Caseware UK (AP4) 2023.0.135 2023.0.135 84falsetrue2023-07-01Tradingfalse80false NI016292 2023-07-01 2024-06-30 NI016292 2022-07-01 2023-06-30 NI016292 2024-06-30 NI016292 2023-06-30 NI016292 2022-07-01 NI016292 1 2023-07-01 2024-06-30 NI016292 1 2022-07-01 2023-06-30 NI016292 3 2023-07-01 2024-06-30 NI016292 3 2022-07-01 2023-06-30 NI016292 5 2023-07-01 2024-06-30 NI016292 5 2022-07-01 2023-06-30 NI016292 d:CompanySecretary1 2023-07-01 2024-06-30 NI016292 d:Director1 2023-07-01 2024-06-30 NI016292 d:Director2 2023-07-01 2024-06-30 NI016292 d:Director3 2023-07-01 2024-06-30 NI016292 d:Director4 2023-07-01 2024-06-30 NI016292 d:RegisteredOffice 2023-07-01 2024-06-30 NI016292 d:Agent1 2023-07-01 2024-06-30 NI016292 d:Agent2 2023-07-01 2024-06-30 NI016292 e:PlantMachinery 2023-07-01 2024-06-30 NI016292 e:PlantMachinery 2024-06-30 NI016292 e:PlantMachinery 2023-06-30 NI016292 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 NI016292 e:MotorVehicles 2023-07-01 2024-06-30 NI016292 e:MotorVehicles 2024-06-30 NI016292 e:MotorVehicles 2023-06-30 NI016292 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 NI016292 e:FurnitureFittings 2023-07-01 2024-06-30 NI016292 e:FurnitureFittings 2024-06-30 NI016292 e:FurnitureFittings 2023-06-30 NI016292 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 NI016292 e:OwnedOrFreeholdAssets 2023-07-01 2024-06-30 NI016292 e:CurrentFinancialInstruments 2024-06-30 NI016292 e:CurrentFinancialInstruments 2023-06-30 NI016292 e:CurrentFinancialInstruments e:WithinOneYear 2024-06-30 NI016292 e:CurrentFinancialInstruments e:WithinOneYear 2023-06-30 NI016292 e:UKTax 2023-07-01 2024-06-30 NI016292 e:UKTax 2022-07-01 2023-06-30 NI016292 e:ShareCapital 2024-06-30 NI016292 e:ShareCapital 2023-06-30 NI016292 e:ShareCapital 2022-07-01 NI016292 e:CapitalRedemptionReserve 2023-07-01 2024-06-30 NI016292 e:CapitalRedemptionReserve 2024-06-30 NI016292 e:CapitalRedemptionReserve 2023-06-30 NI016292 e:CapitalRedemptionReserve 2022-07-01 NI016292 e:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 NI016292 e:RetainedEarningsAccumulatedLosses 2024-06-30 NI016292 e:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 NI016292 e:RetainedEarningsAccumulatedLosses 2023-06-30 NI016292 e:RetainedEarningsAccumulatedLosses 2022-07-01 NI016292 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-07-01 2024-06-30 NI016292 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-06-30 NI016292 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-06-30 NI016292 d:OrdinaryShareClass1 2023-07-01 2024-06-30 NI016292 d:OrdinaryShareClass1 2024-06-30 NI016292 d:OrdinaryShareClass2 2023-07-01 2024-06-30 NI016292 d:OrdinaryShareClass2 2024-06-30 NI016292 d:OrdinaryShareClass3 2023-07-01 2024-06-30 NI016292 d:OrdinaryShareClass3 2024-06-30 NI016292 d:OrdinaryShareClass4 2023-07-01 2024-06-30 NI016292 d:OrdinaryShareClass4 2024-06-30 NI016292 d:OrdinaryShareClass5 2023-07-01 2024-06-30 NI016292 d:OrdinaryShareClass5 2024-06-30 NI016292 d:FRS102 2023-07-01 2024-06-30 NI016292 d:Audited 2023-07-01 2024-06-30 NI016292 d:FullAccounts 2023-07-01 2024-06-30 NI016292 d:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 NI016292 e:WithinOneYear 2024-06-30 NI016292 e:WithinOneYear 2023-06-30 NI016292 e:PlantEquipmentOtherAssetsUnderOperatingLeases 2024-06-30 NI016292 e:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-06-30 NI016292 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:WithinOneYear 2024-06-30 NI016292 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:WithinOneYear 2023-06-30 NI016292 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:BetweenOneFiveYears 2024-06-30 NI016292 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:BetweenOneFiveYears 2023-06-30 NI016292 6 2023-07-01 2024-06-30 NI016292 e:Associate1 2023-07-01 2024-06-30 NI016292 e:Associate1 1 2023-07-01 2024-06-30 NI016292 e:AcceleratedTaxDepreciationDeferredTax 2024-06-30 NI016292 e:AcceleratedTaxDepreciationDeferredTax 2023-06-30 NI016292 f:PoundSterling 2023-07-01 2024-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: NI016292










