Company registration number 07300327 (England and Wales)
BOWE SYSTEC LTD.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
BOWE SYSTEC LTD.
COMPANY INFORMATION
Directors
Mr J A Koschier
Mr C A Bowers
Mr A Wain
Secretary
Cargill Management Services Limited
Company number
07300327
Registered office
Unit 10 Empire Business Park
Parcel Terrace
Derby
DE1 1LY
Auditor
Eacotts International Limited
Grenville Court
Britwell Road
Burnham
Buckinghamshire
SL1 8DF
BOWE SYSTEC LTD.
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 24
BOWE SYSTEC LTD.
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

1. Business Review

 

The company’s revenue for 2024 was £10,223,961, reflecting a strategic shift towards higher-margin products and services, compared to £11,062,382 in 2023. While revenue declined slightly, the gross profit margin increased to 25.50% from 15.25%, indicating enhanced cost control and operational efficiencies.

The financial turnaround was driven by streamlined operations, disciplined cost management, and focused revenue optimisation strategies. Key achievements include:

The company continued to prioritise its core business areas without major changes in its operational structure.

 

2. Financial Key Performance Indicators (KPIs)

 

Key performance indicators (KPIs) used to assess business performance include:

KPI

2024

2023

Change

Turnover

£10,223,961

£11,062,382

-7.6%

Gross Profit Margin

25.50%

15.25%

+10.25%

Operating Profit

£564,623

£202,154

+179%

Net Profit

£426,300

£637,961

-33.2%

Cash at Bank

£1,804,342

£1,564,502

+15.3%

Key observations:

BOWE SYSTEC LTD.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
3. Principal Risks and Uncertainties

 

The directors actively monitor risks affecting the company’s operations. Key risks include:

3.1 Market and Economic Risks

3.2 Credit and Liquidity Risks

3.3 Operational Risks

3.4 Regulatory and Compliance Risks

4. Strategic Priorities for 2025

 

To maintain financial growth and operational efficiency, Bowe Systec Ltd. has set the following objectives:

4.1 Revenue Growth

4.2 Operational Excellence

4.3 Sustainability Initiatives

4.4 Financial Stability

4.5 Risk Management

BOWE SYSTEC LTD.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
5. Conclusion

 

Bowe Systec Ltd. achieved a strong financial recovery in 2024, driven by cost efficiencies, revenue optimisation, and strategic planning. Despite market challenges, the company has maintained profitability, improved operational efficiency, and strengthened financial resilience.

With clear strategic goals for 2025, Bowe Systec Ltd. is well-positioned for sustainable growth and long-term success.

On behalf of the board

Mr C A Bowers
Mr A Wain
Director
Director
12 February 2025
12 February 2025
BOWE SYSTEC LTD.
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Results and dividends

The results for the year are set out on page 9 and shows the profit for the year before tax of £563,604 (2023: £202,059 ).

No ordinary dividends were paid. 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 J A Koschier
Mr C A Bowers
Mr A Wain
Qualifying indemnity provisions

The company maintains directors' and officers' liability insurance which gives appropriate cover for any legal action brought against its directors.

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 C A Bowers
Mr A Wain
Director
Director
12 February 2025
BOWE SYSTEC LTD.
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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.

BOWE SYSTEC LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BOWE SYSTEC LTD.
- 6 -
Opinion

We have audited the financial statements of Bowe Systec 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 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.

Emphasis of matter

We draw to the attention of users of these Financial Statements note 22 as it is important to a full understanding thereof. Our opinion is not modified in this respect.

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:

BOWE SYSTEC LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BOWE SYSTEC LTD. (CONTINUED)
- 7 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK Tax Legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:

BOWE SYSTEC LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BOWE SYSTEC LTD. (CONTINUED)
- 8 -

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

There are inherent limitations in the audit procedures described above and the further 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.

