Company Registration No. 02935536 (England and Wales)
FORMEL D (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
FORMEL D (UK) LIMITED
COMPANY INFORMATION
Directors
Mr T J Revillard
Mr M Blinde
(Appointed 1 April 2024)
Company number
02935536
Registered office
Unit 19 Erdington Industrial Park
Chester Road
Birmingham
B24 0RD
Auditor
Lopian Gross Barnett & Co
1st Floor Cloister House
New Bailey Street
Salford
M35FS
Business address
Unit 19 Erdington Industrial Park
Chester Road
Birmingham
B24 0RD
FORMEL D (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 21
FORMEL D (UK) 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
Following on from COVID-19, the changes put in place from 2022 & 2023, have started to show in the results for 2024. We have growth in revenue of £1.3million from 2023 and a financial profit growth of over £0.5million.
All the measurements have been keeping the organization in a strong position for more expansion and even more control in the main cost of the business. This is giving us a better view over the coming years as we keep aiming to continue to target a range of new business opportunities, with new services and attracting new customers.
The plans made to develop new business in 2023 & 2024 within the Tier 1 organizations based within the UK, and also those based overseas delivering to UK based manufacturing organizations have had great success in the current year.
Formel D UK has increased in revenue as well out of the JLR business if we compared with 2023 by almost £1million. Aston Martin increased by £0.6million, ARTIFEX better than 2023, Bentley almost same revenue, GESTAMP increased by £0.2million, BROSE, which is a similar business as JLR, it was a improvement from 2023.
The main focus is still moving into other clients, other industries, who are not manufacturers of traditional ‘Automotive’ ICE vehicles (Internal Combustion Engine), and start to also focus on other areas outside of the regular ICE automotive business. Again, although hampered by all macro and micro economic effects, the initial successes have identified new opportunities for the future.
Further plans are still focused on developing further sectors of the Formel D global service portfolio. This includes placing additional focus on product development and aftersales services, along with the ongoing expansion of our production support services portfolio.
FORMEL D (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
While Brexit-related issues have diminished, new challenges have emerged. The Bank of England has highlighted "substantial" risks to both the UK and global economies stemming from escalating trade tensions and protectionist policies. Additionally, changes in US trade policy and tariffs may impact the automotive industry's supply chains, export markets, and overall economic stability, underscoring the importance of monitoring international trade dynamics.
In 2024, UK vehicle production declined by 11.8%, with car manufacturing experiencing a 13.9% drop. This downturn is attributed to factors such as the transition to electric vehicle (EV) production, weaknesses in key global markets, and economic challenges affecting consumer demand. Some manufacturers have been more affected than others, with investment shifts and restructuring impacting production volumes.
New car registrations also saw a decline, marking the fifth consecutive monthly decrease with a 1% drop in February 2025 compared to the previous year. Despite an increase in private and business buyer volumes and higher demand for electric vehicles, fleet registrations fell by 4%, contributing to the overall decline.
The EV segment continues to grow, with battery electric vehicle registrations rising by 41.7% in February 2025, accounting for one in four new car sales. However, challenges persist, including the high cost of EVs, limited government support, and concerns over charging infrastructure. Additionally, the UK government is considering easing its Zero Emission Vehicle (ZEV) mandate following industry feedback, which may impact the pace of EV adoption.
The chip shortage remains a concern for the UK automotive industry. While the situation is slowly improving, companies continue to face challenges due to ongoing supply chain disruptions and limited domestic chip production. Efforts to enhance domestic semiconductor manufacturing capacity are being discussed at both industry and government levels, but significant progress is yet to be seen.
Formel D (UK) Ltd remains committed to supporting clients through these industry transformations. The company's focus on retaining and expanding existing client relationships, coupled with efforts to acquire new clients, positions it well to navigate the evolving landscape. By offering high standards of service and support, Formel D aims to assist partners in leveraging opportunities during this period of significant change. This includes adapting to supply chain challenges and supporting manufacturers in the EV transition.
In summary, while the UK automotive industry faces challenges such as economic uncertainties, production fluctuations, and supply chain issues, opportunities exist in the growing EV market and through strategic adaptations to regulatory changes. Formel D's proactive approach aligns with the industry's needs during this transformative period.
