Company registration number 03411363 (England and Wales)
ITAB UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ITAB UK LTD
COMPANY INFORMATION
Directors
R T French
U E Bergmo Sköld
U A Elgaard
N Hughes
Secretary
A J Tweddle
Company number
03411363
Registered office
Itab House Swallowdale Lane
Hemel Hempstead Industrial Estate
Hemel Hempstead
Hertfordshire
HP2 7EA
Auditor
Grant Thornton UK LLP
Victoria House
199 Avebury Boulevard
Milton Keynes
MK9 1AU
Bankers
Nordea Bank AB
6th Floor
5 Aldermanbury Square
London
EC2V 7AZ
ITAB UK LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 12
Statement of comprehensive income
13
Balance sheet
14
Statement of changes in equity
15
Notes to the financial statements
16 - 30
ITAB UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their strategic report for the year ended 31 December 2023.

 

The principal activity of the company during the year was the design, manufacture and installation of specialist equipment for use in retail stores, such as digital displays, checkouts, related products, and entrance/exit control solutions, combined with project management, aftercare service and maintenance. The client base of the company is primarily very large UK retailers.

 

Review of business

The company is part of a larger group in the UK and worldwide which provides a complete shopfitting solution for major retailers. This offer includes standard and bespoke retail display equipment, innovative solutions for the checkout arena, professional lighting systems, and interior fit-outs. This wide product and service offering enables the company in conjunction with its sister companies to provide innovative solutions to its customer needs.

 

The reduction in sales is primarily due to the retail climate, with high inflation levels driving uncertainty and reduced customer spend. Employee numbers similarly fell as the business aligned its costs accordingly to maintain its levels of profitability.

 

The Profit before tax was £1,262,926 (2022: £2,655,887). The decrease is as a result of the impact of reduced sales, but mostly offset by improved gross margins, actions taken to reduce administrative expenses, and fully amortised the goodwill in the prior year.

 

Net assets benefited from a significant reduction in stock levels as part of a Group working capital initiative, while the increase in debtors was as a result of strong sales towards the end of the year.

 

The company's key performance indicators were as follows:

 

 

         2023            2022            Movement                    £000            £000            £000

 

Sales         44,860     63,516         (18,656)

Profit/(loss) before tax     1,263         2,656         (1,393)

Stock             5,242         5,163         79

Employees         161         187      (26)

 

 

The number of employees fell in line with the actions taken across the business to manage its overhead expenses in line with sales activity and profitability levels.

ITAB UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The company's operations expose it to a variety of commercial and financial risks. The commercial risks include the loss of a major contract and the availability of raw materials. The financial risks include credit risk, liquidity risk, price risk and currency risk.

 

Loss of a major contract

The company's sales are typically subject to annual tenders by its customers and the loss of a major contract would impact sales. Furthermore, the company's sales are affected by its customer's capital expenditure programmes and changes in these would impact sales. The company looks to minimise these risks by continually reviewing and updating its product and service offer, and seeking to reach a wide customer base.

 

Availability of raw materials

The availability of raw materials is a global risk and one that is managed through the company's network of supply chain across the globe both internal and external to the group.

 

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who have reliable payment history and satisfy credit checks. The company supplies mainly blue- chip retailers and accordingly this risk is minimised as much as possible.

 

Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations as they fall due. The company mitigates liquidity risk by managing cash generation by its operations and holding significant cash balances.

 

Price risk

Price risk arises on raw material commodity prices which is managed by close price monitoring and contractual terms.

 

Currency risk

The company purchases products from overseas and as such is subject to some currency risk primarily around the euro and US dollar. This is reviewed regularly on receipt of customer orders to minimise the risk of fluctuations and therefore this does not provide a material risk to the company.

Going concern

In preparing these financial statements, the directors have assessed the ability of the company to continue to operate for the period of at least twelve months from the date of signing the financial statements.

