Company Registration No. 00548932 (England and Wales)
EUROPEAN SPRINGS AND PRESSINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
EUROPEAN SPRINGS AND PRESSINGS LIMITED
COMPANY INFORMATION
Directors
H M Downs
S P McSheehy
O Tengroth
J Wilby
(Appointed 1 April 2024)
Secretary
J Wilby
Company number
00548932
Registered office
Chaffinch Business Park
Croydon Road
Beckenham
Kent
BR3 4DW
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
EUROPEAN SPRINGS AND PRESSINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 23
EUROPEAN SPRINGS AND PRESSINGS 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

The company continues to provide bespoke spring design and manufacturing service to a wide customer base.

 

The company's turnover decreased during the year by £854,000 to £13,500,000, largely attributable to the transfer of the company's Cornwall division on 1 February 2022 to a fellow subsidiary company. The continuing operations turnover has increased by £363,000.

 

The company as part of a larger group and with its financial strength is now well poised to further increase its market share within the spring manufacturing sector.

 

Net assets have decreased by £6,626,000 during the year to £9,546,000 following an £8,500,000 dividend paid in the year.

Principal risks and uncertainties

The company’s main risks are economic uncertainty, the war in Ukraine and Middle East, the ongoing shortage of skilled labour, increasing costs of labour and general costs, supply chain disruptions which are still not helped by Brexit or the recovery of the Covid-19 pandemic and competition from emerging markets.  Many of the risks are mitigated by being part of a larger specialist group and the quality of the companies in house expertise.

 

The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this though credit control

procedures.

 

 

Key performance indicators

Turnover for the year to 31 December 2023 has decreased by 6% in comparison to the company's previous accounting period. Gross margin for the year has also decreased to 40.7% (2022 - 41.4%).

 

Fixed asset investment amounted to £256,000 (2022 - £298,000) during the year and there has been further significant disposals during the year relating to the divesting of a division within the business, to a fellow subsidiary company.

On behalf of the board

S P McSheehy
Director
25 September 2024
EUROPEAN SPRINGS AND PRESSINGS 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 the manufacturing of springs and pressings.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £8,500,000. The directors do not recommend payment of a further dividend.

Directors

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

H M Downs
S P McSheehy
O Tengroth
J Wilby
(Appointed 1 April 2024)
Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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 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:

 

 

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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

EUROPEAN SPRINGS AND PRESSINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
S P McSheehy
Director
25 September 2024
EUROPEAN SPRINGS AND PRESSINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EUROPEAN SPRINGS AND PRESSINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of European Springs and Pressings Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet 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 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:

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 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 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 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.

 

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 our audit:

EUROPEAN SPRINGS AND PRESSINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROPEAN SPRINGS AND PRESSINGS LIMITED
- 5 -
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 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.

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.

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

EUROPEAN SPRINGS AND PRESSINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROPEAN SPRINGS AND PRESSINGS LIMITED
- 6 -

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

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

EUROPEAN SPRINGS AND PRESSINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROPEAN SPRINGS AND PRESSINGS LIMITED
- 7 -

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.

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.

Nigel Wright BSc FCA
Senior Statutory Auditor
For and on behalf of PM+M Solutions for Business LLP
25 September 2024
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
EUROPEAN SPRINGS AND PRESSINGS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
31 December
31 December
Continuing
Discontinued
2023
2022
operations
operations
Notes
£
£
£
£
Turnover
3
13,499,670
14,353,893
13,136,893
1,217,000
Cost of sales
(8,004,157)
(8,413,094)
(7,533,094)
(880,000)
Gross profit
5,495,513
5,940,799
5,603,799
337,000
Distribution costs
(503,010)
(457,296)
(451,296)
(6,000)
Administrative expenses
(2,881,119)
(2,607,832)
(2,501,232)
(106,600)
Other operating income
84,394
103,548
84,548
19,000
Operating profit
4
2,195,778
2,979,219
2,735,819
243,400
Interest receivable and similar income
8
126,148
91,105
91,105
-
0
Interest payable and similar expenses
9
(28,467)
(38,095)
(95)
(38,000)
Profit before taxation
2,293,459
3,032,229
2,826,829
205,400
Tax on profit
11
(419,083)
(492,875)
(453,008)
(39,867)
Profit after taxation
1,874,376
2,539,354
2,373,821
165,533
Profit for the financial year
1,874,376
2,539,354
2,373,821
165,533
Retained earnings brought forward
16,171,290
14,131,936
Dividends
12
(8,500,000)
(500,000)
Retained earnings carried forward
9,545,666
16,171,290
The profit and loss account has been prepared on the basis that all operations are continuing operations.
EUROPEAN SPRINGS AND PRESSINGS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,924,898
3,335,149
Current assets
Stocks
14
3,411,441
3,307,290
Debtors falling due after more than one year
15
-
0
6,074,493
Debtors falling due within one year
15
5,545,105
2,314,470
Cash at bank and in hand
352,971
3,513,359
9,309,517
15,209,612
Creditors: amounts falling due within one year
16
(1,270,205)
(1,816,152)
Net current assets
8,039,312
13,393,460
Total assets less current liabilities
9,964,210
16,728,609
Provisions for liabilities
Provisions
18
230,000
230,000
Deferred tax liability
19
187,944
326,719
(417,944)
(556,719)
Net assets
9,546,266
16,171,890
Capital and reserves
Called up share capital
21
600
600
Profit and loss reserves
9,545,666
16,171,290
Total equity
9,546,266
16,171,890

