waterco Limited parent company - 6,380
Sales to Waterco (Far East) Sdn. Bhd. fellow subsidiary 20,915 7,101
Sales to Waterco Canada Inc fellow subsidiary (1,616 ) 29,491
Sales to Waterco Limited (NZ) fellow subsidiary - -
Sales to Waterco (C) Limited fellow subsidiary - -
Sales to Waterco Canada Distribution fellow subsidiary - 30,730
Purchases from Waterco USA Inc fellow subsidiary - -
Purchases from Waterco Ltd parent company 33,137 46,328
Purchases from Waterco (Far East) Sdn. Bhd fellow subsidiary 3,041,144 3,903,495
Purchases from Waterco (GZ) Limited fellow subsidiary 50,288 49,308
Purchases from Waterco Canada Distribution fellow subsidiary - 144
Purchases from Waterco (C) Limited fellow subsidiary - -

Balances due to and from the above companies as at 30 June 2024 were as follows:

Due from Waterco (Far East) Sdn. Bhd. Sales ledger balance 8,861 4,957
Due from Waterco USA Inc Sales ledger balance - 5,423
Due from Waterco (NZ) Limited Sales ledger balance - -
Due from Waterco (C) Limited Sales ledger balance - 6,246
Due from Waterco Canada Distribution Sales ledger balance (1,534 ) -
Due from Waterco Limited Inter company loan account 3,861,123 1,490,001
Due to Waterco Limited Inter company loan account - -
Due to Waterco (Far East) Sdn. Bhd. Purchase ledger balance 3,107,368 1,861,130
Due to Waterco (C) Ltd Purchase ledger balance - -
Due to Waterco (GZ) Ltd Purchase ledger balance 1,456 56,313

20. ULTIMATE PARENT COMPANY AND CONTROLLING PARTY

The company is a wholly owned subsidiary of Waterco Limited, a company registered in Australia, which is the ultimate parent company. The group accounts are available at the Head Office, 36 South Street, Rydalmere, NSW, 2116, Australia.

Ultimate control rests with the Director, S. S. Goh, who is also the Managing Director of the parent company.