Company registration number 03132212 (England and Wales)
ELRING PARTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ELRING PARTS LIMITED
COMPANY INFORMATION
Directors
G Waite
J Thomas
D Willers
Secretary
T Jensen
Company number
03132212
Registered office
2 Derwent Court
Earlsway
Team Valley Trading Estate
Gateshead
Tyne & Wear
NE11 0TF
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
ELRING PARTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
ELRING PARTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Performance

Sales in 2023 were inline with the prior year, Gross margin has decreased by 17.85% due to a change in group pricing structure. Administrative expenses have also increased by 11.06%, resulting in a decrease in net profit before tax on prior year.

 

2023 saw continued disruption to the UK economy and the continuing war in Europe, also some delays in supply chain due to the current shipping concerns via the Red Sea. The motor industry continues to see some constraints around the world with slow recovery on shortage of raw materials, continuing cost increases and disrupted supply chains causing availability issues. Taking all of these conditions into account, Directors consider the year overall as being very successful.

 

The first quarter of 2024 shows positive signs of improvement in availability, achieving sales above target and a profit before tax of 4.83%. We are seeing good signs of business returning to more acceptable levels, however we must remain cautious with the continued unrest in Europe and continuing price rises across all sectors around the world.

 

Directors remain optimistic for 2024 with sales growth anticipated. We hope to achieve the target growth forecast and estimate to be around 17% up on the previous year. Increased costs are being carefully managed and Directors are optimistic that we will continue to achieve PBT above 8.50%.

 

The directors are satisfied with the position of the company's business at the end of the year having a slight decrease in reserves of £58,000 after the payment of a final dividend of £800,000 in respect of 2022. The directors agreed a final dividend in June 2024 in respect of 2023 of £1,000,000 to be paid in June 2024.

Principal risks and uncertainties

The strength of the pound against the Euro and continuing price rises in every sector are the main risks of exposure for the remainder of 2024. While the above mentioned risks continue to be monitored, procedures are in place with the assistance of ElringKlinger AG. Additional administration strategies have been considered and actioned to ensure the company can operate with minimal disruption. There are additional uncertainties within the aftermarket sector due to the recent international acquisition in 2023 of one of the UK's major buying groups, but we see this as a potential benefit having recently secured a tier 1 supply contract with them.

Key performance indicators

Measurement

Given the straightforward nature of the business, the company’s directors are of the opinion that analysis using further KPI’s is not necessary for an understanding of the performance or position of the business.

On behalf of the board

G Waite
Director
23 September 2024
ELRING PARTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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 that of distribution of engine parts.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £800,000. The directors recommend payment of a final dividend to be paid during the financial year ending 31 December 2024 amounting to £1,000,000.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G Waite
J Thomas
D Willers
Dr S Wolf
(Resigned 30 June 2023)
Directors' insurance

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Financial instruments
Treasure operations and financial instruments

The company finances its activities with a combination of finance leases and hire purchase contracts, and cash and short term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.

Liquidity risk

The company aims to mitigate risk by managing cash generated by its operations.

Foreign currency risk

Expenditure in foreign currencies continue to make up a significant part of the company’s business, these being mainly in Euro’s. The company is therefore exposed to movements in exchange rates. The company maintains a Euro bank account and enters into forward exchange purchases of Euros when rates are favourable which partly mitigates this risk.

Credit risk

The company undertakes assessments of its customers in order to manage credit risk where there is a likelihood of default. 

Future developments

The Company's principle activities continues to be the distribution of engine parts. The Directors are not aware at the date of this report of any intended major changes in the companies activities in the next year.

 

The Company intends to continue sales growth and increase profitability in 2024.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

ELRING PARTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements

 

The company meets its day to day working capital requirements through cash generated from operations.

 

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios. This also considers the effectiveness of available measures to assist in mitigating the impact. In the directors assessment of reasonably possible changes in trading performance for the next twelve months they have considered a fall in demand should the global economic impact widen.

 

Although the forecasts prepared taking account of the matters above, support the ability of the company to remain a going concern and to be able to trade and meet its debts as they fall due, the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.