Key performance indicators
KPIs are widely used by the business to aid strategic and tactical decision making. A volatile economic climate makes the accuracy, interpretation and use of KPIs even more critical to the successful running of the business.
Mr T J Revillard
Director
20 March 2025
FORMEL D (UK) 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 supply of technical expertise and documentation, retrofit and rework services to the motor industry.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £2,550,383. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr T Klukas
(Resigned 1 April 2024)
Mr T J Revillard
Mr M Blinde
(Appointed 1 April 2024)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
In accordance with the company's articles, a resolution proposing that Lopian Gross Barnett & Co be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
FORMEL D (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
Mr T J Revillard
Mr M Blinde
Director
Director
20 March 2025
FORMEL D (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
FORMEL D (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORMEL D (UK) LIMITED
- 6 -
Opinion
We have audited the financial statements of Formel D (UK) Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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.
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate 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.
The directors are responsible for the other information, which comprises the strategic report and the directors’ report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
we have not identified material misstatements in the other information;
in our opinion the information given in the strategic report and the directors’ report for the financial year is consistent with the financial statements; and
in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FORMEL D (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORMEL D (UK) LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 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.
FORMEL D (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORMEL D (UK) LIMITED (CONTINUED)
- 8 -
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.
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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.
The purpose of our audit work and to whom we owe our responsibilities
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.
Jonathan Brodie FCA (Senior Statutory Auditor)
For and on behalf of Lopian Gross Barnett & Co, Statutory Auditor
Chartered Accountants
1st Floor Cloister House
New Bailey Street
Salford
M35FS
20 March 2025
FORMEL D (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,486,817
12,170,002
Cost of sales
(10,166,768)
(9,498,139)
Gross profit
3,320,049
2,671,863
Administrative expenses
(1,911,868)
(1,916,615)
Other operating income
40,739
19,008
Operating profit
4
1,448,920
774,256
Interest receivable and similar income
7
2,203
Profit before taxation
1,451,123
774,256
Tax on profit
8
(362,793)
(184,649)
Profit for the financial year
1,088,330
589,607
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The accompanying notes form an integral part of financial statements.
FORMEL D (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
1,088,330
589,607
Other comprehensive income
-
-
Total comprehensive income for the year
1,088,330
589,607
FORMEL D (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
9,360
Tangible assets
11
64,719
48,530
64,719
57,890
Current assets
Debtors
12
3,537,070
4,051,780
Cash at bank and in hand
982,015
1,995,287
4,519,085
6,047,067
Creditors: amounts falling due within one year
13
(2,641,214)
(2,700,314)
Net current assets
1,877,871
3,346,753
Total assets less current liabilities
1,942,590
3,404,643
Capital and reserves
Called up share capital
15
19,176
19,176
Profit and loss reserves
1,923,414
3,385,467
Shareholders' funds
1,942,590
3,404,643
The accompanying notes form an integral part of financial statements.
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
Mr T J Revillard
Mr M Blinde
Director
Director
Company Registration No. 02935536
FORMEL D (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
19,176
4,095,860
4,115,036
Year ended 31 December 2023:
Profit and total comprehensive income
-
589,607
589,607
Dividends
9
-
(1,300,000)
(1,300,000)
Balance at 31 December 2023
19,176
3,385,467
3,404,643
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,088,330
1,088,330
Dividends
9
-
(2,550,383)
(2,550,383)
Balance at 31 December 2024
19,176
1,923,414
1,942,590
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Formel D (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 19 Erdington Industrial Park, Chester Road, Birmingham, B24 0RD. The registered number is 02935536.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Formel D GmbH. These consolidated financial statements are available from its registered office, Schanzenstraße 6-20, Gebäude 2.08, DE-51063 Cologne.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The company provides technical and quality control services to the automotive sector. Revenue is recognised in accordance with Section 23 of FRS 102 (Revenue from Contracts with Customers) based on the following principles:
Revenue is recognised when the service is provided and the company has satisfied its performance obligations;
The amount of revenue recognised reflects the consideration that the company expects to receive in exchange for the service; and
Revenue is not recognised in advance of service delivery.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Intangible fixed assets Patents
Enter amortisation rate via StatDB - cd999270
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
8%-33% straight-line
1.6
Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable.
