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Registration number: 03062174

Cirteq Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Cirteq Limited

Contents

Strategic Report

1

Director's Report

2

Statement of Director's Responsibilities

3

Independent Auditor's Report

4 to 6

Profit and Loss Account

7

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 28

 

Cirteq Limited

Strategic Report for the Year Ended 31 December 2023

The director presents his strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is the manufacture and distribution of circlips, retaining rings and spring pressings.

Fair review of the business

The directors report the continuing global uncertainty in raw material and energy prices was still impacting the business. Comparable turnover fallen by 6.7%. The rate of gross profit to turnover was 15.2% in the year under review, compared with 9.5% in the previous period. Operating profit was £1,036,604 in the 12 months under review, compared with £182,574 in the previous 12 months.

The company continues to experience comfortable levels of headroom in its borrowing facilities.

The directors continue to monitor the company’s performance with care, with particular emphasis on mitigation of adverse exchange rate movements.

Principal risks and uncertainties

The company invoices a significant amount of its turnover in EUR and USD, and therefore there is a risk that prices when converted to GBP are subject to fluctuation.

The directors consider that the company enjoys a satisfactory credit rating with the major credit reference agencies and the company operates a strict policy of always paying its suppliers within agreed credit terms.

At 31 December 2023 the company’s gearing (external borrowings less cash at bank and in hand versus shareholders’ funds) was (2.0%) (31 December 2022: (20.0%)).

The company has an invoice discounting facility with HSBC, advancing funds (if required) within 24 hours of shipment and invoicing. At the date of this report, the headroom (unutilised borrowing capability) on this facility was in excess of £2.0 million.

The global increase in raw material and energy prices is still impacting the business, and the management team are continuing to strive and limit this impact to Cirteq by passing some of these increases onto customers, as well as introducing energy saving initiatives.

Approved and authorised by the director on 29 February 2024
 

.........................................
P Watkins-Burke
Director

 

Cirteq Limited

Director's Report for the Year Ended 31 December 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

J H W Sommer (resigned 21 August 2023)

P Watkins-Burke

Employment of disabled persons

Applications for employment made by disabled persons are given full and fair consideration for all vacancies in accordance with their particular aptitudes and abilities. In the event of employees becoming disabled, every effort is made to retrain them in order that their employment with the company may continue. It is the policy of the company that training, career development and employment opportunities should be available to all employees.

Employee involvement

The company has continued its practice of keeping employees informed of matters affecting them as employees and of the financial and economic factors affecting the performance of the company. This has been achieved through regular meetings of the employee-elected works council with the managing director and other members of the senior management team, the minutes of which are made available to all employees.

Disclosure of information to the auditors

The director has taken 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. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Approved and authorised by the director on 29 February 2024
 

.........................................
P Watkins-Burke
Director

 

Cirteq Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

 

Cirteq Limited

Independent Auditor's Report to the Members of Cirteq Limited

Opinion

We have audited the financial statements of Cirteq Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Cirteq Limited

Independent Auditor's Report to the Members of Cirteq Limited

Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's 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 the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 3], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the stock.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We then performed audit procedures after consideration of the above risks which included the following:

assessing the validity of standard costs applied in the valuation of stock;

 

Cirteq Limited

Independent Auditor's Report to the Members of Cirteq Limited

obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of the variable and fixed overhead applied in the valuation of stock;

obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of the stock provision;

performing a retrospective review of the previous year’s stock provision to aid the consideration of the suitability of the methodology for the current year;

evaluating the consistency of the methodology used to calculate stock provisions and variable and fixed overhead absorption applied to stock against that applied in prior periods;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

enquiring of management concerning actual and potential litigation and claims;

reviewing correspondence with HMRC, and the company’s legal advisors;

reading minutes of meetings of those charged with governance; and

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.

......................................
Gillian Craven FCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited,
Statutory Auditors & Chartered Accountants
Bradford

29 February 2024

 

Cirteq Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Turnover

3

25,525,952

27,346,601

Cost of sales

 

(21,642,418)

(24,740,694)

Gross profit

 

3,883,534

2,605,907

Distribution costs

 

(1,066,054)

(1,164,715)

Administrative expenses

 

(2,068,410)

(1,562,384)

Other operating income

4

287,534

303,766

Operating profit

5

1,036,604

182,574

Interest payable and similar expenses

6

(45,062)

(36,217)

Profit before tax

 

991,542

146,357

Tax on profit

10

210,000

(182,015)

Profit/(loss) for the financial year

 

1,201,542

(35,658)

 

Cirteq Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit/(loss) for the year

1,201,542

(35,658)

Remeasurement gain/loss on defined benefit pension schemes

(241,000)

(133,810)

