TURBOCHARGING UK LIMITED

Company Registration Number:
13538108 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2023

Period of accounts

Start date: 1 January 2023

End date: 31 December 2023

TURBOCHARGING UK LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

TURBOCHARGING UK LIMITED

Directors' report period ended 31 December 2023

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

Principal activities of the company

The director presents their Strategic report for the year ended 31 December 2023. Principal activities and review of the business The Company was incorporated on 29 July 2021, as an indirect subsidiary of ABB Ltd, Zurich, Switzerland (ABB Ltd) in connection with the restructuring and potential divestment/spin-off of the turbocharging business of ABB Ltd. ABB Group (the “Group”) carved-out their turbocharging division (“Project Tornado”) (the “Tornado Carve- Out”) as a spin off from ABB Group. As part of the Tornado Carve-Out, the Company commences its transactional business, as at 1 February 2022 as part of the Accelleron group. Accelleron Industries AG ("Accelleron"), a global leader in high-power turbochargers for mission-critical applications, announces that its spin-off from ABB has been successfully completed. Accelleron’s shares are traded on Six Swiss Exchange in Zurich, under the ticker symbol "ACLN". Accelleron is headquartered in Baden, Switzerland and is active in 50 countries across the globe. Accelleron focus on growth strategy with an attractive cash generating profile. This will build upon Accelleron’s position as a market leader in heavy - duty turbocharging, supporting industries that are critical for modern life, including the marine, energy and rail/off - highway sectors. Principal activities of the Company are Overhaul of Turbochargers and Supply of Turbocharger Spare Parts. The Company is part of Accelleron which is a global leader in turbocharging technologies and optimization solutions for 0.5 to 80+ MW engines, helping to provide sustainable, efficient and reliable power to the marine, energy, rail, and off-highway sectors. Through its innovative product offerings and research leadership, the Company accelerates the decarbonization of the industries it operates in. Accelleron has an installed base of approximately 180,000 turbochargers and a network of more than 100 service stations across 50 countries worldwide. In the UK, the Company has 3 workshops based in Southampton, Telford and Aberdeen and a workforce of 33 people. The Company's business operates 24 hours a day, 365 days a year. The business segments that the Company covers in the UK are marine including offshore, power and a small amount of traction (1 - 2%). The business profile of the Accelleron can be found in detail on www.accelleron-industries.com. The loss for the financial year, after taxation, is £7,957,451 (For the period 29 July 2021 to 31 December 2022: Loss for £1,429,647) on revenue of £21,623,427 (For the period 29 July 2021 to 31 December 2022: £16,730,249) with loss before tax of £7,809,586 (For the period 29 July 2021 to 31 December 2022: Loss for £1,180,047). As set out on page 15 of the financial statements, the Company has net current liabilities of £3,521,308 (2022: £4,170,685 and net assets of £12,263,462 (2022: £20,121,354). The directors did not recommend and the Company has not declared or paid any dividend to its immediate parent company.



Directors

The directors shown below have held office during the whole of the period from
1 January 2023 to 31 December 2023

Mrs Sophie Ann Madeley
Maik Stephan Blumentritt
Paul Harmignie
Roland Schwarz


Secretary Ramdil Srinivasa

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
12 September 2024

And signed on behalf of the board by:
Name: Mrs Sophie Ann Madeley
Status: Director

TURBOCHARGING UK LIMITED

Profit And Loss Account

for the Period Ended 31 December 2023

2023 17 months to 31 December 2022


£

£
Turnover: 21,623,427 16,730,249
Cost of sales: ( 15,451,809 ) ( 11,792,291 )
Gross profit(or loss): 6,171,618 4,937,958
Administrative expenses: ( 13,744,267 ) ( 6,053,892 )
Other operating income: 254,245 124,643
Operating profit(or loss): (7,318,404) (991,291)
Interest receivable and similar income: 18,837
Interest payable and similar charges: ( 510,019 ) ( 188,756 )
Profit(or loss) before tax: (7,809,586) (1,180,047)
Tax: ( 147,865 ) ( 249,600 )
Profit(or loss) for the financial year: (7,957,451) (1,429,647)

TURBOCHARGING UK LIMITED

Balance sheet

As at 31 December 2023

Notes 2023 17 months to 31 December 2022


£

£
Called up share capital not paid: 0 0
Fixed assets
Intangible assets: 3 15,169,896 23,507,601
Tangible assets: 4 728,929 849,594
Total fixed assets: 15,898,825 24,357,195
Current assets
Stocks: 5 2,662,234 3,660,074
Debtors: 6 2,969,206 5,508,937
Cash at bank and in hand: 1,925,762 1,569,830
Total current assets: 7,557,202 10,738,841
Creditors: amounts falling due within one year: 7 ( 11,078,510 ) ( 14,909,526 )
Net current assets (liabilities): (3,521,308) (4,170,685)
Total assets less current liabilities: 12,377,517 20,186,510
Provision for liabilities: ( 89,972 ) ( 47,233 )
Accruals and deferred income: ( 24,083 ) ( 17,923 )
Total net assets (liabilities): 12,263,462 20,121,354
Capital and reserves
Called up share capital: 2 2
Share premium account: 21,550,999 21,550,999
Other reserves: 99,559
Profit and loss account: (9,387,098 ) (1,429,647 )
Total Shareholders' funds: 12,263,462 20,121,354

