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Registration number: 02763350

European Safety Systems Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

European Safety Systems Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 27

 

European Safety Systems Limited

Company Information

Directors

P Fay

J - Y Joseph

B E Isard

M Green

J Rattlidge

Company secretary

M Green

Registered office

Impress House
Mansell Road
London
W3 7QH

Auditors

Wem & Co
Chartered Accountants & Statutory Auditors
Savoy House
Savoy Circus
London
W3 7DA

 

European Safety Systems Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is the manufacture of electrical equipment.

Fair review of the business

The results of the year under review and the financial position at the year-end were considered satisfactory by the directors.

The results of the company show a pre-tax profit of £11.5 million (2022: £7.9 million) for the year and sales of £27.3 million (2022: £23.2 million). The company has cash at bank of £2 million (2022: £1.9 million)

The key financial performance indicators of the company are gross profit margin and turnover.

The gross profit margin of the company for the year under review was £17.3 million (2022: £12.5 million) producing a gross profit margin of 63.2% (2022: 53.8%) on turnover of £27.3 million (2022: £23.2 million)

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks.

The key business risks and uncertainties affecting the company are considered to relate to competition from international, national and independent manufacturers and distributors, employee retention and product availability.

There are significant challenges involved arising from imported goods. Outlined below are the key related risks and their impact on the company's business.

1. Increased administrative costs relating to imported goods, such as data collection, declaration and customs costs at ports and airports. Our shippers bear the burden of such costs. We negotiate with our shippers to mitigate the costs passed onto our business.

2. Costs arising from delays at ports. We do not anticipate material costs from delays. We have built up sufficient stocks of raw materials.

3. Increases in tariffs and duties on goods exported. We maintain a watch on these costs with a view to mitigating them when possible.

4. The impact of delays and costs above is unlikely to have any material effect on fulilment of contractual delivery, quality and supply requirements as the Company builds in extra lead time on orders due to be delivered to the customer. Breaches of contract aer unlikely to occur as promised delivery times build in sufficient delay.

5. Changes to the value of Sterling can affect pricing of our raw material imports but this is usually compensated by making goods cheaper in our export markets. The company exposrts 75% of its goods.

Approved and authorised by the Board on 10 October 2024 and signed on its behalf by:
 

 

European Safety Systems Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

.........................................
B E Isard
Director

 

European Safety Systems Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their 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:

P Fay

J - Y Joseph

B E Isard

M Green - Company secretary and director

J Rattlidge

Financial instruments

Price risk, credit risk, liquidity risk and cash flow risk

(a) Credit risk - The company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The company has established a credit policy under which each new customer is analysed individually for creditworthiness before the company's standard payment and delivery terms and conditions are offered. The company review includes external ratings, if they are available, and in some cases references. Sale limits are established for each customer and reviewed regularly.

Goods are sold subject to retention of title clauses, so that in the event of non-payment the company may have a secured claim.

(b) Interest rate risk - The company has no borrowings and so this risk is regarded as low .

(c) Liquidity risk - The company has a policy of maintaining sufficient liquid resources to ensure that it has resources to meet working capital requirements.

(d) Price risk - The company trades in international markets and hence is susceptible to pricing pressures from competitors and currency fluctuations.

(e) Cash flow risk - The company maintains sufficient cash reserves to minimise the risk of disruption in cash flows.

(f) Exposure to foreign economies - The company has a number of overseas markets at present and this gives rise to foreign exchange risks. Changing legislation and other regulations can affect product specification, as will the effect of the UK leaving the European Union. More diversity in legislation can only increase manufacturing costs. Foreign exchange risk is mitigated by careful use of currency contracts.

 

European Safety Systems Limited

Directors' Report for the Year Ended 31 December 2023 (continued)

Future developments

The external commercial environment is expected to remain competitive. The directors remain confident that the profitability can be maintained as the product range and market expands.

The directors are pleased to report that they regard the position of the business to be satisfactory.

Research and development

The company continues to invest resources in improving the range of electrical and electronic apparatus on offer.

The directors regard the investment in research and development as integral to the continuing success of the business and ensuring the company can provide our customers with products they wish to stock and ones which meet the customers' requirements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 10 October 2024 and signed on its behalf by:
 

.........................................
B E Isard
Director

 

European Safety Systems Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

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 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.

