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REGISTERED NUMBER: 00516559 (England and Wales)















REGAL MANUFACTURING LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)






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




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4

Report of the Independent Auditors 5 to 7

Income Statement 8

Other Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 14 to 22


REGAL MANUFACTURING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: M Miccio
G Cozzo
G J Llewellyn


REGISTERED OFFICE: 99 Gresham Street, C/O Curtis
Nallet-Prevost, Colt & Mossle LLP
99 Gresham Street
London
EC2V 7NG


REGISTERED NUMBER: 00516559 (England and Wales)


SENIOR STATUTORY AUDITOR: Timothy Godson FCA


AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR


BANKERS: J. P. Morgan
25 Bank Street
Canary Wharf
Floor 19
London
E14 5JP

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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
During 2023, due to the organic sales decline driven by lower volumes resulting from slowing market demand, sales for Regal Manufacturing Limited have decreased from to £21.0m in 2022 to £15.1m in 2023.

On the other hand, the decreasing in commodity prices for copper, steel and aluminium as well as the impact from currency markets have resulted in an increase in gross profit from 21.4% in 2022 to 25.5% in 2023.

DISTRIBUTION/SUSTAINABLE PRACTICES
We continue to focus on improving the customer experience by providing excellent service and quality, while increasing our productivity and reducing our costs. We accomplish this by embedding lean operating principles in our distribution processes, while emphasizing a culture of continuous improvement with a "sense of urgency". We have a shared services approach, which allows our intercompany businesses to leverage shared manufacturing facilities to optimize capacity utilization and enhance operational excellence. We continue to reduce costs by improving inventory controls; reducing defects; decrease costs in material and transportation, by leveraging Global Regal Rexnord Contracts with key suppliers. Another ongoing initiative is to enhance and further implement lean methods to improve productivity, whilst maintaining quality. We continue to sponsor sustainability initiatives that encompass environmentally-friendly practices. We have aligned with suppliers that promote sustainable business practices.

PRINCIPAL RISKS AND UNCERTAINTIES
The company is affected by a number of factors, the principal ones of which are:

o The company is exposed to the risk of negative developments in global and regional economies and financial markets, either directly or through the impact on the company's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, currency fluctuations, and restrictions in the availability of credit, business failures in the customer or supplier base, or increases in financing costs, and in the cost of utilities, raw materials and finished products. Such developments might increase operating costs, recovered with productivity and sales price increase.

o The company operates in a competitive market, and failure to compete effectively in terms of price, product specification or levels of service can have an adverse effect on demand and / or margins.

The company mitigates risk in several ways:

o The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance.

o Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication.

o The company operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the company's corporate objectives.

FINANCIAL KEY PERFORMANCE INDICATORS
The Company reported on a number of key performance indicators (KPIs) to monitor and manage performance.

In 2022-23 these KPIs were as follows:

- Sales £15m v. £21m
- EBITDA £2.6m v. £2.0m
- PBIT £2.5m v. £1.9m
- Net Assets £4.03m v. £7.78m

The company also uses certain non-financial indicators, the most significant of which is the number of employees and most importantly their associated skill sets with a strong emphasis wherever possible of developing and promoting our people from within the organisation.

RESEARCH AND DEVELOPMENT
The company provides best in class technical service to our customer base. In addition the company is working closely with other Regal research & development centres in the world, allowing the company to have access to a wider product offering.


REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

FUTURE DEVELOPMENTS
There have been increases in costs which have placed pressure on profitability but the company strives to source from low cost, high quality, suppliers so that it can provide its customers with a good value, high quality, product together with flexibility and engineering expertise. The company believes this will ensure that it maintains its position in the marketplace.

Future growth is being sought from the UK & European market. While there is still some uncertainty in the market, our increased product range and quality improvements should leave us in a good position to build further on the previous growth achieved.

GOVERNMENT REGULATION
We are subject to numerous UK, international & EU laws and regulations that affect our business activities in several areas, including, but not limited to, labour, advertising, taxation, data privacy and security, digital content, consumer reports, consumer protection, e-commerce, online payment services, intellectual property, environmental matters, International Trade, Anti-Corruption, FCPA and workplace health and safety. The cost of complying with these laws and regulations is significant and regulators may adopt new laws or regulations at any time. We believe that our business is operated in substantial compliance with all applicable laws and regulations.

