Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-3191truefalse2023-04-01truetruetrueManufacturing and distribution of electrical components86falsefalse 02460213 2023-04-01 2024-03-31 02460213 2022-04-01 2023-03-31 02460213 2024-03-31 02460213 2023-03-31 02460213 2022-04-01 02460213 1 2023-04-01 2024-03-31 02460213 d:Director1 2023-04-01 2024-03-31 02460213 d:Director2 2023-04-01 2024-03-31 02460213 d:RegisteredOffice 2023-04-01 2024-03-31 02460213 c:Buildings c:ShortLeaseholdAssets 2023-04-01 2024-03-31 02460213 c:Buildings c:ShortLeaseholdAssets 2024-03-31 02460213 c:Buildings c:ShortLeaseholdAssets 2023-03-31 02460213 c:OfficeEquipment 2023-04-01 2024-03-31 02460213 c:OfficeEquipment 2024-03-31 02460213 c:OfficeEquipment 2023-03-31 02460213 c:OfficeEquipment c:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 02460213 c:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 02460213 c:CurrentFinancialInstruments 2024-03-31 02460213 c:CurrentFinancialInstruments 2023-03-31 02460213 c:CurrentFinancialInstruments c:WithinOneYear 2024-03-31 02460213 c:CurrentFinancialInstruments c:WithinOneYear 2023-03-31 02460213 e:UnitedKingdom 2023-04-01 2024-03-31 02460213 e:UnitedKingdom 2022-04-01 2023-03-31 02460213 e:RestEuropeOutsideUK 2023-04-01 2024-03-31 02460213 e:RestEuropeOutsideUK 2022-04-01 2023-03-31 02460213 e:RestWorldOutsideUK 2023-04-01 2024-03-31 02460213 e:RestWorldOutsideUK 2022-04-01 2023-03-31 02460213 c:UKTax 2023-04-01 2024-03-31 02460213 c:UKTax 2022-04-01 2023-03-31 02460213 c:ForeignTax 2023-04-01 2024-03-31 02460213 c:ForeignTax 2022-04-01 2023-03-31 02460213 c:ShareCapital 2024-03-31 02460213 c:ShareCapital 2023-03-31 02460213 c:ShareCapital 2022-04-01 02460213 c:CapitalRedemptionReserve 2023-04-01 2024-03-31 02460213 c:CapitalRedemptionReserve 2024-03-31 02460213 c:CapitalRedemptionReserve 2023-03-31 02460213 c:CapitalRedemptionReserve 2022-04-01 02460213 c:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 02460213 c:RetainedEarningsAccumulatedLosses 2024-03-31 02460213 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 02460213 c:RetainedEarningsAccumulatedLosses 2023-03-31 02460213 c:RetainedEarningsAccumulatedLosses 2022-04-01 02460213 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-03-31 02460213 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-03-31 02460213 c:FinancialLiabilitiesFairValueThroughProfitOrLoss c:ListedExchangeTraded 2024-03-31 02460213 c:FinancialLiabilitiesFairValueThroughProfitOrLoss c:ListedExchangeTraded 2023-03-31 02460213 c:AcceleratedTaxDepreciationDeferredTax 2024-03-31 02460213 c:AcceleratedTaxDepreciationDeferredTax 2023-03-31 02460213 c:TaxLossesCarry-forwardsDeferredTax 2024-03-31 02460213 c:TaxLossesCarry-forwardsDeferredTax 2023-03-31 02460213 d:OrdinaryShareClass1 2023-04-01 2024-03-31 02460213 d:OrdinaryShareClass1 2024-03-31 02460213 d:OrdinaryShareClass1 2023-03-31 02460213 d:FRS102 2023-04-01 2024-03-31 02460213 d:Audited 2023-04-01 2024-03-31 02460213 d:FullAccounts 2023-04-01 2024-03-31 02460213 d:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 02460213 c:Subsidiary1 2023-04-01 2024-03-31 02460213 c:Subsidiary1 1 2023-04-01 2024-03-31 02460213 c:Subsidiary2 2023-04-01 2024-03-31 02460213 c:Subsidiary2 1 2023-04-01 2024-03-31 02460213 c:Subsidiary3 2023-04-01 2024-03-31 02460213 c:Subsidiary3 1 2023-04-01 2024-03-31 02460213 c:WithinOneYear 2024-03-31 02460213 c:WithinOneYear 2023-03-31 02460213 c:BetweenOneFiveYears 2024-03-31 02460213 c:BetweenOneFiveYears 2023-03-31 02460213 6 2023-04-01 2024-03-31 02460213 f:PoundSterling 2023-04-01 2024-03-31 02460213 e:UnitedKingdom 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02460213










G.T.K. (U.K.) LTD.










