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REGISTERED NUMBER: 02863624 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Lintec Europe (UK) Limited

Lintec Europe (UK) Limited (Registered number: 02863624)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


Lintec Europe (UK) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mr A J Voss
Mr M Yoshitake
Mr N Hara
Mr H Miyake





REGISTERED OFFICE: 11 Castle Hill
Maidenhead
Berkshire
SL6 4AA





REGISTERED NUMBER: 02863624 (England and Wales)





AUDITORS: WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

Lintec Europe (UK) Limited (Registered number: 02863624)

Strategic Report
for the Year Ended 31 December 2023

REVIEW OF BUSINESS

The financial year was generally more settled compared to previous with the UK automotive market growing 16.8% during the year due to greater availability of semi-conductors. This growth was also demonstrated across several other key sectors for our business.

2023 was however a very unusual year. According to our industry body FINAT, 'European consumption of self-adhesive label materials decreased by no less than 25.8%, the sharpest decline in a single year recorded since FINAT started the collection of statistics in 2003'.

This was primarily caused by label printers and end-users stockpiling materials due to a prolonged paper industry strike in 2022 where lead-times were typically 3-5 months. The main markets effected were FMCG such as food, beverages and health and beauty care but were also experienced in the durable labelling market.

High interest rates, high inflation, minimal UK GDP growth of 0.1% and continued low consumer confidence restricted growth in most of our end markets.

Most new enquiries from European customers were handled by our newly expanded Lintec Europe BV operation, a move forced by Brexit.

The continued focus to deliver market-leading solutions remains.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's main risk derives from reliance on a key supplier, LINTEC Corporation. This risk has been largely mitigated by being part of the LINTEC Corporation group. The company has the normal commercial risks associated with demand from its customers and levels of competition.

ON BEHALF OF THE BOARD:





Mr A J Voss - Director


22 August 2024

Lintec Europe (UK) Limited (Registered number: 02863624)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
An interim dividend of £457.53 per share on the A Ordinary £1 shares was paid on 28 July 2023. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 December 2023 will be £ 457,530 .

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

Mr A J Voss
Mr M Yoshitake

Other changes in directors holding office are as follows:

Mr K Kusakari - resigned 6 March 2023
Mr K Iwami - resigned 28 April 2023
Mr N Hara - appointed 22 February 2023
Mr H Miyake - appointed 28 April 2023

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.

Lintec Europe (UK) Limited (Registered number: 02863624)

Report of the Directors
for the Year Ended 31 December 2023


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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr A J Voss - Director


22 August 2024

Report of the Independent Auditors to the Members of
Lintec Europe (UK) Limited

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

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Lintec Europe (UK) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Lintec Europe (UK) Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud.

-The engagement partners ensured that the engagement team collectively had the appropriate competence, capabilities and skill to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

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

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instance 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; and

-understanding the design of the company's remuneration policies.

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

-performed analytical procedures to identify 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.

Audit response to risks identified
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, relevant regulators and company's legal advisors.


Report of the Independent Auditors to the Members of
Lintec Europe (UK) 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 the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment of 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.




Philippa Duckworth BSc FCCA (Senior Statutory Auditor)
for and on behalf of WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

10 September 2024

Lintec Europe (UK) Limited (Registered number: 02863624)

Income Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 3 4,837,302 5,222,169

Cost of sales (2,400,772 ) (2,654,261 )
GROSS PROFIT 2,436,530 2,567,908

Administrative expenses (1,948,736 ) (1,971,120 )
487,794 596,788

Other operating income 405,683 461,426
OPERATING PROFIT 5 893,477 1,058,214

Interest receivable and similar income 12,379 1,743
PROFIT BEFORE TAXATION 905,856 1,059,957

Tax on profit 6 (225,045 ) (200,124 )
PROFIT FOR THE FINANCIAL YEAR 680,811 859,833

Lintec Europe (UK) Limited (Registered number: 02863624)

Other Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

PROFIT FOR THE YEAR 680,811 859,833


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 680,811 859,833

Lintec Europe (UK) Limited (Registered number: 02863624)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £   
FIXED ASSETS
Intangible assets 8 6,048 9,076
Tangible assets 9 438,485 243,415
444,533 252,491

CURRENT ASSETS
Stocks 10 1,598,155 2,223,827
Debtors 11 788,171 712,305
Cash at bank and in hand 1,759,530 1,057,561
4,145,856 3,993,693
CREDITORS
Amounts falling due within one year 12 (752,907 ) (700,160 )
NET CURRENT ASSETS 3,392,949 3,293,533
TOTAL ASSETS LESS CURRENT LIABILITIES 3,837,482 3,546,024