 

European Safety Systems Limited

Independent Auditor's Report to the Members of European Safety Systems Limited

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

 

European Safety Systems Limited

Independent Auditor's Report to the Members of European Safety Systems Limited (continued)

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' 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 Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

 

European Safety Systems Limited

Independent Auditor's Report to the Members of European Safety Systems Limited (continued)

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

• We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting (including related trade union legislation) and taxation legislation.We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

• With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

• We addressed the risk of fraud through management override of controls, by 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.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

European Safety Systems Limited

Independent Auditor's Report to the Members of European Safety Systems Limited (continued)

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.

......................................
Alistair I Wem BSc BFP FCA (Senior Statutory Auditor)
For and on behalf of Wem & Co (Statutory Auditor)

Savoy House
Savoy Circus
London
W3 7DA

28 October 2024

 

European Safety Systems Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

31.12.23
£

31.12.22
£

Turnover

3

27,305,435

23,290,631

Cost of sales

 

(10,047,946)

(10,748,433)

Gross profit

 

17,257,489

12,542,198

Administrative expenses

 

(5,813,967)

(4,755,118)

Operating profit

5

11,443,522

7,787,080

Income from other Fixed assets investments

 

57,650

63,965

Interest payable and similar expenses

6

(12)

(18)

   

57,638

63,947

Profit before tax

 

11,501,160

7,851,027

Tax on profit

10

(2,735,275)

(1,569,131)

Profit for the financial year

 

8,765,885

6,281,896

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

European Safety Systems Limited

(Registration number: 02763350)
Balance Sheet as at 31 December 2023

Note

31.12.23
£

31.12.22
£

Fixed assets

 

Tangible assets

11

1,106,567

865,996

Investments

12

1,153,819

1,788,595

 

2,260,386

2,654,591

Current assets

 

Stocks

13

5,989,678

4,932,696

Debtors

14

9,555,964

6,102,917

Cash at bank and in hand

 

2,045,268

1,886,884

 

17,590,910

12,922,497

Creditors: Amounts falling due within one year

16

(6,667,633)

(5,255,418)

Net current assets

 

10,923,277

7,667,079

Total assets less current liabilities

 

13,183,663

10,321,670

Provisions for liabilities

17

(754,370)

(642,837)

Net assets

 

12,429,293

9,678,833

Capital and reserves

 

Called up share capital

100,000

100,000

Retained earning

12,329,293

9,578,833

Shareholders' funds

 

12,429,293

9,678,833

Approved and authorised by the Board on 10 October 2024 and signed on its behalf by:
 

.........................................
B E Isard
Director

 

European Safety Systems Limited

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

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2023

100,000

9,578,833

9,678,833

Profit for the year

-

8,765,885

8,765,885

Total comprehensive income

-

8,765,885

8,765,885

Dividends

-

(6,015,425)

(6,015,425)

At 31 December 2023

100,000

12,329,293

12,429,293

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2022

100,000

10,022,005

10,122,005

Profit for the year

-

6,281,896

6,281,896

Total comprehensive income

-

6,281,896

6,281,896

Dividends

-

(6,725,068)

(6,725,068)

At 31 December 2022

100,000

9,578,833

9,678,833

 

European Safety Systems 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:
Impress House
Mansell Road
London
W3 7QH

These financial statements were authorised for issue by the Board on 10 October 2024.

2.

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 United Kingdom 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 presentational currency is Pound Sterling (£).

Exemption from preparing group accounts

The company is a wholly owned subsidiary of E2S Group Ltd and its ultimate parent company is Holmestone Ltd. It is included in the consolidated financial statements of Holmestone Ltd which are publicly available. The company is exempt by virtue of section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements. The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is Holmestone Ltd. The address of the parent’s registered office is Savoy House, Savoy Circus, Acton, London W3 7DA.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

European Safety Systems Limited

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

2

Accounting policies (continued)

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 rate on the date when the fair value is re-measured.

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

Tax

The tax expense for the period comprises current and deferred 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 income 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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

Improvements to property

over the lease term, straight line basis

Computer Equipment

33% straight line basis

Tools, plant and machinery

15% straight line basis

Fixtures and fittings

15% straight line basis

Motor vehicles

25% straight line basis

 

European Safety Systems Limited

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

2

Accounting policies (continued)

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

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.