On behalf of the board
G Waite
Director
23 September 2024
ELRING PARTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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:

 

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.

ELRING PARTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELRING PARTS LIMITED
- 5 -

Qualified opinion on financial statements

We were engaged to audit the financial statements of Elring Parts Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion, except for the effects on the corresponding figures of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 31 December 2021 and thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £2,306,682 held at 31 December 2021 by using other audit procedures. Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 December 2022. In addition, were any adjustment to the cost of sales value to be required, the strategic report would also need to be amended. Our audit opinion on the financial statements for the period ended 31 December 2022 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures.

 

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 qualified 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.

ELRING PARTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELRING PARTS LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £2,306,682 held at 31 December 2021. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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.

 

In respect solely of the limitation on our work relating to stock, described above:

 

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, 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.

ELRING PARTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELRING PARTS LIMITED
- 7 -
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.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

We identified the following applicable laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ELRING PARTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELRING PARTS LIMITED
- 8 -

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.

Christopher Potter BA (Hons) ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
23 September 2024
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
ELRING PARTS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
4
11,927,183
12,041,538
Cost of sales
(9,365,753)
(8,931,186)
Gross profit
2,561,430
3,110,352
Administrative expenses
(1,680,299)
(1,512,968)
Operating profit
5
881,131
1,597,384
Investment revenues
9
100,555
48,830
Finance costs
10
(15,550)
(3,985)
Profit before taxation
966,136
1,642,229
Income tax expense
11
(224,611)
(316,042)
Profit and total comprehensive income for the year
741,525
1,326,187

The income statement has been prepared on the basis that all operations are continuing operations.

 

The company has no recognised gains or losses for the year other than the results above.

ELRING PARTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
13
521,411
550,281
Current assets
Inventories
15
3,292,975
2,525,585
Trade and other receivables
16
3,808,335
3,339,223
Cash and cash equivalents
601,086
2,310,949
7,702,396
8,175,757
Total assets
8,223,807
8,726,038
Current liabilities
Trade and other payables
21
985,561
1,270,499
Current tax liabilities
63,908
154,005
Lease liabilities
22
162,763
138,555
1,212,232
1,563,059
Net current assets
6,490,164
6,612,698
Non-current liabilities
Lease liabilities
22
209,181
312,774
Deferred tax liabilities
23
29,251
18,587
238,432
331,361
Total liabilities
(1,450,664)
(1,894,420)
Net assets
6,773,143
6,831,618
Equity
Called up share capital
25
300,000
300,000
Retained earnings
6,473,143
6,531,618
Total equity
6,773,143
6,831,618
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
G Waite
Director
Company registration number 03132212
ELRING PARTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
300,000
6,055,431
6,355,431
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,326,187
1,326,187
Transactions with owners in their capacity as owners:
Dividends
12
-
(850,000)
(850,000)
Balance at 31 December 2022
300,000
6,531,618
6,831,618
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
741,525
741,525
Transactions with owners in their capacity as owners:
Dividends
12
-
(800,000)
(800,000)
Balance at 31 December 2023
300,000
6,473,143
6,773,143
ELRING PARTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(445,894)
1,689,855
Interest paid
(15,550)
(3,985)
Income taxes paid
(304,044)
(284,400)
Net cash (outflow)/inflow from operating activities
(765,488)
1,401,470
Investing activities
Purchase of property, plant and equipment
(91,067)
(47,978)
Proceeds from disposal of property, plant and equipment
7,898
-
0
Interest received
100,555
48,830
Net cash generated from investing activities
17,386
852
Financing activities
Payment of lease liabilities
(161,761)
(109,471)
Dividends paid
(800,000)
(850,000)
Net cash used in financing activities
(961,761)
(959,471)
Net (decrease)/increase in cash and cash equivalents
(1,709,863)
442,851
Cash and cash equivalents at beginning of year
2,310,949
1,868,098
Cash and cash equivalents at end of year
601,086
2,310,949
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Elring Parts Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Derwent Court, Earlsway, Team Valley Trading Estate, Gateshead, Tyne & Wear, NE11 0TF. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The company meets its day to day working capital requirements through cash generated from operations.