Total comprehensive income for the year

960,542

(169,468)

 

Cirteq Limited

(Registration number: 03062174)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

           

Fixed assets

   

 

Tangible assets

11

 

637,887

 

755,072

Current assets

   

 

Stocks

13

6,764,957

 

6,779,196

 

Debtors

14

3,745,717

 

4,353,517

 

Cash at bank and in hand

 

326,394

 

456,755

 

 

10,837,068

 

11,589,468

 

Creditors: Amounts falling due within one year

15

(3,051,571)

 

(4,888,204)

 

Net current assets

   

7,785,497

 

6,701,264

Total assets less current liabilities

   

8,423,384

 

7,456,336

Creditors: Amounts falling due after more than one year

15

 

(21,240)

 

(14,734)

Net assets

   

8,402,144

 

7,441,602

Capital and reserves

   

 

Called up share capital

1,907,079

 

1,907,079

 

Retained earnings

19

6,495,065

 

5,534,523

 

Shareholders' funds

   

8,402,144

 

7,441,602

Approved and authorised by the director on 29 February 2024
 

.........................................
P Watkins-Burke
Director

 

Cirteq Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2023

1,907,079

5,534,523

7,441,602

Profit for the year

-

1,201,542

1,201,542

Other comprehensive income

-

(241,000)

(241,000)

Total comprehensive income

-

960,542

960,542

At 31 December 2023

1,907,079

6,495,065

8,402,144

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

1,907,079

5,703,991

7,611,070

Loss for the year

-

(35,658)

(35,658)

Other comprehensive income

-

(133,810)

(133,810)

Total comprehensive income

-

(169,468)

(169,468)

At 31 December 2022

1,907,079

5,534,523

7,441,602

 

Cirteq Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Hayfield
Colne Road
Glusburn
Keighley
West Yorkshire
BD20 8QP

2

Principal accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were 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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's functional and presentation currency is pounds sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemptions available under FRS 102, Section 33 Related party disclosures and UK Statutory Instruments, 1 Sch.72 from disclosing transactions and balances with fellow group undertakings that are wholly owned.

The company has taken advantage of the exemption to disclose certain aspects of financial instruments, transactions with key management personnel and the exemption to prepare Statement of Cash Flows in accordance with Financial Reporting Standard 102 Section 1.12.

Group accounts not prepared

Cirteq Limited is exempt from preparing group financial statements as it is included in the financial statements of a larger group.

 

Cirteq Limited

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

Key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock provision
The company makes an estimate of the recoverability of the cost of stock. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.
The carrying amount is £934,760 (2022 - £946,118).

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £637,887 (2022 - £755,072).

Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £2,654,318 (2022 - £3,212,233).

Defined benefit pension scheme
The company has an obligation to pay pension benefits to certain employees and ex-employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

Revenue recognition

Turnover represents the amounts chargeable, net of value added tax, in respect of sale of goods and services to customers.

Revenue from the sale of goods is recognised when significant risks and benefits of ownership of the product have transferred to the buyer, which may be upon shipment, completion of the product or the product being ready for delivery, based on specific contract terms.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items are measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Cirteq Limited

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

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

10% to 25% straight line / reducing balance basis

Computer equipment

33.33% straight line basis

Motor vehicles

25% straight line basis

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Cirteq Limited

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension plans

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Defined benefit pension plans

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise.

 

Cirteq Limited

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

Financial instruments

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 and any subsequent reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3

Turnover

The analysis of the company's Turnover for the year by market is as follows:

2023
£

2022
£

UK

2,262,563

3,253,940

Europe

17,887,328

18,884,295

Rest of world

5,376,061

5,208,366

25,525,952

27,346,601

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

287,534

303,766

 

Cirteq Limited

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

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

155,185

152,174

Foreign exchange losses/(gains)

37,998

(100,442)

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

45,062

35,217

Other finance costs

-

1,000

45,062

36,217

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

8,565,093

9,366,454

Social security costs

775,502

893,880

Pension costs, defined contribution scheme

358,743

371,829

9,699,338

10,632,163

 

Cirteq Limited

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

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

297

339

Sales, marketing and distribution

18

17

315

356

8

Directors' remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

139,749

154,979

Contributions paid to money purchase schemes

56,939

40,183

196,688

195,162

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

1

1

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

25,950

23,600


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Deferred taxation

Arising from origination and reversal of timing differences

(210,000)

386,743

Arising from changes in tax rates and laws

-

(204,728)

Total deferred taxation

(210,000)

182,015

 

Cirteq Limited

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

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

991,542

146,357

Corporation tax at standard rate

247,886

27,808

Effect of expense not deductible in determining taxable profit (tax loss)

(88,061)

(35,614)

(Decrease)/increase from tax losses for which no deferred tax asset was recognised

(369,825)

189,821

Total tax (credit)/charge

(210,000)

182,015

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Accelerated timing differences

(145,000)

Other short term timing differences

39,000

Accumulated losses recognised

768,000

662,000

2022

Asset
£

Accelerated timing differences

(172,000)

Other short term timing differences

19,000

Accumulated losses recognised

605,000

452,000

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £28,746 (2022 - £116,866).

