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REGISTERED NUMBER: 02417402 (England and Wales)









STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MAN AND MACHINE LIMITED

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024










Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Statement of Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 15 to 24


MAN AND MACHINE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: Mr M U Hoellrich
Mr M Pech
Mr P G Merchant





SECRETARY: Mr M U Hoellrich





REGISTERED OFFICE: Unit 8
Thame 40
Jane Morbey Road
Thame
Oxfordshire
OX9 3RR





REGISTERED NUMBER: 02417402 (England and Wales)





AUDITORS: Seymour Taylor Limited, Statutory Auditor
First Floor North
40 Oxford Road
High Wycombe
Buckinghamshire
HP11 2EE

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024


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

REVIEW OF BUSINESS
The company's key financial and performance indicators during the year were as follows:

2024 2023 Variance
£    £    %
Turnover 30,880,635 30,122,546 2.52
Operating profit 1,793,921 1,998,576 -10.24
Profit before tax 1,912,475 2,053,655 -6.87
Shareholders' funds 3,628,182 3,396,569 6.82

Man and Machine continues to operate two distinct business units. The Value Added Reseller ("VAR") business sources market leading software from global vendors such as Autodesk, and supplements the software with our own services to provide business solutions to customers. The company's other division, branded as "Elmtec", sells hardware and software to a wide range of IT resellers and other businesses.

During 2024 the company's profit figures declined slightly. The VAR business grew, the reduction was within Elmtec, due to a change of market approach with a key vendor. This was expected, we adjusted our business accordingly and anticipate good continued growth within Elmtec.

Despite the above, we still delivered a strong result, with operating profit of £1.79m, permitting payment of a £1.2m dividend, and still resulting in increasing our shareholders' funds by £232k or 6.82%.

The VAR continues to operate as a leading Autodesk Platinum Partner and Elite Construction Partner, in addition to being a Specialised Partner across the wider Autodesk portfolio of products. Autodesk changed its business model in September 2024, from a "buy/sell" model to an "agency" approach. This will have a more significant impact in 2025, in that our Revenue figure will decrease, given our VAR software income will consist only of commission on our sales. However, it will not impact the profit made on each sale, and the new approach has allowed us to increase efficiencies within the business. We expect to continue to outperform the UK Autodesk market growth trends.

Elmtec will continue to evolve its business model, seeking new opportunities and new products.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the company are as follows:

Competitor risks
The company has recognised competitive risks from both alternative suppliers and software solutions. The company seeks to differentiate itself from competitors, providing value added expert services in addition to the supply of products. The company constantly monitors its competitive offering and adjusts as challenges present themselves.

Legislative and environmental risks
The directors have ensured that policies and procedures are in place to minimise the impact of legislative and environmental risks. The company considers its legislative and environmental requirements seriously and employs a number of specialist organisations to advise on compliance and implementation of effective strategies. The company holds ISO9001.

Financial risks
The company has a strong cash position, and thus would not be adversely affected by any changes to bank interest rates.

The directors seek to minimise credit risk by the use of credit insurance on its debtors, although with the new Autodesk agency model, any risk is much reduced.


MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The company has limited exposure to exchange rate risk, with a number of recoverable assets being non-sterling denominated, but the directors have ensured that this is monitored adequately to minimise losses.

ON BEHALF OF THE BOARD:





Mr P G Merchant - Director


11 February 2025

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024


The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activities of the company in the year under review were:

(1) The value-added sale of software products and associated services (e.g. training, technical support and consulting) to end users primarily in the manufacturing, architectural and engineering industries.

(2) The distribution of graphics cards and software products to a customer base of CAD and IT resellers.

DIVIDENDS
An interim dividend of £48,000 per share was paid on 16 December 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 1,200,000 .

FUTURE DEVELOPMENTS
The directors and staff continue on a carefully planned development programme supported by the company's ultimate parent company, Mensch und Maschine Software SE.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr M U Hoellrich
Mr M Pech

Other changes in directors holding office are as follows:

Mr P Read - resigned 12 December 2024
Mr P G Merchant - appointed 12 December 2024

FINANCIAL INSTRUMENTS
The companies financial instruments policies are included within note 2 of the financial statements and the financial risk management objectives are included within the strategic report.

