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REGISTERED NUMBER: 02594474 (England and Wales)















ALFA GOMMA (UK) LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4 to 6

Statement of Comprehensive Income 7

Statement of Financial Position 8

Statement of Changes in Equity 9

Notes to the Financial Statements 10 to 18


ALFA GOMMA (UK) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: G Gennasio
E Gennasio





SECRETARY: I S Whitley





REGISTERED OFFICE: 43 Wilcock Road
Haydock
St Helens
Merseyside
WA11 9TG





REGISTERED NUMBER: 02594474 (England and Wales)





AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
18 Northgate
Sleaford
Lincolnshire
NG34 7BJ

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
Turnover and profit after tax for the year to 31 December 2023 were £11,249,111 and £1,665,507 respectively (2022: £11,942,467 and £1,779,840 respectively). This resulted in net assets as at 31 December 2023 of £6,229,309 (2022: £4,563,802).

Gross profit margin for the year to 31 December 2023 was 32.56% which is consistent with the margin of 31.18% that was achieved during 2022.

The company continues to invest significantly in Quality Management Systems, which include TS 16949:2009 and ISO 9001:2008 which will maintain its competitive advantage going forward.

The company finances its operations through a mixture of retained profits and, where necessary to fund expansion or capital expenditure programmes, through internal and external borrowings. Management's objectives are to maximise returns on surplus funds, minimise the company's exposure to fluctuating interest rates when seeking new borrowings and match the repayment schedule of any external borrowings or overdrafts with the expected future cash flows expected to arise from the company's trading activities.

PRINCIPAL RISKS AND UNCERTAINTIES
World market conditions have an effect on our business as our major customers sell their agricultural and construction equipment throughout the world.

War and conflicts continue to be a significant source of uncertainty due to the ongoing impact on global supply chain, energy sourcing and increased inflation across Europe. In particular increased energy, raw material and interest costs along the increases in general inflation are being constantly monitored by the company.

We have external specialist advisors who coordinate our work in minimising health and safety issues within our two sites.

The company implemented business continuity plans, which are operating largely as designed, and is continuing with mitigating actions to minimise the impact on the financial position of the company. Management has increased the frequency and extent of communication with its parent company, its key external customers, its suppliers and its employees.

Although the directors have a reasonable expectation that the Company will remain viable and able to operate, uncertainty still exists for the timeframe over which the current increase in general inflation will last.

ON BEHALF OF THE BOARD:





E Gennasio - Director


19 September 2024

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

FUTURE DEVELOPMENTS
The Company will continue to move into developing markets and consolidate existing business by improving customer service and product ranges.

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

G Gennasio
E Gennasio

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

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

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

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

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

AUDITORS
The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





E Gennasio - Director


19 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALFA GOMMA (UK) LIMITED

Opinion
We have audited the financial statements of Alfa Gomma (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALFA GOMMA (UK) LIMITED


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

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

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increased reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALFA GOMMA (UK) LIMITED


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




Rachel Rudkin FCCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
18 Northgate
Sleaford
Lincolnshire
NG34 7BJ

19 September 2024

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

REVENUE 3 11,249,111 11,942,467

Cost of sales 7,586,403 8,219,116
GROSS PROFIT 3,662,708 3,723,351

Administrative expenses 1,737,411 1,629,919
1,925,297 2,093,432

Other operating income 4 60,907 61,827
OPERATING PROFIT 1,986,204 2,155,259

Interest receivable and similar income 283,473 105,921
2,269,677 2,261,180

Interest payable and similar expenses 6 77,759 21,218
PROFIT BEFORE TAXATION 7 2,191,918 2,239,962

Tax on profit 8 11,612 440,122
PROFIT FOR THE FINANCIAL YEAR 2,180,306 1,799,840

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,180,306 1,799,840

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 9 75,312 39,975
Investments 10 150,000 150,000
225,312 189,975

CURRENT ASSETS
Inventories 11 1,578,541 1,789,782
Debtors 12 7,577,484 7,360,216
Cash at bank and in hand 160,214 63,416
9,316,239 9,213,414
CREDITORS
Amounts falling due within one year 13 2,797,443 4,839,587
NET CURRENT ASSETS 6,518,796 4,373,827
TOTAL ASSETS LESS CURRENT LIABILITIES 6,744,108 4,563,802

