Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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POSITEC (UK & IRELAND) LIMITED
COMPANY INFORMATION
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POSITEC (UK & IRELAND) LIMITED
CONTENTS
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POSITEC (UK & IRELAND) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The principal activity of the company is the distribution and sale of battery powered tools & technology for use by commercial landscapers alongside a range of residential outdoor power equipment and home improvements tools for the DIY market. The company is the main UK and Ireland trading arm for the Positec Group with headquarters in Suzhou, China. They develop, manufacture, supply and support the business across a range of products.
Key strategic decisions which could impact the future investments of the company are made by the director and local management in collaboration with the Positec Group leadership. During 2023 the company saw a decrease in revenue of 13.6% to £15.8m compared to the prior year (£18.3m). The decrease in year over year performance came predominantly from the slowing of contract manufacturing orders. This downturn was significantly offset by the planned growth in satellite guided lawn mowers & commercial outdoor power equipment. Whilst gross profit percentage of sale has declined by 0.8% from 19.3% (2022) to 18.5% 2023 due to the rising freight, material & labour costs being passed up the supply chain, the tight management of administrative and marketing activity saw an improvement in the overall operating profit £132.6k from £71.8k in 2022 to £204.3k in 2023. The director considers the level of the business and the financial position of the balance sheet to the year-end to be satisfactory.
The company continued to experience challenging market conditions in the UK and Ireland during the year whilst maintaining high quality products and services to existing customers. These are not new risks but are managed via excellent relationships between the company and its customer base which has evolved through high levels of customer care and a comprehensive after sales support. The participation in such markets is often subject to uncertain economic conditions, which makes it difficult to estimate growth and as a result, future income and expenditures. Our future success depends upon our ability to develop new products that achieve market acceptance.
The company’s operations expose it to a variety of financial risks that include price risk, liquidity risk and credit risk.
Liquidity risks
The generation of cash is one of the company's key measurements and is closely monitored. The risk to the going concern of the company is, however, low as the weekly cash forecasting cadence empowers the wider Positec Group to foresee any necessary regional investment to support the company. Credit risk Credit risk arises from cash and deposit balances held with banks and financial institutions, as well as credit exposures to wholesale and retail customers. While the company has both intercompany payables and receivables, these are managed by the treasury team at Positec Group level. The company does not have a requirement for loans or overdraft facilities to support the business. The company monitors its external receivables closely, and each new customer is analysed individually for creditworthiness. The following procedures are adhered to: • Appropriate credit checks to be performed on customers prior to sales being made • Collection of receivable balances within agreed payment terms • Regular reviews on the credit status of existing customers. Price risk The company is exposed to commodity price risk as a result of its operations. Likewise, exposure to inflation, the impact of foreign exchange and the cost of shipping containers can impact the cost of performing fixed price contracts. The company manages this on a case-by-case basis. The directors will revisit the appropriateness of this policy should the company’s operations change in size or nature.
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POSITEC (UK & IRELAND) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Other risks Third parties have claimed in the past and may claim in the future that we are infringing directly or indirectly upon their intellectual property rights, and third parties may infringe upon our intellectual property rights. In order to remain successful, we must attract and retain key employees, and failure to do so could seriously harm the company’s brands. The company could be negatively impacted by a security breach, through cyberattack, cyber intrusion or the threat to gain unauthorised access that causes significant disruption to our IT network and related systems. Although significant effort is made to maintain the security and integrity of our lT systems, it is virtually impossible to entirely mitigate this risk.
The directors consider the turnover and margin of the company to be the key performance indicators in the business. These are monitored closely by local management complimented with reviews performed by Positec headquarters the ultimate parent undertaking on a quarterly and monthly basis.
This report was approved by the board and signed on its behalf.
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POSITEC (UK & IRELAND) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The director presents his report and the financial statements for the year ended 31 December 2023.
The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £156,990 (2022 - £60,237).
The director did not propose any dividend in respect of the years ended 31 December 2022 or 2023.
The director who served during the year was:
The home improvements and outdoor power equipment and power tool sector will continue to provide a profitable core business. Strategies to protect this core business and to develop and bring the next generation of products to market are integral to the Positec Group. In addition, campaigns are planned to penetrate adjacent markets with new products. Success in these areas remains key to meeting business objectives set by the directors in the strategic growth plan.
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POSITEC (UK & IRELAND) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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POSITEC (UK & IRELAND) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POSITEC (UK & IRELAND) LIMITED
We have audited the financial statements of Positec (UK & Ireland) Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is 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.
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POSITEC (UK & IRELAND) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POSITEC (UK & IRELAND) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
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 Director's report.
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POSITEC (UK & IRELAND) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POSITEC (UK & IRELAND) LIMITED (CONTINUED)
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
[Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.]
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditor
2 Communications Road
Greenham Business Park
Greenham
Berkshire
RG19 6AB
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POSITEC (UK & IRELAND) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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POSITEC (UK & IRELAND) LIMITED
REGISTERED NUMBER: 03998785
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 25 form part of these financial statements.
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POSITEC (UK & IRELAND) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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POSITEC (UK & IRELAND) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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POSITEC (UK & IRELAND) LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Positec (UK & Ireland) Limited is a private company limited by share capital and incorporated in England and Wales. The address of the registered office is Fairfax House, 20-22 London Road, Newbury, RG14 1JX.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Whilst the company has been profitable in the current year and expects to be profitable in the foreseeable future, the company has net current assets of £176,491 (2022: asset of £56,110) at the year end but included in that is a significant amount due to other group companies of £22,159,597 (2022: £12,781,408) and is also fully reliant on that other group company for the supply of goods to be sold to customers.
The Director has sought assurances from the other group company that it will continue to provide financial support as is required for a period of least 12 months from the date of the approval of these financial statements. Based on the above and specifically given the continued support from another group company the Director believes it is appropriate to prepare the accounts on a going concern basis.
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company also receives a commission income from the parent company which is calculated on the gross income receivable by the parent company in respect of goods sold directly to customers in the UK.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions for rebates Included within accruals and deferred income are estimates of the amounts payable in the form of rebates to customers. The Company estimates these based upon past experiences from similar contracts and based upon agreed terms with customers that were in place at the year end. Direct costs associated with the import of stocks The Company estimates an appropriate level of uplift to the cost of goods purchased from China for import duty charges and applies this uplift to the cost of goods purchased during the year and included in stock in the financial statements. The uplift is estimated based on known import duty rates in force during the year.
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of turnover by country of destination:
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
8.Taxation (continued)
There were no factors that may affect future tax charges.
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
11.Debtors (continued)
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £192,407 (2022: £90,887).
Total contributions payable to the fund at the balance sheet date are £nil in both 2023 and 2022.
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POSITEC (UK & IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The ultimate parent company is
The parent of both the largest and smallest group for which group accounts including Positec (UK & Ireland) Limited are drawn up is
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