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
G.T.K. (U.K.) LTD.
 

COMPANY INFORMATION


Directors
J E Morath 
J Boaden 




Registered number
02460213



Registered office
Unit C2 Antura
Bond Close

Basingstoke

Hampshire

RG24 8PZ




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
G.T.K. (U.K.) LTD.
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23


 
G.T.K. (U.K.) LTD.
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The results shown in these financial statements are for the year ended 31 March 2024. The comparative figures are for the year ended 31 March 2023. 

Business review

Summary results are: 
 

31 March
31 March 

2024
2023

£000
£000



Turnover
19,145
21,148



Gross Profit 
6,824
7,584
Operating Profit
2,227
2,774
Adjusting items*
237
391
Adjusted Operating Profit
 
                   2,464
                 3,165
Adjusted Operating Profit as a % of Turnover 
12.9%
15%



*Adjusting Items includes: 


Royalty Charge
0
0
Management Charge
184
342
Share Award Payments
0
0
Bonus Related Payments 
53
49
Total
237
391

The principal activity of the company is the manufacture and sale of custom cable assembles, connectors, optoelectronics and providing a full manufacturing solution service, including printed circuit board full assembly and packaging options.
The G.T.K.(U.K.) Ltd group actively works with its customers to offer both highly competitive prices and acceptable gross margin.
During the year, there was a reduction in revenue compared to the prior year with the record results mainly due to the impact of customers overstocking hence demand softened from customers in particular optoelectronics products. In addition, a portion of revenue being redirected to our subsidiary in Romania. Despite all of these, the revenue only decreased by 9.5%. Gross profit decreased by £0.76m (2023: £7.58m) primarily due to the reduction in revenue. With inflation and raw material cost price increasing during this period, the Directors have taken action to minimise cost price increases and to reduce the impact on gross margins, hence the change in gross margin percentage was negligible. 
The Company has expanded its customer base and continues to focus on customer service (in particular quality and on time delivery) and efficiencies in its supply chain. Continued action is taken to minimise the impact in exchange rate exposure of the group and to maintain gross margins.
Globally, margins continued to be affected across all major industries as supply chains continued to cope with the ongoing economic impact of the pandemic and the inflation. Despite aggressive industry price increase caused by cost increases, the Company’s strong partnerships with its suppliers continued to help stabilise and minimise the impact on its customers.
The Company’s strategic focus and ongoing investment in its facilities, employee will allow it to further increase efficiency and cost competitiveness and to continue to provide high quality of services to its customers while also being well positioned to seize on new opportunities or respond to economic volatility.  

Page 1

 
G.T.K. (U.K.) LTD.
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties
 
As a matter of course, the Company regularly recognises and actively manages the business’s risk and uncertainties both internally and externally and has taken steps to mitigate these through sound business practices. These include managerial knowledge, prevention, diversification and insurances where required. The Company’s continued investment in its employee, product portfolio, logistics, infrastructure and the increasing depth and breadth of its customers and suppliers mitigates the overall exposure in the respective business segments.
The Directors continue to consider the lasting effects of COVID-19, the war in Ukraine, global disruption in supply chain and inflation on the Company’s activities. The Directors have assessed the impact on the Company of this position and have prepared where possible. The Company has managed to adapt its working practices to mitigate the risks.
The Directors also recognise that cyber-attacks are becoming more common place and the business has taken steps to enhance cyber security and has continued to provide staff training to ensure staff are aware of potential threats. 

Financial risk management
 
The Company’s operations subject it to certain financial risks including foreign exchange risk and credit risk and liquidity risk.
The Company is susceptible to fluctuations in exchange rates because its revenues are denominated in GBP, USD and in Euros, its purchases of goods for resale are in USD, Euros and NTD, in different proportions and its overheads are denominated in GBP, NTD and Euros, also in different proportions. As a result, the Directors actively monitor the Company’s currency exposure and tries to match currency obligations in its term of trade and in cash flows wherever possible to hedge naturally any currency exposure as much as possible. The remaining currency translation exposure of currency denominated revenues and costs into the functional currency of GBP is left unhedged. The Company does not engage in other currency hedging.
The Company’s primary credit risk exposure comes from trade receivables. To mitigate credit risk, the Directors set limits for customers based on payment history and third party credit references. Customers’ credits are regularly evaluated and aged trade receivables are reviewed on weekly basis. Customers who are classified as “high risk” are added to a list of customers who are placed on hold. Future credit sales require management approval; otherwise, pro forma invoices requesting payment in advance are raised. 
The Company managed it’s liquidity risk by monitoring cash positions weekly and reviewing cashflow forecasts on regular basis. The Company also has access to additional financing through the Group’s financing facility if required.

