Company registration number 07611299 (England and Wales)
IRIZAR U.K. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
IRIZAR U.K. LIMITED
COMPANY INFORMATION
Directors
G Herranz
A Blundell
J Koldobika
I Rego
J Goikoetxea
Company number
07611299
Registered office
Claylands Avenue
Worksop
Nottinghamshire
S81 7BQ
Auditor
Moore
Rutland House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6PZ
IRIZAR U.K. LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
IRIZAR U.K. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

Building on the recent positive trading trend, 2024 was again a good year for Irizar UK, with a record number of units delivered contributing to a strong set of results for the year.

 

Market demand for new coaches was very strong going into 2024 and remained so for the whole year. This enabled Irizar UK to fill all its production slots at the factory, and with the easing of supply chain challenges seen in 2023, we have been able to convert the strong demand into a record number of vehicles delivered.

 

A consequence of the very strong demand has been a smoothing of the traditional seasonal peaks, with coach operators keen to take delivery of vehicles throughout the year and not constrained by the historic peak months aligned to new registrations. This allowed Irizar UK to harmonise the throughput of coaches, achieving a significant increase in the number of units delivered without any increase in the number of staff employed. This contributed to a reduction in the pro-rata overhead cost per vehicle delivered.

 

The number of used coaches traded-in against new vehicles was also at an all-time low. This is a by-product of most manufacturers having long lead times for new vehicles, resulting in customers retaining older vehicles for operational use. Furthermore, those customers wishing to dispose of older vehicles took advantage of strong used vehicle market prices, and sold privately rather than trading-in. As a result, Irizar enters into 2025 without being encumbered by any historical used stock vehicles.

 

2024 was also a significant year for Irizar in the UK market, with the diversification into the Fleet and Public Sector market. We delivered coaches into both First Group and Go-Ahead, who have traditionally been outside of what Irizar considered its core market. Given recent mergers and acquisitions in the UK coach sector, this diversification is both timely and strategically significant, with indications that the large “bus companies” will continue to increase their presence in the coach sector. Beyond this, 2024 also saw a significant number of Irizar coaches delivered into the Ministry of Defence. This work was won via competitive tender and represents a major milestone for Irizar in the UK market, being the first coach business won via competitive public tender, and the first vehicles delivered into a public sector organisation. Such has been the success of this venture, further significant orders have also been secured for deliveries in both 2025 and 2026.

 

Overall, the Directors are very pleased to note that as a result of high product demand and strong management control, the business was able to build on positive trading in 2023 and once again achieve a profit outcome in 2024.

 

Looking ahead into 2025, the forecast is positive. Despite the economy being influenced by low growth, inflation remaining above Government targets, an increasing tax burden, and a lingering cost of living challenge for many, demand for coaches remains strong, and significant orders have been secured for 2025 delivery. This is testament to the brand-following which has been built up over a number of years, resulting in not only significant repeat business, but also new customers across all sectors of the market This is reflective of the product quality, and the unwavering customer support which Irizar provides customers during the ownership life.

 

However, fiscal factors such as the increase in employer NI contributions, coupled with wage demands, and an across the board increase in all supplier costs will ensure that careful management control is required if the full potential of the 2025 forecast is to be realised.

 

The Directors are confident the business will navigate these challenges with focused management action and be well placed to achieve a strong number of vehicle deliveries, facilitating what should be a solid financial result. Against this positive outlook, and thanks to the ongoing support of parent company Irizar S.Coop, Irizar UK being part of a larger global group, which affords security and longevity for both staff and customers, is well placed to grow in the UK.

IRIZAR U.K. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

The management of the business and the nature of the company’s strategy are subject to a number of risks.

 

The Directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks.

 

The Directors have set out below the principle risks facing the business.

 

Market risk

In addition to a strong delivery performance in 2024, Irizar UK also experienced strong forward-order demand which has resulted in a very positive order-book for 2025. The Directors therefore consider there is no material market risk for its products in 2025.

 

Whilst 2025 looks positive, some caution should be applied when looking at 2026 and beyond. The post-pandemic boom of the last couple of years which saw vehicle demand outstrip supply is likely to ease going into 2026.

 

Currency risk

Currency fluctuation remains a key risk to the overall financial performance of Irizar UK, and in recent years, the exchange rate has been impacted significantly by a combination of unprecedented events, including Brexit, global pandemic, and geo-political events.

 

Our order book at the end of 2024 is the strongest it has ever been with all of our 2025 factory build slots already allocated to confirmed customer orders. We have also ended the year with Sterling close to a 5 year high against the Euro.

 

As a result of these two factors, the Directors have decided to place a significant number of forward currency orders to cover approx. 50% of our requirements in 2025. This will give us a significant level of protection particularly against the larger and longer term group and public sector contract requirements.

