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REGISTERED NUMBER: 07688136 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

K2 SOLAR MOUNTING SOLUTIONS LIMITED

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 DECEMBER 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 7

Income Statement 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 17


K2 SOLAR MOUNTING SOLUTIONS LIMITED

COMPANY INFORMATION
for the year ended 31 DECEMBER 2024







DIRECTORS: K O Schuebel
S Woodman





SECRETARY: D D Dainton





REGISTERED OFFICE: Unit 46 Easter Park Benyon Road
Silchester
Reading
Berks
RG7 2PQ





REGISTERED NUMBER: 07688136 (England and Wales)





AUDITORS: C B Heslop & Company Limited
Chartered Accountants and Statutory Auditors
1 High Street
Thatcham
Berks
RG19 3JG

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

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 focuses on the re-sale of mounting equipment for solar rooftop PV in the UK & Irish markets. We are adding value with local technical expertise and with providing planning services using a range of in-house digital tools. The revenue of the company however is raised solely from the sale of products. Besides profitability the other Key Performance Indicator is market share.

2022 2023 2024

Market Size (in MegaWatt
for Rooftop Solar UK/IE)

800

990

1100

Revenue (in 1,000 £) 13,483 18,556 13,506

Market Share (in %) ~28% ~34% ~29%

The company continues to trade strongly despite the ongoing impacts of macroeconomic uncertainty in the UK and the high interest rates which dampen the willingness to invest in solar. Consistently high energy cost however does drive the solar market to be relatively stable.

The directors are pleased to see continued growth in line with the market growth, however with our recent investments on local product adaptation and a new training facility for customers, the directors however aim to grow 10% above market growth in the future and to constantly achieve a >30% market share to maintain our strong
position.

2023 was an exceptional year as the company was able to profit from supply and availability issues by most of our competitors in the first 6 months of that year.

Having focused on rooftop solar installations for many years, a new ground mount solar product developed by headquarters will pose an opportunity to gain revenue from previously untapped market segments. It is currently too early to say if this product can be successful in this very price sensitive and highly competitive ground mount market segment.


K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

STRATEGIC REPORT
for the year ended 31 DECEMBER 2024

PRINCIPAL RISKS AND UNCERTAINTIES

Risk Impact on Company Mitigation

Brexit costs and restraints (ongoing) Brexit has caused increased cost
and complexity for importing and
exporting its goods to and from
the EU.
The company appointed and got
specifically trained 2 staff to deal and
cope with the additional complexities.
Since Brexit came in already a few
years ago any additional costs which
came with it are now priced in and
don’t pose a risk anymore.

High interest rates and
macroeconomic uncertainty in UK
There is still a level of
macroeconomic uncertainty
including sustained higher interest
rates as well as cost and wage
inflation. This has an impact on
levels of customer demand
(mainly the domestic market
segment), risk of non-payment and
a rise in our own operational costs
also in relation to our supply
chain.
We are actively monitoring the
situation. Our main supplier is our
European headquarters, and the
company thus has a reduced exposure.
Further contingency measures in place
to manage this risk include a widening
of the supplier base (UK/India) and
working with those suppliers to build
long-term relationships and obtain the
best possible prices. We are
furthermore forward contracting with
suppliers thus fixing pricing for a
minimum of 3 months but normally for
6 months.

Since we are in the market since 2011 the company has a loyal customer base which somewhat reduces its exposure to temporary downturns in trade.

The company has also introduced enhanced credit review processes to mitigate the risk of non-payments.

New entrants to the market A decline of some previously
strong solar markets in
neighboring countries on the
continent led to more European
and foreign manufacturers to now
also sell in the UK despite the
trade barriers put in place by
Brexit. Some foreign
manufacturers offer lower selling
prices and therefore gain some
market share initially.
With solar, in particular, being now the
cheapest way of generating electricity
and the fact that electricity demand
will only rise over the next years or
decades. The decline in some solar
markets will be a temporary one and
the industry experts expect solar
markets to recover shortly, then easing
the pressures of competitors trying to
gain foothold outside their home
markets.

Having already set up local UK production of about 40% of our high-value components (Aluminium rails) not only has cost advantages, but also an added value of a lower carbon footprint.


K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

STRATEGIC REPORT
for the year ended 31 DECEMBER 2024

Our local buffer stockholding / our local technical support and more and more country-specific product adaptations require a financial and long-term commitment only very few of the new entrants are prepared to match. The majority of clients and ultimate PV-system owners (landlords) do appreciate our product quality, value for money, peace of mind and convenience over low cost/higher risk.

