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Registered number: 04582034










MANULI HYDRAULICS UK LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MANULI HYDRAULICS UK LIMITED
 

COMPANY INFORMATION


Directors
D M D Manuli 
R Billington 




Company secretary
J Tong



Registered number
04582034



Registered office
Unit 8, Block 5
Shenstone Trading Estate

Bromsgrove Road

Halesowen

West Midlands

B63 3XB




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditors

2 Chawley Park

Cumnor Hill

Oxford

Oxfordshire

OX2 9GG





 
MANULI HYDRAULICS UK LIMITED
 

CONTENTS



Page
Directors' report
 
1 - 2
Independent auditors' report
 
3 - 5
Statement of comprehensive income
 
6
Statement of financial position
 
7 - 8
Statement of changes in equity
 
9
Notes to the financial statements
 
10 - 22

 
MANULI HYDRAULICS UK LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The directors who served during the year were:

D M D Manuli 
R Billington 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 1

 
MANULI HYDRAULICS UK LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

This report was approved by the board and signed on its behalf.
 





R Billington
Director

Date: 18 December 2024

Page 2

 
MANULI HYDRAULICS UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MANULI HYDRAULICS UK LIMITED
 

Opinion


We have audited the financial statements of Manuli Hydraulics UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (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 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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 3

 
MANULI HYDRAULICS UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MANULI HYDRAULICS UK LIMITED (CONTINUED)


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' report has been prepared in accordance with applicable legal requirements.


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 Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 4

 
MANULI HYDRAULICS UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MANULI HYDRAULICS UK LIMITED (CONTINUED)


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.


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:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and thoose charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting docuemtnation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.


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 2006Our 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.





James Pitt BA BFP FCA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditors
  
2 Chawley Park
Cumnor Hill
Oxford
Oxfordshire
OX2 9GG

19 December 2024
Page 5

 
MANULI HYDRAULICS UK LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
11,159,078
9,280,611

Cost of sales
  
(6,129,478)
(4,882,002)

Gross profit
  
5,029,600
4,398,609

Administrative expenses
  
(1,675,230)
(1,330,096)

Other operating income
 4 
308,163
391,280

Operating profit
  
3,662,533
3,459,793

Interest receivable and similar income
  
68,649
-

Interest payable and similar expenses
  
(1,257)
(10,825)

Profit before tax
  
3,729,925
3,448,968

Tax on profit
 6 
(966,113)
(218,364)

Profit for the financial year
  
2,763,812
3,230,604

The notes on pages 10 to 22 form part of these financial statements.

Page 6

 
MANULI HYDRAULICS UK LIMITED
REGISTERED NUMBER: 04582034

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Fixed assets
  

Intangible assets
 7 
7,420,315
7,420,315

Tangible assets
 8 
568,812
649,411

  
7,989,127
8,069,726

Current assets
  

Stocks
 9 
2,593,797
2,418,220

Debtors: amounts falling due within one year
 10 
4,694,874
2,931,151

Cash at bank and in hand
 11 
336,486
743,364

  
7,625,157
6,092,735

Creditors: amounts falling due within one year
 12 
(1,610,881)
(2,919,729)

Net current assets
  
 
 
6,014,276
 
 
3,173,006

Total assets less current liabilities
  
14,003,403
11,242,732

  

Creditors: amounts falling due after more than one year
 13 
(128,811)
(137,563)

  
13,874,592
11,105,169

Provisions for liabilities
  

Deferred taxation
 14 
(15,631)
(10,020)

  
 
 
(15,631)
 
 
(10,020)

  

Net assets
  
13,858,961
11,095,149


Capital and reserves
  

Called up share capital 
 15 
1,004
1,004

Profit and loss account
  
13,857,957
11,094,145

  
13,858,961
11,095,149

Page 7

 
MANULI HYDRAULICS UK LIMITED
REGISTERED NUMBER: 04582034

STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 December 2024.




R Billington
Director

The notes on pages 10 to 22 form part of these financial statements.
Page 8

 
MANULI HYDRAULICS UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,004
7,863,541
7,864,545



Profit for the year
-
3,230,604
3,230,604



At 1 January 2023
1,004
11,094,145
11,095,149



Profit for the year
-
2,763,812
2,763,812


At 31 December 2023
1,004
13,857,957
13,858,961


The notes on pages 10 to 22 form part of these financial statements.

Page 9

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Manuli Hydraulics UK Limited is a private company limited by shares, incorporated in England and Wales. The principal place of trade is Unit 8, Block 5, Shenstone Trading Estate, Bromsgrove Road, Halesowen, West Midlands, B63 3XB.
The principal activity of the Company is the sale and distribution of mining adaptors to the global mining market and the distribution and sales of bulk hydraulic hose and fittings to the UK & Ireland wholesale market.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 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:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
 - paragraph 118(e) of IAS 38 Intangible Assets;
 - paragraphs 76 and 79(d) of IAS 40 Investment Property; and
 - paragraph 50 of IAS 41 Agriculture
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member

This information is included in the consolidated financial statements of Manuli Ryco S.p.A as at 31 December 2023 and these financial statements may be obtained from Via Paleocapa, 7 Milano, 20121 Italy.

