Company registration number 04063287 (England and Wales)
BROKK UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
BROKK UK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
BROKK UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
10,984
32,798
Investments
4
17,374
28,358
32,798
Current assets
Stocks
1,765,567
1,435,622
Debtors
5
1,045,983
673,488
Cash at bank and in hand
1,892,357
1,913,482
4,703,907
4,022,592
Creditors: amounts falling due within one year
6
(608,650)
(337,856)
Net current assets
4,095,257
3,684,736
Net assets
4,123,615
3,717,534
Capital and reserves
Called up share capital
10,000
10,000
Profit and loss reserves
4,113,615
3,707,534
Total equity
4,123,615
3,717,534
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 March 2025 and are signed on its behalf by:
Mr N Sayers
Director
Company registration number 04063287 (England and Wales)
BROKK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
1
Accounting policies
Company information
Brokk UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2a Moss End Business Village, Crooklands, Milnthorpe, Cumbria, LA7 7NU.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
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:
Leasehold land and buildings
over the lease term
Plant and equipment
over 4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
BROKK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
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.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
BROKK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
13
13
BROKK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2024
58,400
102,820
161,220
Disposals
(23,700)
(23,700)
At 31 December 2024
58,400
79,120
137,520
Depreciation and impairment
At 1 January 2024
49,005
79,417
128,422
Depreciation charged in the year
2,750
4,746
7,496
Eliminated in respect of disposals
(9,382)
(9,382)
At 31 December 2024
51,755
74,781
126,536
Carrying amount
At 31 December 2024
6,645
4,339
10,984
At 31 December 2023
9,395
23,403
32,798
4
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
17,374
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
-
Additions
17,374
At 31 December 2024
17,374
Carrying amount
At 31 December 2024
17,374
At 31 December 2023
-
BROKK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
692,197
634,979
Amounts owed by group undertakings
316,912
Other debtors
36,874
38,509
1,045,983
673,488
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
13,971
3,937
Amounts owed to group undertakings
278,335
27,853
Corporation tax
19,801
2,986
Other taxation and social security
201,907
214,569
Other creditors
94,636
88,511
608,650
337,856
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Damien Sissons BA FCA
Statutory Auditor:
Waters & Atkinson
Date of audit report:
26 March 2025
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
408,850
497,230
BROKK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
9
Controlling party
The company's ultimate holding company and ultimate controlling party is Carl Bennet AB, a company incorporated in Sweden. The smallest group of which the company is a member and for which group financial statements are drawn up is Lifco AB, a company incorporated in Sweden. Lifco AB's place of business is Verkmostraregatan 1, SE-745 85, Enkopitig, Sweden.
10
Related party transactions
Brokk AB; parent company
goods purchased from them 2024 £3,803,338 2023 £4,854,941
goods and services sold to them 2024 £9,756 2023 £nil
management charge by them 2024 £17,919 2023 £26,652
dividend paid to them 2024 £nil 2023 £750,000
group creditor at balance sheet
date 2024 £264,470 2023 £24,830
group debtor at balance sheet date 2024 £3,285 2023 £nil
Darda GmbH; group company
goods purchased from them 2024 £63,689 2023 £149,312
group creditor at balance sheet date 2024 £301 2023 £1,680
Aquajet Systems AB; group company
goods purchased from them 2024 £441,739 2023 £65,462
group creditor at balance sheet
date 2024 £13,564 2023 £1,344
Bricking Solutions
goods purchased from them 2024 £29,597 2023 £5,104
group creditor at balance sheet
date 2024 £nil 2023 £nil
Brokk Ireland Distribution Ltd
subsidiary company
goods and services sold to them 2024 £395,710 2023 £nil
group debtor at balance sheet date 2024 £313,626 2023 £nil