 

Cirteq Limited

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

Tax relating to items recognised in other comprehensive income or equity

2023
£

2022
£

Deferred tax related to items recognised as items of other comprehensive income

-

(18,810)

The company has £3,086,102 (2022 - £3,899,757) of unutilised trading tax losses carried forward.


11

Tangible assets

Plant and machinery
 £

Computer equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

2,751,659

167,439

23,700

2,942,798

Additions

-

38,000

-

38,000

At 31 December 2023

2,751,659

205,439

23,700

2,980,798

Depreciation

At 1 January 2023

2,018,142

166,128

3,456

2,187,726

Charge for the year

145,311

3,949

5,925

155,185

At 31 December 2023

2,163,453

170,077

9,381

2,342,911

Carrying amount

At 31 December 2023

588,206

35,362

14,319

637,887

At 31 December 2022

733,517

1,311

20,244

755,072

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2023
£

2022
£

Motor vehicles

14,319

20,244

   
 

Cirteq Limited

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

12

Investments in subsidiaries, joint ventures and associates

2023
£

2022
£

Investments in subsidiaries

-

-

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Ellison Circlips Limited
Hayfield
Colne Road
Glusburn
Keighley
West Yorkshire
BD20 8QP

Ordinary

100%

100%

Anderton Circlips Limited
Hayfield
Colne Road
Glusburn
Keighley
West Yorkshire
BD20 8QP

Ordinary

100%

100%

13

Stocks

2023
£

2022
£

Raw materials and consumables

2,341,655

2,570,285

Work in progress

1,062,737

986,228

Finished goods and goods for resale

3,360,565

3,222,683

6,764,957

6,779,196

Impairment of stocks

The movement in the impairment profit/( loss) included in profit and loss is £11,358 (2022 : -£94,319).

 

Cirteq Limited

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

14

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

2,654,318

3,212,233

Other debtors

 

172,124

448,495

Prepayments

 

257,275

240,789

Deferred tax assets

10

662,000

452,000

   

3,745,717

4,353,517

Details of non-current trade and other debtors

£447,600 (2022 - £379,122) of deferred tax is classified as non current.

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

16

145,786

1,449,542

Trade creditors

 

1,705,401

1,817,927

Amounts due to related parties

21

661,651

1,065,465

Social security and other taxes

 

214,216

211,991

Outstanding defined contribution pension costs

 

64,121

69,720

Other creditors

 

105,691

113,636

Accruals

 

154,705

159,923

 

3,051,571

4,888,204

Due after one year

 

Loans and borrowings

16

21,240

14,734

 

Cirteq Limited

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

16

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Bank borrowings

-

1,320,559

Finance lease liabilities

13,053

5,925

Other borrowings

132,733

123,058

145,786

1,449,542

Non-current loans and borrowings

2023
£

2022
£

Hire purchase contracts

21,240

14,734

Bank borrowings

The bank loans and overdrafts are secured by way of fixed and floating charges over the assets of the company.

Other borrowings

Hire purchase is denominated in £ with a nominal interest rate of 3.56%. The carrying amount at year end is £14,319 (2022 - £20,244).

Hire purchase liabilities are secured against the assets in which they relate.

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £358,743 (2022 - £371,829).

Contributions totalling £64,121 (2022 - £69,720) were payable to the scheme at the end of the year and are included in creditors.

Defined benefit pension schemes

The company operates two defined benefit schemes for the benefit of past and present employees. The assets of the schemes are administered by trustees in funds independent of the assets of the company. Both these schemes are paid up.

Anderton Pension Plan

The most recent formal funding valuation performed by an independent actuary for the trustees of the schemes was carried out on 1 April 2021. FRS 102 allows those results to be approximately updated to estimate the Scheme liabilities, therefore the valuation has been updated to 31 December 2023 to produce the following disclosure.

 

Cirteq Limited

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

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

3,276,000

3,118,000

Present value of defined benefit obligation

(2,042,000)

(1,989,000)

1,234,000

1,129,000

(1,234,000)

(1,129,000)

Defined benefit pension scheme surplus/(deficit)

-

-

The surplus of the fair value of scheme assets over the present value of defined benefit obligation cannot be recovered through reduced contributions in future or through refunds and has therefore not been recognised in the financial statements in the current period.