 

In conjunction with our advisors in Spain and the UK, we will continue to constantly monitor the trends, and hedge ahead, when appropriate, to minimise volatility and business risk.

Future developments

With the support of our parent business, Irizar UK is embarking on the next phase of its growth journey, with the development of a purpose built, bespoke new UK headquarters at Blyth in north Nottinghamshire. Consisting of a showroom and sales facilities, along with maintenance and PDI, parts distribution, and office accommodation, the new facility will give Irizar a one-stop-shop facility to support its customers in the UK through not only sales, but also maintenance support and parts supply. Due for handover in late 2025, the new facility will be transformational for the business, and provide a solid foundation to exploit the opportunities ahead.

On behalf of the board

A Blundell
Director
3 March 2025
IRIZAR U.K. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the sale of coaches and buses for short, medium and long distances.

Results and dividends

The results for the year are set out on page 8.

Directors

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

G Herranz
A Blundell
J Koldobika
I Rego
J Goikoetxea
Auditor

The auditor, Moore, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

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

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

IRIZAR U.K. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Medium-sized companies exemption

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

On behalf of the board
A Blundell
Director
3 March 2025
IRIZAR U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IRIZAR U.K. LIMITED
- 5 -
Opinion

We have audited the financial statements of Irizar U.K. Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of financial position, 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 UK adopted international accounting standards.

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:

IRIZAR U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IRIZAR U.K. LIMITED (CONTINUED)
- 6 -
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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom, and UK taxation legislation.

 

We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

 

We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

 

We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

 

Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

IRIZAR U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IRIZAR U.K. LIMITED (CONTINUED)
- 7 -

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.

Robert Pluck (Senior Statutory Auditor)
For and on behalf of Moore
3 March 2025
Chartered Accountants
Statutory Auditor
Rutland House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6PZ
IRIZAR U.K. LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
4
29,551,904
22,550,332
Cost of sales
(25,990,815)
(20,511,752)
Gross profit
3,561,089
2,038,580
Administrative expenses
(1,694,470)
(1,332,850)
Exceptional items
5
(66,320)
299,615
Operating profit
6
1,800,299
1,005,345
Finance costs
9
(5,184)
(4,603)
Other gains and losses
10
(118,437)
-
0
Profit before taxation
1,676,678
1,000,742
Income tax expense
-
-
Profit and total comprehensive income for the year
1,676,678
1,000,742
IRIZAR U.K. LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
Non-current assets
Property, plant and equipment
11
1,830,538
1,793,173
Current assets
Inventories
12
3,509,383
3,239,663
Trade and other receivables
13
976,622
874,753
Cash and cash equivalents
4,107,066
1,399,791
8,593,071
5,514,207
Current liabilities
Trade and other payables
14
7,479,627
6,140,280
Current tax liabilities
238
238
Lease liabilities
15
20,037
18,232
Derivative financial instruments
118,437
-
0
7,618,339
6,158,750
Net current assets/(liabilities)
974,732
(644,543)
Non-current liabilities
Lease liabilities
15
26,594
46,632
Net assets
2,778,676
1,101,998
Equity
Called up share capital
18
5,615,000
5,615,000
Retained earnings
(2,836,324)
(4,513,002)
Total equity
2,778,676
1,101,998

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

The financial statements were approved by the board of directors and authorised for issue on 3 March 2025 and are signed on its behalf by:
A Blundell
Director
Company registration number 07611299 (England and Wales)
IRIZAR U.K. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
5,615,000
(5,513,744)
101,256
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,000,742
1,000,742
Balance at 31 December 2023
5,615,000
(4,513,002)
1,101,998
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
1,676,678
1,676,678
Balance at 31 December 2024
5,615,000
(2,836,324)
2,778,676
IRIZAR U.K. LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
2,837,449
(2,095,125)
Interest paid
(5,184)
(4,603)
Net cash inflow/(outflow) from operating activities
2,832,265
(2,099,728)
Investing activities
Purchase of property, plant and equipment
(117,007)
(116,494)
Proceeds on disposal of property, plant and equipment
10,250
269,975
Net cash (used in)/generated from investing activities
(106,757)
153,481
Financing activities
Payment of lease liabilities
(18,233)
(29,019)
Net cash used in financing activities
(18,233)
(29,019)
Net increase/(decrease) in cash and cash equivalents
2,707,275
(1,975,266)
Cash and cash equivalents at beginning of year
1,399,791
3,375,057
Cash and cash equivalents at end of year
4,107,066
1,399,791
IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Irizar U.K. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Claylands Avenue, Worksop, Nottinghamshire, S81 7BQ. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany 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
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The company recognises revenue from the following major sources:

Sale of coaches

Income is recognised when the sale is unconditional and the goods are available for collection.

