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REGISTERED NUMBER: 02949004 (England and Wales)















Audited Financial Statements for the Year Ended 31st May 2024

for

Masterhitch Europe Limited

Masterhitch Europe Limited (Registered number: 02949004)

Contents of the Financial Statements
for the Year Ended 31st May 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Masterhitch Europe Limited

Company Information
for the Year Ended 31st May 2024







DIRECTOR: H R Edeleanu





REGISTERED OFFICE: Whitewall Centre
Whitewall Road
Strood
Rochester
Kent
ME2 4DZ





REGISTERED NUMBER: 02949004 (England and Wales)





AUDITORS: Beak Kemmenoe
Chartered Accountants
& Statutory Auditors
1-3 Manor Road
Chatham
Kent
ME4 6AE

Masterhitch Europe Limited (Registered number: 02949004)

Balance Sheet
31st May 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 76,540 90,701

CURRENT ASSETS
Stocks 5 1,049,032 1,074,982
Debtors 6 40,553 62,531
Cash at bank 16,820 33,022
1,106,405 1,170,535
CREDITORS
Amounts falling due within one year 7 444,256 744,082
NET CURRENT ASSETS 662,149 426,453
TOTAL ASSETS LESS CURRENT
LIABILITIES

738,689

517,154

PROVISIONS FOR LIABILITIES 8,411 -
NET ASSETS 730,278 517,154

CAPITAL AND RESERVES
Called up share capital 10 10
Retained earnings 730,268 517,144
730,278 517,154

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 29th November 2024 and were signed by:





H R Edeleanu - Director


Masterhitch Europe Limited (Registered number: 02949004)

Notes to the Financial Statements
for the Year Ended 31st May 2024


1. STATUTORY INFORMATION

Masterhitch Europe Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In preparing the financial statements the directors have made the following judgements:

Determining the valuation of stock. Stock valuation is based on a first-in, first-out method and a proportion of production overheads are allocated to stock items based on the length of time it takes to augment them. Stock items are constantly reviewed to determine if the net realisable value has fallen below the carrying amount.

Turnover
Turnover is measured at the fair value of the consideration received or receivable from the provision of goods and services, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Tangible fixed assets are stated in the balance sheet at cost less accumulated depreciation. The cost of tangible fixed assets includes directly attributable costs incurred in their acquisition and installation.

Depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery are depreciated at 25% on a reducing balance basis.

Fixtures and fittings are depreciated at 25% on a reducing balance basis.

Stocks
Stocks are stated at the lower of cost and net realisable value. Cost is determined using a first-in, first-out method.

Stock of work in progress and finished goods are valued based on the cost of materials and a proportion of production overheads. The allocation of production overheads is based on the length of time stock items are worked on.

Stock items are regularly reviewed to determine if the net realisable value has fallen below the carrying amount.

Masterhitch Europe Limited (Registered number: 02949004)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. 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.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments that comply with all of the conditions of paragraph 11.9 of FRS 102 are classified as 'basic'. For debt instruments that do not meet the conditions of FRS 102.11.9, the company considers whether the debt instrument is consistent with the principle in paragraph 11.9A of FRS 102 in order to determine whether it can be classified as basic. Instruments classified as 'basic' financial instruments are measured subsequently at amortised cost using the effective interest method. Debt instruments that have no stated interest rate (and do not constitute financing transaction) and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting conditions of being 'basic' financial instruments are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Masterhitch Europe Limited (Registered number: 02949004)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies
Assets and liabilities 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. Exchange differences are taken into account in arriving at the operating profit.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2023 - 14 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1st June 2023 596,472 46,846 643,318
Additions 320 8,374 8,694
At 31st May 2024 596,792 55,220 652,012
DEPRECIATION
At 1st June 2023 507,447 45,170 552,617
Charge for year 22,303 552 22,855
At 31st May 2024 529,750 45,722 575,472
NET BOOK VALUE
At 31st May 2024 67,042 9,498 76,540
At 31st May 2023 89,025 1,676 90,701

Masterhitch Europe Limited (Registered number: 02949004)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024


5. STOCKS
2024 2023
£    £   
Raw materials 707,450 707,274
Work-in-progress 137,850 115,579
Finished goods 203,732 252,129
1,049,032 1,074,982

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 5,841 28,143
Other debtors and prepayments 34,712 9,614
Deferred tax asset - 24,774
40,553 62,531

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 110,932 17,351
Amounts owed to group undertakings 271,925 699,240
Corporation tax 37,858 -
Social security and other taxes 10,647 11,828
Other creditors and accruals 12,894 15,663
444,256 744,082

8. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Ronald Price FCA (Senior Statutory Auditor)
for and on behalf of Beak Kemmenoe

9. 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.

Masterhitch Europe Limited (Registered number: 02949004)

Notes to the Financial Statements - continued
for the Year Ended 31st May 2024


9. RELATED PARTY DISCLOSURES - continued

The company had transactions with key management personnel as follows:

Related Party Transaction details 2024 2023
£ £
Key management personnel Indirect expenses 3,380 3,380

Other related parties with material transactions existed during the period. The nature of the relationship for each of them was that of shared individuals controlling the businesses and close family members of key management personnel.

Related Party Transaction details 2024 2023
£ £
Other related parties Sales 38,358 14,715
Other debtors 2,940 317

No amounts were written off in the year.


10. PARENT COMPANY

H.E. Group Ltd is the immediate and ultimate parent company. H.E. Group Ltd prepares consolidated financial statements.

H.E. Group Ltd is incorporated in England and Wales, its principle place of business is Whitewall Road, Strood, Rochester, Kent. ME2 4DZ.

Mr H R Edeleanu is the ultimate controlling party.