Financial key performance indicators
 
The Directors monitor turnover compared to budget and operating profit before Volex plc charges. These are monitored regularly with explanations sought for variances against budgets. The financial position of the Company at the year end is shown in the Balance Sheet on page 9.


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



J E Morath
Director
Date: 16 September 2024

Page 2

 
G.T.K. (U.K.) LTD.
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors

The directors who served during the year were:

J E Morath 
J Boaden 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,086,953 (2023 - £2,642,636).

There were dividends of £3,178,069 (2023: £2,322,069) authorised by the Directors and distributed by the Company during this financial year.

Directors' indemnities and insurance

In accordance with the Companies Act 2006 ad the Company's Articles of Association, the Company has purchased Directors' and Officers' Liability insurance. The indemnity was in force throughout the last financial year and is currently in force at the date of this report. The Company reviews its insurance policies on an annual basis in order to satisfy itself that its level of cover remains adequate.

Financial risk management

Further details of the Company's financial risk management, particularly with regard to exchange rate management, can be found in the strategic report.

Page 3

 
G.T.K. (U.K.) LTD.
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Future developments

Further details of the Company's future strategy can be found in the Strategic report section of this Annual report and financial statements.

Going Concern

The financial statements have been prepared on the going concern basis, under the historical cost of convention unless otherwise specified within these accounting policies. The Directors are satisfied that there are no material uncertainties that cast doubt on the Company's going concern status.
In addition, the performance of the Company has also been considered as part of the Volex plc group's going concern assessment.

Overseas branch

 The Company has a branch in Taiwan that sources products from the Far East for the Company.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsJames Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





J E Morath
Director
Date: 16 September 2024

Page 4

 
G.T.K. (U.K.) LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.T.K. (U.K.) LTD.
 

Opinion


We have audited the financial statements of G.T.K. (U.K.) LTD. (the 'Company') for the year ended 31 March 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 March 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 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.


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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.


Page 5

 
G.T.K. (U.K.) LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.T.K. (U.K.) LTD. (CONTINUED)


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.


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 set out on page 3, 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.


Page 6

 
G.T.K. (U.K.) LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G.T.K. (U.K.) LTD. (CONTINUED)


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 an Auditors' 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;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias. 


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 Auditors' report.


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 2006Our 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 Auditors' 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.





Alexander Peal BSc (Hons) FCA DChA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

17 September 2024
Page 7

 
G.T.K. (U.K.) LTD.
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
19,145,041
21,148,265

Cost of sales
  
(12,320,984)
(13,563,904)

Gross profit
  
6,824,057
7,584,361

Administrative expenses
  
(4,638,944)
(4,861,669)

Other operating income
  
41,847
51,762

Operating profit
 5 
2,226,960
2,774,454

Interest receivable and similar income
  
1,312
473

Interest payable and similar expenses
  
(1,955)
(710)

Profit before tax
  
2,226,317
2,774,217

Tax on profit
 8 
(139,364)
(131,581)

Profit for the financial year
  
2,086,953
2,642,636

Other comprehensive income for the year
  

Currency translation differences
  
177,211
41,314

Other comprehensive income for the year
  
177,211
41,314

Total comprehensive income for the year
  
2,264,164
2,683,950

The notes on pages 11 to 23 form part of these financial statements.

Page 8

 
G.T.K. (U.K.) LTD.
REGISTERED NUMBER: 02460213

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 10 
151,875
112,345

Investments
 11 
288,851
288,851

  
440,726
401,196

Current assets
  

Stocks
 12 
3,205,305
4,697,231

Debtors: amounts falling due within one year
 13 
7,468,021
6,289,497

Cash at bank and in hand
 14 
2,227,001
2,305,184

  
12,900,327
13,291,912

Creditors: amounts falling due within one year
 15 
(5,575,731)
(4,674,165)

Net current assets
  
 
 
7,324,596
 
 
8,617,747

Total assets less current liabilities
  
7,765,322
9,018,943

Provisions for liabilities
  

Deferred tax
 17 
(21,855)
(7,149)

  
 
 
(21,855)
 
 
(7,149)

Net assets
  
7,743,467
9,011,794


Capital and reserves
  

Called up share capital 
 18 
100
100

Capital redemption reserve
 19 
40
40

Profit and loss account
 19 
7,743,327
9,011,654

  
7,743,467
9,011,794


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J E Morath
Director
Date: 16 September 2024