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

1,989,000

Interest cost

98,000

Actuarial gains and losses

98,000

Benefits paid

(143,000)

Present value at end of year

2,042,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

3,118,000

Interest income

156,000

Return on plan assets, excluding amounts included in interest income/(expense)

129,000

Employer contributions

16,000

Benefits paid

(143,000)

Fair value at end of year

3,276,000

Analysis of assets

The major categories of scheme assets are as follows:

2023
%

2022
%

Cash and cash equivalents

4

4

Equity instruments

64

64

Corporate bonds

32

32

100

100

 

Cirteq Limited

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

Return on scheme assets

2023
£

2022
£

Return on scheme assets

285,000

(307,000)

The Scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions used to update the valuation at the balance sheet date are as follows:

CPI assumption used for increases to pensions in payment which are due to increase in line with CPI.

2023
%

2022
%

Discount rate

4.70

5.10

Retail price inflation

3.10

3.00

Inflation

2.50

2.60

Post retirement mortality assumptions

2023
Years

2022
Years

Current UK pensioners at retirement age - male

20.50

21.00

Current UK pensioners at retirement age - female

22.70

23.10

Future UK pensioners at retirement age - male

21.70

22.30

Future UK pensioners at retirement age - female

24.10

24.50

Anderton Retirement and Life Assurance Plan

The most recent formal funding valuation performed by an independent actuary for the trustees of the schemes was carried out on 1 April 2021. FRS 102 allows those results to be approximately updated to estimate the Scheme liabilities, therefore the valuation has been updated to 31 December 2023 to produce the following disclosure.

The total cost relating to the Scheme for the year recognised in profit or loss as an expense was £Nil (2022 - £1,000).

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

5,398,000

4,999,000

Present value of defined benefit obligation

(3,667,000)

(3,431,000)

1,731,000

1,568,000

(1,731,000)

(1,568,000)

Defined benefit pension scheme surplus/(deficit)

-

-

 

Cirteq Limited

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

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

3,431,000

Interest cost

165,000

Actuarial gains and losses

306,000

Benefits paid

(235,000)

Present value at end of year

3,667,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

4,999,000

Interest income

250,000

Return on plan assets, excluding amounts included in interest income/(expense)

159,000

Employer contributions

225,000

Benefits paid

(235,000)

Fair value at end of year

5,398,000

Analysis of assets

The major categories of scheme assets are as follows:

2023
%

2022
%

Cash and cash equivalents

7

8

Equity

57

57

Corporate bonds

28

27

Property

8

8

100

100

Return on scheme assets

2023
£

2022
£

Return on scheme assets

409,000

(431,000)

The Scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions used to update the valuation at the balance sheet date are as follows:

 

Cirteq Limited

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

2023
%

2022
%

Discount rate

4.70

5.00

Retail price inflation

3.10

2.60

Inflation

2.50

2.60

CPI assumption was used for increases to pensions in payment which are due to increase in line with CPI.

Post retirement mortality assumptions

2023
 Years

2022
 Years

Current UK pensioners at retirement age - male

18.80

19.30

Current UK pensioners at retirement age - female

20.90

21.40

Future UK pensioners at retirement age - male

20.00

20.60

Future UK pensioners at retirement age - female

22.30

22.80

18

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

1,907,079

1,907,079

1,907,079

1,907,079

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:

All shares rank pari passu for income, capital and voting rights.

19

Reserves

Share capital

Represents the nominal value of issued shares.

Profit and loss account
Includes all current and prior periods distributable profits and losses.

 

Cirteq Limited

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

20

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

13,053

5,925

Later than one year and not later than five years

21,240

14,734

34,293

20,659

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

108,320

612,687

Later than one year and not later than five years

62,716

153,383

171,036

766,070

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,445,363 (2022 - £1,323,517).

 

Cirteq Limited

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

21

Related party transactions

Summary of transactions with other related parties

Directors, their close family members and companies under common control.
 

Expenditure with and payables to related parties

31 December 2023

Other related parties
£

Purchase of goods

61,282

Rendering of services

-

Settlement of liabilities

241,000

302,282

31 December 2022

Other related parties
£

Purchase of goods

24,028

Rendering of services

2,014

Settlement of liabilities

214,500

240,542

22

Parent and ultimate parent undertaking

The company's immediate parent is Glusburn Holdings Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Titgemeyer Holding GmbH & Co. KG. These financial statements are available upon request from Hannoversche Strasse 97, 49084 Osanbrück, DE.

 The ultimate controlling parties are Gerd-Christian Titgemeyer & Manfred Titgemeyer.