 

European Safety Systems Limited

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

2

Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3.

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

31.12.23
£

31.12.22
£

Sales

3,864,171

3,800,894

Sales - Europe

5,368,652

7,733,136

Sales - rest of world

17,960,593

11,652,106

Interest received

10,017

2,495

Other revenue

102,002

102,000

27,305,435

23,290,631

 

European Safety Systems Limited

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

4.

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

31.12.23
£

31.12.22
£

Gain on disposal of Tangible assets

-

20,750

5.

Operating profit

Arrived at after charging/(crediting)

31.12.23
£

31.12.22
£

Depreciation expense

211,362

153,887

Research and development cost

440,247

456,579

Foreign exchange losses/(gains)

233,722

(354,386)

Profit on disposal of property, plant and equipment

-

(20,750)

6.

Interest payable and similar expenses

31.12.23
£

31.12.22
£

Interest on bank overdrafts and borrowings

12

18

7.

Staff costs

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

31.12.23
£

31.12.22
£

Wages and salaries

4,384,335

3,737,636

Social security costs

359,222

347,479

Pension costs, defined contribution scheme

156,718

91,532

Other employee expense

69,729

312,620

4,970,004

4,489,267

 

European Safety Systems Limited

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

7

Staff costs (continued)

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

31.12.23
No.

31.12.22
No.

Production

78

66

Administration and support

29

25

Sales

8

6

115

97

8.

Directors' remuneration

The directors' remuneration for the year was as follows:

31.12.23
£

31.12.22
£

Remuneration

201,967

159,061

Contributions paid to money purchase schemes

9,135

6,564

211,102

165,625

9.

Auditors' remuneration

31.12.23
£

31.12.22
£

Audit of the financial statements

30,250

21,450


 

10.

Taxation

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

31.12.23
£

31.12.22
£

Current taxation

UK corporation tax

2,703,612

1,471,607

Deferred taxation

Arising from origination and reversal of timing differences

31,663

97,524

Tax expense in the income statement

2,735,275

1,569,131

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

The differences are reconciled below:

 

European Safety Systems Limited

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

10

Taxation (continued)

31.12.23
£

31.12.22
£

Profit before tax

11,501,160

7,851,027

Corporation tax at standard rate

2,705,135

1,491,695

Tax increase from effect of capital allowances and depreciation

38,826

25,341

Tax increase from other short-term timing differences

31,664

97,524

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

1,612

-

Tax decrease from effect of adjustment in research and development tax credit

(41,962)

(45,429)

Total tax charge

2,735,275

1,569,131

 

European Safety Systems Limited

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

11.

Tangible assets

Improvements to property
£

Fixtures
and
fittings
£

Plant
and
machinery
£

Office equipment
£

Motor
vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

642,978

187,859

2,203,188

273,282

53,999

3,361,306

Additions

355,446

22,240

14,355

59,892

-

451,933

At 31 December 2023

998,424

210,099

2,217,543

333,174

53,999

3,813,239

Depreciation

At 1 January 2023

67,073

125,564

1,999,428

249,246

53,999

2,495,310

Charge for the year

99,672

15,468

68,215

28,007

-

211,362

At 31 December 2023

166,745

141,032

2,067,643

277,253

53,999

2,706,672

Carrying amount

At 31 December 2023

831,679

69,067

149,900

55,921

-

1,106,567

At 31 December 2022

575,905

62,295

203,760

24,036

-

865,996

 

European Safety Systems Limited

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

12.

Investments

31.12.23
£

31.12.22
£

Investments in subsidiaries

93,133

93,133

Investments in associates

200,000

200,000

Fixed asset group loan

860,686

1,495,462

1,153,819

1,788,595

Subsidiaries

£

Cost or valuation

At 1 January 2023

93,133

Provision

Carrying amount

At 31 December 2023

93,133

At 31 December 2022

93,133

Associates

£

Cost

At 1 January 2023

200,000

Provision

Carrying amount

At 31 December 2023

200,000

At 31 December 2022

200,000

Fixed asset group loan

£

Cost or valuation

At 1 January 2023

860,686

Details of undertakings

 

European Safety Systems Limited

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

12

Investments (continued)