 

The directors have undertaken a risk assessment and forecasting exercise to assess the company's liquidity position in response to the impact of high inflation and reduced customer activity. The assessment included performing cash flow sensitivity analysis focusing on sales levels. In addition, reverse stress testing is performed to assess the levels of performance where cash availability would breach. The results of this analysis demonstrated that there is sufficient cash availability.

 

Based on current trading performance, and the sensitivity and reverse stress testing performed, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of signing these financial statements and accordingly they continue to adopt the going concern basis in preparing these financial statements.

ITAB UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
SECTION 172 STATEMENT

As required by Section 172 of the Companies Act, a director of a Group must act in good faith in a way which promotes the Group's success, for the benefit of the shareholders. In doing so each director has regard, amongst other matters, to the following.

 

Likely consequences of any decisions in the long-term

All long-term planning is directed and aligned to the Group global strategy, with shorter term decision making at local level ensuring the business remains focused on achieving the longer-term goals and objectives. The directors have significant experience of the market and regularly review the short-term planning and decision making of the business to ensure the long-term impact is understood.

 

Interests of the company's employees

The company operates a number of initiatives to improve the communication and wellbeing of its employees, including regular monthly updates to all staff on company matters, annual reviews and personal development plans. The business encourages career progression from within its existing labour force and ensures all staff are given the appropriate training to advance in their professions and ensure they are qualified to perform their roles. Additionally the company offers flexible working arrangement for its employees where roles permit.

 

The need to foster the company's business relationships with suppliers/customer and others

The company looks to have relationships at all levels within is customers and work closely to deliver its products and services in a timely manner and to a level of quality expected. As the company is seen as one of the industry's experts in its field the customers frequently utilise the company to gain insight and market intelligence in exploring new opportunities.

 

Strong processes and experience exist around the company's procurement and relationship with its suppliers. This ensures the supplier base is appropriately accredited and adhere to the policies and ethical guidelines of the business as well as those of its customers, to deliver supply chain integrity. In turn the company pays its obligations with its suppliers promptly and consistently and has established annual meetings with its key suppliers by the procurement team.

 

The impact of the company's operations on the community and environment

The company looks to manage its impact to the environment and in turn the local community by being responsible around its carbon footprint and disposal of waste in a safe and secure manner. The company continues to support and has taken part in several fund-raising activities through both its customers and employees during the year.

 

The company operate multi-site and flexible working arrangements to minimise unnecessary travel and monitor closely any air travel to business priorities and outcomes.

 

The company also maintains accreditations relevant to our industry, including sustainability and environmental policies aligned to our group sustainability strategy.

 

The company's reputation for high standards and business conduct

The reputation and standards of the company are long standing as one of the largest providers of products and services to the market within which it operates. The company will prioritise the quality of its products and services over price to ensure the best customer experience.

 

In addition, the policies of the company are such that it drives a culture of business integrity within its employees when conducting business. The business holds a number of accreditations that ensure both the company, and its suppliers are compliant with best working practices and operate in a healthy and safe environment.

ITAB UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Need to act fairly between members of the company

The company is owned by its ultimate holding company, ITAB Shop Concept AB, of which two directors of the company are also directors of that entity. The Directors therefore operate and work in a fair manner that closely aligns the interests of the Group and ultimate owners with those of the company. The board is presented with regular board packs and other information that it needs to fulfil its responsibilities. During the year at board meetings, the board have discussed and made decisions on a number of specific issues including business priorities and strategy, capital investments and the ongoing management of the current economic situation.

 

Our culture

The company is part of a global group which drives a "One ITAB" philosophy helping to define our common policies, guidelines, and behaviour, to each other and our business partners.

On behalf of the board

R T French
Director
14 May 2024
ITAB UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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

Principal activities

The principal activity of the company continued to be the manufacture of retail display systems.

Results and dividends

The profit for the financial year amounted to £960,720 (2022: £2,240,302). Dividends totalling £500,000 (2022: £nil) were paid during the year.

 

Future developments

The company intends to continue to market its own and its group's wide product and service offering to the retail community.

Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a final dividend.

