Company registration number 11868256 (England and Wales)
HAUSER REFRIGERATION UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
HAUSER REFRIGERATION UK LIMITED
COMPANY INFORMATION
Directors
Mr M Dorninger
Ms B M Hauzenberger
(Appointed 20 July 2023)
Secretary
Mr S C Ette
Company number
11868256
Registered office
Unit 2D Loades Eco Park
Blackhorse Road
Exhall
Coventry
United Kingdom
CV7 9FW
Auditor
Cottons Accountants LLP
Chestnut Field House
Chestnut Field
Rugby
United Kingdom
CV21 2PD
HAUSER REFRIGERATION UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
HAUSER REFRIGERATION UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Hauser group is a European wide supplier of individual solutions for commercial refrigerated cabinets and refrigeration technology. Hauser Refrigeration UK Ltd is the UK subsidiary of the group, operating the business of the group within the UK and Irish market.
In partnership with international grocery retailers, petrol filling stations and commercial operators, energy efficient and sustainable solutions are developed.
Adhering to agreed time schedules and quality consciousness are core values. A wide product range and professional project management allow us to delivering turnkey solutions. Additionally, service solutions complete the lifecycle of these systems.
The balanced mix of experience, flexibility and acting responsibly is one of the core characteristics of the HAUSER brand. We are a reliable partner for all stakeholders. We do not expect this to change in the foreseeable future.
Review of the business
The results for the year and key performance indicators for the Company were as follows:
2024 (£000) 2023 (£000)
Revenue 20.428 23.020
Operating Profit 0.495 1.037
Operating Margin 2.43% 4.5%
Profit after Tax 0.523 0.927
The company’s activity is made up of new projects, accounting for 47% (2023 53%) and maintenance contracts, 53% (2023 47%) of revenue.
Financial Position
The financial position of the company is presented in the balance sheet. Total shareholder’s funds on 31 March 2024 were £13.191m (2023 £13.608m). The company has net current assets of £12.985m (2023 £13.357m), including cash of £12.760m (2023 £1.742m). Included in this balance was £11.417m (2023 £0) of customer deposits held for future planned orders.
The company participates in the group’s banking arrangements with a “multi bank strategy” across the Hauser Group.
HAUSER REFRIGERATION UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties
The management of the business and the execution of the company’s strategy are subject to several risks. The key risks affecting the company relate to the economic environment, and changes to environmental legislation, although these risks could also provide opportunities.
The current trend towards a concentration of a few big retail chains is continuing but does not create a threat. Our business development management strategy is to minimise a possible “cluster risk” by extending our customer base. The competitive environment is monitored closely.
Material sourcing can be subject to some volatility which is mitigated by management focus on our supply chain not being heavily reliant on only a few suppliers. Supplier agreements and pricing is agreed with written contracts.
The labour market creates a possible risk to growth within the industry due to the scarce availability of skilled technical labour. Hauser Group will continue with the strategy of training staff to fit the roles required as well as maintaining partnerships with third party service providers.
Financial risks include credit risk, liquidity risk and price risk. Credit risks are mitigated by the implemented policies on granting credit to customers. We operate a robust credit management system to minimise debt risk, we have recorded no bad debts in this period and have no doubtful debts currently, our invoices are settled in an average of 38 days (2022 40 days).
The company manages liquidity so that resources are available to meet liabilities when they fall due. Our creditors benefit from our current creditor days of an average of 11 days (2023 19 days) this figure is skewed slightly due to a payment on account of £1.154m made to group in May 2023. Liquidity is provided through cash balances and through the “multi bank strategy”.
The company has some exposure to price risk which is minimised by agreeing contract terms and prices in advance with both customers and service partners. Project management risk management software is utilised optimising our processes for project controlling and calculation errors.
The scarce supply of skilled technical labour means we must focus on employee satisfaction, which is maintained through staff training and a healthy work life balance.
Development and performance
At the end of 2024 project sales income was 97% of budget and 88% on FY2023. This was not unexpected; sales peaks are common in the industry falling in line with refurbishment programs of customers. Budgeted sales for FY2025 are £18.276m, of which £9.55m are firm purchase orders.
The principal customer base of grocery retail has normally proven stable however external global factors, war and high interest rates and general economic uncertainty has led to instability in growth. It is hoped that this will stabilise after the UK election, grocery retail is generally recession proof.
The strategic focus for growth is to offer our customers unrivalled quality products and works, ensuring that we can minimise disruption to our margin whilst maintaining customer confidence with the Hauser solution. Controls are conducted in the manufacturing plants as well as on site during commissioning. Costs of poor quality are monitored closely and reported monthly and route cause analysis and problem-solving processes are applied to avoid reoccurring issues. The costs of poor quality for the year ended March 2024 were less than 10% of budgeted costs. The focus is to continue to driving efficiencies across the business setting new standards in customer service whilst maintaining project delivery rates with the current high-quality work and without reducing margin.