DIRECTORS' QUALIFYING THIRD PARTY INDEMNITY PROVISIONS
The company has granted indemnity to all directors and officers against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying indemnity provision remains in place at the date of approving the directors report.


MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Seymour Taylor Limited, will be re-appointed in accordance with section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Mr P G Merchant - Director


11 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAN AND MACHINE LIMITED


Opinion
We have audited the financial statements of Man and Machine Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAN AND MACHINE LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAN AND MACHINE LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:
- the nature of the industry and sector, control environment and business performance including the key drivers for directors' remuneration, bonus levels and performance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having made enquiries of management about their policies and procedures relating to:

identifying, evaluating and complying with laws and regulations and whether they were aware of any
instances of noncompliance;

detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud;

the internal controls established to mitigate risks of fraud or non-compliance with laws and
regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate.

Audit response to risks identified
As a result of performing the above our procedures to respond to the risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management and external legal advisors about actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAN AND MACHINE LIMITED

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 noncompliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Joanne Kingsnorth FCA (Senior Statutory Auditor)
for and on behalf of Seymour Taylor Limited, Statutory Auditor
First Floor North
40 Oxford Road
High Wycombe
Buckinghamshire
HP11 2EE

11 February 2025

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   

TURNOVER 3 30,880,635 30,122,546

Cost of sales 23,552,869 22,950,576
GROSS PROFIT 7,327,766 7,171,970

Administrative expenses 5,533,845 5,223,814
1,793,921 1,948,156

Other operating income - 50,420
OPERATING PROFIT 5 1,793,921 1,998,576

Interest receivable and similar income 6 120,129 57,880
1,914,050 2,056,456

Interest payable and similar expenses 7 1,575 2,801
PROFIT BEFORE TAXATION 1,912,475 2,053,655

Tax on profit 8 480,862 497,000
PROFIT FOR THE FINANCIAL YEAR 1,431,613 1,556,655

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,431,613

1,556,655

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 83,000 93,500
Tangible assets 11 441,959 455,854
Investments 12 2 2
524,961 549,356

CURRENT ASSETS
Stocks 13 390,829 598,448
Debtors 14 2,686,350 4,906,484
Cash at bank and in hand 7,280,993 2,460,658
10,358,172 7,965,590
CREDITORS
Amounts falling due within one year 15 4,557,856 4,253,127
NET CURRENT ASSETS 5,800,316 3,712,463
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,325,277

4,261,819

CREDITORS
Amounts falling due after more than one
year

16

(2,625,033

)

(793,188

)

PROVISIONS FOR LIABILITIES 18 (72,062 ) (72,062 )
NET ASSETS 3,628,182 3,396,569

CAPITAL AND RESERVES
Called up share capital 19 25 25
Retained earnings 20 3,628,157 3,396,544
SHAREHOLDERS' FUNDS 3,628,182 3,396,569

The financial statements were approved by the Board of Directors and authorised for issue on 11 February 2025 and were signed on its behalf by:





Mr P G Merchant - Director


MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2023 25 3,039,889 3,039,914

Changes in equity
Dividends - (1,200,000 ) (1,200,000 )
Total comprehensive income - 1,556,655 1,556,655
Balance at 31 December 2023 25 3,396,544 3,396,569

Changes in equity
Dividends - (1,200,000 ) (1,200,000 )
Total comprehensive income - 1,431,613 1,431,613
Balance at 31 December 2024 25 3,628,157 3,628,182

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 6,396,524 2,600,303
Interest paid (1,575 ) (2,801 )
Tax paid (457,906 ) (872,708 )
Net cash from operating activities 5,937,043 1,724,794

Cash flows from investing activities
Purchase of tangible fixed assets (95,697 ) (292,745 )
Interest received 120,129 57,880
Net cash from investing activities 24,432 (234,865 )

Cash flows from financing activities
Increase/(decrease) in group balances 58,860 (110,495 )
Equity dividends paid (1,200,000 ) (1,200,000 )
Net cash from financing activities (1,141,140 ) (1,310,495 )

Increase in cash and cash equivalents 4,820,335 179,434
Cash and cash equivalents at
beginning of year

