REGISTERED NUMBER: |
VACLENSA LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: |
VACLENSA LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Independent Auditors' Report | 6 |
Income Statement and Other Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
VACLENSA LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
BANKERS: |
76 Stamford New Road |
Altrincham |
Cheshire |
WA14 1BS |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Revenue closed on £8.610m, a year on year decrease of 11%, which was in line with company forecasts and expectations. The revenue decrease was driven as a direct result of migrating the Floorcare business with strategic customers, through parent company, Tennant UK Cleaning Solutions Ltd (TUKCLS) midway through 2021, enabling a single point of contact and higher level of customer service. |
Gross profit margin of 61.7% (2022: 59.1%) grew by 260bps, through Decarbonizer activity and improvements with availability of product, whilst inflationary pressures seen throughout H2 2022 began to steady. |
Administration costs show a saving v 2022 of 4.3% (-£0.224m). Whilst cost management remains a key objective, the savings posted are as a result of realignment of cost between Vaclensa and parent, TUKCLS. |
The focus of management continues to be on maximising value on spend such as T&E, marketing, and recruitment whilst ensuring the ability to operate the business efficiently and effectively to support the needs of our stakeholders through a period of constant change and adaption. |
The company reports a profit after tax of £0.214m (2022: £0.341m) |
The key performance indicators monitored by the directors relate to revenue, gross profit and net profit. These are shown in the financial statements. |
FUTURE OUTLOOK |
The supply and maintenance of cleaning machines will, in common with many other businesses, be subject to external economic factors and so the company will continue to be managed on a prudent basis, to ensure long term stability. |
The directors outlook for 2024, is for a similar performance to 2023, as trade of Decarbonizer through the hospitality sector is forecast to remain static, whilst Floorcare growth is forecast through Tennant UK Cleaning Solutions Ltd by way of both new and an product range extensions, and through the development of new trading relationships. |
The results for Q1 2024 show turnover in line with planned expectation for the UK Entity Combined |
The company has a strong cash position and further support is available from the ultimate parent company, Tennant Company, if required. There is access to draw down liquid funds if required in the future and we are not aware of any significant collection issues. |
PRINCIPAL RISKS AND UNCERTAINTIES |
GLOBAL SUPPLY CHAIN |
We have established cross functional and ongoing communications with suppliers to review, track and prioritise high risk components. We have also identified and activated alternative suppliers and products as required. |
MARGIN RISK |
Competitive pressure within the UK Cleaning Industry is a continuing risk for the company. The company mitigates this risk by providing innovative and value-added products and service to its customers at competitive price points, whilst also providing a high level of service and quality. |
CREDIT RISK |
The company is exposed to credit risk on its sales. The company has implemented a series of internal controls to minimise this risk by ensuring that sales are made to customers with an appropriate credit history, and by monitoring of adherence to credit terms. |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
LIQUIDITY RISK |
Liquidity is maintained at prudent level to ensure sufficient funds are available for ongoing operations, future developments and a buffer to cover contingencies. The company maintains sufficient cash and group funding opportunities to meet its funding requirements and monitors cashflow as part of its day to day controls and is also advised by group treasury department. |
ON BEHALF OF THE BOARD: |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year was that of the sale, rental and maintenance of commercial cleaning equipment. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023 (year ended 31 December 2022 - £nil). |
FUTURE DEVELOPMENTS |
It is the directors' intention that, within 12 months of the statement of financial position date, the trade and assets of Vaclensa Limited are to be hived up to its immediate parent, Tennant UK Cleaning Solutions Limited. As such, these financial statements are prepared on a basis other than going concern. See Note 2. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
POLITICAL DONATIONS AND EXPENDITURE |
The company did not make any political donations in the year (year ended 31 December 2022 - £nil). |
DISCLOSURE IN THE STRATEGIC REPORT |
Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
DJH Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
VACLENSA LIMITED |
Opinion |
We have audited the financial statements of Vaclensa Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement and Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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. |
Going concern |
In auditing the financial statements, we have concluded that the directors' use of a basis other than going concern in the preparation of the financial statements is appropriate. |
We draw attention to the disclosure in Note 2 of the financial statements, which explains that the directors intend to hive up the trade and assets of the company into the immediate parent company Tennant UK Cleaning Solutions Limited. The directors therefore do not consider it to be appropriate to adopt the going concern basis of accounting in the in preparing the financial statements. Our opinion is not modified in respect of this mater. |
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 Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
VACLENSA LIMITED |
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 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 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. |
