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REGISTERED NUMBER: 02535431 (England and Wales)












NEOPERL U.K. LIMITED

STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)






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




Page

Company Information 1

Strategic Report 2

Directors' Report 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


NEOPERL U.K. LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mr O Denzler
Ms M Kaiser
Mr F Wildfang
Mr M Burton



SECRETARY: Ms M Kaiser



REGISTERED OFFICE: Nimrod Works
Enigma Park
Malvern
Worcestershire
WR14 1GH



REGISTERED NUMBER: 02535431 (England and Wales)



AUDITORS: Wallace Crooke
Chartered Accountants
& Registered Auditors
Wallace House
20 Birmingham Road
Walsall
West Midlands
WS1 2LT



BANKERS: Commerzbank AG
30 Gresham Street
London
EC2P 2XY

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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
In 2023, the company's turnover was nearly the same as the previous year. Due to lower material and freight costs, we were able to increase the gross margin which also helped us to increase the EBITDA and EBIT. Quarter 4 of 2023 already showed improvement and a first recovery on the sanitary market, especially in China, and we expect an increase on sales in 2024. With the focus on keeping the margins as well as on thorough analysis of all operational expenses, we are confident to increase the profitability in 2024 again.

PRINCIPAL RISKS AND UNCERTAINTIES
As a member of an international group, the company is subject to the uncertainties of global markets and the effect these can have on customers and suppliers. The actual geopolitical situation could still have an impact on our global supply chain and our sales. The inflation rates have somehow stabilized in the last couple of months on all European markets as well as in the US. The sanitary market in Europe and the US are expected to develop on a similar level to 2023.

Although the beginning of the new financial year 2024 has shown increasing sales numbers, the business development is still heavily dependent on the development of the geopolitical situation. We therefore closely follow and monitor the development, and management meetings are held on a frequent basis. The Neoperl Group is financially healthy and has enough liquid funds and free credit lines to cover liquidity needs in case there are any.

The business can be affected by competition within the industry and fluctuations in worldwide exchange rates. These are mitigated to some extent by the company's trading links with other group companies.

The company is exposed to other financial risks including credit control and cash flow. The company has an established and structured approach to risk management under the control of the directors and senior management. The company also continues to benefit from considerable support provided from group headquarters in areas of general management, financial control, and sales.

The company's production and sales are continually monitored by the directors and senior management. Other key performance indicators which communicate the company's financial performance and strength, for example gross margin, net profitability, and return on capital employed, are also regularly reviewed. A selection of these which can be picked up from the accounts are as follows:
2023 2022
Turnover 14,476M 14,519M
Gross profit 6,215M 5,845M
Gross margin 43% 40%

DEVELOPMENT AND PERFORMANCE
The company has continued to invest in capital equipment with total expenditure during 2023 of approximately 300,000 euros.

The directors remain committed to the development of the company's production techniques and manufacturing facilities and will continue to devote resources to the needs of the business.

ON BEHALF OF THE BOARD:





Mr O Denzler - Director


12 April 2024

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the production of waterflow regulators.

DIVIDENDS
A dividend of €1,500,000 was paid during the year.

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

Mr O Denzler
Ms M Kaiser
Mr F Wildfang

Other changes in directors holding office are as follows:

Mr K W Gates - resigned 31 March 2023
Mr M Burton - appointed 1 April 2023

DIRECTORS' RESPONSIBILITIES STATEMENT
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). 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.

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors Wallace Crooke will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr O Denzler - Director


12 April 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEOPERL U.K. LIMITED

Opinion
We have audited the financial statements of Neoperl U.K. Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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
NEOPERL U.K. LIMITED


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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEOPERL U.K. LIMITED


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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and industry regulations including GDPR, employment law, health and safety and warranties.

We communicated the identified laws and regulations with the audit team and remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;
- agreed the financial statement disclosures to underlying supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- reviewed minutes of board meetings.

