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REGISTERED NUMBER: 01121083 (England and Wales)















Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2023

for

Pepperl+Fuchs GB Ltd

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Contents of the Financial Statements
for the Year Ended 31 December 2023










Page

Strategic Report 1

Directors' Report 3

Report of the Independent Auditors 6

Profit and loss account 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Pepperl+Fuchs GB Ltd (Registered number: 01121083)

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
The Pepperl+Fuchs group designs, manufactures and distributes electrical explosion protection and sensor technology for the global automation markets. Established in 1945, the foundations of the group have been built on traditional family values of honesty and integrity, coupled with a distinctive spirit of invention and innovation. These values continue to guide us and ensure that we remain a technology innovator and market leader in all that we do, whilst maintaining an innovative approach to the core activities within the Factory and Process Automation sectors.

The target markets for the Factory Automation Division can be found where there is a need for safe, reliable control of automated processes. The Factory Automation Division offers one of the largest ranges of industrial sensors in the world, providing comprehensive coverage for an extensive range of applications.

It consists of inductive, photoelectric, capacitive, magnetic, and ultrasonic sensors. Additionally, we offer powerful components such as rotary encoders, positioning and identification systems (RFID, Data Matrix, and Barcode), AS-Interface as well as suitable accessories. Industrial vision systems and vision sensors round off the comprehensive product range. State-of-the-art technologies and a global sales and production network make Pepperl+Fuchs the ideal partner for a wide variety of industries in the global market. These include branches like mechanical engineering, automotive industry, material handling, packaging, print and paper industry, doors, gates and elevator construction, process equipment, mobile equipment, and renewable energy.

The Process Automation Division is the global leader of intrinsically safe instrumentation and provides global customers with products, services and solutions that protect and operate process plants in hazardous areas and harsh environments throughout the world. The product portfolio includes intrinsic safety isolators, zener barriers, signal conditioners, fieldbus technology, Remote I/O, HART interfaces, level measurement, purge & pressurization systems, Human Machine Interfaces (HMI) for hazardous environments, custom cabinets, and junction boxes as well as hazardous area certified mobile phones and tablets. The industries that we cover include oil & gas, petrochemical, chemical, pharmaceutical, utilities, wastewater and emerging green opportunities in CO2 reduction and hydrogen energy solutions.

Pepperl+Fuchs GB LTD's main activity is to distribute Pepperl+Fuchs products into the UK market, in addition the company provides contract research and development services to Pepperl+Fuchs SE.

In comparison to the past two years, 2023 saw an improved business environment most likely due to pent up demand in the market. The underlining longer-term trends from Brexit changes, lack of clarity and investment in the UK as well as the well-known current global challenges and headwinds still remain.

We do see the midterm business outlook having a positive trend with digital technologies having the potential to boost more inclusive and sustainable growth by spurring innovation, generating efficiencies and improving services. Pepperl+Fuchs is very much aligned to assist the UK market moving towards the digitalization of many tasks and processes in smart manufacturing. Technology advancements from Industry 4.0 and 5G communications will have a positive effect on the general automation market where Pepperl+Fuchs is focused. These global initiatives will result in an increasing demand of sensors, industrial interfaces and industrial communications on a worldwide basis.


Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Strategic Report
for the Year Ended 31 December 2023

KEY PERFORMANCE INDICATORS
The key performance indicators monitored by the company are turnover and overheads and profit measured as a percentage of turnover. Turnover increased by 20 per cent with overheads increasing by 13 per cent. The increase in turnover during 2023 can be put down to the demand stored up over the past few years of the Covid-19 pandemic coupled with an improved manufacturing supply chain where component shortages restricted the ability to produce quite a number of our products. The company continues to safeguard profits by controlling overheads and the directors are satisfied that the appropriate cost controls are in place to ensure the company remains profitable.

2023 2022

Turnover (£) 20,623,132 17,068,478
Overhead costs (£) 5,886,955 5,173,036
Overhead costs as % of turnover 28.5% 30.3%
Operating profit (£) 1,025,054 862,769
Operating profit margin % 5.0% 5.1%

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties for Pepperl+Fuchs GB LTD relate to revenue generation.