Rental of buses

Income is recognised on a straight line basis over the period of the agreement.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Land and buildings
15 years straight line (land not depreciated)
Fixtures and fittings
3 years straight line
Plant and equipment
5 years straight line
Electric buses
15% straight line
Motor vehicles
4 years straight line
Right of use assets
Over the period of the lease

Assets in the course of construction are 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 recognised in the income statement.

1.5
Impairment of tangible assets

At each reporting 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.

 

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.

1.6
Inventories

Inventories 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 inventories to their present location and condition.

 

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

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Where stock is accepted in part exchange as an incentive for a sale it is written down to its net realisable value and the adjustment charged against cost of sales.

1.7
Fair value measurement

IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

Financial assets held by the company comprise of trade and other receivables, and cash and cash equivalents. All financial assets are included in the financial statements at book value as this is considered a reasonable approximation of their fair value.

Financial assets held at amortised cost

Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.

 

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

 

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.

Trade Receivables, 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.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.

 

Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.10
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

 

 

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Financial liabilities held by the company comprise of a bank overdraft and trade and other payables. These have been included in the financial statements at book value as this is considered as a reasonable approximation of their fair value.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 inventories or non-current 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

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

2
Adoption of new and revised standards and changes in accounting policies
Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the UK):

IFRS 18
Presentation and Disclosures in Financial Statements
IFRS 19
Subsidiaries without Public Accountability: Disclosures
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures
Amendments to the Classification and Measurement of Financial Instruments
Annual Improvements to IFRS Accounting Standards
Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7

The intention is to adopt those standards which apply to the company when they become effective but early adoption has not been undertaken.

 

The directors do not anticipate that the application of these amendments and new standards will have a material impact on the company's financial statements.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
3
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, 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.

Critical judgements
Stock

Where stock is accepted in part exchange as an incentive for a sale it is written down to its net realisable value and the adjustment charged against cost of sales. Net realisable value is determined based on management's experience in the industry and reference to external price guides.

4
Revenue
2024
2023
£
£
Revenue analysed by class of business
Sale of goods
29,239,427
22,152,117
Rental
312,477
398,215
29,551,904
22,550,332
5
Exceptional items
2024
2023
£
£
Income
Currency gains
-
299,615
Expenditure
Currency losses
66,320
-
Net exceptional income/(expenditure)
(66,320)
299,615

Exceptional items relate to currency gains/(losses). The company holds significant intercompany loans which are held in Euros. Each year these balances must be retranslated at the year end closing rate which can result in large foreign exchange movements each year. These exchange movements have been classified as exceptional so that normal operating results are not distorted.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
6
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,900
13,250
Depreciation of property, plant and equipment
79,642
76,049
Profit on disposal of property, plant and equipment
(10,250)
(54,019)
Cost of inventories recognised as an expense
25,963,960
20,481,346
7
Employees

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

2024
2023
Number
Number
Management
1
1
Administration
4
4
Sales
4
5
Engineers
6
5
Total
15
15

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
960,408
795,840
Social security costs
87,171
75,980
Pension costs
48,395
52,299
1,095,974
924,119
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
100,280
100,978
Company pension contributions to defined contribution schemes
29,704
35,230
129,984
136,208
IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
9
Finance costs
2024
2023
£
£
Interest on lease liabilities
5,184
4,603
10
Other gains and losses
2024
2023
£
£
Amounts written off fair value through profit or loss
(118,437)
-
IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Property, plant and equipment
Land and buildings
Assets under construction
Fixtures and fittings
Plant and equipment
Motor vehicles
Right of use assets
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
1,669,862
-
0
156,751
40,054
1,396,913
87,976
3,351,556
Additions
-
0
-
0
494
-
0
116,000
42,598
159,092
Disposals
-
0
-
0
-
0
-
0
(1,340,744)
(20,056)
(1,360,800)
At 31 December 2023
1,669,862
-
0
157,245
40,054
172,169
110,518
2,149,848
Additions
-
0
84,007
1,616
3,358
28,026
-
0
117,007
Disposals
-
0
-
0
-
0
-
0
(28,150)
-
0
(28,150)
At 31 December 2024
1,669,862
84,007
158,861
43,412
172,045
110,518
2,238,705
Accumulated depreciation and impairment
At 1 January 2023
37,735
-
0
124,873
38,887
1,198,712
25,263
1,425,470
Charge for the year
16,234
-
0
28,787
700
11,038
19,290
76,049
Eliminated on disposal
-
0
-
0
-
0
-
0
(1,143,696)
(1,148)
(1,144,844)
At 31 December 2023
53,969
-
0
153,660
39,587
66,054
43,405
356,675
Charge for the year
16,233
-
0
1,963
747
31,566
29,133
79,642
Eliminated on disposal
-
0
-
0
-
0
-
0
(28,150)
-
0
(28,150)
At 31 December 2024
70,202
-
0
155,623
40,334
69,470
72,538
408,167
IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Property, plant and equipment
Land and buildings
Assets under construction
Fixtures and fittings
Plant and equipment
Motor vehicles
Right of use assets
Total
£
£
£
£
£
£
£
(Continued)
- 22 -
Carrying amount
At 31 December 2024
1,599,660
84,007
3,238
3,078
102,575
37,980
1,830,538
At 31 December 2023
1,615,893
-
3,585
467
106,115
67,113
1,793,173
At 31 December 2022
1,632,127
-
31,878
1,167
198,201
62,713
1,926,086
IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
12
Inventories
2024
2023
£
£
Finished goods
3,509,383
3,239,663