PROVISIONS FOR LIABILITIES 14 (77,698 ) (9,521 )
NET ASSETS 3,759,784 3,536,503

CAPITAL AND RESERVES
Called up share capital 15 26,000 26,000
Capital redemption reserve 16 25,000 25,000
Retained earnings 16 3,708,784 3,485,503
SHAREHOLDERS' FUNDS 3,759,784 3,536,503

Lintec Europe (UK) Limited (Registered number: 02863624)

Balance Sheet - continued
31 December 2023



The financial statements were approved by the Board of Directors and authorised for issue on 22 August 2024 and were signed on its behalf by:




Mr A J Voss - Director Mr H Miyake - Director




Mr M Yoshitake - Director Mr N Hara - Director


Lintec Europe (UK) Limited (Registered number: 02863624)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 26,000 3,191,806 25,000 3,242,806

Changes in equity
Dividends - (566,136 ) - (566,136 )
Total comprehensive income - 859,833 - 859,833
Balance at 31 December 2022 26,000 3,485,503 25,000 3,536,503

Changes in equity
Dividends - (457,530 ) - (457,530 )
Total comprehensive income - 680,811 - 680,811
Balance at 31 December 2023 26,000 3,708,784 25,000 3,759,784

Lintec Europe (UK) Limited (Registered number: 02863624)

Cash Flow Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,587,469 473,302
Tax paid (175,911 ) (216,324 )
Net cash from operating activities 1,411,558 256,978

Cash flows from investing activities
Purchase of tangible fixed assets (329,438 ) (7,145 )
Sale of tangible fixed assets 65,000 -
Interest received 12,379 1,743
Net cash from investing activities (252,059 ) (5,402 )

Cash flows from financing activities
Equity dividends paid (457,530 ) (566,136 )
Net cash from financing activities (457,530 ) (566,136 )

Increase/(decrease) in cash and cash equivalents 701,969 (314,560 )
Cash and cash equivalents at beginning of year 2 1,057,561 1,372,121

Cash and cash equivalents at end of year 2 1,759,530 1,057,561

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 905,856 1,059,957
Depreciation charges 126,414 109,367
(Profit)/loss on disposal of fixed assets (54,019 ) 1,589
Finance income (12,379 ) (1,743 )
965,872 1,169,170
Decrease/(increase) in stocks 625,672 (31,967 )
(Increase)/decrease in trade and other debtors (75,865 ) 255,561
Increase/(decrease) in trade and other creditors 71,790 (919,462 )
Cash generated from operations 1,587,469 473,302

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,759,530 1,057,561
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,057,561 1,372,121


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,057,561 701,969 1,759,530
1,057,561 701,969 1,759,530
Total 1,057,561 701,969 1,759,530

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Lintec Europe (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The directors have prepared detailed forecasts and consider that the company has adequate financial resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from approval of these accounts.

The business model is based around generating continuing revenues from current vendor lines and looking for opportunities with new customers. They have reviewed the costs incurred in the business and more directly aligned the costs to the needs of the business and it is therefore anticipated that profits will continue to be generated in future periods which will generate adequate cash to ensure the on-going strength of the business.

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

Significant judgements and estimates
In the application of the company's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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 company's key source of estimation uncertainty relates to provision made against slow moving stock.

Turnover
Turnover is measured at the fair value of the consideration receivable for goods supplied net of VAT and trade discounts. Sales are recognised when the company has fulfilled its contractual obligations and the risks and rewards attaching to the product have been transferred to the customer.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and machinery - 33% on cost, 33% on reducing balance, 25% on cost, 25% on reducing balance, 20% on reducing balance, 15% on reducing balance and at variable rates on reducing balance

Tangible fixed assets are included at cost less depreciation and impairment.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Provisions for slow-moving or excess inventory are recognised when management determine the stock item is too small or unable to sell. The provision is recognised to reduce the carrying amount of the inventory to the lower of cost and net realisable value.

Financial instruments
Basic financial instruments are recognised at amortised cost using the effective interest method, except for investments in non-convertible preference and non-puttable preference and ordinary shares, which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value, with changes recognised in profit and loss.

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 balance sheet date.

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

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

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

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Foreign currencies
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Other exchange differences are recognised in profit or loss in the period in which they arise except for:
- exchange differences on transactions entered into to hedge certain foreign currency risks (see above);
- exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and
- in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

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.

Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.

Invoice discounting facility
The company discounts its trade debts. The accounting policy is to include trade debtors within one year and the returnable element of the proceeds within current liabilities. Discounting charges and interest are charged to the profit and loss account when paid. Bad debts are borne by the company and are charged to the profit and loss account when incurred.

