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Inverter Fusion Limited

Annual Report and Financial Statements
Year Ended 30 June 2024

Registration number: 02633362

 

Inverter Fusion Limited

Contents

Company Information

1

Directors' Report

2

Statement of Directors' Responsibilities

3

Independent Auditor's Report

4 to 7

Profit and Loss Account

8

Balance Sheet

9

Notes to the Financial Statements

10 to 15

 

Inverter Fusion Limited

Company Information

Directors

D K Douglas

S A Beckett

J C Wakeford

C Jones

Company secretary

D K Douglas

Registered office

Salterton Industrial Estate
Salterton Road
Exmouth
EX8 4RZ

Solicitors

Ashfords LLP
Ashford House
Grenadier Road
Exeter
EX1 3LH

Bankers

HSBC plc
Exeter Commercial
Ground Floor
Stratus House
Emperor Way
Exeter Business Park
Exeter
EX1 3QS

Auditors

PKF Francis Clark
Statutory Auditor
Centenary House
Peninsula Park
Rydon Lane
Exeter
EX2 7XE

 

Inverter Fusion Limited

Directors' Report for the Year Ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors of the company

The directors who held office during the year were as follows:

D K Douglas

S A Beckett

K M Hole (ceased 31 October 2023)

J C Wakeford

C Jones (appointed 1 August 2023)

Principal activity

The principal activity of the company is the manufacturing and trading of welding equipment, consumables and related products.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 21 March 2025 and signed on its behalf by:
 

.........................................
D K Douglas
Director

 

Inverter Fusion Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 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.

 

Inverter Fusion Limited

Independent Auditor's Report to the Members of Inverter Fusion Limited

Opinion

We have audited the financial statements of Inverter Fusion Limited (the 'company') for the year ended 30 June 2024, which comprise the Profit and Loss Account, Balance Sheet, and 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 FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice) incorporating the requirements of Section 1A.

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its loss 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Inverter Fusion Limited

Independent Auditor's Report to the Members of Inverter Fusion Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

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; or

the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 3, 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 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.

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:

 

Inverter Fusion Limited

Independent Auditor's Report to the Members of Inverter Fusion Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations as relating to breaches around health and safety regulations, environmental regulations, breaches of quality control regulations and The Control of Substances Hazardous to Health Regulations. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as The Companies Act 2006, and relevant tax legislation (Corporation Tax, VAT etc.). We considered the extent to which non-compliance with these laws and regulations may have a material effect on the financial statements.

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates.

Based on this understanding we designed our audit procedures to identify irregularities. Our procedures involved the following:

● Enquiries to members of Senior Management, regarding their knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
● Review of minutes of meetings of Senior Management, and those charged with governance;
● Review of any health and safety incidents which have been reported under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”) during the period;
● Review of certifications confirming compliance following audits conducted by the Regulator (British Standards Institute);
● Challenging assumptions and judgements made by management in its significant accounting estimates; and
● Testing the recognition of revenue and costs, in particular around the year end date, including a revenue matching exercise between the company's ordering, despatching and invoicing system;
● Reviewing draft tax computations and involving the use of our specialists as required (e.g. VAT);
● Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
● Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Inverter Fusion Limited

Independent Auditor's Report to the Members of Inverter Fusion Limited

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.

......................................
Neil Hitchings (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Centenary House
Peninsula Park
Rydon Lane
Exeter
EX2 7XE

21 March 2025

 

Inverter Fusion Limited

Profit and Loss Account

Year Ended 30 June 2024

Note

2024
£ 000

2023
£ 000

Turnover

 

770

558

Cost of sales

 

(650)

(481)

Gross profit

 

120

77

Distribution costs

 

(12)

(13)

Administrative expenses

 

(115)

(61)

Operating (loss)/profit

 

(7)

3

(Loss)/profit before tax

4

(7)

3

(Loss)/profit for the financial year

 

(7)

3

 

Inverter Fusion Limited

Balance Sheet

30 June 2024

Note

2024
£ 000

2023
£ 000

Fixed assets

 

Intangible assets

5

1

1

Tangible assets

6

9

10

 

10

11

Current assets

 

Stocks

7

412

429

Debtors

8

174

139

Cash at bank and in hand

 

1

-

 

587

568

Creditors: Amounts falling due within one year

9

(234)

(141)

Net current assets

 

353

427

Total assets less current liabilities

 

363

438

Creditors: Amounts falling due after more than one year

9

(288)

(356)

Provisions for liabilities

(1)

(1)

Net assets

 

74

81

Capital and reserves

 

Called up share capital

10

31

31

Share premium reserve

6

6

Profit and loss account

37

44

Shareholders' funds

 

74

81

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 21 March 2025 and signed on its behalf by:
 

.........................................