CAPITAL AND RESERVES
Called up share capital 18 270,000 270,000
Retained earnings 6,474,108 4,293,802
SHAREHOLDERS' FUNDS 6,744,108 4,563,802

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





E Gennasio - Director


ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 270,000 2,493,962 2,763,962

Changes in equity
Total comprehensive income - 1,799,840 1,799,840
Balance at 31 December 2022 270,000 4,293,802 4,563,802

Changes in equity
Total comprehensive income - 2,180,306 2,180,306
Balance at 31 December 2023 270,000 6,474,108 6,744,108

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. GENERAL INFORMATION

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

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


2. ACCOUNTING POLICIES

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

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 requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Alfa Gomma S.p.A as at 31 December 2023 and these financial statements may be obtained from Alfa Gomma S.p.A, Via Torri Bianche 1, 20871 Vimercate (MI), Italy.

Related party exemption
As a wholly owned subsidiary of Alfa Gomma S.p.A, the company has taken advantage of the exemptions available under section 33 of FRS 102, not to disclose related party transactions between fellow group undertakings also wholly owned by Alfa Gomma S.p.A.

Significant judgements and estimates
In preparing these financial statements, the directors have made the following judgements:

- Determined whether leases entered into by the company, either as a lessor or a lessee, are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

- A stock provision has been created for those items of stock deemed to be obsolete or with a lower net realisable value than its historical cost. These decisions require an assessment of each stock item and considerations have included whether the item has been damaged in anyway, the condition of stock, the remaining market for the item of stock, whether the item has been superseded by a new model and the time since the last sale of the item of stock.

- The Company establishes provisions based on reasonable estimates for possible consequences of audits by tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

- Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and the level of future taxable profits, together with an assessment of the effect of future tax planning strategies. Further details are contained in note 8.

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Revenue recognition
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.

Tangible 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

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.

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 the Income Statement.

Depreciation is provided on the following basis:

Asset class Depreciation method and rate
Plant & machinery, etcover 3 - 5 years, straight-line

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost. These are reviewed annually to determine if impairment is necessary.

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Classification
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Recognition and measurement
Debt instruments (other than those wholly repayable or receivable 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 debtors and creditors, 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 case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

- at fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably;
- at cost less impairment for all other investments.

Impairment
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 Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

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

Tax
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 reporting 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 Statement of Financial Position 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 reporting date.

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Foreign currency transactions and balances
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Income Statement.

Defined contribution pension obligation
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Commissions receivable
The company receives commissions from some companies within the Alfa Gomma S.p.A group for the management of customer accounts on behalf of these group companies. The commissions are recorded as income in the same period as which the relevant sales were made to the managed customers.

Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables

Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Finance costs
Finance costs are charged to the Income Statement 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.

Borrowing costs
All borrowing costs are recognised in the Income Statement in the year in which they are incurred.

3. REVENUE

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

An analysis of revenue by class of business is given below:

2023 2022
£    £   
Sale of goods 11,249,111 11,942,467
11,249,111 11,942,467

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. REVENUE - continued

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 10,989,993 11,754,417
Europe 227,398 188,050
Asia 21,724 -
Africa 9,996 -
11,249,111 11,942,467

4. OTHER OPERATING INCOME
2023 2022
£    £   
Commissions received from
group undertakings 60,907 61,827

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 956,140 860,587
Social security costs 90,786 81,601
Other pension costs 63,448 41,812
1,110,374 984,000

The average number of employees during the year was as follows:
2023 2022

Administration and support 8 7
Sales 4 4
Distribution 13 12
25 23

2023 2022
£    £   
Directors' remuneration - -

None of the directors received any remuneration from the Company during the year.

