Company registration number 03497831 (England and Wales)
PANKL RACING SYSTEMS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Richard Anthony
Chartered Accountants and Registered Auditors
PANKL RACING SYSTEMS UK LIMITED
COMPANY INFORMATION
Directors
Mr G Sarkoezi
Mr N Passler
Company number
03497831
Registered office
16 Viking Road
Wigston
Leicestershire
LE18 2BL
Auditor
Richard Anthony
Ground Floor Cooper House
316 Regents Park Road
London
United Kingdom
N3 2JX
PANKL RACING SYSTEMS UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
PANKL RACING SYSTEMS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The directors are satisfied with the performance and results for the year.

 

The Directors and Senior Management monitor management information on a regular basis to ensure that they are aware of trends and influences on profitability. They present to the European Group Board the monthly results, and the key performance indicators include turnover, EBIT, operative cash flow and relevant statistical information.

 

The turnover has decreased by 6% compared to the prior year and the gross profit margin has decreased with the prior year at 41.91%.

Principal risks and uncertainties

The economic uncertainty, both globally and more specifically in European jurisdictions, continues to pose a risk in terms of the liquidity risk with clients. The directors manage this risk by managing the debtor book to ensure prompt payments.

 

Any changes in Motor Racing regulations have both direct and indirect effect on the company and indeed the group’s performance.

Development and performance

Due to the nature of the company's activity, the company continues to engage in research and development in connection with the precision engineering activities to ensure the company maintains its competitive position in the marketplace and claims appropriate research and development tax credits.

 

The company has plans to grow the business organically through continuous innovation and development of its products and services. By continuing to broaden, innovate and enhance its products, the directors seek to manage the ongoing development of the business and maintain strong relationships with key clients.

Key performance indicators

The Board at company and group levels continued to use specific key performance indicators to monitor performance and control assets. The performance of the company is monitored both on a stand-alone basis and from a Group perspective in terms of the overall contribution to group profits. The main KPI's used by the Company are orientated around Turnover, Gross Profit and Operating Profit. These are summarised as follows;

 

 

2024

2023

2022

Turnover (£m)

10.51

11.20

8.28

Gross profit margin %

41.91%

46.34%

39.83%

Operating profit margin %

10.49%

18.12%

16.96%

 

 

On behalf of the board

Mr N Passler
Director
29 January 2025
PANKL RACING SYSTEMS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities
The principal activity of the company continued to be that of precision engineers, principally focused on motorsport components.
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £510,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G Sarkoezi
Mr N Passler
Auditor

In accordance with the company's articles, a resolution proposing that Richard Anthony be reappointed as auditor of the company will be put at a General Meeting.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr N Passler
Director
29 January 2025
PANKL RACING SYSTEMS UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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:

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.

PANKL RACING SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PANKL RACING SYSTEMS UK LIMITED
- 4 -
Opinion

We have audited the financial statements of Pankl Racing Systems UK Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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:

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 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.

Other information

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:

PANKL RACING SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PANKL RACING SYSTEMS UK LIMITED (CONTINUED)
- 5 -
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 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:

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.

 

 

 

Risk identified:

 

 

 

Audit response:

 

 

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.

PANKL RACING SYSTEMS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PANKL RACING SYSTEMS UK LIMITED (CONTINUED)
- 6 -

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.

Michael Barnett BA FCA (Senior Statutory Auditor)
For and on behalf of Richard Anthony, Statutory Auditor
Chartered Accountants
Ground Floor Cooper House
316 Regents Park Road
London
United Kingdom
N3 2JX
29 January 2025
PANKL RACING SYSTEMS UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
10,512,519
11,199,620
Cost of sales
(6,078,969)
(6,009,693)
Gross profit
4,433,550
5,189,927
Administrative expenses
(3,415,116)
(3,260,858)
Other operating income
112,109
100,805
Operating profit
4
1,130,543
2,029,874
Interest receivable and similar income
6
13,597
-
0
Interest payable and similar expenses
7
-
0
(1,973)
Profit before taxation
1,144,140
2,027,901
Tax on profit
8
(313,580)
(501,723)
Profit for the financial year
830,560
1,526,178

