REGISTERED NUMBER: 01467799 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
YUKEN EUROPE LTD |
REGISTERED NUMBER: 01467799 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
YUKEN EUROPE LTD |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
YUKEN EUROPE LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the assembly and distribution of hydraulic equipment together with customer specific project work. |
REVIEW OF BUSINESS |
For the financial year 2023/24 sales remain fairly stable. Project sales have been very good which has offset the slow down in component sales. |
In the hydraulics industry, mobile sales remain constant with a slow down on industrial sales. This is highlighted at our major sales partner in Germany who is 75% down on industrial sales since 2022/23. |
The continuing war in the Ukraine, high energy costs and high interest rates have impacted growth in the industrial hydraulic market across the UK and EU. We are cutting costs where possible but without affecting our current business strategy. We are also hoping to increase our Sales team in the near future by recruiting from one of our competitors, a major global player. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company makes a number of sales and purchases overseas and is exposed to exchange rate risk. The company has entered into hedging arrangements to mitigate this financial risk. |
ON BEHALF OF THE BOARD: |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen to set out information in respect of financial risk management and key performance indicators in its strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
AUDITORS |
The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
YUKEN EUROPE LTD |
Opinion |
We have audited the financial statements of Yuken Europe Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
YUKEN EUROPE LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
YUKEN EUROPE LTD |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our planning process: |
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. |
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law. |
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates. |
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation. |
- Testing key revenue lines, in particular cut-off, for evidence of management bias. |
- Obtaining third-party confirmation of material bank balances. |
- Documenting and verifying all significant related party and consolidated balances and transactions. |
- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
- Testing all material consolidation adjustments. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
YUKEN EUROPE LTD |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 3,444,092 | 3,663,565 |
Cost of sales | 2,065,502 | 2,328,507 |
GROSS PROFIT | 1,378,590 | 1,335,058 |
Administrative expenses | 1,272,467 | 1,178,549 |
106,123 | 156,509 |
Other operating income | (7,525 | ) | (36,210 | ) |
OPERATING PROFIT | 5 | 98,598 | 120,299 |
Interest receivable and similar income | 3,875 | 4,684 |
102,473 | 124,983 |
Interest payable and similar expenses | 6 | 24,331 | 11,804 |
PROFIT BEFORE TAXATION | 78,142 | 113,179 |
Tax on profit | 7 | 22,967 | 34,901 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 55,175 | 78,278 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 55,175 | 78,278 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
55,175 |
78,278 |
Total comprehensive income attributable to: |
Owners of the parent | 55,175 | 78,278 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 359,913 | 302,877 |
Investments | 10 | - | - |
359,913 | 302,877 |
CURRENT ASSETS |
Stocks | 11 | 1,484,230 | 1,823,708 |
Debtors | 12 | 533,026 | 760,164 |
Cash at bank and in hand | 83,577 | 221,933 |
2,100,833 | 2,805,805 |
CREDITORS |
Amounts falling due within one year | 13 | 1,118,937 | 1,795,244 |
NET CURRENT ASSETS | 981,896 | 1,010,561 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,341,809 |
1,313,438 |
CREDITORS |
Amounts falling due after more than one year | 14 | (70,656 | ) | (102,919 | ) |
PROVISIONS FOR LIABILITIES | 19 | (31,841 | ) | (26,382 | ) |
NET ASSETS | 1,239,312 | 1,184,137 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 300,000 | 300,000 |
Retained earnings | 21 | 939,312 | 884,137 |
SHAREHOLDERS' FUNDS | 1,239,312 | 1,184,137 |
The financial statements were approved by the Board of Directors and authorised for issue on 6 August 2024 and were signed on its behalf by: |
P Miller - Director |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
COMPANY BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 42,653 | 71,560 |
The financial statements were approved by the Board of Directors and authorised for issue on |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 | 300,000 | 805,859 | 1,105,859 |
Changes in equity |
Total comprehensive income | - | 78,278 | 78,278 |
Balance at 31 March 2023 | 300,000 | 884,137 | 1,184,137 |
Changes in equity |
Total comprehensive income | - | 55,175 | 55,175 |
Balance at 31 March 2024 | 300,000 | 939,312 | 1,239,312 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2024 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (48,170 | ) | (33,473 | ) |