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Significant estimates are those that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next year.
Significant estimates
Impairment of bad debts: FRS 102 requires the trade receivables to be assessed for impairment at each balance sheet date, and an impairment provision is required if the expected cash flow is less than the carrying amount. The directors follow a detailed seven step process regarding the recoverability of debtors and raise provisions as and when necessary. However, the directors acknowledge that there is a degree of estimation uncertainty in that whilst a customer may insist they will pay outstanding balances, this may not be sufficient assurance that the balance will be recovered.
Stage of completion of ongoing projects: FRS 102 requires revenue for services ongoing at the end of the reporting period to be recognised according to the stage of completion of the project. This requires the use of estimates to assess the percentage of completion of ongoing projects. The directors follow detailed procedures in order to calculate the value of those projects which are not complete, however uncertainty can arise since the stage of project completion is not always clear so judgements have to be made.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Supply of technical expertise and services to the motor industry
13,486,817
12,170,002
2024
2023
£
£
Turnover analysed by geographical market
UK
8,889,881
7,111,573
Rest of the world
4,596,936
5,058,429
13,486,817
12,170,002
2024
2023
£
£
Other revenue
Interest income
2,203
-
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
24,090
12,705
Fees payable to the company's auditor for the audit of the company's financial statements
29,000
27,113
Depreciation of owned tangible fixed assets
26,826
19,860
(Profit)/loss on disposal of tangible fixed assets
-
7,728
Amortisation of intangible assets
9,360
11,124
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
348
306
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,515,717
5,266,557
Social security costs
486,148
463,151
Pension costs
89,531
93,595
6,091,396
5,823,303
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
136,739
130,246
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,203
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
362,793
184,649
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,451,123
774,256
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
362,781
181,950
Tax effect of expenses that are not deductible in determining taxable profit
4,283
2,050
Permanent capital allowances in excess of depreciation
(6,611)
(1,965)
Amortisation on assets not qualifying for tax allowances
2,340
2,614
Taxation charge for the year
362,793
184,649
9
Dividends
2024
2023
£
£
Final paid
2,550,383
1,300,000
10
Intangible fixed assets
Intangible fixed assets
£
Cost
At 1 January 2024 and 31 December 2024
50,185
Amortisation and impairment
At 1 January 2024
40,825
Amortisation charged for the year
9,360
At 31 December 2024
50,185
Carrying amount
At 31 December 2024
At 31 December 2023
9,360
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Tangible fixed assets
Plant and machinery
£
Cost
At 1 January 2024
614,495
Additions
43,015
At 31 December 2024
657,510
Depreciation and impairment
At 1 January 2024
565,965
Depreciation charged in the year
26,826
At 31 December 2024
592,791
Carrying amount
At 31 December 2024
64,719
At 31 December 2023
48,530
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,524,891
2,966,654
Corporation tax recoverable
63,789
Amounts owed by group undertakings
78,086
4,374
Other debtors
18,792
17,531
Prepayments and accrued income
915,301
999,432
3,537,070
4,051,780
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
871,119
994,385
Amounts owed to group undertakings
551,614
128,221
Corporation tax
605
184,649
Other taxation and social security
707,370
642,653
Other creditors
75,193
55,495
Accruals and deferred income
435,313
694,911
2,641,214
2,700,314
There is a fixed and floating charge over all the assets of the company.
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,531
93,595
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.
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
19,176
19,176
19,176
19,176
16
Events after the reporting date
There were no events after the reporting period date which require disclosure at the balance sheet date.
FORMEL D (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
17
Related party transactions
2024
2023
Transactions with related parties
£
£
Entities with control, joint control or significant influence over the company
1,112,811
752,093
Other related parties
105,152
328,783
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
485,266
86,488
Other related parties
66,348
41,732
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
78,086
4,374
Other information
During the year there were no other related party transactions that require disclosure.
18
Ultimate controlling party
The ultimate controlling party is Formel D GmbH, who were incorporated in Germany, by virtue of its 100% (2023: 100%) shareholding in Formel D (UK) Limited.
Key management personnel are employed and remunerated by the ultimate controlling party. There are no amounts to disclose in relation to key management personnel compensation.
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