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
S P McSheehy
Director
Company registration number 00548932 (England and Wales)
EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

European Springs and Pressings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chaffinch Business Park, Croydon Road, Beckenham, Kent, BR3 4DW.

1.1
Accounting convention

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 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Beijer Alma AB (publ). These consolidated financial statements are available from the registered office of European Springs and Pressings Limited at Chaffinch Business Park, Croydon Road, Beckenham, BR3 4DW.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

1.4
Tangible fixed assets

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

EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

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:

Freehold land and buildings
2% straight line
Leasehold improvements
2% straight line
Plant and equipment
10% straight line & 20% straight line
Motor vehicles and fixtures
25% reducing balance

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period 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.

1.6
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.

 

Stocks 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.

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.

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and 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.

EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.9
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 profit and loss account 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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 profit and loss account, 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.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
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.

1.12
Retirement benefits

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

EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
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.

Impairment of non-financial assets

 

Where there are indications of impairment of individual assets, the company performs impairment tests based on fair value less costs to sell. The fair value is based on the knowledge of the management.

 

Stock impairment

 

Where there are indications of impairment of stock items, the company makes a provision against the value of the stock item based on the knowledge of the management.

 

Dilapidation provision

 

The company has made provision for expected future costs in relation to dilapidations. The value is based upon the knowledge of management.

 

Fixed asset depreciation

 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. The estimated useful life of a fixed asset is based upon historic experience and the knowledge of management.

 

Critical areas of judgement

 

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Company as lessee.

 

Development expenditure is written off in the period in which it is incurred.

 

The company makes tax provisions based on reasonable judgements. The amount of such provision is based on various factors, such as experience with previous tax audits and interpretations of tax regulations.

EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
9,474,867
10,688,893
Rest of Europe
2,955,444
2,749,000
Rest of the world
1,069,359
916,000
13,499,670
14,353,893
2023
2022
£
£
Other revenue
Interest income
126,148
91,105
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(7,261)
(45,618)
Research and development tax credit
(84,394)
(103,540)
Depreciation of owned tangible fixed assets
450,288
421,389
(Profit)/loss on disposal of tangible fixed assets
(1,000)
2,731
Operating lease charges
340,221
315,631
5
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
28,300
31,000
For other services
Other taxation services
8,500
9,011
All other non-audit services
7,105
5,339
15,605
14,350
EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Employees

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

2023
2022
Number
Number
Production
100
109
Office and management
20
19
Total
120
128

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,150,834
4,287,862
Social security costs
410,562
437,763
Pension costs
145,957
137,240
4,707,353
4,862,865
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
247,495
260,254
Company pension contributions to defined contribution schemes
8,586
7,922
256,081
268,176

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
133,429
134,992
Company pension contributions to defined contribution schemes
4,392
3,563
EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
52,650
3,372
Interest receivable from group companies
67,593
87,733
Interest receivable from tax payments on account
5,905
-
0
Total income
126,148
91,105
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
28,467
38,095
10
Discontinued operations
Cornwall operations

On 1 February 2022 the company disposed of its Cornwall operations to a fellow subsidiary company within the group.

The disposal was funded by a loan from the company to Lesjofors Heavy Springs UK Ltd. The loan is subject to interest at 1.5% per annum. The loan was repaid in full during the year.

All assets were disposed of at net book value therefore no gain or loss was made on the disposal.