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PANKL RACING SYSTEMS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
830,560
1,526,178
Other comprehensive income
-
-
Total comprehensive income for the year
830,560
1,526,178
PANKL RACING SYSTEMS UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
191,841
252,423
Tangible assets
11
2,026,829
2,059,679
2,218,670
2,312,102
Current assets
Stocks
12
2,680,499
1,675,217
Debtors
13
1,113,140
1,487,604
Cash at bank and in hand
2,808,799
2,630,213
6,602,438
5,793,034
Creditors: amounts falling due within one year
14
(1,618,782)
(1,299,562)
Net current assets
4,983,656
4,493,472
Total assets less current liabilities
7,202,326
6,805,574
Provisions for liabilities
Deferred tax liability
15
488,920
412,728
(488,920)
(412,728)
Net assets
6,713,406
6,392,846
Capital and reserves
Called up share capital
17
510,000
510,000
Profit and loss reserves
6,203,406
5,882,846
Total equity
6,713,406
6,392,846

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
Mr N Passler
Director
Company registration number 03497831 (England and Wales)
PANKL RACING SYSTEMS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
510,000
5,121,668
5,631,668
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,526,178
1,526,178
Dividends
9
-
(765,000)
(765,000)
Balance at 31 December 2023
510,000
5,882,846
6,392,846
Year ended 31 December 2024:
Profit and total comprehensive income
-
830,560
830,560
Dividends
9
-
(510,000)
(510,000)
Balance at 31 December 2024
510,000
6,203,406
6,713,406
PANKL RACING SYSTEMS UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,160,792
1,794,641
Interest paid
-
0
(1,973)
Income taxes paid
(100,722)
(228,384)
Net cash inflow from operating activities
1,060,070
1,564,284
Investing activities
Purchase of tangible fixed assets
(385,081)
(1,368,517)
Interest received
13,597
-
0
Net cash used in investing activities
(371,484)
(1,368,517)
Financing activities
Dividends paid
(510,000)
(765,000)
Net cash used in financing activities
(510,000)
(765,000)
Net increase/(decrease) in cash and cash equivalents
178,586
(569,233)
Cash and cash equivalents at beginning of year
2,630,213
3,199,446
Cash and cash equivalents at end of year
2,808,799
2,630,213
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Pankl Racing Systems UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Viking Road, Wigston, Leicestershire, LE18 2BL.

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, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life (20 years).

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
20% on cost
Plant and machinery
10%-33% on cost
Fixtures, fittings & equipment
25%-33% on cost

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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

1.9
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.

PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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.

Deferred tax
The accounting policy in respect of deferred tax has been changed to reflect the requirements of FRS19 - Deferred tax. Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.14
Leases
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sales
10,512,519
11,199,620
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,191,245
5,339,611
Other
6,321,274
5,860,009
10,512,519
11,199,620
2024
2023
£
£
Other revenue
Interest income
13,597
-
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
64,472
63,130
Fees payable to the company's auditor for the audit of the company's financial statements
28,172
31,610
Depreciation of owned tangible fixed assets
417,931
275,521
Amortisation of intangible assets
60,582
60,581
Operating lease charges
233,281
227,763
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration staff
17
15
Direct labour
42
38
Total
59
53

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,640,171
2,281,110
Social security costs
289,724
245,777
Pension costs
70,967
60,055
3,000,862
2,586,942
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
13,597
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
13,597
-
0
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
-
0
1,973
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
308,464
305,798
Adjustments in respect of prior periods
(71,076)
(59,399)
Total current tax
237,388
246,399
Deferred tax
Origination and reversal of timing differences
76,192
255,324
Total tax charge
313,580
501,723

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,144,140
2,027,901
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
286,035
506,975
Tax effect of expenses that are not deductible in determining taxable profit
3,945
68,840
Adjustments in respect of prior years
(71,076)
(59,400)
Effect of change in corporation tax rate
-
0
(62,900)
Permanent capital allowances in excess of depreciation
18,484
(207,116)
Deferred tax movement for the year
76,192
255,324
Taxation charge for the year
313,580
501,723
9
Dividends
2024
2023
£
£
Interim paid
510,000
765,000
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,223,950
Amortisation and impairment
At 1 January 2024
971,527
Amortisation charged for the year
60,582
At 31 December 2024
1,032,109
Carrying amount
At 31 December 2024
191,841
At 31 December 2023
252,423

More information on impairment movements in the year is given in note .