In addressing the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
NEOPERL U.K. LIMITED


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




Martin Jones FCA (Senior Statutory Auditor)
for and on behalf of Wallace Crooke
Chartered Accountants
& Registered Auditors
Wallace House
20 Birmingham Road
Walsall
West Midlands
WS1 2LT

12 April 2024

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes €    €   

TURNOVER 4 14,476,219 14,518,960

Cost of sales (8,261,650 ) (8,673,776 )
GROSS PROFIT 6,214,569 5,845,184

Administrative expenses (4,819,847 ) (5,023,618 )
OPERATING PROFIT 7 1,394,722 821,566

Interest receivable and similar income - 19,315
PROFIT BEFORE TAXATION 1,394,722 840,881

Tax on profit 9 (397,844 ) (134,374 )
PROFIT FOR THE FINANCIAL YEAR 996,878 706,507

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

996,878

706,507

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes €    €    €    €   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 3,800,160 4,249,644
Investments 13 216,759 216,759
4,016,919 4,466,403

CURRENT ASSETS
Stocks 14 1,498,619 1,931,954
Debtors 15 2,318,770 2,511,165
Cash at bank and in hand 1,086,971 554,337
4,904,360 4,997,456
CREDITORS
Amounts falling due within one year 16 1,482,262 1,545,386
NET CURRENT ASSETS 3,422,098 3,452,070
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,439,017

7,918,473

PROVISIONS FOR LIABILITIES 18 119,011 95,345
NET ASSETS 7,320,006 7,823,128

CAPITAL AND RESERVES
Called up share capital 19 117 117
Retained earnings 20 7,319,889 7,823,011
SHAREHOLDERS' FUNDS 7,320,006 7,823,128

The financial statements were approved by the Board of Directors and authorised for issue on 12 April 2024 and were signed on its behalf by:





Mr O Denzler - Director


NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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 117 9,866,504 9,866,621

Changes in equity
Dividends - (2,750,000 ) (2,750,000 )
Total comprehensive income - 706,507 706,507
Balance at 31 December 2022 117 7,823,011 7,823,128

Changes in equity
Dividends - (1,500,000 ) (1,500,000 )
Total comprehensive income - 996,878 996,878
Balance at 31 December 2023 117 7,319,889 7,320,006

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes €    €   
Cash flows from operating activities
Cash generated from operations 1 2,520,076 1,967,685
Tax paid (183,558 ) (691,087 )
Net cash from operating activities 2,336,518 1,276,598

Cash flows from investing activities
Purchase of tangible fixed assets (307,615 ) (600,401 )
Sale of tangible fixed assets 3,731 43,017
Asset under construction - 395,643
Interest received - 19,315
Net cash from investing activities (303,884 ) (142,426 )

Cash flows from financing activities
Equity dividends paid (1,500,000 ) (2,750,000 )
Net cash from financing activities (1,500,000 ) (2,750,000 )

Increase/(decrease) in cash and cash equivalents 532,634 (1,615,828 )
Cash and cash equivalents at
beginning of year

2

554,337

2,170,165

Cash and cash equivalents at end of
year

2

1,086,971

554,337

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM
OPERATIONS
2023 2022
€    €   
Profit for the financial year 996,878 706,507
Depreciation charges 757,100 1,066,357
Profit on disposal of fixed assets (3,731 ) (42,592 )
Finance income - (19,315 )
Taxation 397,844 134,374
2,148,091 1,845,331
Decrease in stocks 433,335 169,109
Decrease in trade and other debtors 192,394 20,265
Decrease in trade and other creditors (253,744 ) (67,020 )
Cash generated from operations 2,520,076 1,967,685

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
€    €   
Cash and cash equivalents 1,086,971 554,337
Year ended 31 December 2022
31/12/22 1/1/22
€    €   
Cash and cash equivalents 554,337 2,170,165


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
€    €    €   
Net cash
Cash at bank and in hand 554,337 532,634 1,086,971
554,337 532,634 1,086,971
Total 554,337 532,634 1,086,971

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

1. STATUTORY INFORMATION

Neoperl U.K. Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Euro (€).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are prepared in euro, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest €.

