Company registration number 01579088 (England and Wales)
CDD AUTOMATION SOLUTIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CDD AUTOMATION SOLUTIONS LTD
COMPANY INFORMATION
Directors
Mr C Cabello
Mr P Silverman
Mr A Smart
Mr S Vallette
Company number
01579088
Registered office
3 Summit Park
Cygnet Road
Hampton
Peterborough
United Kingdom
PE7 8FD
Auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
Bankers
HSBC Bank plc
Canada Place
Canary Wharf
London
United Kingdom
E14 5AH
CDD AUTOMATION SOLUTIONS LTD
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 - 25
CDD AUTOMATION SOLUTIONS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Business review

2024 again proved to be a good year for CDD although not without its challenges. The year saw continuation of geopolitical turmoil in various regions including a new government in the UK and electoral results in the US having potential to impact in 2025. We were able to navigate the various situations during 2024 as they arose without detrimental impact to the business. The biggest topics affecting the industry at large continue to be the impact of inflation on costs and the difficulty of recruiting qualified labour with the appropriate technical skills.

 

Demand for the services we provide, mostly for application in the food industry, remains strong. The order book is healthy and the pipeline of prospects for 2025 remains constant, with a mix of international and domestic projects being considered. Most domestic projects are in England, and the international ones are mainly a mix of projects in Europe, the Middle East and Africa.

 

The business development has been positive during the year and although we experienced a slight softening of order intake, it fell within the sales strategy of focusing on quality projects rather than volume and ended within 4% of budget. The order pipeline remains very strong with a blend of short-term and long-term projects, allowing sufficient space to take on additional work throughout the year. Operating profit has improved again for the third year in a row.

 

The company concentrates on providing high quality products and services to customers whilst developing and maintaining strong customer relationships. Procedures and systems are continuously monitored in order to improve customer relationships, the sales process, project handling and financial management. Internal systems are regularly upgraded to improve both efficiency and internal reporting.

 

Principal risks and uncertainties

The company operates in a competitive and changing market with the associated commercial risks. Continuous action is taken both to maintain product quality and strong customer relationships to minimise these risks.

 

In addition to the financial risks associated with carrying out fixed price project work, the only other specific financial risk is occasional exposure to fluctuating foreign currency exchange rates. While most contracts are in GBP, foreign exchange contracts are used to mitigate this risk and obtain known values for those few projects sold in foreign currencies.

 

Future developments and research and development

CDD are confident that the company’s activities will be maintained during 2025. Priorities for the year include added recruitment in several disciplines and in entrenching the strategic management re-structure instituted in 2022. No significant problems are anticipated in obtaining sufficient orders to ensure the company remains fully viable.

 

CDD continues to work on developing our employees in both technical and soft skills and to further empower individual leadership skills. In addition, an increased focus with our system platform partners has led to technical innovations on several fronts and allow us to incorporate and offer new technologies.

 

The directors remain confident that the company can remain profitable for the foreseeable future.

 

On behalf of the board

Mr S Vallette
Director
13 January 2025
CDD AUTOMATION SOLUTIONS LTD
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 activities of the company continued to be those of control system designers and manufacturers for industrial applications.
Results and dividends

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

The directors recommend that a final dividend of £1,100,000 should be paid in respect of 2024.

Directors

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

Mr C Cabello
Mr P Silverman
Mr A Smart
Mr S Vallette

There are no director's interests in any of the group companies that require disclosure under the Companies Act 2006.

Research and development

Control system software and hardware is in a permanent state of development. In order to maintain a high level of competence with the various packages and systems which are used a considerable amount of employee training is undertaken at all times. This includes both external training with the package providers and internal courses to ensure full dissemination of knowledge.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services 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.

On behalf of the board
Mr S Vallette
Director
13 January 2025
CDD AUTOMATION SOLUTIONS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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 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.

CDD AUTOMATION SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CDD AUTOMATION SOLUTIONS LTD
- 4 -
Opinion

We have audited the financial statements of CDD Automation Solutions Ltd (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:

CDD AUTOMATION SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CDD AUTOMATION SOLUTIONS LTD
- 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.

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.

CDD AUTOMATION SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CDD AUTOMATION SOLUTIONS LTD
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  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.

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.

Tracey Richardson BSc (Hons) FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
13 January 2025
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
CDD AUTOMATION SOLUTIONS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
8,690,358
8,550,947
Cost of sales
(6,076,334)
(6,224,011)
Gross profit
2,614,024
2,326,936
Administrative expenses
(1,238,268)
(1,173,237)
Other operating income
17
1,704
Operating profit
4
1,375,773
1,155,403
Interest receivable and similar income
7
196,337
149,431
Interest payable and similar expenses
8
(15,215)
(1,104)
Profit before taxation
1,556,895
1,303,730
Tax on profit
9
(394,974)
(309,424)
Profit for the financial year
1,161,921
994,306