Page 10

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
The directors have prepared cash flow forecasts, based on what they consider to be reasonable assumptions, for a period of 12 months from the date of approval of these financial statements which indicate that the Company will have sufficient funds to meet its liabilities as they fall due for that period.
Those forecasts are dependent on the Company's ultimate parent company, Manuli Ryco S.p.A not seeking repayment of the amounts currently due to the group. Manuli Ryco S.p.A has indicated that it does not intend to seek repayment of these amounts for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. 
Consequently, the directors are confident that the Company will have sufficient funds to continue to meets its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP, rounded to the nearest pound.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 11

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 12

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

 Amortisation is provided on the following bases:

Computer software
-
33%

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

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:

Freehold property
-
3%
Plant and machinery
-
14%
Fixtures and fittings
-
17%
Computer equipment
-
20%
Right of use assets
-
Over the life of the lease

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.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Page 14

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. 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. 
Useful lives of property, plant and equipment (note 8)
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values.
Goodwill (note 7)
Goodwill is measured at cost less accumulated impairment. In determining whether goodwill is impaired, the recoverable amounts are determined based on the higher of net realisable value and value in use calculations. These value in use calculations require the use of estimates. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money.


4.


Other operating income

2023
2022
£
£

Other operating income
308,163
391,280

308,163
391,280


Page 15

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Employees

2023
2022
£
£

Wages and salaries
796,072
698,535

Social security costs
67,318
63,432

Cost of defined contribution scheme
28,144
26,417

891,534
788,384


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Staff numbers
22
21


6.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
872,695
483,224

Adjustments in respect of previous periods
87,807
(239,493)


Total current tax
960,502
243,731

Deferred tax


Origination and reversal of timing differences
5,611
(25,367)

Total deferred tax
5,611
(25,367)


Taxation on profit on ordinary activities
966,113
218,364
Page 16

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
6.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
3,729,925
3,448,968


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
877,299
655,304

Effects of:


Adjustments to tax charge in respect of prior periods
87,807
(239,493)

Other differences leading to an increase (decrease) in the tax charge
1,007
(22,441)

Group relief
-
(175,006)

Total tax charge for the year
966,113
218,364


7.


Intangible assets




Goodwill
Computer Equipment
Total

£
£
£



Cost


At 1 January 2023
7,420,315
65,402
7,485,717



At 31 December 2023

7,420,315
65,402
7,485,717



Amortisation


At 1 January 2023
-
65,402
65,402



At 31 December 2023

-
65,402
65,402



Net book value



At 31 December 2023
7,420,315
-
7,420,315



At 31 December 2022
7,420,315
-
7,420,315




Page 17
 


 
MANULI HYDRAULICS UK LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


8.


Tangible fixed assets






Freehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Right of Use Assets
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
2,335
405,993
28,379
170,774
743,945
1,351,426


Additions
10,750
10,412
-
25,476
23,556
70,194



At 31 December 2023

13,085
416,405
28,379
196,250
767,501
1,421,620



Depreciation


At 1 January 2023
257
379,688
17,429
164,151
140,490
702,015


Charge for the year on owned assets
342
11,147
3,780
7,282
-
22,551


Charge for the year on right-of-use assets
-
-
-
-
128,242
128,242



At 31 December 2023

599
390,835
21,209
171,433
268,732
852,808



Net book value



At 31 December 2023
12,486
25,570
7,170
24,817
498,769
568,812



At 31 December 2022
2,078
26,305
10,950
6,623
603,455
649,411

Page 18
 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           8.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
12,486
2,078

12,486
2,078



The net book value of owned and leased assets included as "Tangible fixed assets" in the Statement of financial position is as follows:

2023
2022
£
£


Tangible fixed assets owned
70,043
45,956

Right-of-use tangible fixed assets
498,769
603,455

568,812
649,411

Information about right-of-use assets is summarised below:

Net book value

2023
2022
£
£

Property
555,922
587,049

Plant and machinery
-
10,152

Motor vehicles
21,108
6,254

498,769
603,455

Depreciation charge for the year ended

2023
2022
£
£

Property
31,127
69,279

Plant and machinery
10,152
48,168

Motor vehicles
8,702
23,043

128,242
140,490


Additions to right-of-use assets

2023
2022
£
£

Additions to right-of-use assets
23,556
743,945

Page 19

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Stocks

2023
2022
£
£

Raw materials and consumables
2,504,524
2,320,949

Finished goods and goods for resale
89,273
97,271

2,593,797
2,418,220




10.


Debtors

2023
2022
£
£


Trade debtors
1,249,534
1,653,898

Amounts owed by group undertakings
3,374,115
294,674

Other debtors
9,613
920,033

Prepayments and accrued income
61,612
62,546

4,694,874
2,931,151


Amounts owed by group undertakings are non-interest bearing and repayable on demand.


11.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
336,486
743,364

336,486
743,364



12.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
543,945
1,315,234

Amounts owed to group undertakings
141,173
379,787

Corporation tax
153,565
233,361

Lease liabilities
367,615
465,892

Accruals and deferred income
404,583
525,455

1,610,881
2,919,729


Amounts owed to group undertakings attract interest at 2.5% per annum and are repayable on demand.

Page 20

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Lease liabilities
128,811
137,563

128,811
137,563



14.


Deferred taxation




2023
2022


£

£






At beginning of year
(10,020)
(35,192)


Utilised in year
(5,611)
25,172



At end of year
(15,631)
(10,020)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(15,631)
(10,020)

(15,631)
(10,020)


15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,004 (2022 - 1,004) Ordinary shares of £1.00 each
1,004
1,004



16.


Post balance sheet events

After the year end, the Company entered into a deed to forgive amounts owed by group undertaking as at 31 December 2023 of £3,177,608. This resulted in a reduction in current assets and retained earnings of £3,177,608.

Page 21

 
MANULI HYDRAULICS UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Controlling party

The ultimate and immediate parent company is Manuli Ryco S.p.A, a company registered in Milan, Italy.This is the parent of the largest and smallest group which prepares consolidated accounts including the company.
Manuli Ryco S.p.A produces group financial statements and copies can be obtained from Via Paleocapa, 7 Milano, 20121 Italy

Page 22