Company registration number 00440706 (England and Wales)
GENERAC GLOBAL UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GENERAC GLOBAL UK LIMITED
COMPANY INFORMATION
DIRECTORS
York Ragen
Aaron Jagdfeld
SECRETARY
York Ragen
COMPANY NUMBER
00440706
REGISTERED OFFICE
The Energy Innovation Centre Units 3+4
Stepnell Park , Lawford Road
RUGBY
Warwickshire
CV21 2UX
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
GENERAC GLOBAL UK LIMITED
CONTENTS
Page
Directors' report
2 - 3
Independent auditor's report
4 - 8
Profit and loss account
9
Balance sheet
10 - 11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
GENERAC GLOBAL UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
PRINCIPAL ACTIVITIES
The principal activity of the company continued to be that of 31 December 2023.
REVIEW OF THE BUSINESS
The company's activity is that of property rental and investments, The loss for the year after taxation amounted to £471k (2022: profit £144k).
During the year, company further invested in subsidiary undertakings by £24.9m.
PRINCIPAL RISKS AND UNCERTAINTIES
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Primarily this is achieved through inter-company accounts and bank overdraft facilities.
York Ragen
DIRECTOR
13 January 2025
GENERAC GLOBAL UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
DIRECTORS
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
York Ragen
Aaron Jagdfeld
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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.
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 OF DISCLOSURE TO AUDITOR
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
SMALL COMPANIES EXEMPTION
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
GENERAC GLOBAL UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
York Ragen
DIRECTOR
13 January 2025
GENERAC GLOBAL UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERAC GLOBAL UK LIMITED
- 4 -
Opinion
We have audited the financial statements of Generac Global UK Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 loss 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.
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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
GENERAC GLOBAL UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERAC GLOBAL UK LIMITED (CONTINUED)
- 5 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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 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' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
GENERAC GLOBAL UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERAC GLOBAL UK LIMITED (CONTINUED)
- 6 -
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Auditor's 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 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
GENERAC GLOBAL UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERAC GLOBAL UK LIMITED (CONTINUED)
- 7 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The auditor’s explanation of its audit response will depend on the risks identified but may include:
- Enquiry of management, those charged with governance around actual and potential litigation and claims.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
GENERAC GLOBAL UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENERAC GLOBAL UK LIMITED (CONTINUED)
- 8 -
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.
Simon Tee
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
14 January 2025
GENERAC GLOBAL UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£ '000
£ '000
TURNOVER
3
223
233
Administrative expenses
(25)
(34)
OPERATING PROFIT
198
199
Interest receivable and similar income
1
1
Amounts written off investments
4
(831)
-
(LOSS)/PROFIT BEFORE TAXATION
(632)
200
Tax on (loss)/profit
5
161
(56)
(LOSS)/PROFIT FOR THE FINANCIAL YEAR
(471)
144
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GENERAC GLOBAL UK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£ '000
£ '000
FIXED ASSETS
Investment property
6
2,380
3,211
Investments
7
131,758
106,853
134,138
110,064
CURRENT ASSETS
Debtors
9
764
578
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
10
(67)
(33)
NET CURRENT ASSETS
697
545
TOTAL ASSETS LESS CURRENT LIABILITIES
134,835
110,609
PROVISIONS FOR LIABILITIES
Deferred tax liability
11
(127)
(335)
NET ASSETS
134,708
110,274
CAPITAL AND RESERVES
Called up share capital
12
3,889
3,889
Share premium account
13
62
62
Capital redemption reserve
14
3
3
Capital contribution reserve
15
128,277
103,372
Profit and loss reserves
2,477
2,948
TOTAL EQUITY
134,708
110,274
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
GENERAC GLOBAL UK LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 13 January 2025 and are signed on its behalf by:
York Ragen
Director
Company registration number 00440706 (England and Wales)
GENERAC GLOBAL UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Capital contribution reserve
Profit and loss reserves
Total
£ '000
£ '000
£ '000
£ '000
£ '000
£ '000
BALANCE AT 1 JANUARY 2022
3,889
62
3
92,859
2,804
99,617
YEAR ENDED 31 DECEMBER 2022:
Profit and total comprehensive income
-
-
-
-
144
144
Transfers
-
-
-
10,513
10,513
BALANCE AT 31 DECEMBER 2022
3,889
62
3
103,372
2,948
110,274
YEAR ENDED 31 DECEMBER 2023:
Loss and total comprehensive income
-
-
-
-
(471)
(471)
Transfers
-
-
-
24,905
24,905
BALANCE AT 31 DECEMBER 2023
3,889
62
3
128,277
2,477
134,708
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
ACCOUNTING POLICIES
Company information
Generac Global UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Energy Innovation Centre Units 3+4, Stepnell Park , Lawford Road, RUGBY, Warwickshire, CV21 2UX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, and the functional currency of the company is Euro. Monetary amounts in these financial statements are rounded to the nearest £ '000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Generac Global UK Limited is a wholly owned subsidiary of Generac Holdings Inc. and the results of Generac Global UK Limited are included in the consolidated financial statements of Generac Holdings Inc. which are available from S45 W29290 Highway 59 Waukesha,WI 53189 USA.
Entity has taken advantage of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
- Disclosures in respect of each class of share capital have not been presented.