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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our planning process |
- 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 & Safety at Work 1974 and General Data Protection Regulations (GDPR). |
- 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. |
- 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. The company did not inform us of any known, suspected or alleged fraud. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
VACLENSA LIMITED |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- Identifying and testing journal entries, in particular those that were significant or unusual. |
- Performing walkthrough tests of sales and purchases to ensure that appropriate controls and segregation of duties are in place. |
- 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, in particular in relation to the useful economic life of an asset, the anticipated residual value in calculating an appropriate depreciation charge and the impairment of inventories. |
- 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 for evidence of management bias. |
- Performing a physical verification of key assets, including inventories. |
- Obtaining third-party confirmation of material bank and loan balances. |
- Documenting and verifying all significant related party balances and transactions. |
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 director of the entity. |
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 Auditors' Report. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' 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 |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
INCOME STATEMENT AND OTHER |
COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Property, plant and equipment | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Inventories | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Capital redemption reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Vaclensa Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 04347764 and its registered office is Unit C5, Leadbeaters Lane, Bolton, England, BL5 1FL. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Going concern |
For the year ended 31 December 2023 the company has reported a pre-tax profit of £285,260 (2022 - £457,758) and has closing net assets of £5,004,409 (2022 - £4,790,074), including a cash at bank balance of £691,658 (2022 - £264,793). |
As noted in the Report of the Directors, It is the intention of the directors that, within 12 months of the date of the statement of financial position, all trade and assets of Vaclensa Limited are to be hived up to its immediate parent, Tennant UK Cleaning Solutions Limited. Accordingly, the financial statements have been prepared on a basis other than going concern. |
The company has sufficient reserves to continue ordinary trade, and service debts as they fall due up to the date of hive up. The directors consider there to be no difference between the valuation of assets and liabilities on a going concern basis and valuation on eventual hive up. As such, the aggregate value of fixed assets has been reclassified to current assets. |
Revenue |
Revenue represents the aggregate of the fair value of sale of goods and services provided, net of value added tax, rebates and discounts, plus an appropriate proportion of maintenance contract income provided during the period. Revenue is recognised as follows:- |
Revenue from the sale of goods is recognised when the company has despatched products to the customer and collectability of the related receivables is fairly stated. |
Service revenues are recognised as those services are provided to customers. Contracted managed services revenue is recognised over the contract period on a straight-line basis, which represents the level of completion of an individual contract. The unrecognised contracted revenue is included as deferred income in the statement of financial position. Amounts invoiced relating to more than one period are deferred and recognised over their relevant life. |
Revenue from equipment rental provided by the company is recognised over the term of the agreement on a straight line basis. The unrecognised revenue is shown separately in the statement of financial position as deferred income. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2002, had been amortised evenly over its estimated useful life of twenty years, and was written down to £nil in the prior year. |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Long leasehold | - |
Tooling equipment | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 recognised in the statement of comprehensive income. |
Computer equipment which is deemed to have a useful life that is less than two years is not capitalised and is charged as a revenue expense. Renewable software licences are expensed as incurred. |
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises. |
Investment property |
Investment property in the opinion of the directors is considered to be its fair value as stated at the open market valuation at the statement of financial position date. Any changes in fair value are recognised in the statement of comprehensive income. |
Inventories |
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on an average cost basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of inventories is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement and Other Comprehensive Income, 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 statement of financial position date. |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Research and development |
Expenditure on research is written off in the year in which it is incurred. |
Foreign currencies |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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 result. |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost being the transaction price less any amounts settled. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable for the year are charged in the income statement. |