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

CDD AUTOMATION SOLUTIONS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
1,161,921
994,306
Other comprehensive income
-
-
Total comprehensive income for the year
1,161,921
994,306
CDD AUTOMATION SOLUTIONS LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
546,441
561,784
Current assets
Stocks
14
23,336
41,050
Debtors
15
4,211,941
3,684,562
Cash at bank and in hand
4,989,498
4,265,747
9,224,775
7,991,359
Creditors: amounts falling due within one year
16
(6,799,154)
(5,857,265)
Net current assets
2,425,621
2,134,094
Total assets less current liabilities
2,972,062
2,695,878
Provisions for liabilities
Deferred tax liability
17
26,959
12,696
(26,959)
(12,696)
Net assets
2,945,103
2,683,182
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
2,945,003
2,683,082
Total equity
2,945,103
2,683,182
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:
Mr A Smart
Mr S Vallette
Director
Director
Company Registration No. 01579088
CDD AUTOMATION SOLUTIONS LTD
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
100
2,338,776
2,338,876
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
994,306
994,306
Dividends
10
-
(650,000)
(650,000)
Balance at 31 December 2023
100
2,683,082
2,683,182
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
1,161,921
1,161,921
Dividends
10
-
(900,000)
(900,000)
Balance at 31 December 2024
100
2,945,003
2,945,103
CDD AUTOMATION SOLUTIONS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,836,870
2,865,409
Interest paid
(15,215)
(1,104)
Income taxes paid
(337,990)
(224,577)
Net cash inflow from operating activities
1,483,665
2,639,728
Investing activities
Purchase of tangible fixed assets
(61,962)
(36,145)
Proceeds from disposal of tangible fixed assets
5,711
167
Interest received
196,337
149,431
Net cash generated from investing activities
140,086
113,453
Financing activities
Dividends paid
(900,000)
(650,000)
Net cash used in financing activities
(900,000)
(650,000)
Net increase in cash and cash equivalents
723,751
2,103,181
Cash and cash equivalents at beginning of year
4,265,747
2,162,566
Cash and cash equivalents at end of year
4,989,498
4,265,747
CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

CDD Automation Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3 Summit Park, Cygnet Road, Hampton, Peterborough, United Kingdom, PE7 8FD.

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 represents amounts receivable for goods and services net of VAT and trade discounts.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
25% p.a. on a straight line basis
1.5
Tangible fixed assets

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

CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

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

Leasehold improvements
Over 15 years on a straight line basis
Fixtures, fittings & equipment
15% p.a. and 25% p.a. on a straight line basis
Motor vehicles
25% p.a. on a straight line basis

Freehold land is not depreciated.

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.

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 net realisable value. 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.

 

Raw materials, consumables, and goods for resale - purchase cost on a first in, first out basis.

 

Work in progress and finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity.

 

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

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.

CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.

Fair value measurement of financial instruments

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.

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.

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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

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.

CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
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
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exception:

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.15
Leases

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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting estimates and judgements

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
Revenue recognition

Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated at the proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Where progress payments exceed recognised turnover and costs not written off, the excess is disclosed in creditors. Where turnover recognised exceeds progress payments, a debtor, amounts recoverable on long term contracts, is shown. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Control system design and manufacture
8,690,358
8,550,947
2024
2023
£
£
Other significant revenue
Interest income
196,337
149,431
CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,403,637
3,478,482
Rest of Europe
1,844,631
2,891,871
Rest of the World
1,442,090
2,180,594
8,690,358
8,550,947

Turnover represents amounts invoiced to customers, except in respect of contracting activities where turnover represents the value of work carried out during the year including amounts not invoiced. Turnover, which is stated net of value added tax, is attributable to one continuing activity.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
3,820
6,835
Fees payable to the company's auditor for the audit of the company's financial statements
10,804
9,690
Depreciation of owned tangible fixed assets
77,305
103,383
Profit on disposal of tangible fixed assets
(5,711)
(167)
Operating lease charges
57,851
56,459
5
Employees

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

2024
2023
Number
Number
Production staff
33
33
Administrative staff
4
4
Management
2
2
Total
39
39

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,733,428
2,455,345
Social security costs
249,707
222,177
Pension costs
284,824
266,321
3,267,959
2,943,843
CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
330,530
309,442
Company pension contributions to defined contribution schemes
49,223
47,514
379,753
356,956

Of the four directors, 2 (2023 - 2) have retirement benefits accruing under defined contribution schemes.