2

2,460,658

2,281,224

Cash and cash equivalents at end of
year

2

7,280,993

2,460,658

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 1,912,475 2,053,655
Depreciation charges 119,362 114,460
Loss on disposal of fixed assets 730 203
Finance costs 1,575 2,801
Finance income (120,129 ) (57,880 )
1,914,013 2,113,239
Decrease/(increase) in stocks 207,619 (42,525 )
Decrease in trade and other debtors 2,197,182 206,058
Increase in trade and other creditors 2,077,710 323,531
Cash generated from operations 6,396,524 2,600,303

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 7,280,993 2,460,658
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 2,460,658 2,281,224


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24 Cash flow At 31.12.24
£    £    £   
Net cash
Cash at bank and in hand 2,460,658 4,820,335 7,280,993
2,460,658 4,820,335 7,280,993
Total 2,460,658 4,820,335 7,280,993

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024


1. GENERAL INFORMATION

Man and Machine Limited is a limited company incorporated in England and Wales under the Companies Act. The address of the registered office is Unit 8, Thame 40, Jane Morbey Road, Thame, Oxfordshire, OX9 3RR. The nature of the company's operations and its principal activities are set out in the directors' report on pages 4 to 5.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements are prepared in pounds sterling which is the functional currency of the company and rounded to the nearest pound.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on the going concern basis, which the directors believe it is appropriate for the financial statements to be prepared on.

Preparation of consolidated financial statements
The financial statements contain information about Man and Machine Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Mensch und Maschine Software SE.

The group accounts of Mensch und Maschine Software SE are available to the public and can be obtained as set out in note 21.

Turnover
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

When the outcome of a transaction can be estimated reliably, turnover from the rendering of services is recognised by reference to the stage of completion at the statement of financial position date. Stage of completion is measured by reference to agreements with the customer.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Intangible assets
Intangible assets, being the amounts paid in connection with the acquisition of customer databases, are amortised evenly over the estimated useful life of ten years. Provision is made where necessary for any impairment.

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life:
.
Improvements to property - over the lease term
Fixtures and fittings - straight line - 20%
Motor vehicles - straight line - 20%
Computer equipment - straight line - 10% and 20%

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the weighted average cost formula, stock is accounted for on a first in first out basis. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the statement of comprehensive income in the period to which they relate.

Operating lease agreements
Rentals payable under operating leases are charged in the statement of comprehensive income on a straight line basis over the lease term.

Financial instruments
The company has applied the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' of FRS 102 to all of its financial instruments.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the statement of financial position. Finance costs and gains or losses relating to financial liabilities are included in the statement of comprehensive income. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Impairment of financial assets
At each period end date, the company reviews the carrying amounts of its financial 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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount, with the impairment recognised immediately in the statement of comprehensive income.

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 amounts 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 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The areas for which estimation has been applied are considered to be in calculating depreciation and discounting on long term liabilities. Although these areas are subject to judgement, they are not considered to be subject to significant estimation.

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Sale of products 29,683,681 28,859,168
Rendering of services 1,196,954 1,263,378
30,880,635 30,122,546

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 30,213,700 29,429,787
Europe 537,124 654,899
Rest of world 129,811 37,860
30,880,635 30,122,546

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,468,791 3,253,372
Social security costs 441,650 405,494
Other pension costs 199,367 217,108
4,109,808 3,875,974

The average number of employees during the year was as follows:
2024 2023

Office and management 6 6
Sales and technical 47 46
53 52

2024 2023
£    £   
Directors' remuneration 451,698 256,036
Directors' pension contributions to money purchase schemes 46,440 58,400

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 1

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 299,656 256,036
Pension contributions to money purchase schemes 8,400 58,400

Emoluments in respect of two of the directors have been borne by the immediate parent company, Mensch und Maschine Software SE. These directors are also directors of other companies within the Mensch und Maschine group. The directors do not consider that they have received any remuneration for the incidental services to the company for the years ended 31 December 2024 and 31 December 2023.

Mensch und Maschine Software SE charge Man and Machine Limited royalties. These charges include costs borne by the group which relate to those directors providing services to Man and Machine Limited.