Commission
Sales commission directly attributable to revenue earned from customers that have transferred to Lintec Europe are recognised as an expense in the Income Statement in the period in which the related sale is recognised. Commission expense is measured at the fair value of consideration paid by Lintec Europe.

3. 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:

31.12.23 31.12.22
£    £   
United Kingdom 3,017,025 3,138,537
Europe 1,456,845 1,853,547
Rest of the world 363,432 230,085
4,837,302 5,222,169

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 995,835 1,063,605
Social security costs 152,974 171,451
Other pension costs 22,469 22,821
1,171,278 1,257,877

The average number of employees during the year was as follows:
31.12.23 31.12.22

Management and operations 15 15

31.12.23 31.12.22
£    £   
Directors' remuneration 218,769 245,987

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 218,769 245,987

5. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Other operating leases 115,960 160,761
Depreciation - owned assets 123,387 104,829
(Profit)/loss on disposal of fixed assets (54,019 ) 1,589
Computer software amortisation 3,028 4,539
Auditors' remuneration 12,775 13,800
Foreign exchange differences (15,218 ) (43,806 )

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 156,868 215,228

Deferred tax 68,177 (15,104 )
Tax on profit 225,045 200,124

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. 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:

31.12.23 31.12.22
£    £   
Profit before tax 905,856 1,059,957
Profit multiplied by the standard rate of corporation tax in the UK of 23.500% (2022 -
19%)

212,876

201,392

Effects of:
Expenses not deductible for tax purposes 5,918 3,470
Adjustments to tax charge in respect of previous periods 6,251 (4,738 )

Total tax charge 225,045 200,124

7. DIVIDENDS
31.12.23 31.12.22
£    £   
A Ordinary shares of £1 each
Interim 457,530 566,136

8. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2023
and 31 December 2023 36,000
AMORTISATION
At 1 January 2023 26,924
Amortisation for year 3,028
At 31 December 2023 29,952
NET BOOK VALUE
At 31 December 2023 6,048
At 31 December 2022 9,076

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings Totals
£    £    £    £   
COST
At 1 January 2023 774,199 967,450 52,396 1,794,045
Additions - 329,438 - 329,438
Disposals - (184,680 ) - (184,680 )
At 31 December 2023 774,199 1,112,208 52,396 1,938,803
DEPRECIATION
At 1 January 2023 631,699 878,967 39,964 1,550,630
Charge for year 77,419 42,914 3,054 123,387
Eliminated on disposal - (173,699 ) - (173,699 )
At 31 December 2023 709,118 748,182 43,018 1,500,318
NET BOOK VALUE
At 31 December 2023 65,081 364,026 9,378 438,485
At 31 December 2022 142,500 88,483 12,432 243,415

10. STOCKS
31.12.23 31.12.22
£    £   
Stocks 1,598,155 2,223,827

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 677,534 605,448
Other debtors 11 11
Prepayments 110,626 106,846
788,171 712,305

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 300,905 218,618
Tax 96,547 115,590
Social security and other taxes 32,031 35,826
VAT 81,506 6,490
Other creditors - 3
Accrued expenses 241,918 323,633
752,907 700,160

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 119,741 124,145
Between one and five years 25,183 144,924
144,924 269,069

14. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 77,698 9,521

Deferred
tax
£   
Balance at 1 January 2023 9,521
Provided during year 68,177
Balance at 31 December 2023 77,698

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
25,000 Ordinary £1 25,000 25,000
1,000 A Ordinary £1 1,000 1,000
26,000 26,000

The A Shares carry a preferred dividend right up to a maximum of 50% of the profits available for distribution by the company in each financial year. The company may determine to distribute some or all of the remaining profits available for distribution to the Ordinary shareholders.

The A Shares carry no right to vote whereas each Ordinary share is entitled to a vote.

The A Shares shall have no right to a distribution on a return of capital whereas the Ordinary shares have a right to a distribution on a return of capital.

Lintec Europe (UK) Limited (Registered number: 02863624)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

16. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 3,485,503 25,000 3,510,503
Profit for the year 680,811 680,811
Dividends (457,530 ) (457,530 )
At 31 December 2023 3,708,784 25,000 3,733,784

17. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for the benefit of employees. The assets of the scheme are administered by the trustees in a fund independent from those of the company.

The pension charge for the year was £35,147 (2022: £34,821).The outstanding balance at year end was £6,026 (2022: £5,465).

18. ULTIMATE PARENT COMPANY

LINTEC Corporation (incorporated in Japan ) is regarded by the directors as being the company's ultimate parent company.

19. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 260,144 (2022 - £ 291,482 ) was paid.

20. ULTIMATE CONTROLLING PARTY

There is no single ultimate controlling party.