- No cash flow statement has been presented for the company
- Disclosures in respect of financial instruments have not been presented
- No disclosure has been give for the aggregate remuneration of key management personnel.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 14 -
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 15 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Impairment of non-financial assets
Investments in subsidiaries are carried at cost less impairment, In assessing impairment the company uses a value in use model which is based on a discounted cash flow model, which is sensitive to assumptions made and discount rate used. The company assesses at each reporting date whether an asset may be impaired.
3
TURNOVER AND OTHER REVENUE
2023
2022
£ '000
£ '000
Turnover analysed by class of business
Rental income
223
233
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
TURNOVER AND OTHER REVENUE
(Continued)
- 17 -
2023
2022
£ '000
£ '000
Other revenue
Interest income
1
1
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in Germany.
4
AMOUNTS WRITTEN OFF INVESTMENTS
2023
2022
£ '000
£ '000
Changes in the fair value of investment properties
(831)
-
5
TAXATION
2023
2022
£ '000
£ '000
Current tax
UK corporation tax on profits for the current period
47
69
Deferred tax
Origination and reversal of timing differences
(208)
(13)
Total tax (credit)/charge
(161)
56
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
TAXATION
(Continued)
- 18 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£ '000
£ '000
(Loss)/profit before taxation
(632)
200
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(158)
38
Adjustments in respect of prior years
5
Effect of change in corporation tax rate
(3)
Other non-reversing timing differences
13
Taxation (credit)/charge for the year
(161)
56
6
INVESTMENT PROPERTY
2023
£ '000
Fair value
At 1 January 2023 and 31 December 2023
2,380
The investment property has previously been valued independently by Dr. Jürgen Meissner based in Germany. The valuation was completed on 12 December 2024. The investment property has been devalued by £831k to reflect the market value.
7
FIXED ASSET INVESTMENTS
2023
2022
Notes
£ '000
£ '000
Investments in subsidiaries
8
131,758
106,853
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
FIXED ASSET INVESTMENTS
(Continued)
- 19 -
MOVEMENTS IN FIXED ASSET INVESTMENTS
Shares in subsidiaries
£ '000
Cost or valuation
At 1 January 2023
106,853
Additions
24,905
At 31 December 2023
131,758
Carrying amount
At 31 December 2023
131,758
At 31 December 2022
106,853
During the year, a restructuring exercise took place between some of the subsidiaries in the Latin American reporting unit. The cost of investment for these subsidiaries included in fixed asset investments does not reflect these changes. However, the overall cost at the Latin American reporting unit has not been impaired.
8
SUBSIDIARIES
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Generac Mexico Administracion S.A. de C.V.
Mexico
100% Ordinary shares
100.00
Generac Mexico, S.A. de C.V.
Mexico
100% Ordinary shares
100.00
Generac do Brazil Ltda
Brazil
100% Ordinary shares
100.00
Motortech GmBH
Germany
100% Ordinary shares
100.00
Motortech Polska Sp. Z.o.o.
Poland
100% Ordinary shares
100.00
Motortech Shanghai Co. Ltd
China
100% Ordinary shares
100.00
Suzhou Generac Power Systems Co. Ltd
China
100% Ordinary shares
100.00
Generac Colombia S.A.S.
Colombia
100% Ordinary shares
100.00
Generac Hidalgo, S.A. de C.V.
Mexico
100% Ordinary shares
100.00
Ottomotores Nominees Limited
England & Wales
100% Ordinary shares
100.00
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
SUBSIDIARIES
(Continued)
- 20 -
The group has conducted impairment reviews at 31 October 2023 on the reporting units of the Generac Group.
9
DEBTORS
2023
2022
Amounts falling due within one year:
£ '000
£ '000
Trade debtors
1
45
Amounts owed by group undertakings
761
531
Other debtors
2
2
764
578
10
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
2022
£ '000
£ '000
Corporation tax
63
32
Other taxation and social security
1
1
Accruals and deferred income
3
67
33
11
DEFERRED TAXATION
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£ '000
£ '000
Investment property
127
335
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
DEFERRED TAXATION
(Continued)
- 21 -
2023
Movements in the year:
£ '000
Liability at 1 January 2023
335
Credit to profit or loss
(208)
Liability at 31 December 2023
127
12
SHARE CAPITAL
2023
2022
2023
2022
Ordinary share capital
Number
Number
£ '000
£ '000
Issued and fully paid
Ordinary shares of £1 each
3,888,951
3,888,951
3,889
3,889
13
SHARE PREMIUM ACCOUNT
This reserve records the amount above the nominal value received for shares sold, less transaction costs.
14
CAPITAL REDEMPTION RESERVE
This reserve records the nominal value of shares repurchased by the company.
15
CAPITAL CONTRIBUTION RESERVE
This reserve records the value received in relation to capital contributions received from the parent entity.
16
RELATED PARTY TRANSACTIONS
The company did not participate in any related party transactions during the period of accounts.
GENERAC GLOBAL UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
CONTROLLING PARTY
Generac Holdings UK Limited of the company's controlling party by virtue of its 100 percent interest in the company. The largest and the smallest group in which the results of the company are consolidated is that headed by Generac Holdings Inc., which is registered in United States.
Copies of Generac Holdings Inc. financial statements can be obtained from the company's principal place of business at S45 W29290 Highway 59 Waukesha, WI 53189 USA.
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