Directors

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

R T French
U E Bergmo Sköld
U A Elgaard
N Hughes
Financial instruments

The company finances its activities with a combination of cash, bank loans, intercompany loans and operating leases. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.

 

Financial instruments give rise to foreign currency, credit price and liquidity risk. In accordance with S414C (11) of the Companies Act 2006, the directors have presented information of financial risk management objectives and policies in the strategic report.

Post balance sheet events

The company has seen an impact on shipping following the attacks in the Red Sea, changing shipping routes to detour around the Cape of Good Hope, adding lead time and cost. This has impacted the entire industry for Far East supply which has been managed in coordination with our customers and wider group relationships, enabling responsive pricing and agreed revised delivery timescales. Our local factory provides an opportunity to meet tighter timescales, which has seen higher utilisation during the start of the year.

Qualifying indemnity provision for directors

The group to which the company belongs has provided qualifying indemnity provisions in respect of the directors which were in force during the year.

ITAB UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Statement of engagement with suppliers, customers and others in a business relationship with the company

The company customer base is principally located within the UK and Ireland and focused within the Retail sector across a number of markets such as grocery and home improvement. The business has a long-standing reputation in the industry within which it operates and is considered an expert in its field, providing its products and range of services at scale. The sales director is responsible for managing the relationship with key customers and maintains regular contact with them, seeking feedback and reporting to the managing director and the board on a regular basis.

 

In order to offer the best in products ranging from manufactured in-house to procured equipment, the company has an extensive supplier and trusted eco-system partner base spanning a number of territories that enables it to make compelling offers to its customers depending on their needs and requirements. The company operates its network through strict codes of conduct and ethical guidelines and conduct annual audits on all key suppliers. The operations director is responsible for managing the relationship with key suppliers and maintains regular contact with them, seeking feedback and reporting to the managing director and the board on a regular basis.

Matters covered in the strategic report

The financial risk management policy sections are not included in the Report of Directors as under S414C(11), they have been included in the Strategic Report.

Streamlined energy and carbon reporting

This report represents the greenhouse gas ("GHG") emissions quantified by the business for the financial year ending 31 December 2023 and its comparative year.

 

The prior year figures have been restated on the basis that in the prior year, natural gas fuel consumption was estimated for the Wentworth site. However, there was no gas use at Wentworth in 2023 and all historic periods.

 

Furthermore, updated data provided for 2022 identified the mileage of seven vehicles, which had been duplicated in both Scope 1: Mobile Combustion and Scope 3: Staff Vehicles. The effect of the restatement is a reduction in KgCO2e of 30,329 (kWh 119,922).

 

The results represent all GHG emission issues from business activities, using the financial control approach.

UK greenhouse gas emission were as follows:
2023
2022
(restated)
(tCO2E)
(tCO2E)
Scope 1
503
607
Scope 2
281
329
Scope 3
77
81
Total gross emissions
861
1,017
Emission intensity kgsCO2E/sq ft
3.9
4.6
Energy consumed (kWh) in UK operations:
2023
2022
(restated)
(kWh)
(kWh)
Fuel combustion: natural gas
2,212,263
2,419,518
Purchased electricity
1,359,004
1,704,476
Fuel combustion: transport
701,088
979,755
4,272,355
5,103,749
ITAB UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Scope
The Company has looked to cover all significant areas of direct emissions of the business operations that fall within Scope 1, Scope 2, and Scope 3 reporting and where sufficient and accurate information was available.
Methodology

This report was produced in accordance with the UK Governments Environmental Reporting Guidelines 2019 and covers UK operations only, as required by SECR for No-Quoted Large Companies.

 

Emissions have been calculated using the latest conversion factors provided by the UK Government.

 

There are no material omissions from the mandatory reporting scope.

Energy efficiency initiatives

The company has taken steps to engage with the Carbon Trust to look at an energy strategy to drive a number of initiatives to drive energy efficiency and reduce carbon footprint.

 

 

In addition, feasibility studies are underway in respect of the use of solar photovoltaic panels and battery storage to power some or all of the factory electricity requirements, as well as installation of rapid EV chargers to support the company and local networks.