At the year end the total amount of impairment provision recognised against stock was £5,181 (2023 £3,659).

 

13
Trade and other receivables
2024
2023
£
£
Trade receivables
289,062
639,303
Unpaid share capital
30
30
Amount owed by parent undertaking
427,449
93,203
Prepayments
260,081
142,217
976,622
874,753

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

14
Trade and other payables
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Trade payables
133,152
68,681
-
0
-
0
Amount owed to parent undertaking
6,086,688
4,587,601
-
0
-
0
Accruals
174,922
75,547
-
0
-
0
Social security and other taxation
430,715
508,628
-
0
-
0
Other payables
654,150
899,823
-
0
-
0
7,479,627
6,140,280
-
0
-
0
15
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
20,037
18,232
In two to five years
26,594
46,632
Total undiscounted liabilities
46,631
64,864
IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Lease liabilities
(Continued)
- 24 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
20,037
18,232
Non-current liabilities
26,594
46,632
46,631
64,864
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
5,184
4,603

It is the company's policy to lease certain motor vehicles under finance leases. The average lease term is 4 years. The average effective borrowing rate for the year was 9.9%. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Deferred taxation

Deferred tax is not recognised in respect of tax losses of £2,476,254 (2023 £4,311,130) as it is uncertain if the company will generate sufficient taxable profits in the near future to realise the asset.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,395
52,299

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.

18
Share capital
2024
2023
£
£
Ordinary share capital
Authorised
561,500,000 Ordinary shares of 1p each
5,615,000
5,615,000
Issued and not fully paid
561,500,000 Ordinary shares of 1p each
5,615,000
5,615,000

Ordinary £0.01 Shares confer one vote per share held and the rights for dividend and for distribution rights on a winding up of the company. They do not confer any right of redemption.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
19
Related party transactions
Other transactions with related parties

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

Warranty claims income
Purchase of goods
2024
2023
2024
2023
£
£
£
£
Parent company
491,498
166,855
23,629,281
17,028,435
Commissions received
Costs recharged
2024
2023
2024
2023
£
£
£
£
Parent company
118,332
112,881
378,981
294,627

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties
2024
2023
£
£
Parent company
6,086,688
4,587,601

The following amounts were outstanding at the reporting end date:

Amounts owed by related parties
2024
2023
£
£
Parent company
427,449
93,203

No guarantees have been given or received.

20
Controlling party

The immediate and ultimate parent company is Irizar S Coop, a company incorporated in Spain.

    

Group accounts can be obtained from Zumarraga Bidea 8, 20216 Ormaiztegi (Gipuzkoa), Spain.

IRIZAR U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
21
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,399,791
2,707,275
4,107,066
Obligations under finance leases
(64,864)
18,233
(46,631)
1,334,927
2,725,508
4,060,435
1 January 2023
Cash flows
31 December 2023
Prior year:
£
£
£
Cash at bank and in hand
3,375,057
(1,975,266)
1,399,791
Obligations under finance leases
(51,285)
29,019
(64,864)
3,323,772
(1,946,247)
1,334,927
22
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year before income tax
1,676,678
1,000,742
Adjustments for:
Finance costs
5,184
4,603
Gain on disposal of property, plant and equipment
(10,250)
(54,019)
Depreciation and impairment of property, plant and equipment
79,642
76,049
Other gains and losses
118,437
-
Movements in working capital:
(Increase)/decrease in inventories
(269,720)
900,332
(Increase)/decrease in trade and other receivables
(101,869)
19,936
Increase/(decrease) in trade and other payables
1,339,347
(4,042,768)
Cash generated from/(absorbed by) operations
2,837,449
(2,095,125)
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