The notes form part of these financial statements

TURBOCHARGING UK LIMITED

Balance sheet statements

For the year ending 31 December 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 12 September 2024
and signed on behalf of the board by:

Name: Mrs Sophie Ann Madeley
Status: Director

The notes form part of these financial statements

TURBOCHARGING UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognized 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 turnover 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 The Company recognizes revenue when it transfers the control of goods and services to customer The control is deemed to have transferred when the customer has the ability to direct use of the asset or has the ability to obtain substantially all of the remaining benefits from that good or service. Revenue is recognized on long term contracts over time as control is transferred The basis of determining the progress of the transfer of control is cost incurred. Revenue is recognized on short term service type contracts is at a point in time when the customer has control over substantially all the remaining benefits with the contract. Revenue is recognized on product sales on delivery of goods. Revenue is recognized on services sales at the time service has been rendered or in the case of period service contracts over the life of the contract

    Tangible fixed assets depreciation policy

    Land is not depreciated. Depreciation on other assets is calculated, using the straight-line method, to allocate the depreciable amount to their residual values over their estimated useful lives

    Intangible fixed assets amortisation policy

    Amortisation of goodwill is charged to the Profit and loss account based on the useful economic life selected, which requires an estimation of the period and profile over which the Company expects to consume the future economic benefits embodied in the asset

TURBOCHARGING UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 2. Employees

    2023 17 months to 31 December 2022
    Average number of employees during the period 33 32

TURBOCHARGING UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

3. Intangible assets

Goodwill Other Total
Cost £ £ £
At 1 January 2023 25,877,858 25,877,858
Additions
Disposals
Revaluations 5,751,970 5,751,970
Transfers
At 31 December 2023 20,125,888 20,125,888
Amortisation
At 1 January 2023 2,370,257 2,370,257
Charge for year 2,585,735 2,585,735
On disposals
Other adjustments
At 31 December 2023 4,955,992 4,955,992
Net book value
At 31 December 2023 15,169,896 15,169,896
At 31 December 2022 23,507,601 23,507,601

TURBOCHARGING UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

4. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 January 2023 761,375 251,219 2,242 1,014,836
Additions 3,861 28,543 1,033 33,437
Disposals
Revaluations
Transfers
At 31 December 2023 765,236 279,762 3,275 1,048,273
Depreciation
At 1 January 2023 100,654 64,027 561 165,242
Charge for year 98,562 54,087 1,453 154,102
On disposals
Other adjustments
At 31 December 2023 199,216 118,114 2,014 319,344
Net book value
At 31 December 2023 566,020 161,648 1,261 728,929
At 31 December 2022 660,721 187,192 1,681 849,594

TURBOCHARGING UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

5. Stocks

2023 17 months to 31 December 2022
£ £
Stocks 2,662,234 3,660,074
Total 2,662,234 3,660,074

TURBOCHARGING UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

6. Debtors

2023 17 months to 31 December 2022
£ £
Trade debtors 2,796,048 5,460,701
Prepayments and accrued income 78,009 42,309
Other debtors 95,149 5,927
Total 2,969,206 5,508,937

TURBOCHARGING UK LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

7. Creditors: amounts falling due within one year note

2023 17 months to 31 December 2022
£ £
Trade creditors 4,803,615 4,974,204
Taxation and social security 357,259 491,632
Accruals and deferred income 1,087,059 803,536
Other creditors 4,830,577 8,640,154
Total 11,078,510 14,909,526

Amounts owed to group undertakings are unsecured, interest free and are repayable on demand. On 01 February 2022 as part of the acquisition of Turbocharging division (Tornado business) from ABB Group, net assets were acquired by the Company amounting to £3.82m against the total purchase consideration of £29.70m. Out of the total consideration, the Company paid a cash consideration of £8.15m, which was received by the Company in form of a Revolving Credit Facility (RCF) from the group undertaking, Turbo Systems Switzerland Limited. The RCF facility carries an interest rate which includes annually reviewed spread rates in addition to the benchmark rate. The interest along with any advance will be payable on maturity date, unless roll-over has been mutually agreed between the parties. The RCF though matures within one year, however, it gets renewed at the same time