The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
G.T.K. (U.K.) LTD.
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 April 2022
100
40
8,649,773
8,649,913



Profit for the year
-
-
2,642,636
2,642,636

Currency translation differences
-
-
41,314
41,314

Dividends: Equity capital
-
-
(2,322,069)
(2,322,069)



At 1 April 2023
100
40
9,011,654
9,011,794



Profit for the year
-
-
2,086,953
2,086,953

Currency translation differences
-
-
(177,211)
(177,211)

Dividends: Equity capital
-
-
(3,178,069)
(3,178,069)


At 31 March 2024
100
40
7,743,327
7,743,467


The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

G.T.K. (U.K.) Ltd is a private company limited by shares and is incorporated, domiciled and registered      in England, United Kingdom. The address of the registered office and principal place of business is       Unit C2, Antura, Bond Close, Basingstoke, Hampshire, RG42 8PZ.
The principal activity of the Company is that of manufacturing and distribution of electronic components including cable assemblies, connectors, displays, power cords and manufacturing solutions.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7;
the requirement of paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources to disclose the operating and investing cash flows arising from the exploration for and evaluation of mineral resources (when applying this standard in accordance with paragraph 34.11 of FRS 102).

This information is included in the consolidated financial statements of Volex Plc as at 31 March 2024 and these financial statements may be obtained from Companies House.

Page 11

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
20%
per annum
Plant & office equipment
-
20%
per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 12

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Cash and cash equivalents

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

 
2.8

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

 
2.9

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.10

Operating leases: the Company as lessee

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leeases are charged to the profit and loss account on a straight line basis over the period of the lease.

Page 13

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting principles requires the Directors to make judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements and the reported income and expense during the reported periods. Although these judgments and assumptions are based on the Directors' best knowledge of the amount, events or actions, actual results may differ from these estimates.
Stock
Stock is carried at the lower of cost and net realisable value, which is calculated as the estimated sales proceeds less costs of sales. Factors considered in the determination of net realisable value are the ageing category and condition of stock, recent stock utilisation and forecasts of projected stock utilisation. Reviews of provision held against damaged obsolete and slow-moving stock are carried out at least quarterly by management and these reviews require the application of judgement and estimates. Changes to these estimates could result in changes to the net valuation of stock.
Trade debtors
Trade debtors are carried at cost with provisions against recoverability made where appropriate. Factors considered in making provisions are the credit rating of the debtor, their payment history, the avaliability of credit insurance on the debtor, the ageing of the debt and any stock held specifically for the debtor and not yet invoiced. Reviews of provisions held against outstanding debtors are carried out at least quarterly by management and these reviews require the application of judgement and estimates. Changes to these estimates could result in changes to the amount of provisions.


4.


Turnover

The Company has a single class of business being the global provision of electronics solutions including cable assemblies, connectors, displays, power cords and manufacturing solutions. The analysis of turnover by country of destination is:

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
16,023,404
17,118,866

Europe
1,566,913
1,730,087

Rest of the world
1,554,724
2,299,312

19,145,041
21,148,265


Page 15

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
64,114
57,631

Fees payable to the Company's auditors for the audit of the Company's annual financial statements
34,693
53,254

Exchange differences
(47,572)
(59,867)

Other operating lease rentals
203,311
198,258

Defined contribution pension cost
77,108
65,847


6.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,544,610
2,469,111

Social security costs
262,130
242,761

Cost of defined contribution scheme
77,107
65,847

2,883,847
2,777,719


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Sales
17
17



Operations
23
23



Admin
51
46

91
86

Page 16

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
227,584
216,876

Company contributions to defined contribution pension schemes
8,042
7,733

235,626
224,609


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £227,584 (2023 - £216,876).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,042 (2023 - £7,733).


8.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
124,952
130,359


Double taxation relief
(65,156)
(130,359)


59,796
-

Foreign tax


Foreign tax on income for the year
65,156
145,588

Total current tax
124,952
145,588

Deferred tax


Origination and reversal of timing differences
19,223
(8,460)

Adjustments in respect of prior years
(4,811)
(5,547)

Total deferred tax
14,412
(14,007)


Tax on profit
139,364
131,581
Page 17

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,226,317
2,774,217


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
556,579
527,101

Effects of:


Expenses not deductible for tax purposes
4,279
4,406

Adjustments in respect of prior years
(4,812)
(5,547)

Future Tax rate change
-
1,002

Group relief claimed for nil consideration
(416,682)
(395,381)

Total tax charge for the year
139,364
131,581






9.