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

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

E2S Warnsignaltechnik UG

Charlottenstrasse 45-51, 72764 Reutlingen

Germany

Ordinary

100%

100%

E2S Warning Signals LLC

11777 Katy Freeway, Suite 395, Houston, Texas 77079

USA

Ordinary

100%

100%

E2S Holdings Inc

11777 Katy Freeway, Suite 395, Houston, Texas 77079

USA

Ordinary

100%

100%

The Signal Source LLC

Bldg. 1, Telge Industrial Estate, Cypress, Texas 77429, Houston, TX 77008

USA

Ordinary

100%

100%

Associates

European Circuit Solutions Ltd

Impress House, Mansell Road, Acton, London, W3 7QH

Ordinary

25%

25%

 

United Kingdom

     

Subsidiary undertakings

E2S Warnsignaltechnik UG

The principal activity of E2S Warnsignaltechnik UG is Distribution of warning signals.

E2S Warning Signals LLC

The principal activity of E2S Warning Signals LLC is Distribution of warning signals.

E2S Holdings Inc

The principal activity of E2S Holdings Inc is Holding company.

The Signal Source LLC

The principal activity of The Signal Source LLC is Distributor of hazardous location & explosion proof audible and visual signals.

 

European Safety Systems Limited

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

12

Investments (continued)

Associates

European Circuit Solutions Ltd

The principal activity of European Circuit Solutions Ltd is Manufacture of electronic components.

13.

Stocks

31.12.23
£

31.12.22
£

Finished goods and goods for resale

5,989,678

4,932,696

14.

Debtors

Current

Note

31.12.23
£

31.12.22
£

Trade debtors

 

6,605,574

3,912,477

Amounts owed by related parties

21

1,384,041

584,537

Other debtors

 

1,279,520

1,335,361

Prepayments

 

286,829

270,542

   

9,555,964

6,102,917

Included in other debtors is £4,955 owed by the director which was repaid within 9 months of the year-end and carries interest at the HMRC official rate.

15.

Cash and cash equivalents

31.12.23
£

31.12.22
£

Cash on hand

900

4,100

Cash at bank

2,044,368

1,882,784

2,045,268

1,886,884

 

European Safety Systems Limited

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

16.

Creditors

Note

31.12.23
£

31.12.22
£

Due within one year

 

Trade creditors

 

2,184,254

1,331,108

Amounts due to related parties

21

2,245,797

2,332,678

Social security and other taxes

 

156,072

131,010

Other payables

 

22,139

23,181

Accruals

 

536,688

627,311

Corporation tax liability

10

1,522,683

810,130

 

6,667,633

5,255,418

17.

Provisions for liabilities

Warranties
£

Deferred tax
£

Total
£

At 1 January 2023

464,281

178,556

642,837

Additional provisions

79,870

31,663

111,533

At 31 December 2023

544,151

210,219

754,370

18.

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 £233,377 (2022 - £91,532).

19.

Share capital

Allotted, called up and fully paid shares

31.12.23

31.12.22

No.

£

No.

£

Ordinary of £1 each

100,000

100,000

100,000

100,000

       
 

European Safety Systems Limited

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

20.

Dividends

31.12.23

31.12.22

£

£

Interim dividend of £60.15 (2022 - £67.25) per ordinary share

6,015,425

6,725,068

 

 

21.

Related party transactions

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

Summary of transactions with parent

Holmestone Ltd, the ultimate parent company.
 The company lent £250,000 to the parent company which was outstanding at the year end. No interest or repayment terms have been set.
 

Summary of transactions with all associates

European Circuit Solutions is an associate that is 25% owned by the company.

During the year, the company brought goods worth £1,992,414 (2022: £2,145, 836) and received services worth £157,315 (2022: £153,850)

At the year-end, the company owed £2,245,796 (2022: £2,332,678). No interest or repayment terms have been set.

 

Summary of transactions with other related parties

Peterbuilt Ltd ("Peterbuilt"), a company in which the director, P Fay is a shareholder and director.

At the year-end, the company was owed £133,037 (2022: £133,037). No interest or repayment terms have been set.

 

 

European Safety Systems Limited

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

22.

Parent and ultimate parent undertaking

The ultimate controlling party is P Fay.

The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is Holmestone Ltd.


 The company's immediate parent is E2S Group Ltd, incorporated in England and Wales.

  These financial statements are available upon request from Savoy House, Savoy Circus, Acton, W3 7DA.