Our structural simulation software and digital services are superior to alternatives of our competitors. Driven by our HQ we will further invest heavily in improvements and new features (e.g. AI roof detection) and we will remain the market leader with this.

Looming trade war and tariffs
US/EU/UK
The new US administration will
use trade tariffs to enforce their
‘America First’ approach.
Should the US impose tariffs on
imports of Canadian/Mexican alloy,
Canada and Mexico will look
elsewhere to sell their commodities,
which can lead to an oversupply for
example in Europe thus has the
potential to bring down the cost of the
raw materials the company
predominantly uses for its products.

As the company does not export to the US nor imports from the US any imposed tariffs here won’t affect the company.

Ongoing conflict in Ukraine &
Russian Sanctions
Sanctions on Russian steel and
alloy had and will carry on having
an impact on commodity prices of
raw materials.
Upstream suppliers moved to raw
materials from other countries, and we
were able to absorb the higher costs
not least because our European
competitors are in the same boat. This
issue poses no real risk anymore.

Price wars due to Chinese products
flooding the market
The price war is felt more in the
high-value solar panel, battery and
inverter segment not so much in
the mounting systems sector. All
in all, these price wars do bring
down the overall cost of solar
which is benefitting the solar
market.
Chinese competitors can ship cheaper
product only by the container load but
do very rarely commit to one market
with local expertise/stock-holding.
Current financial circumstances and
cash flow constraints hold back most
wholesalers to stock up on Chinese
products and prefer lower stocks and
appreciate suppliers to rather dropship
orders from a supplier’s warehouse.



K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

STRATEGIC REPORT
for the year ended 31 DECEMBER 2024

FUTURE DEVELOPMENT
The directors of the company anticipate the business environment will remain competitive. They believe that the company is in a good and stable financial position and that identified risks can and are being managed well. With the focus on the product adaptation for local market requirements, the intensifying investment by our HQ in our already market-leading software and digital services, the expansion of our local offering of training clients on our products and systems in our new K2 academy and last but not least our unrivalled short response times from request to delivery, the directors are confident in the company’s ability to maintain and build on this position with cautious expectations above market growth.

FINANCIAL INSTRUMENTS
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in £ Sterling. The only foreign currency transactions are being covered by currency contracts within the larger group thus minimize the exposure to exchange rate volatility. The company does not enter into any formally designated hedging arrangements.

RESEARCH AND DEVELOPMENT
The company is currently undertaking research and development to improve its product portfolio for local market requirements. Uncommon for the solar industry the company also started a very promising collaboration with a roofing material manufacturer (e.g. SIKA/Sarnafil) to develop perfectly adapted, mutually approved mounting solutions with extended warranties for building owners thus reaching new customer groups beyond the usual solar installers and wholesalers. Ongoing, Headquarters is intensifying investment in research and development of its digital tools & software which also benefit the company.

ON BEHALF OF THE BOARD:





K O Schuebel - Director


3 March 2025

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

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 activity of the company in the year under review was that of wholesale of solar mounting products to commercial customers.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

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

K O Schuebel
S Woodman

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). 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, C B Heslop & Company Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





K O Schuebel - Director


3 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
K2 SOLAR MOUNTING SOLUTIONS LIMITED

Opinion
We have audited the financial statements of K2 Solar Mounting Solutions Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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.
In the previous accounting period the directors of the company took advantage of audit exemption under s. 477 of the Companies Act 2006. Therefore the prior period financial statements were not subject to audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
K2 SOLAR MOUNTING SOLUTIONS 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 six, 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
K2 SOLAR MOUNTING SOLUTIONS 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
- the nature of the industry, control environment and business performance
- management's comments about their own identification and assessment of the risks of irregularities;

We also considered any matters we identified after reviewing the Company's 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 and identified the greatest potential for fraud in the following areas: timing of recognition of revenue and related party transactions. 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 Group's ongoing compliance with the UK Companies Act, pensions legislation and 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 or to avoid a material penalty

Audit response to risks identified
As a result of performing the above, we identified revenue recognition and related party transactions as key audit matters related to the potential risk of fraud..Our response to the identification of these main risks was to carry out audit procedures and test appropriate samples of transactions included in those areas.

In addition to the above, our procedures to respond to risks identified included the following:
- reviewing the disclosures in the financial statements and testing to supporting documentation to assess compliance with relevant laws and regulations;
- enquiring of management concerning 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;
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; 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 enquiring about any significant transactions that are unusual or outside the normal course of business.

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


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
K2 SOLAR MOUNTING SOLUTIONS LIMITED

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.