Directors' remuneration has been borne by other group companies without recourse. The directors of the Company are also directors or officers of a number of the companies within the group. The directors' services to the Company do not occupy a significant amount of their time. As such the directors do not consider that they have received any remuneration for their incidental services to the Company for the years ended 31 December 2023 and 31 December 2022.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest - 512
Invoice financing interest 77,683 20,706
HMRC interest 76 -
77,759 21,218

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. PROFIT BEFORE TAXATION

The profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 21,300 19,388
Auditors' remuneration 24,150 25,170
Foreign exchange differences 3,048 6,381
Operating lease expense 174,180 195,153

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - 435,673

Deferred tax 11,612 4,449
Tax on profit 11,612 440,122

UK corporation tax has been charged at 23.52% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,191,918 2,239,962
Profit multiplied by the standard rate of corporation tax in the UK of 23.520%
(2022 - 19%)

515,539

425,593

Effects of:
Expenses not deductible for tax purposes 10,566 14,811
Capital allowances in excess of depreciation (10,952 ) (4,731 )
relating to changes in tax
Deferred tax 11,612 4,449
from group relief

Group relief (515,153 ) -
Total tax charge 11,612 440,122

The Corporation Tax main rate was changed on 1 April 2023 from 19% flat percentage to 19% for profits under £50,000, 25% for profits over £250,000, and a marginal rate for profits between £50,000 to £250,000.
The deferred tax asset has been measured using the Corporation Tax rate of 25%.

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1 January 2023 434,491 266,192 700,683
Additions 25,093 31,544 56,637
At 31 December 2023 459,584 297,736 757,320
DEPRECIATION
At 1 January 2023 401,824 258,884 660,708
Charge for year 17,131 4,169 21,300
At 31 December 2023 418,955 263,053 682,008
NET BOOK VALUE
At 31 December 2023 40,629 34,683 75,312
At 31 December 2022 32,667 7,308 39,975

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 150,000
NET BOOK VALUE
At 31 December 2023 150,000
At 31 December 2022 150,000

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

WLF Real Estate Limited
Registered office: 43 Wilcock Road Old Boston Trading Estate, Haydock, St. Helens, United Kingdom, WA11 9TG
Nature of business: Commercial landlord
%
Class of shares: holding
Ordinary 100.00

11. INVENTORIES
2023 2022
£    £   
Stocks 1,578,541 1,789,782

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,298,536 2,448,361
Amounts owed by group undertakings 4,861,502 4,784,643
Other debtors 13,491 11,947
Tax 280,001 -
Deferred tax asset
Accelerated capital allowances 43,220 54,832
Prepayments and accrued income 80,734 60,433
7,577,484 7,360,216

Amounts owed by group undertakings relates to fellow subsidiaries of the ultimate parent undertaking and are unsecured, interest free and payable on demand.

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 14) 543,664 1,859,974
Trade creditors 68,906 56,531
Amounts owed to group undertakings 1,569,399 1,707,120
Taxation - 435,673
Other taxes and social security 319,324 337,290
Other creditors - 87,636
Accruals and deferred income 296,150 355,363
2,797,443 4,839,587

Amounts owed to group undertakings relates to fellow subsidiaries of the ultimate parent undertaking and are unsecured, interest free and payable on demand.

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Other loans 543,664 1,859,974

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 152,123 152,123
Between one and five years 28,081 53,203
180,204 205,326

ALFA GOMMA (UK) LIMITED (REGISTERED NUMBER: 02594474)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Other loans 543,664 1,859,974

Other loans and bank overdrafts are secured by a fixed and floating charge, the floating charge covers all the property or undertaking of the company.

17. DEFERRED TAX
£   
Balance at 1 January 2023 (54,832 )
Charge to Statement of Comprehensive Income during year 11,612
Balance at 31 December 2023 (43,220 )

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
270,000 Ordinary share 1 270,000 270,000

19. PENSION COMMITMENTS

Defined contribution pension scheme
The Company operates a defined contribution pension scheme for its directors and staff. The assets of the scheme are held separately from those of the Company in an independently administered fund. Pension contributions payable by the Company to the fund are charged to the Income Statement as they become payable within the rules of the scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £63,448 (2022 - £41,812).

20. ULTIMATE PARENT COMPANY

Alfa Gomma S.p.A (incorporated in Italy ) is regarded by the directors as being the company's ultimate parent company.

These financial statements are available upon request from Via Torri Bianche 1, 20871 Vimercate (MI), Italy.