5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 108,862 100,960
Loss on disposal of fixed assets 730 203
Customer base amortisation 10,500 13,500
Auditors' remuneration 32,500 30,355
Foreign exchange differences 4,383 30,620
Operating lease rentals - Land and buildings 66,170 61,064

6. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Bank account interest 120,129 57,880

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Loan interest 1,575 2,801

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 480,862 471,108

Deferred tax - 25,892
Tax on profit 480,862 497,000

UK corporation tax has been charged at 25% (2023 - 25%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,912,475 2,053,655
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 25%)

478,119

513,414

Effects of:
Expenses not deductible for tax purposes 2,817 (7,478 )
Capital allowances in excess of depreciation - (8,936 )
Depreciation in excess of capital allowances 24,719 -
Utilisation of tax losses (24,793 ) -
Total tax charge 480,862 497,000

The corporation tax main rate increased from 19% to 25% for periods commencing 1 April 2023, with the small profits rate remaining at 19%.

9. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 1,200,000 1,200,000

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


10. INTANGIBLE FIXED ASSETS
Customer
base
£   
COST
At 1 January 2024
and 31 December 2024 135,000
AMORTISATION
At 1 January 2024 41,500
Amortisation for year 10,500
At 31 December 2024 52,000
NET BOOK VALUE
At 31 December 2024 83,000
At 31 December 2023 93,500

11. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 January 2024 428,032 528,175 129,792 1,085,999
Additions 2,359 30,436 62,902 95,697
Disposals - (37,143 ) - (37,143 )
At 31 December 2024 430,391 521,468 192,694 1,144,553
DEPRECIATION
At 1 January 2024 300,693 307,774 21,678 630,145
Charge for year 12,380 83,758 12,724 108,862
Eliminated on disposal - (36,413 ) - (36,413 )
At 31 December 2024 313,073 355,119 34,402 702,594
NET BOOK VALUE
At 31 December 2024 117,318 166,349 158,292 441,959
At 31 December 2023 127,339 220,401 108,114 455,854

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2024
and 31 December 2024 2
NET BOOK VALUE
At 31 December 2024 2
At 31 December 2023 2

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:


Elmtec Distribution Limited
Registered office: Unit 8 Thame 40, Jane Morbey Road, Thame, Oxfordshire, OX9 3RR
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 2 2

13. STOCKS
2024 2023
£    £   
Finished goods 390,829 598,448

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,208,981 4,256,559
Amounts owed by group undertakings 11,630 11,626
Other debtors 296,346 449,059
Corporation tax 4,162 27,118
Prepayments and accrued income 165,231 162,122
2,686,350 4,906,484

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 502,820 2,450,398
Amounts owed to group undertakings 99,353 40,489
Social security and other taxes 112,804 112,298
VAT 240,293 470,172
Accruals and deferred income 3,602,586 1,179,770
4,557,856 4,253,127

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Accruals and deferred income 2,625,033 793,188

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 66,170 66,170
Between one and five years 204,024 264,680
In more than five years - 5,514
270,194 336,364

18. PROVISIONS FOR LIABILITIES

Deferred tax
20242023
£   £   
At 1 January 72,06246,170
Tax losses utilised in the year--
Other timing differences-25,892
At 31 December 72,06272,062

Deferred tax balances have been measured with reference to the rate of tax expected to be applicable as the date of reversal.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
25 Ordinary £1 25 25

MAN AND MACHINE LIMITED (REGISTERED NUMBER: 02417402)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


20. RESERVES
Retained
earnings
£   

At 1 January 2024 3,396,544
Profit for the year 1,431,613
Dividends (1,200,000 )
At 31 December 2024 3,628,157

Called up share capital - This represents the nominal value of shares that have been issued.

Retained earnings - This distributable reserve contains the profit and loss for the year and accumulated profits and losses brought forward.

21. ULTIMATE PARENT COMPANY

The directors consider that Mensch und Maschine Software SE, a company incorporated in Germany, is the company's ultimate and controlling parent company.

The parent undertaking of the smallest and largest group of which Man and Machine Limited is a
member is Mensch und Maschine Software SE, a company incorporated in Germany. The only group
preparing consolidated group financial statements, which include Man and Machine Limited, is Mensch und Maschine Software SE . The directors consider Mensch und Maschine Software SE to be the company's immediate parent company.

Copies of the financial statements of Mensch und Maschine Software SE, can be obtained from the Company Secretarial Department, Mensch und Maschine Software SE, Argelsrieder Feld 5, D - 82234 Wessling, Germany.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year, the company entered into the following transactions with related parties:


2024 2023
£ £
Key management personnel compensation £617,942 558,047


The amounts outstanding at the year end are £80,213 (2023 - £94,850).