The company continued to operate successfully during the business challenges in recent years and achieved strong growth in 2023. We are cautiously optimistic of this continuing going forward as companies invest in their infrastructure, but the financial risk of a recession and manufacturers moving to low-cost countries due to the lack of support and skilled workforce cannot be ignored.

The directors expect lower turnover in 2024 as part of the growth in 2023 was a result of a very high order backlog at the end of 2022. The directors are optimistic to achieve growth in future years.

For the Factory Automation Division, this is based upon ongoing new product development which opens up opportunities in several sectors as well as a reasonably buoyant market as sensor technology will play an important part in the digitalization of many applications.

From a Process Automation Division perspective, the continual falling investment in North Sea crude and natural gas extraction sectors continues to be a major factor which is holding back growth. We still do see some opportunities in the chemical, pharmaceutical and with the move to clean energy hydrogen and carbon capture, along with some new business potential via OEM's who export globally to areas where investment continues such as the Middle East.

FUTURE DEVELOPMENTS
Technology advancements from Industry 4.0 and 5G communications will have a positive effect on the general automation market where Pepperl+Fuchs is focused. These global initiatives will result in an increasing demand of sensors, industrial interfaces and industrial communications on a worldwide basis.

These digital technologies should lead to increased automation, predictive maintenance, self-optimization of process improvements and, above all, a new level of efficiencies and responsiveness to customers not previously possible.

Developing smart factories can provide an opportunity for the manufacturing industry to enter the fourth industrial revolution. Analysing the large amounts of data collected from sensors on the factory floor ensures real-time visibility of manufacturing assets and can provide tools for performing predictive maintenance in order to minimize equipment downtime.

ON BEHALF OF THE BOARD:



A L Boyle - Director


23 April 2024

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Directors' Report
for the Year Ended 31 December 2023


The directors present their annual report on the affairs of the company, together with the financial statements and auditor's report, for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activities of the company during the year were sales of electronic sensors and components to the UK market and research and development of intrinsically safe equipment on behalf of Pepperl+Fuchs SE.

DIVIDENDS
A dividend of £690,000 (2022: £1,400,000) was paid during year.

RESEARCH AND DEVELOPMENT
Pepperl+Fuchs GB LTD develops products for the group, and during 2023 it continued to concentrate its research and development expenditure on intrinsically safe equipment. During the financial year, £485,932 (2022: £482,974) of costs were incurred in regard to research and development.

FUTURE DEVELOPMENTS
We are now in the fourth industrial revolution, also referred to as Industry 4.0. This is characterized by increasing automation and the employment of smart machines and smart factories, informed data helps to produce goods more efficiently and productively. The Pepperl+Fuchs Group, across a wide range of products and services, is well placed to benefit from this step change across the manufacturing sector with an ongoing focus to meet the requirements of this sector going forward.

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

A L Boyle
O Nordmark
J Ryan


Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Directors' Report
for the Year Ended 31 December 2023

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's activities expose it to a number of financial risks including cash flow risk, credit risk, and liquidity risk.

Cash flow risk

The group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The company manages these risks through monitoring potential exposures and sourcing all borrowing through intercompany agreements with Pepperl+Fuchs SE.

Credit risk

The company's principal financial assets are bank balances and cash, trade and other receivables.
The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Pepperl+Fuchs GB Ltd manages customer risk with a credit insurance policy to cover the larger receivables, so the risk relates mainly to the customers with lower outstanding amounts. Customers without insurance cover are checked with a credit-rating agency before credit facilities are granted.

Liquidity risk

The directors consider that Pepperl+Fuchs GB Ltd has sufficient funds for the foreseeable future and have no loans or borrowing in place. In the event Pepperl+Fuchs GB Ltd needs short-term funds, there is a group cash pooling agreement in place, which would allow short-term borrowing from within the group.

GOING CONCERN
The directors have considered the effects of various recent challenges including the Covid-19 pandemic, Brexit, supply chain disruption and economic and political events currently ongoing. With all these in mind they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, we continue to adopt the going concern basis in preparing the annual financial statements.

Further details regarding the adoption of the going concern basis can be found in note 1 to the financial statements.

APPROVAL OF REDUCED DISCLOSURES
The company, as a qualifying entity, has taken advantage, in respect of its separate financial statements, of the disclosure exemptions in FRS 102 paragraph 1.12. The company's shareholder has been notified about the intention to take advantage of the disclosure exemptions and no objections have been received. The company also intends to take advantage of these exemptions in the financial statements to be issued in the following year.