Mr Jeffrey Smith
Senior Statutory Auditor
For and on behalf of Eacotts International Limited
13 February 2025
Accountants
ICAEW Registered Auditors
Grenville Court
Britwell Road
Burnham
Buckinghamshire
SL1 8DF
BOWE SYSTEC LTD.
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
10,223,961
11,062,382
Cost of sales
(7,616,850)
(9,375,236)
Gross profit
2,607,111
1,687,146
Distribution costs
-
0
(71,689)
Administrative expenses
(2,103,166)
(1,523,489)
Other operating income
60,678
110,186
Operating profit
5
564,623
202,154
Interest receivable and similar income
7
-
0
43
Interest payable and similar expenses
9
(1,019)
(138)
Profit before taxation
563,604
202,059
Tax on profit
10
(137,304)
435,902
Profit for the financial year
426,300
637,961

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

BOWE SYSTEC LTD.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
426,300
637,961
Other comprehensive income
-
-
Total comprehensive income for the year
426,300
637,961
BOWE SYSTEC LTD.
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
17,933
277,904
Investments
12
89,000
89,000
106,933
366,904
Current assets
Stocks
14
1,746,579
1,118,930
Debtors
15
1,697,638
5,604,567
Cash at bank and in hand
1,804,342
1,564,502
5,248,559
8,287,999
Creditors: amounts falling due within one year
16
(5,023,292)
(8,749,003)
Net current assets/(liabilities)
225,267
(461,004)
Net assets/(liabilities)
332,200
(94,100)
Capital and reserves
Called up share capital
19
1
1
Capital redemption reserve
890,000
890,000
Profit and loss reserves
(557,801)
(984,101)
Total equity
332,200
(94,100)
The financial statements were approved by the board of directors and authorised for issue on 12 February 2025 and are signed on its behalf by:
Mr C A Bowers
Mr A Wain
Director
Director
Company registration number 07300327 (England and Wales)
BOWE SYSTEC LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
1
890,000
(1,622,062)
(732,061)
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
637,961
637,961
Balance at 31 December 2023
1
890,000
(984,101)
(94,100)
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
426,300
426,300
Balance at 31 December 2024
1
890,000
(557,801)
332,200
BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Bowe Systec Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10 Empire Business Park, Parcel Terrace, Derby, DE1 1LY.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of L Possehi & Co. GmbH, a company registered in Germany, which are publicly available.

The company has taken advantage of the exemption under section 401 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.

 

Bowe Systec Ltd. is a wholly owned subsidiary of Bowe Systec GmbH and the results of Bowe Systec Ltd. are included in the consolidated financial statements of Bowe Systec GmbH, a company registered in Germany, which are publically available.

BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.2
Going concern

In consideration of the current operating environment and on review of financial forecasts and projections, the Directors have prepared the financial statements on a going concern basis as the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The company recorded a profittrue after taxation of £426,300 (2023 £637,961), has net current liabilities of £225,267 (2023 £461,004), including cash of £1,804,342 (2023 - £1,564,502) and net assets of £332,200 (2023 £94,100) at the balance sheet date of 31 December 2024. The company has access to group funding should this be required, and at the balance sheet date has an intercompany trading current liability with its immediate parent of £3,191,647 (2023 - £3,841,742).

 

Management have prepared a budget 31 December 2025 taking into account the current and expected operating environment. This also includes consideration of the sensitivity of forecasts and expected performance and cash flows of the company under less favourable conditions and a reverse stress test. Given committed contracts and cash flows, the company does not expect additional financial support is required and the business has sufficient working capital (which includes existing banking facilities) to achieve its plans to recover from the impact of the pandemic. The Directors have reviewed the latest financial information, budget and forecasts, and adopted a prudent view, taking the necessary steps to manage and monitor expenditure.

 

Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing these financial statements..

 

1.3
Turnover

Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date.

 

When it is probable that the total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a contract cannot be estimated reliably contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred

 

The “stage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the amount invoiced for work performed to date compared to the contract price.