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
179,516
172,217
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
196,337
149,431
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
196,337
149,431
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
15,215
1,104
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
380,711
309,836
Deferred tax
Origination and reversal of timing differences
14,263
(412)
Total tax charge
394,974
309,424
CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 20 -

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
1,556,895
1,303,730
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
389,224
325,933
Tax effect of expenses that are not deductible in determining taxable profit
311
408
Effect of change in corporation tax rate
-
0
(19,020)
Permanent capital allowances in excess of depreciation
-
0
(412)
Depreciation on assets not qualifying for tax allowances
2,557
2,557
Deferred tax adjustments in respect of prior years
4,310
-
0
Profit on disposal of fixed assets
(1,428)
(42)
Taxation charge for the year
394,974
309,424
10
Dividends
2024
2023
£
£
Declared and paid in the year
900,000
650,000
900,000
650,000
11
Intangible fixed assets
Software
£
Cost
At 1 January 2024 and 31 December 2024
27,840
Amortisation and impairment
At 1 January 2024 and 31 December 2024
27,840
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
671,303
312,875
74,299
1,058,477
Additions
-
0
31,773
30,189
61,962
Disposals
-
0
-
0
(27,972)
(27,972)
At 31 December 2024
671,303
344,648
76,516
1,092,467
Depreciation and impairment
At 1 January 2024
171,572
276,741
48,380
496,693
Depreciation charged in the year
43,789
23,025
10,491
77,305
Eliminated in respect of disposals
-
0
-
0
(27,972)
(27,972)
At 31 December 2024
215,361
299,766
30,899
546,026
Carrying amount
At 31 December 2024
455,942
44,882
45,617
546,441
At 31 December 2023
499,731
36,134
25,919
561,784
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Trade debtors
2,665,961
2,802,097
Amounts due from fellow group undertakings
1,311,732
73,573
Bank and cash
4,989,162
4,265,411
Measured at cost
8,966,855
7,141,081
Carrying amount of financial liabilities
Trade creditors
67,184
179,905
Amounts due to fellow group undertakings
28,578
57,665
Accruals
723,524
647,442
Payments received on account
5,158,268
4,254,364
Measured at cost
5,977,554
5,139,376
14
Stocks
2024
2023
£
£
Work in progress
272,170
423,072
Consumables
19,762
16,258
Payments received on account
(268,596)
(398,280)
23,336
41,050
CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,665,961
2,802,097
Gross amounts owed by contract customers
137,328
709,345
Amounts owed by group undertakings
1,311,732
73,573
Prepayments
96,920
99,547
4,211,941
3,684,562
16
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
5,158,268
4,254,364
Trade creditors
67,184
179,905
Amounts due to fellow group undertakings
28,578
57,665
Corporation tax
135,415
92,694
Other taxation and social security
447,878
236,041
Foreseeable losses on contracts
238,307
389,154
Accruals
723,524
647,442
6,799,154
5,857,265
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
26,959
12,696
2024
Movements in the year:
£
Liability at 1 January 2024
12,696
Charge to profit or loss
14,263
Liability at 31 December 2024
26,959

The deferred tax liability set out above is expected to reverse in the future and relates to accelerated capital allowances that are expected to mature within the same period.

CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
284,824
266,321

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.

19
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
20
Operating lease commitments
Lessee

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
195,993
195,088
Between two and five years
446,285
55,982
642,278
251,070
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel (including employer pension contributions) is as follows.

2024
2023
£
£
Aggregate compensation
379,753
356,956
CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Related party transactions
(Continued)
- 24 -
Transactions with group companies

The company entered into the following transactions with group companies:

Year 2024:
Sales
Purchases
Due From
Due To
£
£
£
£
Buhler AG Switzerland
1,214,605
164,486
60,580
28,578
Buhler UK Ltd
1,262,209
31,967
1,251,152
-
Haas-Meincke A/S
121,390
2,598,204
196,453
1,311,732
28,578
Year 2023:
Sales
Purchases
Due From
Due To
£
£
£
£
Buhler AG Switzerland
51,839
147,103
581
27,827
Buhler UK Ltd
606,891
67,483
72,992
29,838
Buhler Inc., Minneapolis, USA
21,207
-
-
-
Buhler Johannesburg
15,615
-
-
-
695,552
214,586
73,573
57,665
The above companies are all subsidiaries of Buhler Holding AG, a company incorporated in Switzerland, of which CDD Automation Solutions Ltd is also a subsidiary.
22
Events after the reporting date

The board has approved a final dividend in respect of the year ended 31 December 2024 amounting to £1,100,000 (2023 - £900,000).

23
Ultimate controlling party

The company's immediate parent undertaking is Buhler UK Holdings Limited, a company registered in England and Wales.

 

In the directors' opinion the company's ultimate parent company and controlling party is Buhler Holding AG, which is incorporated in Switzerland. These financial statements are consolidated in the financial statements of Buhler Holding AG. The financial statements of Buhler Holding AG may be obtained from CH - 9240, Uzwil, Switzerland.

 

Buhler Holding AG is controlled by the Buhler family who own 100% of the voting rights.

CDD AUTOMATION SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,161,921
994,306
Adjustments for:
Taxation charged
394,974
309,424
Finance costs
15,215
1,104
Investment income
(196,337)
(149,431)
Gain on disposal of tangible fixed assets
(5,711)
(167)
Depreciation and impairment of tangible fixed assets
77,305
103,383
Movements in working capital:
Decrease/(increase) in stocks
17,714
(18,423)
(Increase)/decrease in debtors
(527,379)
1,069,225
Increase in creditors
899,168
555,988
Cash generated from operations
1,836,870
2,865,409
25
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,265,747
723,751
4,989,498
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