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

The financial statements present information about the company as an individual undertaking and not about its group. Group accounts have not been prepared as the inclusion of the subsidiary undertaking is not material for the purpose of giving a true and fair view.

Neoperl U.K. Limited is a wholly owned subsidiary of Neoperl Group AG and the results of Neoperl U.K. Limited are included in the consolidated financial statements of Neoperl Group AG, a company incorporated in Switzerland.

Turnover
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 10 years. The reason for choosing this period is it was regarded as an appropriate period over which the benefits from combining the businesses would have accrued. Provision is made for any impairment.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 4%, 6.67%, and 7% on building cost
Plant and machinery - 20% on straight line
Fixtures and fittings - 40% and 20% on cost
Motor vehicles - 30% on cost

No depreciation is provided on freehold land.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

2. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stocks
Stocks 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 stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

2. ACCOUNTING POLICIES - continued

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

4. 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:

2023 2022
€    €   
Production of water regulators 14,476,219 14,518,960
14,476,219 14,518,960

An analysis of turnover by geographical market is given below:

2023 2022
€    €   
United Kingdom 3,163,732 3,336,002
Europe 6,161,992 6,385,115
Asia 4,287,615 4,039,551
North America 659,138 628,893
South America 70,111 53,149
Africa 133,631 76,250
14,476,219 14,518,960

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

5. EMPLOYEES AND DIRECTORS
2023 2022
€    €   
Wages and salaries 4,805,539 4,946,556
Social security costs 371,991 462,844
Other pension costs 155,179 133,277
5,332,709 5,542,677

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

Directors and staff 26 25
Factory 129 138
155 163

6. DIRECTORS' EMOLUMENTS

Directors' remuneration
2023 2022
€    €   
Remuneration for qualifying services 134,577 216,493
Company pension contributions to money purchase schemes 8,026 15,214
142,603 231,707


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

Money purchase schemes 1 1


7. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
€    €   
Other operating leases 51,338 28,820
Depreciation - owned assets 757,099 1,157,872
Profit on disposal of fixed assets (3,731 ) (42,592 )
Foreign exchange differences 86,984 17,135

8. AUDITORS' REMUNERATION
2023 2022
€    €   
Fees payable to the company's auditors for the audit of the
company's financial statements

42,157

42,539

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
€    €   
Current tax:
UK corporation tax 374,178 96,049

Deferred tax 23,666 38,325
Tax on profit 397,844 134,374

UK corporation tax has been charged at 23.50% (2022 - 19%).

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

2023 2022
€    €   
Profit before tax 1,394,722 840,881
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

327,760

159,767

Effects of:
Expenses not deductible for tax purposes 3,995 3,591
Income not taxable for tax purposes (877 ) (8,092 )
Depreciation in excess of capital allowances 75,064 37,435
Adjustments to tax charge in respect of previous periods (71 ) (72,027 )
Foreign exchange differences (8,027 ) (4,306 )
Increase in deferred tax rate - 18,006
Total tax charge 397,844 134,374

10. DIVIDENDS
2023 2022
€    €   
Final dividend 1,500,000 2,750,000

11. INTANGIBLE FIXED ASSETS
Goodwill
€   
COST
At 1 January 2023
and 31 December 2023 1,078,996
AMORTISATION
At 1 January 2023
and 31 December 2023 1,078,996
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

12. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
€    €    €    €    €   
COST
At 1 January 2023 7,211,889 11,572,357 1,337,722 56,089 20,178,057
Additions 46,293 160,792 100,530 - 307,615
Disposals - (6,135 ) - - (6,135 )
At 31 December 2023 7,258,182 11,727,014 1,438,252 56,089 20,479,537
DEPRECIATION
At 1 January 2023 3,973,814 10,767,259 1,131,251 56,089 15,928,413
Charge for year 304,366 375,989 76,744 - 757,099
Eliminated on disposal - (6,135 ) - - (6,135 )
At 31 December 2023 4,278,180 11,137,113 1,207,995 56,089 16,679,377
NET BOOK VALUE
At 31 December 2023 2,980,002 589,901 230,257 - 3,800,160
At 31 December 2022 3,238,075 805,098 206,471 - 4,249,644

13. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
€   
COST
At 1 January 2023
and 31 December 2023 216,759
NET BOOK VALUE
At 31 December 2023 216,759
At 31 December 2022 216,759

The fixed asset investment represents the 100% ordinary shareholding in Malvern Plastics Limited, a company incorporated in England and Wales. This business has not traded during the year. The audited accounts of Malvern Plastics Limited at 31 December 2023 show capital and reserves of £216,759. The subsidiary's only asset is the amount due from the company.

14. STOCKS
2023 2022
€    €   
Finished goods and goods for resale 937,282 1,187,694
Raw materials and consumables 561,337 744,260
1,498,619 1,931,954

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
€    €   
Trade debtors 1,558,664 1,888,835
VAT 17,425 -
Prepayments and accrued income 742,681 622,330
2,318,770 2,511,165

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
€    €   
Trade creditors 660,167 855,708
Corporation tax 302,794 112,174
Social security and other taxes 159,772 160,850
VAT - 40,136
Other creditors 2,834 7,015
Amounts due to group undertakings 217,633 217,633
Accruals and deferred income 139,062 151,870
1,482,262 1,545,386

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
€    €   
Within one year 43,219 30,616
Between one and five years 80,684 16,756
123,903 47,372

18. PROVISIONS FOR LIABILITIES
2023 2022
€    €   
Deferred tax
Accelerated capital allowances 119,011 95,345

Deferred
tax
€   
Balance at 1 January 2023 95,345
Provided during year 23,666
Balance at 31 December 2023 119,011

The deferred tax liability set out above is not expected to reverse within the next twelve months if the company continues its investment in plant and other tangible fixed assets in the following year.

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

19. CALLED UP SHARE CAPITAL

Allotted and issued:
Number: Class: Nominal 2023 2022
value: €    €   
100 Ordinary Shares €1.17 117 117

Share capital represents 100 Ordinary shares of £1 each converted into euro at an historic exchange rate.

20. RESERVES
Retained
earnings
€   

At 1 January 2023 7,823,011
Profit for the year 996,878
Dividends (1,500,000 )
At 31 December 2023 7,319,889

21. PENSION COMMITMENTS

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. The pension cost charge represents contributions payable by the company to the fund and amounted to €155,179 (2022 - €133,277). Contributions totalling €7,947 (2022 - Nil) were payable to the fund at the balance sheet date and are included within other creditors.

22. CAPITAL COMMITMENTS
2023 2022
€    €   
Contracted but not provided for in the
financial statements 53,277 317,888

23. RELATED PARTY DISCLOSURES

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

Entities with control, joint control or significant influence over the entity
2023 2022
€    €   
Purchase of services 1,185,384 964,909
Interest received - 19,315

Entities over which the entity has control, joint control or significant influence
2023 2022
€    €   
Amount due to related party 217,633 217,633

NEOPERL U.K. LIMITED (REGISTERED NUMBER: 02535431)

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

23. RELATED PARTY DISCLOSURES - continued

Other related parties
2023 2022
€    €   
Sales 10,180,419 9,996,770
Purchases 2,907,882 1,887,501
Amount due from related party 1,150,676 1,116,681
Amount due to related party 392,830 512,655

Balances are unsecured, interest free and payable by cash settlement on terms comparable with unrelated businesses.

In establishing sales prices the company adopts the group principle that prices should be comparable with those which would have been applied to unrelated customers.

No guarantees have been given or received.

24. ULTIMATE CONTROLLING PARTY

The ultimate parent company is NEOPERL Group AG, a company which is incorporated in Switzerland.

The most senior parent entity producing financial statements is NEOPERL Group AG of Pfeffingerstrasse 21 CH-4153 Reinach Switzerland.