EMPLOYEES
As of December 31, 2023, we employed 24 employees in the U.K. None of our employees are represented by labour unions, and we consider our employee relations to be good.

CODE OF ETHICS GUIDELINES
We have adopted a Corporate Code of Business Ethics that applies to all of our employees and our board of directors. The Code of Business Ethics is available upon written request to the attention of Legal Department & Investors relations, Regal Rexnord Corporation, 200 State St, Beloit, WI 53511, United States. Any changes or waivers of the Code of Business Ethics will be disclosed on our website.

ON BEHALF OF THE BOARD:





M Miccio - Director


25 September 2024

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

REPORT OF THE DIRECTORS
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 sale of electric motors and ventilation systems.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
M Miccio has held office during the whole of the period from 1 January 2023 to the date of this report.

Other changes in directors holding office are as follows:

G Cozzo and G J Llewellyn were appointed as directors after 31 December 2023 but prior to the date of this report.

J R Longley and A Fernandes ceased to be directors after 31 December 2023 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M Miccio - Director


25 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REGAL MANUFACTURING LIMITED

Opinion
We have audited the financial statements of Regal Manufacturing Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 Report of the Directors, 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REGAL MANUFACTURING LIMITED


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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statement audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimated and judgemental areas of the financial statements such as deprecation of tangible fixed assets and stock provision, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journals entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, ISO accreditation, GDPR and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the health and safety audits and ISO assessments conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls and ISO compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

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. The further removed non-compliance with laws and regulations 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. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of 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.

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
REGAL MANUFACTURING 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.




Timothy Godson FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR

26 September 2024

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £    £    £   

REVENUE 3 15,144,156 21,025,308

Cost of sales 10,981,984 16,166,398
GROSS PROFIT 4,162,172 4,858,910

Distribution costs 266,251 329,685
Administrative expenses 1,445,412 1,717,476
1,711,663 2,047,161
2,450,509 2,811,749

Cost of restructuring 5 12,649 1,001,867
2,437,860 1,809,882

Interest receivable and similar income 6 219,459 -
2,657,319 1,809,882

Interest payable and similar expenses 7 200,112 9,210
PROFIT BEFORE TAXATION 8 2,457,207 1,800,672

Tax on profit 9 556,617 240,572
PROFIT FOR THE FINANCIAL YEAR 1,900,590 1,560,100

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,900,590 1,560,100


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,900,590 1,560,100

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 72,905 157,572
Property, plant and equipment 11 376,215 645,849
Investments 12 3,000 3,000
452,120 806,421

CURRENT ASSETS
Inventories 13 2,158,778 4,562,487
Debtors 14 8,929,786 5,006,932
Cash at bank 5,932 13,233
11,094,496 9,582,652
CREDITORS
Amounts falling due within one year 15 1,962,045 2,709,661
NET CURRENT ASSETS 9,132,451 6,872,991
TOTAL ASSETS LESS CURRENT LIABILITIES 9,584,571 7,679,412

PROVISIONS FOR LIABILITIES 17 4,569 -
NET ASSETS 9,580,002 7,679,412

CAPITAL AND RESERVES
Called up share capital 18 610,221 610,221
Retained earnings 19 8,969,781 7,069,191
SHAREHOLDERS' FUNDS 9,580,002 7,679,412

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by:





M Miccio - Director


REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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 610,221 5,509,091 6,119,312

Changes in equity
Total comprehensive income - 1,560,100 1,560,100
Balance at 31 December 2022 610,221 7,069,191 7,679,412

Changes in equity
Total comprehensive income - 1,900,590 1,900,590
Balance at 31 December 2023 610,221 8,969,781 9,580,002

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 542,033 (252,347 )
Interest paid (200,112 ) (9,210 )
Tax paid (683,228 ) -
Net cash from operating activities (341,307 ) (261,557 )

Cash flows from investing activities
Purchase of tangible fixed assets - (19,153 )
Sale of tangible fixed assets 111,419 76,107
Sale of fixed asset investments - 21,422
Reclassification of fixed assets 3,128 -
Interest received 219,459 -
Net cash from investing activities 334,006 78,376

Decrease in cash and cash equivalents (7,301 ) (183,181 )
Cash and cash equivalents at beginning of year 2 13,233 196,414