Statement of disclosure to auditor

The directors confirm that:

 

 

Auditors

The auditors, Grant Thornton UK LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board
R T French
Director
14 May 2024
ITAB UK LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -

The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law, including FRS 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 and profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

 

 

 

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.

ITAB UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ITAB UK LTD
- 9 -
Opinion

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

In our opinion:

 

 

 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

 

In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as the cost of living crisis and the impact of the war in Ukraine, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.

 

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.

ITAB UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ITAB UK LTD
- 10 -

Other information

The other information comprises the information included in the strategic report, directors’ report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the strategic report, directors’ report and financial statements. 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.

 

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 there is 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:

 

 

Matters on which we are required to report under the Companies Act 2006

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.

Matters on which we are required to report by exception

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:

 

 

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 8, 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.

ITAB UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ITAB UK LTD
- 11 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

 

 

 

 

 

 

 

 

 

 

 

 

ITAB UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ITAB UK LTD
- 12 -

 

 

 

 

 

 

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

 

Use of our report

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

Hannah Cox
Senior Statutory Auditor
For and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountant
Milton Keynes
14 May 2024
ITAB UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
Turnover
3
44,859,931
63,515,645
Cost of sales
(28,340,541)
(42,033,655)
Gross profit
16,519,390
21,481,990
Distribution costs
(2,551,232)
(3,385,124)
Administrative expenses
(12,986,719)
(15,250,314)
Operating profit
4
981,439
2,846,552
Interest receivable and similar income
6
549,153
101,776
Interest payable and similar expenses
7
(267,666)
(292,441)
Profit before taxation
1,262,926
2,655,887
Tax on profit
8
(302,206)
(415,585)
Profit for the financial year
960,720
2,240,302
Other comprehensive income
-
-
Total comprehensive income for the year
960,720
2,240,302

All activities derive from continuing operations.

ITAB UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 14 -
2023
2022
Notes
£
£
Fixed assets
Intangible assets
10
-
-
Tangible fixed assets
12
1,208,439
1,482,104
1,208,439
1,482,104
Current assets
Stocks
13
5,242,020
5,163,234
Debtors
14
6,575,142
9,188,958
Cash at bank
13,570,759
12,239,023
25,387,921
26,591,215
Creditors: amounts falling due within one year
15
(11,680,675)
(14,035,221)
Net current assets
13,707,246
12,555,994
Total assets less current liabilities
14,915,685
14,038,098
Provisions for liabilities
Deferred tax liabilities
17
(106,086)
(82,567)
Other provisions
18
(2,269,204)
(1,875,856)
Net assets
12,540,395
12,079,675
Capital and reserves
Called up share capital
19
1,200,000
1,200,000
Capital contribution
3,000,000
3,000,000
Retained earnings
8,340,395
7,879,675
Total equity
12,540,395
12,079,675
The financial statements were approved by the Board of Directors and authorised for issue on 14 May 2024 and are signed on its behalf by:
R T French
Director
Company registration number 03411363 (England and Wales)
ITAB UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Capital contribution
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2022
1,200,000
3,000,000
5,639,373
9,839,373
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
2,240,302
2,240,302
Balance at 31 December 2022
1,200,000
3,000,000
7,879,675
12,079,675
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
960,720
960,720
Dividends
9
-
-
(500,000)
(500,000)
Balance at 31 December 2023
1,200,000
3,000,000
8,340,395
12,540,395
ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

The financial statements of ITAB UK Ltd (the "company") for the year ended 31 December 2023 were

authorised for issue by the board of directors on 14 May 2024 and the balance sheet was signed on the board's behalf by R T French. ITAB UK Ltd is registered and domiciled in England and Wales.

 

The principal accounting policies adopted by the Company are specified below.

1.1
Accounting convention

These financial statements have been prepared on a going concern basis, 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 Republic of Ireland” and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of ITAB Shop Concept AB as at 31 December 2023. These consolidated financial statements are available from the company secretary at Box 9054, SE-550. 09 Jönköping, Sweden.