1.4
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.

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:

Plant and equipment
Over 5 years
Fixtures and fittings
Over 3 years

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.

BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 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.

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.

BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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.

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.

BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.

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.

BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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.

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

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

1.14
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.

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.

BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
5,531,030
6,886,356
Rendering of services
4,376,820
4,176,026
Ad hoc & other sales
316,111
-
10,223,961
11,062,382
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,223,961
11,062,382
2024
2023
£
£
Other revenue
Interest income
-
43
Management charges receivable
60,678
83,821
Sundry income
-
26,365
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
37,500
37,500
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(10,104)
94,864
Fees payable to the company's auditor for the audit of the company's financial statements
37,500
37,500
Depreciation of owned tangible fixed assets
11,860
51,301
Operating lease charges
153,538
209,863
BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
6
Employees

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

2024
2023
Number
Number
59
62

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,032,747
2,671,626
Social security costs
292,562
283,202
Pension costs
184,514
177,082
3,509,823
3,131,910
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
43
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
284,637
259,041
Company pension contributions to defined contribution schemes
20,988
50,234
305,625
309,275
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
138,950
162,287
Company pension contributions to defined contribution schemes
10,494
7,864
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
1,019
138
BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(101,874)
-
0
Deferred tax
Origination and reversal of timing differences
239,178
(435,902)
Total tax charge/(credit)
137,304
(435,902)

The actual charge/(credit) 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
563,604
202,059
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
140,901
50,515
Tax effect of expenses that are not deductible in determining taxable profit
5,020
15,063
Unutilised tax losses carried forward
101,798
(487,293)
Adjustments in respect of prior years
(101,874)
-
0
Permanent capital allowances in excess of depreciation
(1,413)
(14,187)
Other timing differences
(7,128)
-
0
Taxation charge/(credit) for the year
137,304
(435,902)
BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
293,401
181,615
475,016
Additions
-
0
5,291
5,291
Disposals
(293,401)
-
0
(293,401)
At 31 December 2024
-
0
186,906
186,906
Depreciation and impairment
At 1 January 2024
40,000
157,112
197,112
Depreciation charged in the year
-
0
11,861
11,861
Eliminated in respect of disposals
(40,000)
-
0
(40,000)
At 31 December 2024
-
0
168,973
168,973
Carrying amount
At 31 December 2024
-
0
17,933
17,933
At 31 December 2023
253,401
24,503
277,904
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
89,000
89,000
13
Subsidiaries
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Bowe Systec (IR) Limited
Republic of Ireland
Ordinary shares
100.00
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,746,579
1,118,930
BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
859,358
4,592,584
Corporation tax recoverable
90,973
-
0
Amounts owed by group undertakings
34,006
158,121
Other debtors
199,793
46,124
Prepayments and accrued income
286,672
341,724
1,470,802
5,138,553
Deferred tax asset (note 17)
226,836
466,014
1,697,638
5,604,567
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
138,099
65,148
Amounts owed to group undertakings
3,890,721
6,274,462
Taxation and social security
80,635
202,997
Other creditors
2,907
389,793
Accruals and deferred income
910,930
1,816,603
5,023,292
8,749,003
17
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(3,436)
64,627
Tax losses
230,272
401,387
226,836
466,014
2024
Movements in the year:
£
Asset at 1 January 2024
(466,014)
Charge to profit or loss
239,178
Asset at 31 December 2024
(226,836)
BOWE SYSTEC LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
184,514
177,082

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
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
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
143,003
128,846
Between two and five years
102,585
130,082
245,588
258,928
21
Ultimate controlling party

The company's immediate parent company is Bowe Systec GmbH, a company incorporated in Germany. The ultimate parent company is Possehl-Stiftung, a company incorporated in Germany, and the largest group in which the results of the company are consolidated. The consolidated accounts are available to the public and may be obtained from the Possehl-Stiftung website.

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