Nicoleta Rivers FCA (Senior Statutory Auditor)
for and on behalf of C B Heslop & Company Limited
Chartered Accountants and Statutory Auditors
1 High Street
Thatcham
Berks
RG19 3JG

3 March 2025

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

INCOME STATEMENT
for the year ended 31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £   

TURNOVER 13,347,520 18,371,236

Cost of sales 10,591,114 13,484,926
GROSS PROFIT 2,756,406 4,886,310

Administrative expenses 913,050 843,949
1,843,356 4,042,361

Other operating income - 227,236
OPERATING PROFIT 4 1,843,356 4,269,597

Interest receivable and similar income 240 -
1,843,596 4,269,597

Interest payable and similar expenses 5 468 7,050
PROFIT BEFORE TAXATION 1,843,128 4,262,547

Tax on profit 6 461,742 1,008,914
PROFIT FOR THE FINANCIAL YEAR 1,381,386 3,253,633

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

OTHER COMPREHENSIVE INCOME
for the year ended 31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £   

PROFIT FOR THE YEAR 1,381,386 3,253,633


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,381,386

3,253,633

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

BALANCE SHEET
31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 - -
Tangible assets 8 93,976 101,889
93,976 101,889

CURRENT ASSETS
Stocks 9 1,607,561 1,521,946
Debtors 10 1,299,577 1,051,299
Cash at bank and in hand 5,507,097 4,311,264
8,414,235 6,884,509
CREDITORS
Amounts falling due within one year 11 733,166 590,919
NET CURRENT ASSETS 7,681,069 6,293,590
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,775,045

6,395,479

PROVISIONS FOR LIABILITIES 13 22,772 24,592
NET ASSETS 7,752,273 6,370,887

CAPITAL AND RESERVES
Called up share capital 14 25,000 25,000
Retained earnings 15 7,727,273 6,345,887
SHAREHOLDERS' FUNDS 7,752,273 6,370,887

The financial statements were approved by the Board of Directors and authorised for issue on 3 March 2025 and were signed on its behalf by:





K O Schuebel - Director


K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

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 25,000 3,092,254 3,117,254

Changes in equity
Total comprehensive income - 3,253,633 3,253,633
Balance at 31 December 2023 25,000 6,345,887 6,370,887

Changes in equity
Total comprehensive income - 1,381,386 1,381,386
Balance at 31 December 2024 25,000 7,727,273 7,752,273

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

CASH FLOW STATEMENT
for the year ended 31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,822,560 5,326,766
Interest paid (468 ) (7,050 )
Tax paid (558,338 ) (1,109,087 )
Net cash from operating activities 1,263,754 4,210,629

Cash flows from investing activities
Purchase of tangible fixed assets (13,481 ) (25,193 )
Interest received 240 -
Net cash from investing activities (13,241 ) (25,193 )

Cash flows from financing activities
Amounts due to/from group undertakings (54,680 ) (1,333,420 )
Net cash from financing activities (54,680 ) (1,333,420 )

Increase in cash and cash equivalents 1,195,833 2,852,016
Cash and cash equivalents at beginning of
year

2

4,311,264

1,459,248

Cash and cash equivalents at end of year 2 5,507,097 4,311,264

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 31 DECEMBER 2024

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

31.12.24 31.12.23
£    £   
Profit before taxation 1,843,128 4,262,547
Depreciation charges 21,394 18,648
Loss on disposal of fixed assets - 2,250
Finance costs 468 7,050
Finance income (240 ) -
1,864,750 4,290,495
(Increase)/decrease in stocks (85,615 ) 114,492
(Increase)/decrease in trade and other debtors (191,185 ) 957,082
Increase/(decrease) in trade and other creditors 234,610 (35,303 )
Cash generated from operations 1,822,560 5,326,766

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 5,507,097 4,311,264
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 4,311,264 1,459,248


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 4,311,264 1,195,833 5,507,097
4,311,264 1,195,833 5,507,097
Total 4,311,264 1,195,833 5,507,097

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 DECEMBER 2024

1. STATUTORY INFORMATION

K2 Solar Mounting Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

The presentation and functional currency for the entity is pound sterling.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill is amortised over its estimate useful life. If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% on cost
Fixtures and fittings - 8 years on cost
Motor vehicles - 10% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

They are valued on an average cost basis.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 have been enacted or substantively enacted by the balance sheet date.


K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 balance sheet 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.