D K Douglas

Director

Company Registration Number: 02633362

 

Inverter Fusion Limited

Notes to the Financial Statements

Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
Salterton Industrial Estate
Salterton Road
Exmouth
EX8 4RZ

The principal place of business is:
Heathpark Way
Heathpark Industrial Estate
Honiton
EX14 1BB

2

Accounting policies

Summary of significant accounting policies

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

There are no material departures from FRS102.

Basis of preparation

These financial statements have been prepared using the historical cost.

The financial statements are presented in Sterling (£). The figures, unless otherwise stated, have been presented in round thousands.

Going concern

Having considered the availability of working capital and current and project trading performance, the directors have concluded that the financial statements should continue to be prepared on a going concern basis.

Revenue recognition

Turnover represents amounts chargeable in respect of the sale of goods and services to customers. Turnover on the sale of goods is recognised at the point of dispatch to the customer. Service revenue is recognised in line with the work performed.

 

Inverter Fusion Limited

Notes to the Financial Statements

Year Ended 30 June 2024

2

Accounting policies (continued)

Tax

Income tax expense for the period represents the sum of the current tax currently payable and deferred tax. Tax is recognised in profit of loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Intangible assets

Intangible assets are stated in the statement of financial position at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years straight line

Software

10-15% straight line

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant & Machinery

10% - 25%

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

 

Inverter Fusion Limited

Notes to the Financial Statements

Year Ended 30 June 2024

2

Accounting policies (continued)

Financial instruments


Classification
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 net assets of the company.

 Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

The company holds the following financial instruments:

• Short term trade debtors and creditors;
• Long term intra group creditors;

All of the financial instruments of the company are considered to be basic financial instruments. Such instruments are initially measured at transaction price, including transaction costs. Those instruments considered current are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. Intercompany balances are not discounted on the grounds of materiality.


 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2023 - 4).

4

Loss/profit before tax

Arrived at after charging/(crediting)

2024
£ 000

2023
£ 000

Depreciation expense

3

4

Amortisation expense

1

1

Auditor's remuneration

1

1

 

Inverter Fusion Limited

Notes to the Financial Statements

Year Ended 30 June 2024

5

Intangible assets

Goodwill
 £ 000

Software
 £ 000

Total
£ 000

Cost or valuation

At 1 July 2023

100

9

109

Additions

-

1

1

At 30 June 2024

100

10

110

Amortisation

At 1 July 2023

100

8

108

Amortisation charge

-

1

1

At 30 June 2024

100

9

109

Carrying amount

At 30 June 2024

-

1

1

At 30 June 2023

-

1

1

6

Tangible assets

Other property, plant and equipment
£ 000

Total
£ 000

Cost or valuation

At 1 July 2023

59

59

Additions

2

2

At 30 June 2024

61

61

Depreciation

At 1 July 2023

49

49

Charge for the year

3

3

At 30 June 2024

52

52

Carrying amount

At 30 June 2024

9

9

At 30 June 2023

10

10

 

Inverter Fusion Limited

Notes to the Financial Statements

Year Ended 30 June 2024

7

Stocks

2024
£ 000

2023
£ 000

Raw materials and consumables

133

117

Work in progress

1

1

Finished goods and goods for resale

278

311

412

429

8

Debtors

2024
£ 000

2023
£ 000

Trade debtors

 

45

35

Amounts due from group undertakings

105

96

Prepayments

 

9

6

Other debtors

 

15

2

 

174

139

Details of non-current trade and other debtors

£105,000 (2023 - £96,000) of amounts due from group undertakings is classified as non current.

9

Creditors

Creditors: amounts falling due within one year

2024
£ 000

2023
£ 000

Due within one year

Trade creditors

232

139

Accruals and deferred income

1

1

Other creditors

1

1

234

141

Creditors: amounts falling due after more than one year

2024
£ 000

2023
£ 000

Due after one year

Amounts due to group undertakings

288

356

 

Inverter Fusion Limited

Notes to the Financial Statements

Year Ended 30 June 2024

10

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

31,250

31,250

31,250

31,250

       

11

Parent and ultimate parent undertaking

The company's immediate parent is The Eurotech Group plc, incorporated in England. The address of the parent company is Salterton Industrial Estate, Salterton Road, Exmouth, EX8 4RZ.

 The smallest group producing publicly available financial statements is The Eurotech Group plc. These financial statements are available upon request from Companies House.

 The ultimate controlling party is D K Douglas.