 

The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios. This also considers the effectiveness of available measures to assist in mitigating the impact. In the directors assessment of reasonably possible changes in trading performance for the next twelve months they have considered a fall in demand should the global economic impact widen.

 

Although the forecasts prepared taking account of the matters above, support the ability of the company to remain a going concern and to be able to trade and meet its debts as they fall due, the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.

1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The company recognises revenue from the following major sources:

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Distribution of engine parts

Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due, associated costs or the possible return of goods.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
5 - 10 years straight line
Plant and equipment
12 years straight line
Right of use assets
Straight line over the term of the lease

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and fair value through other comprehensive income are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

Government grants are recognised based on the accruals model and are measured at the fair value of the asset received or receivable. Grants are classified as related either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of the grant relating to an asset is deferred, it is recognised as deferred income.

1.14
Foreign exchange

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to pounds sterling at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the statement of income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

1.15

Geographical reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the board, who make strategic operating decisions.

2
Adoption of new and revised standards and changes in accounting policies

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and do not have a material effect on the current period or a prior period or may have an effect on future periods:

Disclosure of Accounting Policies (Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making
Materiality Judgements)
Definition of Accounting Estimates (Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors)
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes)
International Tax Reform – Pillar Two Model Rules (Amendment to IAS 12 Income Taxes) (effective immediately upon the issue of the amendments and retrospectively)
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Critical accounting estimates and judgements

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

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

No judgements have been identified which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Key sources of estimation uncertainty
Rebates

The company has made an estimate of the value of the value of rebates that are expected to be paid as a result of the revenue generated in the accounting period and the agreements with the relevant customers. This assumption involved reviewing the contracts and revenue in the period.

4
Revenue
2023
2022
£
£
Revenue analysed by class of business
Sale of goods
11,927,183
12,041,538
2023
2022
£
£
Revenue analysed by geographical market
UK
10,806,107
11,303,203
Europe
1,099,659
718,618
Rest of the World
21,417
19,717
11,927,183
12,041,538
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
11,599
44,310
Depreciation of property, plant and equipment
194,415
137,008
Cost of inventories recognised as an expense
8,836,316
8,409,809
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,375
17,500
7
Employees

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

2023
2022
Number
Number
Administration and support
5
5
Sales, marketing and distribution
32
30
Total
37
35

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,290,398
1,199,775
Social security costs
134,694
128,535
Pension costs
73,383
67,724
1,498,475
1,396,034
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
104,604
88,203
Company pension contributions to defined contribution schemes
9,444
8,724
114,048
96,927
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
(Continued)
- 21 -
9
Investment revenues
2023
2022
£
£
Interest income
Financial instruments measured at amortised cost:
Bank deposits
61,148
10,619
Other interest income on financial assets
39,407
38,211
Total interest revenue
100,555
48,830
Income above relates to assets held at amortised cost, unless stated otherwise.
10
Finance costs
2023
2022
£
£
Interest on lease liabilities
15,550
3,985
11
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
213,909
307,970
Adjustments in respect of prior periods
38
(142)
Total UK current tax
213,947
307,828
Deferred tax
Origination and reversal of temporary differences
10,664
8,214
Total tax charge
224,611
316,042
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Income tax expense
(Continued)
- 22 -

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£
£
Profit before taxation
966,136
1,642,229
Expected tax charge based on a corporation tax rate of 23.50% (2022: 19.00%)
227,042
312,024
Effect of expenses not deductible in determining taxable profit
1,124
4,160
Permanent capital allowances in excess of depreciation
(3,857)
-
0
Depreciation on assets not qualifying for tax allowances
264
-
0
Under/(over) provided in prior years
38
(142)
Taxation charge for the year
224,611
316,042
12
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary shares
Final dividend paid
2.50
2.83
800,000
850,000

The proposed final dividend for the year ended 31 December 2023 is:

2023
2022
2023
2022
per share
per share
Total
Total
£
£
£
£
Ordinary shares
3.33
2.50
1,000,000
800,000