Development of a customised ERP with a planned implementation in Jan 2025 will allow better group trading as well as straight forward project planning and control as well as an improvement to the customer experience.
HAUSER REFRIGERATION UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Key performance indicators
Some of the key financial indicators for the company are noted above across the previous two pages
The company continually monitors dedicated KPIs. We operate a robust credit management system to minimise debt risk. To secure liquidity we have a “multi bank strategy” and constant communication.
Quality controls are conducted in the manufacturing plants as well as on site during commissioning. Quality costs are monitored and reported monthly and route cause analysis and problem-solving processes are applied to avoid reoccurring issues.
Chance-/Risk management software is utilised optimising our processes for project controlling and calculation errors. Management focus on budget variances ensures continuous improvement and corrections.
Other information and explanations
Events of certain importance after cut-off date
For the FY 2025 the group is being restructured in relation to sales and operations, this is a group initiative to improve the focus to one of new customer development.
Management is continually reviewing the impact on material supply from the situation in Ukraine, the continued impact of Brexit and the effects of other economic uncertainties.
There are no other post balance sheet events that could influence the asset, financial, or earnings-situation of the company negatively.
Mr M Dorninger
Director
19 June 2024
HAUSER REFRIGERATION UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company in the period under review was that of the manufacture of non-domestic cooling and ventilation equipment.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £940,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M Dorninger
Mr T D Loibl
(Resigned 19 July 2023)
Ms B M Hauzenberger
(Appointed 20 July 2023)
Post reporting date events
For the FY 2025 the group is being restructured in relation to sales and operations, this is a group initiative to improve the focus to one of new customer development.
Auditor
Cottons Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr M Dorninger
Director
19 June 2024
HAUSER REFRIGERATION UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
HAUSER REFRIGERATION UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HAUSER REFRIGERATION UK LIMITED
- 6 -
Opinion
We have audited the financial statements of Hauser Refrigeration UK Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
HAUSER REFRIGERATION UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HAUSER REFRIGERATION UK LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
HAUSER REFRIGERATION UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HAUSER REFRIGERATION UK LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
• Enquiry of management and those charged with governance around actual and potential litigation and
claims as well as actual, suspected and alleged fraud;
• Reviewing minutes of meetings of those charged with governance;
• Assessing the extent of compliance with the laws and regulations considered to have a direct material
effect on the financial statements or the operations of the company through enquiry and inspection;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations;
• Performing audit work over the risk of management bias and override of controls, including testing of
journal entries and other adjustments for appropriateness, evaluating the business rationale of significant
transactions outside the normal course of business and reviewing accounting estimates for indicators of
potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Mark Palmer BSC BFP FCA (Senior Statutory Auditor)
For and on behalf of Cottons Accountants LLP
2 July 2024
Chartered Accountants
Statutory Auditor
Chestnut Field House
Chestnut Field
Rugby
United Kingdom
CV21 2PD
HAUSER REFRIGERATION UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
20,428,258
23,019,615
Cost of sales
(17,381,253)
(19,168,534)
Gross profit
3,047,005
3,851,081
Administrative expenses
(2,561,347)
(2,822,531)
Other operating income
9,738
8,670
Operating profit
4
495,396
1,037,220
Interest receivable and similar income
7
204,946
63,636
Interest payable and similar expenses
8
(1,750)
(795)
Profit before taxation
698,592
1,100,061
Tax on profit
9
(175,162)
(173,445)
Profit for the financial year
523,430
926,616
Retained earnings brought forward
935,451
2,036,995
Dividends
10
(940,000)
(2,028,160)
Retained earnings carried forward
518,881
935,451
The profit and loss account has been prepared on the basis that all operations are continuing operations.
HAUSER REFRIGERATION UK LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
206,340
264,300
Current assets
Stocks
12
3,481,614
3,308,384
Debtors
13
12,104,423
12,307,595
Cash at bank and in hand
12,759,693
1,742,016
28,345,730
17,357,995
Creditors: amounts falling due within one year
14
(15,360,240)
(4,001,270)
Net current assets
12,985,490
13,356,725
Total assets less current liabilities
13,191,830
13,621,025
Provisions for liabilities
Deferred tax liability
15
625
13,250
(625)
(13,250)
Net assets
13,191,205
13,607,775
Capital and reserves
Called up share capital
17
30,000
30,000
Share premium account
12,642,324
12,642,324
Profit and loss reserves
518,881
935,451
Total equity
13,191,205
13,607,775
The financial statements were approved by the board of directors and authorised for issue on 19 June 2024 and are signed on its behalf by:
Mr M Dorninger
Director
Company Registration No. 11868256
HAUSER REFRIGERATION UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
30,000
12,642,324
2,036,995
14,709,319
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
926,616
926,616
Dividends
10
-
-
(2,028,160)
(2,028,160)
Balance at 31 March 2023
30,000
12,642,324
935,451
13,607,775
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
523,430
523,430
Dividends
10
-
-
(940,000)
(940,000)
Balance at 31 March 2024
30,000
12,642,324
518,881
13,191,205
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
Hauser Refrigeration UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2D Loades Eco Park, Blackhorse Road, Exhall, Coventry, United Kingdom, CV7 9FW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Hauser GmbH. These consolidated financial statements are available from its registered office, AM Hartmayrgut 4-6, 4040 Linz, Austria.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% straight line
Plant and equipment
10% straight line
Fixtures and fittings
10% straight line
Computers
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Stock is valued at average cost price.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Warranty provision
The company makes an estimate of the value payable to their customers in respect of warranties. When assessing the warranty value, management considers factors including the machine cost, period of warranty, training costs, installation and start up costs along with other service costs.