 

1.2
Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of discounts and value added taxes.

 

The company recognises turnover when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of turnover can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to each of the company's sales channels have been met, which is delivery of the goods to the customer or completion of the installation service.

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Goodwill and amortisation

Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired subsidiary at the date of acquisition. The cost of acquisition represents the fair value of all the consideration given in return for the assets acquired.

 

Positive goodwill arising on acquisitions is capitalised, classified as an asset on the balance sheet and amortised on a straight-line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds, evenly over the estimated useful economic life of that asset as follows:

 

Goodwill                 - 5 years

1.4
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.

 

Patents and licences             - 10 years

Computer software            - 10 years

1.5
Tangible fixed assets and depreciation

Tangible fixed assets are initially recorded at cost. Cost includes expenditure that is directly attributable to bring the asset to the location and condition necessary for it to be capable of operation in the manner intended by management.

 

Depreciation is calculated so as to write off an asset, net of anticipated disposal proceeds, evenly over the useful economic life of that asset as follows: -

 

Land and buildings            - 10 years

Plant and machinery            - 3-10 years

Fixtures and fittings            - 3-10 years

Motor vehicles                - 3-10 years

 

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

1.6
Stocks and work in progress

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Net realisable value is based on estimated selling price less further costs to completion and disposal.

 

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

1.7
Debtors
Short term debtors are measured at transaction price, less any impairment. Loan receivables are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
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.

1.9
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.10
Financial instruments

The company only enters into basic financial instruments transactions 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 and from related companies.

 

Debt instruments (other than those wholly receivable or payable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade creditors and debtors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. 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 in the case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

 

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 the Statement of Comprehensive income.

 

For financial assets recognised at amortised cost, the impairment loss is measured at the difference between the asset's carrying amount and the present value of estimated cashflows 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 rate determined under the contract.

 

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Taxation

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

 

Current or deferred taxation assets and liabilities are not discounted.

 

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

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

1.12

Foreign currencies

The Company's financial statements are presented in sterling, which is also the company's functional currency. Transactions in foreign currencies are initially recorded in the entity's functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange prevailing at the balance sheet date. All exchange differences are included in the Statement of Comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

1.13
Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme and the pension charge represents amounts payable by the company to the fund. The assets of the scheme are held separately from those of the company in an independently administered fund.

1.14
Going concern

In preparing these financial statements, the directors have assessed the ability of the company to continue to operate for the period of at least twelve months from the date of signing the financial statements.true

 

The directors have undertaken a risk assessment and forecasting exercise to assess the company's liquidity position in response to the impact of high inflation and reduced customer activity. The assessment included performing cash flow sensitivity analysis focusing on sales levels. In addition, reverse stress testing is performed to assess the levels of performance where cash availability would breach. The results of this analysis demonstrated that there is sufficient cash availability.

 

Based on current trading performance, and the sensitivity and reverse stress testing performed, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of signing these financial statements and accordingly they continue to adopt the going concern basis in preparing these financial statements.

1.15
Leases

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.

1.16

Interest payable and similar expenses

Interest payable and similar expenses are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

1.17
Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.18
Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

 

Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charges to the provision carried in the Balance Sheet.

1.19
Impairment of non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset may be impaired. If there is such an indication the recoverable amount of the asset is compared to the carrying amount of the asset.

 

The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the assets continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk free rate and the risks inherent in the asset.

 

If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the statement of comprehensive income, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised within profit or loss.

 

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the statement of comprehensive income.

 

Goodwill is allocated on acquisition to the cash generating unit expected to benefit from the synergies of the combination. Goodwill is included in the carrying value of cash generating units for impairment testing.

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of judgements, estimations and assumptions means that actual outcomes could differ.

 

Critical accounting judgements in applying the company accounting policies

Management do not consider there to be any areas of critical judgement that have been made in the application of the company accounting policies.