 

11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
554,559
541,027
Adjustments in respect of prior periods
3,299
(33,318)
Total current tax
557,858
507,709
Deferred tax
Origination and reversal of timing differences
(139,793)
(322,479)
Impact of disposal of Cornwall trade
-
0
306,099
Adjustment in respect of prior periods
1,018
1,546
Total deferred tax
(138,775)
(14,834)
Total tax charge
419,083
492,875
EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,293,459
3,032,229
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
539,422
576,124
Tax effect of expenses that are not deductible in determining taxable profit
387
465
Adjustments in respect of prior years
3,299
(33,318)
Research and development tax credit
(4,103)
(10,290)
Deferred tax adjustments in respect of prior years
1,018
-
0
Fixed asset differences
(81,309)
189,347
Deferred tax impact of disposal of Cornwall trade
-
0
306,099
Capital allowance timing differences on disposal of Cornwall trade
(39,631)
(535,552)
Taxation charge for the year
419,083
492,875
12
Dividends
2023
2022
£
£
Final paid
8,500,000
500,000
EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Assets under construction
Plant and equipment
Motor vehicles and fixtures
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,260,711
301,515
75,277
4,149,033
1,373,613
7,160,149
Additions
-
0
-
0
24,021
79,915
151,568
255,504
Disposals
-
0
-
0
-
0
(12,412)
(43,069)
(55,481)
Transfers
-
0
-
0
(60,092)
11,018
49,074
-
0
Disposals to related parties
(1,260,711)
-
0
-
0
-
0
(189,961)
(1,450,672)
At 31 December 2023
-
0
301,515
39,206
4,227,554
1,341,225
5,909,500
Depreciation and impairment
At 1 January 2023
76,925
12,972
-
0
2,807,014
928,089
3,825,000
Depreciation charged in the year
22,411
6,099
-
0
278,192
143,586
450,288
Eliminated in respect of disposals
-
0
-
0
-
0
(12,412)
(43,069)
(55,481)
Eliminated in respect of  disposals to related parties
(99,336)
-
0
-
0
-
0
(135,869)
(235,205)
At 31 December 2023
-
0
19,071
-
0
3,072,794
892,737
3,984,602
Carrying amount
At 31 December 2023
-
0
282,444
39,206
1,154,760
448,488
1,924,898
At 31 December 2022
1,183,786
288,543
75,277
1,342,019
445,524
3,335,149
14
Stocks
2023
2022
£
£
Raw materials and consumables
1,683,293
1,753,883
Work in progress
609,800
457,563
Finished goods and goods for resale
1,118,348
1,095,844
3,411,441
3,307,290
EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,821,624
1,901,338
Corporation tax recoverable
82,026
77,093
Amounts owed by group undertakings
3,360,575
209,651
Prepayments and accrued income
280,880
126,388
5,545,105
2,314,470
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
-
0
6,074,493
Total debtors
5,545,105
8,388,963

Included within amounts owed by group undertakings is an element of the group banking facility totalling £3,081,286 on which interest is received. The remainder of the group balances are unsecured, interest free and repayable on demand.

 

Amounts owed by group undertakings after more than one year is a formal loan subject to interest at 1.5% per annum. The loan was repaid in full during the year.

16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
-
0
1,000,000
Payments received on account
-
0
17,315
Trade creditors
714,391
221,275
Amounts owed to group undertakings
49,312
31,119
Taxation and social security
288,883
308,168
Other creditors
71,515
147,193
Accruals and deferred income
146,104
91,082
1,270,205
1,816,152

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

 

The bank loan was repaid in full on the 2 October 2023.

EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
-
0
1,000,000
Payable within one year
-
0
1,000,000

The bank loan was repayable in one instalment on 2 October 2023, being five years from the date on which the loan was made. Interest of 3.82% was charged.

 

The bank loan was secured by way of a fixed charge over property held in the company.

18
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
230,000
230,000
Movements on provisions:
Dilapidation provision
£
At 1 January 2023 and 31 December 2023
230,000
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
187,944
326,719
2023
Movements in the year:
£
Liability at 1 January 2023
326,719
Credit to profit or loss
(138,775)
Liability at 31 December 2023
187,944
EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
145,957
137,240

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. At the year end £23,844 (2022: £22,356) was due to the fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
500
500
500
500
Ordinary A share of £1 each
100
100
100
100
600
600
600
600
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
345,180
281,553
Between two and five years
275,771
493,168
620,951
774,721
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
71,506
165,545
24
Events after the reporting date

In July 2024 the company acquired the entire share capital of Clifford Springs Limited and Enfield Spring Holdings Limited, enabling the group to expand its product offering in energising springs.

EUROPEAN SPRINGS AND PRESSINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
25
Ultimate controlling party

The company's ultimate holding company is Beijer Alma AB which is registered in Sweden (no 5562297480), for which group accounts are prepared.

 

Copies of the group accounts can be obtained from the Registered Office of European Springs and Pressings Limited at Chaffinch Business Park, Croydon Road, Beckenham, Kent, BR3 4DW.

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