Cash and cash equivalents at end of year 2 5,932 13,233

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 2,457,207 1,800,672
Depreciation charges 144,487 174,679
Loss/(profit) on disposal of fixed assets 95,266 (28,049 )
Finance costs 200,112 9,210
Finance income (219,459 ) -
2,677,613 1,956,512
Decrease/(increase) in inventories 2,403,709 (1,264,755 )
Increase in trade and other debtors (3,939,787 ) (1,279,848 )
(Decrease)/increase in trade and other creditors (599,502 ) 335,744
Cash generated from operations 542,033 (252,347 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 5,932 13,233
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 13,233 196,414


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 13,233 (7,301 ) 5,932
13,233 (7,301 ) 5,932
Total 13,233 (7,301 ) 5,932

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

1. STATUTORY INFORMATION

Regal Manufacturing 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 Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements
The financial statements contain information about Regal Manufacturing Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Regal Rexnord Corporation, Corporate Office, 200 State Street, Beloit, Wisconsin, 53511-6254, United States of America.

Significant judgements and estimates
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 and are covered within the accounting policies:

i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the property, plant and equipment and below for the useful economic lives for each class of asset.

(ii) When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note 13 for the net carrying amount of the inventory and associated provision.

(iii) The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated impairment provision.

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.

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

2. ACCOUNTING POLICIES - continued

Revenue
Revenue is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

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

Interest receivable

Interest income is recognised using the effective interest method.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

Provision is made for any impairment.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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 - 10% on cost and Land - Not depreciated
Plant and machinery - 33% on cost, 20% on cost and 10% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Inventory
Inventories are valued at the lower of cost and estimated selling price less costs to complete and sell and after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

2. ACCOUNTING POLICIES - continued

Foreign currencies
Transactions expressed in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the period end reporting date.

All differences are taken to the income statement.

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

Pension costs and other post-retirement benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution pension scheme for the benefit of it's employees.. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Provisions
Provisions are recognised when the company has an obligation at the statement of financial position date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each statement of financial position date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3. REVENUE

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

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 4,820,770 6,579,212
Europe 10,368,394 14,335,518
United States of America (46,043 ) 100,265
Asia 1,035 10,313
15,144,156 21,025,308

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,073,483 1,496,437
Social security costs 94,231 131,618
Other pension costs 79,324 99,792
1,247,038 1,727,847

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

4. EMPLOYEES AND DIRECTORS - continued

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

Direct - 18
Indirect 6 7
Administration and management 18 25
24 50

2023 2022
£    £   
Directors' remuneration 75,436 74,653

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

Money purchase schemes 1 1

5. EXCEPTIONAL ITEMS

Exceptional items is made up of:
20232022
££   
Redundancy costs3,844411,316
Disposal of surplus inventory and assets2,057570,660
Legal costs6,74819,891
12,6491,001,867

The above exceptional items in the current financial year were all incurred due to the closure of the production warehouse and the associated costs related to this. The exceptional items in the previous year were also incurred due to the closure of the production warehouse and associated costs. As all these large costs are considered to be one-off in nature the directors have decided they should be separately identified as exceptional.

6. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Deposit account interest 219,459 -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest payable 200,112 9,210

8. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 1,880 93,794
Depreciation - owned assets 59,820 90,011
Loss/(profit) on disposal of fixed assets 95,266 (28,049 )
Goodwill amortisation 84,667 84,667
Auditors' remuneration 21,400 16,500
Foreign exchange (gains) losses - realised and unrealised (255,612 ) (302,824 )

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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 555,897 244,801
Adjustment re previous years (18,675 ) -
Total current tax 537,222 244,801

Deferred tax 19,395 (4,229 )
Tax on profit 556,617 240,572

UK corporation tax has been charged at 25% (2022 - 19%).