Dividends

2024
2023
£
£


Dividends
3,178,069
2,322,069

3,178,069
2,322,069

Page 18

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Tangible fixed assets





Short-term leasehold property
Plant & office equipment
Total

£
£
£



Cost or valuation


At 1 April 2023
286,168
702,051
988,219


Additions
6,240
96,879
103,119


Disposals
-
(5,697)
(5,697)



At 31 March 2024

292,408
793,233
1,085,641



Depreciation


At 1 April 2023
244,528
631,346
875,874


Charge for the year
21,045
43,069
64,114


Disposals
-
(6,222)
(6,222)



At 31 March 2024

265,573
668,193
933,766



Net book value



At 31 March 2024
26,835
125,040
151,875



At 31 March 2023
41,640
70,705
112,345


11.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
288,851



At 31 March 2024
288,851




Page 19

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

GTK Electronics GmbH
Roomberg 25b, 51381 Leverkusen, Germany
Direct
Ordinary
100%
GTK RO S.r.l
Str. Fantana Popova, Nr.36, Et. 1, Cod Postal, 200319, Craiova, Doij, Romania
Direct
Ordinary
100%
GTK Limited (dormant)
Unit C2 Antura, Bond Close, Basingstoke, Hampshire, UK, RG24 8PZ
Direct
Ordinary
100%


12.


Stocks

2024
2023
£
£

Raw materials and consumables
1,627,857
1,210,255

Work in progress (goods to be sold)
196,538
267,739

Finished goods and goods for resale
1,380,910
3,219,237

3,205,305
4,697,231


A provision of £254,341 (2023: £185,177) is held at the year end against the cost of stocks for slow moving and obsolete products.

Page 20

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Debtors

2024
2023
£
£


Trade debtors
4,272,298
4,371,769

Amounts owed by group undertakings
2,981,032
1,653,439

Other debtors
91,531
96,161

Prepayments and accrued income
123,160
168,128

7,468,021
6,289,497


The amounts owed by group undertakings are unsecured, non-interest bearing and are repayable on demand.


14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,227,001
2,305,184

2,227,001
2,305,184



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
3,087,667
3,593,964

Amounts owed to group undertakings
1,733,527
305,949

Corporation tax
59,796
107,569

Other taxation and social security
323,568
231,260

Other creditors
20,130
28,419

Accruals and deferred income
351,043
407,004

5,575,731
4,674,165


The amounts owed to group undertakings are unsecured, non-interest bearing and are repayable on demand.
The Company has granted a charge over its assets to Virgin Money UK Plc in respect of amounts owed to the Virgin Money UK Plc from time to time under an invoice discounting facility and a fixed charge in favour of HSBC Continental Europe in order to secure amounts owed by Volex plc.

Page 21

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at amortised cost
7,347,861
6,121,369


Financial liabilities


Financial liabilities measured at amortised cost
(5,192,367)
(4,335,336)


Financial assets measured at amortised cost comprise trade and other debtors, and amounts owed by group. Financial liabilites measured at amortised cost comprise bank overdraft, trade and other creditors, amounts owed to group and accruals.


17.


Deferred taxation




2024
2023


£

£






At beginning of year
(7,149)
(21,041)


(Charged)/credited to profit or loss
(14,706)
14,007


Exchange difference
-
(115)



At end of year
(21,855)
(7,149)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(34,943)
(22,738)

Short term timing differences
13,088
15,589

(21,855)
(7,149)


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100


Page 22

 
G.T.K. (U.K.) LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Reserves

Capital redemption reserve

The reserve records the nominal value of shares repurchased by the Company.

Profit and loss account

The profit and loss account represents cumulative profits avaliable for distribution.


20.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £69,400 (2023: £65,847). No contributions were outstanding as at 31 March 2024 or 31 March 2023.


21.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
130,824
205,288

Later than 1 year and not later than 5 years
-
126,564

130,824
331,852


22.


Related party transactions

The Company is exempt from disclosing related party transactions with other 100% owned members of the group headed by Volex plc by virtue of FRS 102 section 33.1A.


23.


Post balance sheet events

No interim dividend declared in current year.

24.


Controlling party

Volex plc (the ultimate parent company) is the largest and smallest group of which the Company is a member and for which group financial statements are drawn up and is the ultimate parent controlling party and is incorporated in the UK. Copies of the financial statements can be obtained from Volex plc, Unit C1, Antura, Bond Close, Basingstoke, Hampshire, RG24 8PZ, UK.

Page 23