The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Property, plant and equipment
Plant and equipment
Fixtures and fittings
Right of use assets
Total
£
£
£
£
Cost
At 1 January 2022
27,703
347,071
483,795
858,569
Additions
1,992
45,986
162,853
210,831
Disposals
-
0
(10,769)
(32,533)
(43,302)
At 31 December 2022
29,695
382,288
614,115
1,026,098
Additions
-
0
91,067
82,376
173,443
Disposals
-
0
-
0
(37,074)
(37,074)
At 31 December 2023
29,695
473,355
659,417
1,162,467
Accumulated depreciation and impairment
At 1 January 2022
15,662
293,791
72,658
382,111
Charge for the year
2,419
23,669
110,920
137,008
Eliminated on disposal
-
0
(10,769)
(32,533)
(43,302)
At 31 December 2022
18,081
306,691
151,045
475,817
Charge for the year
2,602
28,954
162,859
194,415
Eliminated on disposal
-
0
-
0
(29,176)
(29,176)
At 31 December 2023
20,683
335,645
284,728
641,056
Carrying amount
At 31 December 2023
9,012
137,710
374,689
521,411
At 31 December 2022
11,614
75,597
463,070
550,281
14
Credit risk

The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the company's maximum exposure to credit risk.

The company does not hold any collateral or other credit enhancements to cover this credit risk.

15
Inventories
2023
2022
£
£
Finished goods
3,292,975
2,525,585

The cost of inventories recognised as an expense in the year amounted to £7,458,984 (2022 - £7,650,036). This is included within cost of sales.

 

The amount of write-down of inventories recognised as an expense in the year is £9,768 (2022 - £11,063).

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
16
Trade and other receivables
2023
2022
£
£
Trade receivables
2,172,022
2,182,933
Provision for bad and doubtful debts
(14,118)
(3,711)
2,157,904
2,179,222
Amounts owed by fellow group undertakings
1,606,126
1,120,224
Prepayments
44,305
39,777
3,808,335
3,339,223
17
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

Expected credit loss assessment
2023
2022
Balance
Rate
Loss allowance
Balance
Rate
Loss allowance
Trade receivables
£
%
£
£
%
£
Within 30 days
898,061
-
-
2,171,620
-
-
30-60 days
882,439
-
-
1,402
-
-
60-90 days
373,348
-
-
7,537
-
1,337
90+ days
18,174
-
14,118
2,374
-
2,374
2,172,022
14,118
2,182,933
3,711

No significant receivable balances are impaired at the reporting end date.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Company’s customer base, including the default risk of the industry' and country in which customers operate, has less of an influence on credit risk. The company has continued to spread the credit risk with 56% of the debt now spread across 7 customers.

 

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings where available. Purchase limits are established for each customer. These limits are reviewed regularly.

 

Goods are sold subject to retention of title clauses, so that in the event of non-payment the Company may have a secured claim. The Company does not require collateral in respect of trade and other receivables. The Company does not have insurance in place related to credit risk. The Company ensures that it credit checks new and existing customers as required. A system of collecting outstanding balances is in place to minimise exposure to bad debts.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Trade receivables - credit risk
(Continued)
- 25 -
Movement in the allowances for impairment of trade receivables
2023
2022
£
£
Balance at 1 January 2023 and at 31 December 2023
14,118
3,711
18
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

19
Liquidity risk

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

Less than 1 month
1 – 3 months
3 months to 1 year
1 – 5 years
Total
£
£
£
£
£
At 31 December 2022
Trade payables
650
195,607
-
-
196,257
Social security and other taxes
500,541
123,899
-
-
624,440
Lease liabilities
12,971
25,941
99,643
312,774
451,329
514,162
345,447
99,643
312,774
1,272,026
At 31 December 2023
Trade payables
781
294,257
-
-
295,038
Social security and other taxes
277,936
-
-
-
277,936
Lease liabilities
14,678
29,356
118,729
209,181
371,944
293,395
323,613
118,729
209,181
944,918
Liquidity risk management

The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

20
Market risk
Market risk management
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Market risk
(Continued)
- 26 -
Foreign exchange risk

The carrying amounts of the company's foreign currency denominated monetary assets and liabilities at the reporting date are as follows:

Assets
Liabilites
2023
2022
2023
2022
£
£
£
£
Euro
295,449
60,182
17,995
382
295,449
60,182
17,995
382

An increase or decrease of 1 percent in interest rates during the year ended 31 December 2023 would have increased or decreased equity' and profit before tax by £16,988. The analysis at 31 December 2022 on the basis of a 1 percent increase or decrease in interest rates would have decreased or increased equity and profit before tax by £16,670.