11
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2024
302,740
4,610,926
239,156
5,152,822
Additions
12,006
334,419
38,656
385,081
Disposals
-
0
(21,500)
-
0
(21,500)
At 31 December 2024
314,746
4,923,845
277,812
5,516,403
Depreciation and impairment
At 1 January 2024
265,567
2,609,293
218,283
3,093,143
Depreciation charged in the year
19,826
381,090
17,015
417,931
Eliminated in respect of disposals
-
0
(21,500)
-
0
(21,500)
At 31 December 2024
285,393
2,968,883
235,298
3,489,574
Carrying amount
At 31 December 2024
29,353
1,954,962
42,514
2,026,829
At 31 December 2023
37,173
2,001,633
20,873
2,059,679
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
12
Stocks
2024
2023
£
£
Raw materials and consumables
1,968,345
1,137,594
Work in progress
583,343
458,855
Finished goods and goods for resale
128,811
78,768
2,680,499
1,675,217
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
819,536
1,227,416
Corporation tax recoverable
-
0
36,203
Amounts owed by group undertakings
219,850
28,536
Other debtors
41,471
177,306
Prepayments and accrued income
32,283
18,143
1,113,140
1,487,604
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
784,400
561,448
Amounts owed to group undertakings
132,954
68,493
Corporation tax
100,463
-
0
Other taxation and social security
102,386
130,521
Other creditors
33,438
7,587
Accruals and deferred income
465,141
531,513
1,618,782
1,299,562
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated Capital Allowances
488,920
412,728
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Liability at 1 January 2024
412,728
Charge to profit or loss
76,192
Liability at 31 December 2024
488,920
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,967
60,055

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
510,000
510,000
510,000
510,000
18
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company in respect of the two properties it operates from with lease terms ranging from 5 years each for two properties (renewed in 2023). Additionally it represents the rentals payable by the company in respect of motor vehicles and other equipment.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
167,569
165,940
Between two and five years
255,762
424,630
423,331
590,570
19
Related party transactions

The following amounts were outstanding at the reporting end date:

PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Related party transactions
(Continued)
- 22 -

As at the balance sheet date, the following amounts were owed by group undertakings:

 

CP-Carrillo, Inc                    £30,316        2023 - £ 20,207

KTM AG                    £12,512        2023 - £ 10,688

Pankl Automotive Slovakia S.R.O            £24,505        2023 - £ Nil

Pankl Systems Austria GMBH PESYS (Leicester)    £137,029    2023 - £ 41,686

Pankl Systems Austria GMBH PDSYS (Leicester)     £15,487    2023 - £ 14,862

 

 

The following balances were owed to group undertakings:

 

CP-Carrillo, Inc                    £2,394        2023 - £2,959

Pankl Racing Systems (Leicester)            £130,560    2023 - £124,990

 

 

20
Ultimate controlling party

The company is a wholly owned subsidiary of Pankl Racing Systems AG, a company incorporated in Austria.

 

Pankl Racing Systems AG prepares group financial statements and copies can be obtained from Industriestraße West 4 8605 Kapfenberg Austria .

 

Largest group
Pankl
Racing Systems AG
Smallest group
Pankl
Racing Systems AG
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
830,560
1,526,178
Adjustments for:
Taxation charged
313,580
501,723
Finance costs
-
0
1,973
Investment income
(13,597)
-
0
Amortisation and impairment of intangible assets
60,582
60,581
Depreciation and impairment of tangible fixed assets
417,931
275,521
Movements in working capital:
Increase in stocks
(1,005,282)
(91,221)
Decrease/(increase) in debtors
338,261
(554,006)
Increase in creditors
218,757
73,892
Cash generated from operations
1,160,792
1,794,641
PANKL RACING SYSTEMS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
2,630,213
178,586
2,808,799
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