 

Key accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are addressed below:

 

 

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
28,786,833
44,408,240
Sale of services
16,073,098
19,107,405
44,859,931
63,515,645
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
43,879,285
61,895,496
Europe
821,871
1,586,888
Rest of World
158,775
33,261
44,859,931
63,515,645
ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Foreign exchange differences
15,780
10,074
Fees payable to the company's auditor for the audit of the company's financial statements
127,613
115,070
Depreciation
434,275
447,985
Impairment of owned tangible fixed assets
68,000
-
0
Amortisation of intangible assets
-
368
Cost of stocks recognised as an expense (cost of sales)
16,348,326
26,144,984
Operating lease charges
1,317,606
1,375,586
5
Employees and directors

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production
48
61
Distribution
16
18
Administrative
97
108
Total
161
187

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
6,755,619
8,270,547
Social security costs
926,554
1,123,150
Pension costs
338,171
352,570
8,020,344
9,746,267
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
592,533
699,324
Company pension contributions to defined contribution schemes
63,322
82,019
655,855
781,343
ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees and directors
(Continued)
- 24 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
325,941
376,540
Company pension contributions to defined contribution schemes
37,862
38,936

The number of directors to whom retirement benefits are accruing is 1 (2022: 1).

 

Two (2022: Two) of the directors of the company are directors of other undertakings within the ITAB group of which ITAB UK Ltd is a subsidiary. Two of these directors remuneration for 2023 (2022: Two) were paid by other group undertakings and the directors have concluded that none of the remuneration relates to incidental services to the company in the current or preceding year.

6
Interest receivable and similar income
2023
2022
£
£
Interest income
Bank interest
549,153
101,776
7
Interest payable and similar expenses
2023
2022
£
£
Financing fees and interest
267,430
292,005
Other interest payable
236
436
267,666
292,441
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current year
293,191
507,902
Adjustments in respect of prior years
(14,504)
921
Total current tax
278,687
508,823
ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
20,053
(35,680)
Adjustment in respect of prior years
3,466
(57,558)
Total deferred tax
23,519
(93,238)
Total tax charge
302,206
415,585

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,262,926
2,655,887
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
296,788
504,619
Tax effect of expenses that are not deductible in determining taxable profit
2,312
6,499
Effect of change in corporation tax rate
(1,580)
(7,777)
Group relief
-
0
(52,997)
Under/(over) provided in prior years
5,549
(34,759)
Fixed asset permanent differences
(863)
-
0
Taxation charge for the year
302,206
415,585
9
Dividends
2023
2022
£
£
Interim paid
500,000
-
0
ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
12
68,000
-
0
Recognised in:
Administrative expenses
68,000
-
11
Intangible assets
Goodwill
Patents and licences
Computer software
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
4,513,585
8,861
53,745
4,576,191
Amortisation
At 1 January 2023 and 31 December 2023
4,513,585
8,861
53,745
4,576,191
Carrying amount
At 31 December 2023
-
0
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
-
0

More information on impairment movements in the year is given in note 10.

The goodwill arose on a business combination in 2010 which created the company as it is today. Its net book value as at 1 January 2017 was amortised over five years.

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
390,110
3,239,922
3,805,187
42,340
7,477,559
Additions
-
0
21,993
206,617
-
0
228,610
At 31 December 2023
390,110
3,261,915
4,011,804
42,340
7,706,169
Depreciation
At 1 January 2023
351,034
2,408,497
3,193,584
42,340
5,995,455
Depreciation charged in the year
16,677
231,622
185,976
-
0
434,275
Impairment losses
-
0
68,000
-
0
-
0
68,000
At 31 December 2023
367,711
2,708,119
3,379,560
42,340
6,497,730
Carrying amount
At 31 December 2023
22,399
553,796
632,244
-
0
1,208,439
At 31 December 2022
39,076
831,425
611,603
-
0
1,482,104

More information on impairment movements in the year is given in note 10.