Stock provisions
The company makes an estimate of those items which are included in stock which may have a reduced value due to product obsolescence or other reason affecting their carrying value.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Project sales
9,587,056
12,091,150
Service sales
10,841,202
10,928,465
20,428,258
23,019,615
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
19,503,474
21,784,589
Europe
912,026
1,217,799
Rest of the world
12,758
17,227
20,428,258
23,019,615
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Other revenue
Interest income
204,946
63,636
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
166,972
(151,780)
Fees payable to the company's auditor for the audit of the company's financial statements
29,000
32,598
Depreciation of owned tangible fixed assets
57,960
61,528
Operating lease charges
517,739
535,127
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Director
2
1
Other management
4
5
Admin
10
9
Technical
2
4
Total
18
19
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
672,996
1,003,848
Social security costs
65,460
93,800
Pension costs
30,821
43,288
769,277
1,140,936
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
3,322
1,755
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
204,946
62,220
Other interest income
1,416
Total income
204,946
63,636
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
1,750
795
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
187,787
217,938
Adjustments in respect of prior periods
(32,743)
Total current tax
187,787
185,195
Deferred tax
Origination and reversal of timing differences
(12,625)
(11,750)
Total tax charge
175,162
173,445
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
698,592
1,100,061
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
174,648
209,012
Tax effect of expenses that are not deductible in determining taxable profit
514
466
Permanent capital allowances in excess of depreciation
(3,290)
Under/(over) provided in prior years
(32,743)
Taxation charge for the year
175,162
173,445
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Dividends
2024
2023
£
£
Interim paid
940,000
2,028,160
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 April 2023 and 31 March 2024
389,502
40,957
14,337
63,351
508,147
Depreciation and impairment
At 1 April 2023
171,816
18,699
8,725
44,607
243,847
Depreciation charged in the year
38,950
3,949
1,434
13,627
57,960
At 31 March 2024
210,766
22,648
10,159
58,234
301,807
Carrying amount
At 31 March 2024
178,736
18,309
4,178
5,117
206,340
At 31 March 2023
217,686
22,258
5,612
18,744
264,300
12
Stocks
2024
2023
£
£
Raw materials and consumables
481,018
526,270
Work in progress
774,119
910,176
Finished goods and goods for resale
2,226,477
1,871,938
3,481,614
3,308,384
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
656,682
4,357,037
Amounts owed by group undertakings
10,513,663
7,019,719
Other debtors
25,800
25,800
Prepayments and accrued income
908,278
905,039
12,104,423
12,307,595
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,040,878
1,359,740
Amounts owed to group undertakings
570,381
829,809
Corporation tax
97,754
217,938
Other taxation and social security
465,636
292,629
Accruals and deferred income
12,185,591
1,301,154
15,360,240
4,001,270
Included within creditors is an amount relating to provisions for estimated liabilities arising under warranties. At the balance sheet date the provision was £183,878.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
625
13,250
2024
Movements in the year:
£
Liability at 1 April 2023
13,250
Credit to profit or loss
(12,625)
Liability at 31 March 2024
625
The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature within the same period.
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,821
43,288
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
HAUSER REFRIGERATION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
17
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
30,000 Ordinary shares of £1 each
30,000
30,000
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
123,822
119,362
Between two and five years
586,798
434,555
In over five years
106,293
301,000
816,913
854,917
19
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" not to disclose transactions with wholly owned subsidiaries within the group.
20
Ultimate controlling party
Hauser GmbH, a company incorporated in Austria, is regarded by the directors as being the company's ultimate parent company. Group accounts are available from their registered office which is included in note 1.1.
21
Auditor's liability limitation agreement
Upon appointment of Cottons Accountants LLP as auditors, the company entered into a limitation liability agreement with the auditors and this was approved by resolution on 24 January 2024. Liability is limited to the lesser of 20 times the audit fee or £530,000. In accordance with section 537 of CA06, the effect of the liability limitation agreement is to limit the auditor's liability to less than such amount as is fair and reasonable, as determined by that section, the agreement shall have effect as if it limited the liability to such amount as is fair and reasonable, as so determined.
The agreement limits the liability owed to the company by the auditors in respect of any negligence, default, or breach of duty, or breach of trust, occurring in the course of the audit of the accounts for the period ending 31st March 2024.
The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restricted by applicable laws or regulations.
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