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:

2023 2022
£    £   
Profit before tax 2,457,207 1,800,672
Profit multiplied by the standard rate of corporation tax in the UK of 23.500%
(2022 - 19%)

577,444

342,128

Effects of:
Expenses not deductible for tax purposes 17,687 (3,400 )
Depreciation in excess of capital allowances 49,568 15,563

Temporary timing differences (69,407 ) (113,916 )
Chargeable gains - 197
Adjustment to prior year (18,675 ) -
Total tax charge 556,617 240,572

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 846,666
AMORTISATION
At 1 January 2023 689,094
Amortisation for year 84,667
At 31 December 2023 773,761
NET BOOK VALUE
At 31 December 2023 72,905
At 31 December 2022 157,572

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

11. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST
At 1 January 2023 861,227 2,759,135 28,769
Disposals (3,128 ) (2,569,448 ) (4,015 )
At 31 December 2023 858,099 189,687 24,754
DEPRECIATION
At 1 January 2023 543,898 2,442,969 16,417
Charge for year 17,694 38,105 2,475
Eliminated on disposal 1,544 (2,362,762 ) (4,015 )
At 31 December 2023 563,136 118,312 14,877
NET BOOK VALUE
At 31 December 2023 294,963 71,375 9,877
At 31 December 2022 317,329 316,166 12,352

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 3,903 187,707 3,840,741
Disposals (3,903 ) (167,263 ) (2,747,757 )
At 31 December 2023 - 20,444 1,092,984
DEPRECIATION
At 1 January 2023 3,903 187,705 3,194,892
Charge for year - 1,546 59,820
Eliminated on disposal (3,903 ) (168,807 ) (2,537,943 )
At 31 December 2023 - 20,444 716,769
NET BOOK VALUE
At 31 December 2023 - - 376,215
At 31 December 2022 - 2 645,849

Included in cost of land and buildings is freehold land of £ 100,851 (2022 - £ 100,851 ) which is not depreciated.

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 3,000
NET BOOK VALUE
At 31 December 2023 3,000
At 31 December 2022 3,000

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

12. FIXED ASSET INVESTMENTS - continued

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:


Remco Products Limited
Registered office: Marshall Way, Heapham Road Industrial Estate, Gainsborough, Lincolnshire, DN21 1XU
Nature of business: Electrical Motor Wholesaler
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 3,000 3,000

13. INVENTORIES
2023 2022
£    £   
Raw materials 317,295 100,550
Finished goods 1,841,483 4,461,937
2,158,778 4,562,487

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,543,814 2,477,001
Amounts owed by group undertakings 7,319,449 2,022,724
French VAT 88 -
Other debtors - 26,019
German VAT 23,526 324,782
VAT - 70,166
Deferred tax asset
Accelerated capital allowances - 16,933
Prepayments and accrued income 42,909 69,307
8,929,786 5,006,932

Amounts owed from group undertakings are unsecured and repayable on demand.

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 229,512 380,524
Amounts owed to group undertakings 1,012,877 1,401,358
Corporation tax 255,897 404,011
Other taxes and social security 67,834 72,368
French VAT - 22,307
VAT 88,461 -
Other creditors 94,373 33,397
Accruals and deferred income 213,091 395,696
1,962,045 2,709,661

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

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 13,065 114,040
Between one and five years 79,457 21,177
92,522 135,217

17. PROVISIONS FOR LIABILITIES
2023
£   
Deferred tax
Accelerated capital allowances 4,569

Deferred
tax
£   
Balance at 1 January 2023 (16,933 )
Provided during year 21,502
Balance at 31 December 2023 4,569

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
610,221 Ordinary £1 610,221 610,221

19. RESERVES
Retained
earnings
£   

At 1 January 2023 7,069,191
Profit for the year 1,900,590
At 31 December 2023 8,969,781

Retained earnings is a distributable reserve representing cumulative profits and losses net of dividends and other adjustments.

20. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. 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 £79,324 (2022: £99,792). Contributions outstanding at the statement of financial position date amounted to £4,691 (2022: £5,422).

21. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Amount due from related party 7,244,088 2,022,724
Amount due to related party - 18,254

REGAL MANUFACTURING LIMITED (REGISTERED NUMBER: 00516559)

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

21. RELATED PARTY DISCLOSURES - continued

Other related parties
2023 2022
£    £   
Amount due to related party 1,058,920 1,383,105

During the year, a total of key management personnel compensation of £ 75,436 (2022 - £ 74,653 ) was paid.

22. ULTIMATE CONTROLLING PARTY

The parent undertaking and the smallest and largest Group of which the company was a member during the year and for
which the group financial statements were prepared was Regal Rexnord Corporation, a company incorporated in the USA.

Copies of the Regal Rexnord Corporation group financial statements are available to the public at the following address,
Corporate office, 200 State Street, Beloit, Wisconsin 53511-6254.