DISCLOSURE IN THE STRATEGIC REPORT
Under section 414C (11) of the Companies Act 2006 the directors have opted to disclose information regarding principal risks, future developments and events after the reporting date in the strategic report.


Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Directors' Report
for the Year Ended 31 December 2023

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Landin Wilcock & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A L Boyle - Director


23 April 2024

Report of the Independent Auditors to the Members of
Pepperl+Fuchs GB Ltd


Opinion
We have audited the financial statements of Pepperl+Fuchs GB Ltd (the 'company') for the year ended 31 December 2023 which comprise the Profit and loss account, Balance Sheet, 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 Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Pepperl+Fuchs GB Ltd


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

We have nothing to report in respect of the following matters 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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:

- minimal reliance was placed upon the operating effectiveness of internal controls in the design and performance of our substantive procedures;

- discussions were held with management considering known or suspected non-compliance with laws, regulations and fraud;

- journal entries were reviewed for any entries made outside the ordinary reporting processes with particular emphasis on those with unusual account combinations, entries crediting revenue and those without specific descriptions;

- management assumptions in their significant accounting estimates were challenged and scrutinised.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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
Pepperl+Fuchs GB Ltd


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.




Robert Hampstead (Senior Statutory Auditor)
for and on behalf of Landin Wilcock & Co
Statutory Auditor
68 Queen Street
Sheffield
South Yorkshire
S1 1WR

23 April 2024

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Profit and loss account
for the Year Ended 31 December 2023

31/12/23 31/12/22
Notes £    £   

TURNOVER 3 20,623,132 17,068,478

Cost of sales (13,896,170 ) (11,174,216 )
GROSS PROFIT 6,726,962 5,894,262

Distribution costs (2,581,875 ) (2,349,603 )
Administrative expenses (3,305,080 ) (2,823,434 )
840,007 721,225

Other operating income 185,047 141,543
OPERATING PROFIT 1,025,054 862,768

Interest receivable and similar income 65,362 3,346
PROFIT BEFORE TAXATION 5 1,090,416 866,114

Tax on profit 7 (222,833 ) (176,678 )
PROFIT FOR THE FINANCIAL YEAR 867,583 689,436

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

867,583

689,436

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Balance Sheet
31 December 2023

31/12/23 31/12/22
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 333,599 305,154
333,599 305,154

CURRENT ASSETS
Debtors 11 5,047,970 4,363,188
Cash at bank and in hand 176,112 187,938
5,224,082 4,551,126
CREDITORS
Amounts falling due within one year 12 (1,866,823 ) (1,343,005 )
NET CURRENT ASSETS 3,357,259 3,208,121
TOTAL ASSETS LESS CURRENT LIABILITIES 3,690,858 3,513,275

CAPITAL AND RESERVES
Called up share capital 14 2,500,000 2,500,000
Retained earnings 15 1,190,858 1,013,275
SHAREHOLDERS' FUNDS 3,690,858 3,513,275

The financial statements were approved by the Board of Directors and authorised for issue on 23 April 2024 and were signed on its behalf by:





A L Boyle - Director


Pepperl+Fuchs GB Ltd (Registered number: 01121083)

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 2,500,000 1,723,839 4,223,839

Changes in equity
Dividends - (1,400,000 ) (1,400,000 )
Total comprehensive income - 689,436 689,436
Balance at 31 December 2022 2,500,000 1,013,275 3,513,275

Changes in equity
Dividends - (690,000 ) (690,000 )
Total comprehensive income - 867,583 867,583
Balance at 31 December 2023 2,500,000 1,190,858 3,690,858

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements
for the Year Ended 31 December 2023


1. ACCOUNTING POLICIES

General information and basis of accounting
Pepperl+Fuchs GB Ltd ('the company') is a private company limited by share capital incorporated in England and Wales under the Companies Act. The address of the registered office is 77 Ripponden Road, Oldham, OL1 4EL, United Kingdom. The nature of the company's operations and its principal activities are set out in the directors' report.

The financial statements have been prepared in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with FRS 102 issued by the Financial Reporting Council.

The functional currency of the company is considered to be Great British Pounds Sterling as that is the currency of the primary economic environment in which the company operates.