13
Stocks
2023
2022
£
£
Raw materials
465,116
642,487
Work in progress
473,530
243,961
Finished goods
4,303,374
4,276,786
5,242,020
5,163,234

There is no significant difference between the replacement cost of stock and its carrying amount. The carrying amount of stock is stated net of provisions totalling £1,295,628 (2022: £2,169,333).

14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,071,549
6,478,094
Amounts owed by group undertakings
312,930
783,859
Other debtors
352,616
1,300,553
Prepayments and accrued income
838,047
626,452
6,575,142
9,188,958

 

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Debtors
(Continued)
- 28 -

Trade debtors are stated after a provision of £298,523 (2022: £81,835).

 

The amounts owed by group undertakings are unsecured, interest free and repayable on demand.

The company entered into a non-recourse receivables purchase facility agreement in 2021, the initial term of the facility expires in March 2023 and, after that date, the facility can be cancelled by either party with a 3 month notice period. Interest is charged at 1.5% plus 3 month SONIA or ESTR dependent on the currency of the invoice sold. The amounts due in relation to the facility is £351,747 (2022: £1,299,424) and is included within other debtors.

15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
3,880,885
5,662,359
Amounts owed to group undertakings
5,346,428
4,580,479
Corporation tax
-
0
260,162
Social security and other taxes
1,046,357
1,523,875
Other creditors
20,881
23,984
Accruals and deferred income
1,386,124
1,984,362
11,680,675
14,035,221

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

16
Operating lease commitments
Lessee

Minimum lease payments under non-cancellable operating leases, which fall due are as follows:

2023
2022
£
£
Within one year
1,044,627
1,260,250
Between two and five years
3,088,069
3,792,526
In over five years
725,448
1,645,896
4,858,144
6,698,672
17
Provisions for liabilities
2023
2022
£
£
Dilapidations provision
2,269,204
1,875,856
ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Provisions for liabilities
(Continued)
- 29 -
Movements on provisions:
Dilapidations provision
£
At 1 January 2023
1,875,856
Additional provisions in the year
393,348
At 31 December 2023
2,269,204

The Company has reviewed the existing leases on the buildings it occupies and determined a valuation of costs that to return the properties to their original condition as set out in the respective leases.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

2023
2022
Balances:
£
£
Accelerated capital allowance
121,139
140,125
Other timing differences
(15,053)
(57,558)
106,086
82,567

There are no unused tax losses.

 

The net deferred tax liability expected to reverse in 2024 is £nil. This is primarily related to the reversal of timing differences in capital allowances.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,200,000
1,200,000
1,200,000
1,200,000

The company has one class of ordinary shares which carry no rights to fixed income.

20
Reserves

The capital contribution represents amounts given to the company by its owner as part of an ongoing obligation to fund the entity.

ITAB UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
Ultimate controlling party

ITAB Shop Concept AB (incorporated in Sweden) is regarded by the directors as being the company's ultimate parent company.

 

The company's immediate parent undertaking is ITAB Holdings UK Ltd, a company incorporated in England and Wales.

 

The largest and smallest group in which the results of the company are consolidated is that headed by ITAB Shop Concept AB.

 

Copies of ITAB Shop Concept AB financial statements can be obtained from the company secretary at Box 9054, SE-550. 09 Jönköping, Sweden.

22
Contingent liabilities

The company has a fixed and floating charge in favour of Nordea Bank AB, London branch, over all its property and undertakings.

23
Related party disclosures

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

24
Pension commitments

The company operates a defined contribution pension scheme for the benefit of the directors and employees. The assets of the scheme are administered by trustees and held separately 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 £338,171 (2022: £352,750). Contributions totalling £60,211 (2022: £50,944) were payable to the fund at the balance sheet date and are included in the creditors.

25
Post balance sheet events

The company has seen an impact on shipping following the attacks in the Red Sea, changing shipping routes to detour around the Cape of Good Hope, adding lead time and cost. This has impacted the entire industry for Far East supply which has been managed in coordination with our customers and wider group relationships, enabling responsive pricing and agreed revised delivery timescales. Our local factory provides an opportunity to meet tighter timescales, which has seen higher utilisation during the start of the year.

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