Interest paid | (21,216 | ) | (10,873 | ) |
Interest element of hire purchase payments paid | (3,115 | ) | (931 | ) |
Tax paid | - | 3,379 |
Net cash from operating activities | (72,501 | ) | (41,898 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (13,203 | ) | (88,146 | ) |
Sale of tangible fixed assets | - | 1,200 |
Interest received | 3,875 | 4,684 |
Net cash from investing activities | (9,328 | ) | (82,262 | ) |
Cash flows from financing activities |
Loan repayments in year | (35,854 | ) | (39,850 | ) |
Capital repayments in year | (20,673 | ) | (8,612 | ) |
Net cash from financing activities | (56,527 | ) | (48,462 | ) |
Decrease in cash and cash equivalents | (138,356 | ) | (172,622 | ) |
Cash and cash equivalents at beginning of year |
2 |
221,933 |
394,555 |
Cash and cash equivalents at end of year | 2 | 83,577 | 221,933 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 78,142 | 113,179 |
Depreciation charges | 45,288 | 27,827 |
Loss on disposal of fixed assets | - | 6,736 |
Finance costs | 24,331 | 11,804 |
Finance income | (3,875 | ) | (4,684 | ) |
143,886 | 154,862 |
Decrease/(increase) in stocks | 339,478 | (316,882 | ) |
Decrease in trade and other debtors | 185,790 | 16,357 |
(Decrease)/increase in trade and other creditors | (717,324 | ) | 112,190 |
Cash generated from operations | (48,170 | ) | (33,473 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 83,577 | 221,933 |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 221,933 | 394,555 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
Other |
non-cash |
At 1/4/23 | Cash flow | changes | At 31/3/24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 221,933 | (138,356 | ) | 83,577 |
221,933 | (138,356 | ) | 83,577 |
Debt |
Finance leases | (25,265 | ) | 62,023 | - | (52,362 | ) |
Debts falling due |
within 1 year | (35,868 | ) | 868 | - | (35,000 | ) |
Debts falling due |
after 1 year | (84,610 | ) | 34,986 | - | (49,624 | ) |
(145,743 | ) | 97,877 | - | (136,986 | ) |
Total | 76,190 | (40,479 | ) | - | (53,409 | ) |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Yuken Europe Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 01467799 and registered office is 51 Spindus Road, Speke Hall Industrial Estate. Liverpool, L24 1YA. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The functional and presentation currency is £ sterling. |
Basis of consolidation |
The consolidated financial statements incorporate the results of Yuken Europe Limited and its subsidiary undertaking as at 31 March 2024 using the acquisition method of accounting. The results of the subsidiary undertaking are included from the date of acquisition. The subsidiary prepares financial statements to 31 December in accordance with Czech Republic requirements. |
Critical accounting 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. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Trade Debtors Recoverability |
Amounts recoverable on trade debtors are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The directors make estimates as to the recoverability of these debts and provide for them accordingly. |
Work In Progress |
An amount is provided for work in progress to ensure that the relevant proportion of income is accounted for in any period. The key areas of estimation uncertainty involves the determination of expected level of completion. Factors taken into account in reaching their decision include the actual outcome of previous similar projects and job by job appraisal of performance to date, together with future expectations. |
Provisions |
A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the value, excluding value added tax, of goods and services supplied to customers during the year. |
Revenue is recognised when goods have been despatched to customers. Revenue from contracts for the provision of 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. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. |
Tangible fixed assets |
Leasehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. |
The majority of the group's stocks are imported from overseas and subject to lengthy periods of transportation. It is the policy of the group to include as stock, all goods ordered from and shipped by suppliers, regardless of its location at the balance sheet date. |
Work in progress is valued on the basis of direct costs plus attributable overheads based on a normal level of activity, according to the stage of completion. Provision is made for any foreseeable losses where appropriate. An element of profit is included in the valuation of work in progress at the year end date in accordance with the stage of completion of the project. |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised 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, which include trade debtors, other debtors, amounts owed from group undertakings 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. Financial assets classified as receivable within one year are not amortised. |