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, Pepperl+Fuchs SE, which may be obtained at www.unternehmensregister.de. Exemptions have been taken in these separate company financial statements in relation to the presentation of a cash flow statement and financial instruments.

The company has taken advantage of the exemption offered by section 33.1A of FRS 102 from disclosing related party transactions with other companies that are wholly owned within the group. During the year, no transactions were entered into with related parties other than with other fellow group companies as part of the Pepperl+Fuchs SE group in the normal course of business.


Turnover and other operating income
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are delivered to the customer.

Other operating income is stated net of VAT and relates to the Research & Development tax credit, charges to sister companies for administration services and recharges relating to joint UK group insurance policies arranged by the company. Income is recognised in the period to which the associated activity relates.

Intangible assets - goodwill
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight-line basis over its useful economic life, which is 5 years. Provision is made for any impairment.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 4% on cost
Plant and machinery - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 25% on cost

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of useful life.

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


1. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interests in the assets of the company after deducting all of its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction costs). If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


1. ACCOUNTING POLICIES - continued

Foreign currencies
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. Exchange differences are recognised in profit or loss in the period in which they arise.

Leases
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a money purchase pension scheme, and contributes to the money purchase pension scheme of its employees. The assets of the scheme are held separately from those of the company in independently administered funds. The amounts charged to the profit and loss account represent the contributions payable to the schemes in respect of the account period. Differences between contributions payable in the year and contributions actually paid are shown in either debtors or creditors in the balance sheet.

Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

For non-financial assets, an asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss in a non-financial asset, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss in a financial asset, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a carrying amount higher than the carrying value had no impairment been recognised.

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


1. ACCOUNTING POLICIES - continued

Going concern
The company's business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report. The directors' report further describes the financial position of the company; its cash flows, liquidity position and borrowing facilities; the company's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposure to credit risk and liquidity risk.

The directors believe that the company is well placed to manage its business risks successfully in the current economic conditions and based on the budgets for the next twelve months from the date of these financial statements. The directors have considered the company's reliance on other group companies in order to trade and have therefore received confirmation from the parent company that the company will be provided with support for at least twelve months following the approval of the financial statements.

Budgets have been prepared for 2024 and the expectation is that the growth seen in 2023 will not continue through the year ahead. The order book at the close of 2022 was very high and the company has managed to reduce the order backlog in 2023 resulting in stronger growth than expected in 2023. The expectation is that sales will fall in 2024 but still remain higher than 2022 so over the two-year period a steady growth.

Overheads will be controlled and reviewed regularly to ensure the net margin remains at a similar level.

The directors are confident that the company is well prepared to continue its operations and expects to achieve a profit for the current financial year. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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.

The directors have not identified any areas of critical judgement or sources of estimation uncertainty that are material to the company.

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


3. TURNOVER

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

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

31/12/23 31/12/22
£    £   
Sale of goods 19,345,436 15,809,104
Rendering of services 1,277,696 1,259,374
20,623,132 17,068,478

An analysis of turnover by geographical market is given below:

31/12/23 31/12/22
£    £   
United Kingdom 19,086,707 15,973,061
Germany 1,135,445 1,035,120
Rest of the World 400,980 60,297
20,623,132 17,068,478

4. EMPLOYEES AND DIRECTORS
31/12/23 31/12/22
£    £   
Wages and salaries 3,030,422 2,731,738
Social security costs 358,689 332,767
Other pension costs 604,537 541,488
3,993,648 3,605,993

The average number of employees during the year was as follows:
31/12/23 31/12/22

Research and development 10 10
Sales and administration 58 54
68 64

31/12/23 31/12/22
£    £   
Directors' remuneration 312,965 264,337
Directors' pension contributions to money purchase schemes 20,240 17,464

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
31/12/23 31/12/22
£    £   
Emoluments etc 182,995 142,573
Pension contributions to money purchase schemes 12,000 9,904

5. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

31/12/23 31/12/22
£    £   
Other operating leases 112,183 93,053
Depreciation - owned assets 74,586 65,013
Goodwill amortisation - 37,741
Foreign exchange differences 25,283 (46,356 )
Research and development 485,932 482,974

6. AUDITORS' REMUNERATION

Fees payable to the company auditor for the audit of the company's annual financial statements were £27,900 (2022: £25,400) and £6,250 for non-audit services relating to tax compliance services (2022: £5,750).