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 profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
31.12.24 31.12.23
£    £   
Wages and salaries 880,981 857,680
Social security costs 84,944 80,187
Other pension costs 14,372 14,249
980,297 952,116

The average number of employees during the year was as follows:
31.12.24 31.12.23

Warehouse 4 4
Sales and administration 11 11
Directors 2 2
17 17

31.12.24 31.12.23
£    £   
Directors' remuneration 184,204 191,664

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24 31.12.23
£    £   
Depreciation - owned assets 21,394 18,647
Loss on disposal of fixed assets - 2,250
Auditors' remuneration 12,000 -
Foreign exchange differences 6,091 (12,892 )

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 DECEMBER 2024

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.24 31.12.23
£    £   
Interest payable and similar
charges 468 7,050
468 7,050

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.24 31.12.23
£    £   
Current tax:
UK corporation tax 463,562 1,008,914

Deferred tax (1,820 ) -
Tax on profit 461,742 1,008,914

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:

31.12.24 31.12.23
£    £   
Profit before tax 1,843,128 4,262,547
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

460,782

1,065,637

Effects of:
Expenses not deductible for tax purposes 960 1,271
Capital allowances in excess of depreciation - (1,829 )
Depreciation in excess of capital allowances 1,820 -
Change in UK tax rate - (63,029 )
Deferred tax (1,820 ) 6,864
Total tax charge 461,742 1,008,914

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 DECEMBER 2024

7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2024
and 31 December 2024 107,610
AMORTISATION
At 1 January 2024
and 31 December 2024 107,610
NET BOOK VALUE
At 31 December 2024 -
At 31 December 2023 -

8. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and Motor
leasehold machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2024 4,836 45,648 116,542 42,300 209,326
Additions - - 13,481 - 13,481
At 31 December 2024 4,836 45,648 130,023 42,300 222,807
DEPRECIATION
At 1 January 2024 4,836 45,147 38,529 18,925 107,437
Charge for year - 483 17,448 3,463 21,394
At 31 December 2024 4,836 45,630 55,977 22,388 128,831
NET BOOK VALUE
At 31 December 2024 - 18 74,046 19,912 93,976
At 31 December 2023 - 501 78,013 23,375 101,889

9. STOCKS
31.12.24 31.12.23
£    £   
Stocks 1,607,561 1,521,946

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade debtors 1,014,026 942,682
Amounts owed by group undertakings 18,358 -
Other debtors 63,300 21,000
Tax 38,735 -
VAT - 33,696
Prepayments 165,158 53,921
1,299,577 1,051,299

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 DECEMBER 2024

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade creditors 220,064 151,003
Amounts owed to group undertakings 14,083 50,405
Tax - 56,041
Social security and other taxes 52,234 59,772
VAT 18,417 -
Accrued expenses 428,368 273,698
733,166 590,919

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.24 31.12.23
£    £   
Within one year 207,874 95,370
Between one and five years 557,917 170,130
In more than five years 180,000 -
945,791 265,500

Operating lease payments of £170,645 (2023: £171,683) were included as expenses in the year.

13. PROVISIONS FOR LIABILITIES
31.12.24 31.12.23
£    £   
Deferred tax 22,772 24,592

Deferred
tax
£   
Balance at 1 January 2024 24,592
Credit to Income Statement during year (1,820 )
Balance at 31 December 2024 22,772

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.24 31.12.23
value: £    £   
100 Ordinary £250 25,000 25,000

Ordinary shares have full rights in the company with respect to voting, dividends and distributions.

K2 SOLAR MOUNTING SOLUTIONS LIMITED (REGISTERED NUMBER: 07688136)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 DECEMBER 2024

15. RESERVES
Retained
earnings
£   

At 1 January 2024 6,345,887
Profit for the year 1,381,386
At 31 December 2024 7,727,273

16. PENSION COMMITMENTS

The company's pension contributions in the year were £16,133 (2023: £16,010).

17. RELATED PARTY DISCLOSURES

During the year sales of £38,935 (2023: £211,621) were made to K2 Systems GmbH, a company in the same group. Costs for purchases of £6,234,817 (2023: £9,192,382 ), management fees of £72,690 (2023: £63,770), marketing of £18,595 (2023: £Nil), other professional fees of £Nil (2023: £39,093) and wages of £80,682 (2023: £77,446 ) were charged from them in the year. At the year end a balance of £14,083 (2023: £50,405) was owed to them.

During the year sales of £24,932 (2023: £109,351) were made to K2 Solar Mounting Solutions (Pty) Ltd, a company in the same group. At the year end a balance of £18,358 (2023: £Nil) was due from them.

During the year management fees of £37,154 (2023: £31,523), other professional fees of £Nil (2023: £9,625) and marketing costs of £7,391 (2023: £Nil) were paid to companies related by a common shareholder.

18. ULTIMATE CONTROLLING PARTY

The company is controlled by its parent company K2 Systems Beteiligungen AG, a company incorporated in Switzerland.

The ultimate parent company is Karakorum AG, a company incorporated in Switzerland.