Leasing commitments |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting estimates and judgements |
In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experiences and other relevant factors. Actual results may differ from these estimates. |
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below:- |
Estimating the useful economic life of an asset and the anticipated residual value in calculating an appropriate depreciation charge. Determine whether there are any indicators of impairment of the company's tangible and intangible assets including goodwill. |
Making judgement based on historical experience on the level of provision required for impairment of inventories. Further information received after the balance sheet date may impact on the level of provision required. |
In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee. |
Fixed asset investments |
Fixed asset investments are stated at cost less any permanent diminution in value. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by class of business is given below: |
2023 | 2022 |
£ | £ |
All sales, in both periods, were made in the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Other pension costs |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management and administration | 11 | 11 |
Distribution, sales and production | 12 | 28 |
Engineers and technicians | 26 | 43 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors are remunerated via other group companies and it is not practicable to allocate a proportion of their salaries to Vaclensa Limited for services of being a director of the company. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Pension contributions |
Operating lease payments - other |
Operating lease payments - land and buildings |
6. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
17,142 |
15,850 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest on late payment of |
corporation tax |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Accelerated capital allowances | ( |
) |
Prior year charge | 8,738 | - |
Total deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Permanently disallowed expenditure | - | 1,507 |
Prior year adjustment | 8,738 | - |
Effect of change in tax rate | (6,806 | ) | 15,216 |
Depreciation / amortisation on non-qualifying assets | - | 13,318 |
Total tax charge | 70,925 | 117,015 |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2023 |
Reclassification/transfer | ( |
) |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Reclassification/transfer | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
As the financial statements for the year ended 31 December 2023 are prepared on a basis other than going concern, fixed assets have been reallocated as current assets. See Note 2. |
10. | PROPERTY, PLANT AND EQUIPMENT |
Long | Tooling | Plant and |
leasehold | equipment | machinery |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
Reclassification/transfer | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
Reclassification/transfer | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | PROPERTY, PLANT AND EQUIPMENT - continued |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
As the financial statements for the year ended 31 December 2023 are prepared on a basis other than going concern, fixed assets have been reallocated as current assets. See Note 2. |
11. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
Reclassification/transfer | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
As the financial statements for the year ended 31 December 2023 are prepared on a basis other than going concern, fixed assets have been reallocated as current assets. See Note 2. |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Disposals | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
13. | INVENTORIES |
2023 | 2022 |
£ | £ |
Finished goods and raw materials |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Property, plant and equipment | 368,617 | - |
Prepayments and accrued income |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Deferred income | 111,032 | 94,036 |
Accruals |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Deferred income | - | 25,412 |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 26,133 | 63,401 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Utilised during year | ( |
) |
Adjustment for prior period | 8,738 |
Balance at 31 December 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issues and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value | £ | £ |
74,941 | A Ordinary | £1 | 74,941 | 74,941 |
20. | RESERVES |
The following describes the nature and purpose of each reserve within equity: |
Reserves | Description and purpose |
Share premium | Consists of the non-distributable premium paid on the issue of shares for cash. |
Capital redemption reserve | A statutory, non-distributable reserve into which amounts were transferred following the purchase of the company's own shares. |
Retained earnings | All other net gains and losses and transactions with owners not recognised elsewhere. |
21. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The contributions payable in the year amounted to £189,623 (2022 - £123,709). The assets of the scheme are held separately from those of the company in an independently administered fund. At the statement of financial position date, there were no outstanding commitments (2022 - £18,879). |
VACLENSA LIMITED (REGISTERED NUMBER: 04347764) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | ULTIMATE PARENT COMPANY |
At the statement of financial position date, the immediate parent company is Tennant UK Cleaning Solutions Limited, a company incorporated in Scotland. The company's registered office address is 115 George Street, Edinburgh, Scotland, EH2 4JN. |
The ultimate controlling party is Tennant Company. The consolidated financial statements of Tennant Company, which is incorporated in the United States, are available to the public and may be obtained from:- |
http://investors.tennantco.com/overview/default.aspx |