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/12/23 31/12/22
£    £   
Current tax:
UK corporation tax 244,374 148,984

Deferred tax:
Origination and reversal of
timing differences (21,541 ) 27,694
Tax on profit 222,833 176,678

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


7. TAXATION - continued

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:

31/12/23 31/12/22
£    £   
Profit before tax 1,090,416 866,114
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

256,466

164,562

Effects of:
Expenses not deductible for tax purposes 1,033 5,470
Tax rate change (1,275 ) 6,646
Assets transferred from connected party at TWDV (33,391 ) -
Total tax charge 222,833 176,678

8. DIVIDENDS
31/12/23 31/12/22
£    £   
Ordinary shares of £1 each
Interim 690,000 1,400,000

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 283,060
AMORTISATION
At 1 January 2023
and 31 December 2023 283,060
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


10. TANGIBLE FIXED ASSETS
Freehold Plant and Motor Computer
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 1,389,221 1,852,486 19,400 388,498 3,649,605
Additions - 34,158 - 68,873 103,031
Disposals - (987 ) - (57,576 ) (58,563 )
At 31 December 2023 1,389,221 1,885,657 19,400 399,795 3,694,073
DEPRECIATION
At 1 January 2023 1,289,221 1,676,808 19,400 359,022 3,344,451
Charge for year - 37,093 - 37,493 74,586
Eliminated on disposal - (987 ) - (57,576 ) (58,563 )
At 31 December 2023 1,289,221 1,712,914 19,400 338,939 3,360,474
NET BOOK VALUE
At 31 December 2023 100,000 172,743 - 60,856 333,599
At 31 December 2022 100,000 175,678 - 29,476 305,154

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Trade debtors 2,975,102 3,218,423
Amounts owed by group undertakings 1,841,481 922,202
Other debtors 1,162 1,460
Deferred tax asset 81,617 60,075
Prepayments and accrued income 148,608 161,028
5,047,970 4,363,188

Deferred tax asset
31/12/23 31/12/22
£    £   
Accelerated capital allowances 59,426 41,822
Other timing differences 22,191 18,253
81,617 60,075

The amounts owed by group undertakings relate to a cash pooling agreement and payable on demand or have arisen by normal trading activities and payable when due under standard payment terms.

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Trade creditors 344,405 199,814
Amounts owed to group undertakings 338,291 50,605
Tax 70,666 65,483
Social security and other taxes 94,233 70,169
VAT 466,284 374,558
Defined contribution pension
scheme accrual 57,180 43,733
Accruals and deferred income 495,764 538,643
1,866,823 1,343,005

The amounts owed to group undertakings have arisen through normal trading and are payable when due under standard payment terms.

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31/12/23 31/12/22
£    £   
Within one year 84,571 45,241
Between one and five years 158,290 72,988
242,861 118,229

None of the items noted above relate to land and buildings.

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/12/23 31/12/22
value: £    £   
2,500,000 Ordinary £1 2,500,000 2,500,000

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

15. RESERVES
Retained
earnings
£   

At 1 January 2023 1,013,275
Profit for the year 867,583
Dividends (690,000 )
At 31 December 2023 1,190,858

The profit and loss account represents cumulative profits or losses, net of dividends paid.

Pepperl+Fuchs GB Ltd (Registered number: 01121083)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023


16. CAPITAL COMMITMENTS
31/12/23 31/12/22
£    £   
Contracted but not provided for in the
financial statements 89,380 -

Capital commitments comprise contracts to acquire solar panelling for the company's premises. At the balance sheet date a deposit of 10% has been paid on this order.

17. RELATED PARTY DISCLOSURES

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

During the year, no transactions were entered into with related parties other than with fellow group companies as part of the Pepperl+Fuchs SE Group in the normal course of business.

18. CONTROLLING PARTY

The company is a wholly owned subsidiary of Pepperl+Fuchs SE, incorporated in Germany.

The directors consider the ultimate parent company and controlling party to be Pepperl+Fuchs SE.

The largest and smallest groups in which the results of the company are consolidated is that headed by Pepperl+Fuchs SE registered at Lilienthalstrasse 200, D-68307 Mannheim, Germany. The consolidated financial statements of this group are available to the public at www.unternehmensregister.de