 

A 10% strengthening or weakening in the value of Sterling against the Euro during the year ended 31 December 2023 would have increased or decreased equity and profit before tax by £821,388. The analysis at 31 December 2022 on the basis of a 10% strengthening or weakening in the value of Sterling against the Euro would have increased or decreased equity and profit before tax by £773,321.

 

The above calculations assume that the change occurred at the balance sheet date and had been applied to risk exposures existing at that date, assuming all other variables remain constant.

21
Trade and other payables
2023
2022
£
£
Trade payables
295,038
196,257
Accruals
412,587
449,802
Social security and other taxation
277,936
624,440
985,561
1,270,499
22
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
176,131
140,117
In two to five years
228,760
344,712
Total undiscounted liabilities
404,891
484,829
Future finance charges and other adjustments
(32,947)
(33,500)
Lease liabilities in the financial statements
371,944
451,329
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Lease liabilities
(Continued)
- 27 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
162,763
138,555
Non-current liabilities
209,181
312,774
371,944
451,329
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
15,550
3,985
Other leasing information is included in note 26.
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Capital allowances
£
Liability at 1 January 2022
10,373
Deferred tax movements in prior year
Charge/(credit) to profit or loss
8,214
Liability at 1 January 2023
18,587
Deferred tax movements in current year
Charge/(credit) to profit or loss
10,664
Liability at 31 December 2023
29,251
ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
73,383
67,724

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

25
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300,000
300,000
300,000
300,000
26
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2023
2022
£
£
Expense relating to short-term leases
68,108
56,367
Information relating to lease liabilities is included in note 22.
27
Capital risk management

The company is not subject to any externally imposed capital requirements.

The Board of Directors has overall responsibility' for the establishment and oversight of the Company’s risk management framework.

 

The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

 

The Company’s treasury policy has as its principal objective the achievement of the maximum interest rate on any cash balances whilst maintaining an acceptable level of risk.

 

There was no change in the Company’s approach to capital management during the year. The Company uses cash held, working capital balances and undrawn facilities to enable the Company to continue as a going concern and to maximise returns for stakeholders. The Company is not subject to externally imposed capital requirements.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
28
Events after the reporting date

The directors agreed a final dividend at the board meeting in June 2024 in respect of 2023 of £1,000,000 to be paid in June 2024.

29
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

2023
2022
£
£
Short-term employee benefits
104,604
88,203
Post-employment benefits
9,444
8,724
114,048
96,927
Other transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Parent company
-
0
-
0
4,537,790
4,143,788
Entities with joint control or significant influence over the company
2,173
-
0
7,330
9,862
2,173
-
0
4,545,120
4,153,650

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Parent company
1,606,126
1,120,224
30
Controlling party

The company's immediate parent is Elring Klinger AG. These financial statements are available upon request from Elring Klinger AG, Max Eyth - Strasse 2, D-72581, Detlingen/Erms, Germany.

The smallest and largest group of undertakings in which the results are consolidated is that headed by Elring Klinger AG.

ELRING PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
31
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year before income tax
966,136
1,642,229
Adjustments for:
Finance costs
15,550
3,985
Investment income
(100,555)
(48,830)
Depreciation and impairment of property, plant and equipment
194,415
137,008
Movements in working capital:
Increase in inventories
(767,390)
(150,404)
(Increase)/decrease in trade and other receivables
(469,112)
443,361
Decrease in trade and other payables
(284,938)
(337,494)
Cash (absorbed by)/generated from operations
(445,894)
1,689,855
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