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, including trade creditors, hire purchase contracts, amounts owed to group undertakings, other creditors, bank loans and bank overdraft 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 are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Foreign currencies |
Balances at the year end denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. |
Leasing |
Property, plant and equipment obtained under hire purchase contracts or finance leases are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges are included in creditors. |
Rentals paid under operating leases are charged to profit and loss account on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable to the group's pension scheme are recognised in the profit and loss account when due. |
Investments |
Investments in shares are included at fair value, less provision for impairment. |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred taxation is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes. |
Tax deferred or accelerated is accounted for in respect of all material timing differences. |
Going concern |
The group has cash reserves as at the date of approval of the financial statements, having obtained a CBILS loan of £175,000. The group has sufficient working capital to enable it to continue to trade and meet its liabilities as they fall due for at least the next twelve months from the date of approval of the financial statements. Like all companies following the global coronavirous pandemic and the economic slowdown since across the world, the group has suffered from uncertainty in orders from certain sectors. If turnover is further affected as a result, the group may need to obtain additional finance or explore other options such as a cost reduction programme. Whilst there can be no certainty in this respect the directors are confident that additional funding will be able to be obtained if necessary. |
As a result the directors believe that the group will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 1,758,092 | 1,886,565 |
Europe | 1,361,000 | 1,390,000 |
Rest of World | 325,000 | 387,000 |
3,444,092 | 3,663,565 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 787,860 | 678,522 |
Social security costs | 86,955 | 79,587 |
Other pension costs | 35,529 | 27,705 |
910,344 | 785,814 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production staff | 9 | 9 |
Selling & distribution staff | 12 | 8 |
Admin staff | 5 | 7 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 55,403 | 50,275 |
Directors' pension contributions to money purchase schemes | 11,535 | 7,792 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 1 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 4,120 | 11,685 |
Depreciation - owned assets | 39,262 | 24,427 |
Depreciation - assets on hire purchase contracts | 6,025 | 3,400 |
Loss on disposal of fixed assets | - | 6,736 |
Auditors' remuneration | 16,000 | 16,000 |
Foreign exchange differences | 7,525 | 37,286 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 1,232 | 42 |
Other interest payable | 19,984 | 10,831 |
Hire purchase | 3,115 | 931 |
24,331 | 11,804 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 17,509 | 22,669 |
Deferred tax | 5,458 | 12,232 |
Tax on profit | 22,967 | 34,901 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 78,142 | 113,179 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
19,536 |
21,504 |
Effects of: |
Expenses not deductible for tax purposes | 12,106 | 6,831 |
Capital allowances in excess of depreciation | (9,917 | ) | (7,342 | ) |
Deferred tax movement | 5,458 | 12,232 |
Adjustment in respect of prior year | (7,754 | ) | - |
Consolidation adjustments | 3,538 | 1,688 |
Czech tax | - | (12 | ) |
relationships |
Total tax charge | 22,967 | 34,901 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Leasehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 | 368,715 | 308,568 | 65,389 | 38,603 | 781,275 |
Additions | - | 11,029 | 33,019 | 58,275 | 102,323 |
Disposals | - | - | (19,931 | ) | - | (19,931 | ) |
At 31 March 2024 | 368,715 | 319,597 | 78,477 | 96,878 | 863,667 |
DEPRECIATION |
At 1 April 2023 | 166,944 | 237,495 | 43,939 | 30,020 | 478,398 |
Charge for year | 7,374 | 12,131 | 10,340 | 15,442 | 45,287 |
Eliminated on disposal | - | - | (19,931 | ) | - | (19,931 | ) |
At 31 March 2024 | 174,318 | 249,626 | 34,348 | 45,462 | 503,754 |
NET BOOK VALUE |
At 31 March 2024 | 194,397 | 69,971 | 44,129 | 51,416 | 359,913 |
At 31 March 2023 | 201,771 | 71,073 | 21,450 | 8,583 | 302,877 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Leasehold | Motor | Computer |
property | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 | 25,555 | 26,250 | - | 51,805 |
Additions | - | - | 14,751 | 14,751 |
At 31 March 2024 | 25,555 | 26,250 | 14,751 | 66,556 |
DEPRECIATION |
At 1 April 2023 | 170 | 16,038 | - | 16,208 |
Charge for year | 681 | 2,476 | 2,868 | 6,025 |
At 31 March 2024 | 851 | 18,514 | 2,868 | 22,233 |
NET BOOK VALUE |
At 31 March 2024 | 24,704 | 7,736 | 11,883 | 44,323 |
At 31 March 2023 | 25,385 | 10,212 | - | 35,597 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Leasehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Leasehold | Motor | Computer |
property | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: S.K. Neumanna 2476, Rakovnik, Czech Republic |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 1,484,230 | 1,823,708 |
Stocks include £1,422,675 (2023: £1,740,701) of finished goods and £61,555 (2023: £83,007) of work in progress. |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 432,217 | 548,523 |
Other debtors | 1,447 | 68,219 |
Amounts due from group |
undertakings | - | - | 11,732 | 28,870 |
Prepayments | 99,362 | 143,422 |
533,026 | 760,164 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Amounts due from group undertakings are repayable on demand. |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 35,000 | 35,868 |
Hire purchase contracts (see note 16) | 31,330 | 6,956 |
Trade creditors | 133,533 | 217,706 |
Amounts owed to group undertakings | 551,250 | 867,099 |
Tax | 35,890 | 50,413 |
Social security and other taxes | 31,498 | 27,420 |
VAT | 8,645 | 27,938 | 8,645 | 27,938 |
Other creditors | 10,843 | 8,606 |
Accrued expenses | 280,948 | 553,238 |
1,118,937 | 1,795,244 |
Amounts owed to group undertakings are repayable on demand. |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 15) | 49,624 | 84,610 |
Hire purchase contracts (see note 16) | 21,032 | 18,309 |
70,656 | 102,919 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 35,000 | 35,868 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 49,624 | 70,000 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | - | 14,610 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 31,330 | 6,956 |
Between one and five years | 21,032 | 18,309 |
52,362 | 25,265 |
Company |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 15,057 | 12,588 |
Between one and five years | 16,180 | 14,331 |
31,237 | 26,919 |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 84,624 | 120,478 |
Hire purchase contracts | 52,362 | 25,265 | 29,764 | 25,265 |
136,986 | 145,743 |
The hire purchase contracts are secured on the assets they relate to. |
Bank loans and overdrafts are secured by a debenture over the assets of the company. |
18. | FINANCIAL INSTRUMENTS |
GROUP |
At 31 March 2024 financial assets measured at amortised cost amounted to £517,241 (2023: £838,675). The carrying amount of financial liabilities at amortised cost amounted to £832,706 (2023: £1,239,154). |
COMPANY |
At 31 March 2024 financial assets measured at amortised cost amounted to £444,285 (2023: £796,446). The carrying amount of financial liabilities at amortised cost amounted to £794,050 (2023: £1,224,440). |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 31,841 | 26,382 | 31,841 | 26,382 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 26,382 |
Provided during year | 5,459 |
Balance at 31 March 2024 | 31,841 |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
19. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Provided during year |
Balance at 31 March 2024 |
Deferred tax relates entirely to the excess of capital allowances over depreciation. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 300,000 | 300,000 |
The company has one class of ordinary shares which carry no right to fixed income. |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2023 | 884,137 |
Profit for the year | 55,175 |
At 31 March 2024 | 939,312 |
Company |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
At 31 March 2024 |
Retained earnings represents cumulative profits or losses net of dividends paid and other adjustments. |
YUKEN EUROPE LTD (REGISTERED NUMBER: 01467799) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
22. | PENSION COMMITMENTS |
The company made contributions of £29,347 (2023: £27,705) to the group personal pension scheme in the year. There were outstanding contributions of £2,889 (2023: £2,391) at 31 March 2024. |
23. | RELATED PARTY DISCLOSURES |
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. |
The companies listed below are not wholly owned subsidiaries within the group and as such the transactions and year end balances are being disclosed: |
The company purchased goods at a cost of £31,400 (2023: £103,231) from, and sold goods totalling £9,900 (2023: £nil) to, fellow subsidiary company, Yuken India Limited in the period. The liability at the year-end was £2,988 (2023: £7,838). |
The company purchased goods at a cost of £61,052 (2023: £133,196) from, and sold goods totalling £41,319 (2023: £nil) to, a fellow subsidiary company, Yuken Hydraulics (T.W.) Co. Limited in the period. The liability at the year-end was £12,629 (2023: £31,970). |
The company purchased goods at a cost of £410 (2023: £nil) from, a fellow subsidiary company, Yuken Korea Co. Ltd in the period. The liability at the year-end was £nil (2023: £nil). |
24. | ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY |
The company's ultimate holding company is Yuken Kogyo Co. Limited, incorporated in Japan and listed on The First Section of the Tokyo Stock Exchange. The registered office is 4-34 Kamitsuchidana-Naka-4-Chome, Ayase, Kanagawa 252-1113, Japan. |
A copy of the financial statements of Yuken Kogyo Co. Limited can be obtained from their website at www.yuken.co.jp |