Warmflow Engineering Co. Limited










Annual Report and Financial Statements

For the Year Ended 30 June 2024

 
Warmflow Engineering Co. Limited
 

Company Information


Directors
Mr G Mackle 
Mr P Martin 
Mr J Black 
Mr S K Cousins 




Company secretary
Mr P Martin



Registered number
NI016292



Registered office
Lissue Industrial Estate
Moira Road

Lisburn

County Antrim

BT28 2RF




Independent auditors
Sumer Auditco NI Ltd
Statutory Auditor

Glendinning House

6 Murray Street

Belfast

Antrim

BT1 6DN




Bankers
Danske Bank
62-66 Bow Street

Lisburn

County Antrim

BT28 1YS





Bank of Ireland

81 Clanbrassil Street

Townparks

Dundalk

County Louth




Solicitors
MacCorkell Legal & Commercial
Garvey Studios

8-10 Longstone Street

Lisburn

County Antrim

BT28 1TP





 
Warmflow Engineering Co. Limited
 

Contents



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Statement of Comprehensive Income
 
 
9
Balance Sheet
 
 
10
Statement of Changes in Equity
 
 
11
Statement of Cash Flows
 
 
12 - 13
Notes to the Financial Statements
 
 
14 - 29


 
Warmflow Engineering Co. Limited
 

Strategic Report
For the Year Ended 30 June 2024

Introduction
 
The directors present their strategic report for the year ended 30 June 2024. The directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006. 

Business review
 
The principal activities of the company continued to be the research and development and manufacture of domestic heating appliances.  
The directors consider the results for the year, the financial position at the end of the year to be satisfactory and to have been achieved in a challenging operating environment.

Principal risks and uncertainties
 
The key business risk and uncertainties affecting the company are considered to relate to competition from both national and independent manufacturers, employee retention, product liability, the business impact of Brexit including the introduction of the Northern Ireland Protocol on the movement of goods into, out of, or through Northern Ireland and general economic conditions. Due to the company's reputation, standing and position in the market place, the directors are of the opinion that the risks and uncertainties facing the company can be adequately managed.
Financial risk management
The company's operations expose it to a variety of financial risks that include the effects of changes in foreign exchange risk, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the Board.
Price risk
The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits.  The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.
Foreign exchange risk
While the greater part of the company's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of business, principally on sales in euros. The company keeps under review the option to use financial instruments to hedge foreign exchange exposure.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the Board.
Liquidity risk
The company actively maintains the facilities for a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.

img7401.png
Page 1

 
Warmflow Engineering Co. Limited
 

Strategic Report (continued)
For the Year Ended 30 June 2024

Financial key performance indicators
 
The directors consider turnover, gross profit percentage, net profit percentage, stock levels and cash position to be the key measures of financial performance. Turnover increased during the period to £20,216,005 (2023: £19,413,973), gross profit percentage decreased to 36.1% from 37.8% in the prior year, stock levels as at           30 June 2024 amounted to £5,441,465 (2023: £6,886,583) and cash at year end remained positive at £2,280,260 (2023: £579,201). The company continues to monitor these indicators on an annual and monthly basis.


This report was approved by the board on 25 October 2024 and signed on its behalf.





................................................
Mr S K Cousins
Director

img6169.png
Page 2

 
Warmflow Engineering Co. 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' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £1,017,187 (2023: £2,636,318).

Dividends of £259,261 (2023: £304,749) were paid during the year.

Directors

The directors who served during the year were:

Mr G Mackle 
Mr P Martin 
Mr J Black 
Mr S K Cousins 

Political contributions

The company made no politicial donations during the year (2023: £nil).

img7229.png
Page 3

 
Warmflow Engineering Co. Limited
 

 
Directors' Report (continued)
For the Year Ended 30 June 2024

Future developments

The company will continue to invest in research and development. The level of business in the current year was encouraging despite the difficulties in the marketplace and the directors expect that this level of activity will be sustained for the foreseeable future.

Research and development activities

The company is strongly committed to research and development activities in order to secure and enhance its position in the market. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

No events which affect the company since the year end.

Auditors

The auditorsSumer Auditco NI Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 25 October 2024 and signed on its behalf.
 





................................................
Mr P Martin
Company secretary

img60b3.png
Page 4

 
Warmflow Engineering Co. Limited
 

 
Independent Auditors' Report to the Members of Warmflow Engineering Co. Limited
 

Opinion


We have audited the financial statements of Warmflow Engineering Co. Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 30 June 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 United Kingdom, including the Financial Reporting Council'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.


img6fa7.png
Page 5

 
Warmflow Engineering Co. Limited
 

 
Independent Auditors' Report to the Members of Warmflow Engineering Co. Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 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.


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 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 Directors' Responsibilities Statement 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.


img3c48.png
Page 6

 
Warmflow Engineering Co. Limited
 

 
Independent Auditors' Report to the Members of Warmflow Engineering Co. Limited (continued)


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 an Auditors' 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:
We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which they operate, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Company for fraud and identified the greatest potential for fraud in the following areas: management override of controls and fraud risk relating to revenue.
We designed audit procedures to respond to these risks, recognising that 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 by, for example, forgery or intentional misrepresentations, or through collusion. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks, sample testing of journals posted during the year, revenue cut off testing and agreeing a sample of revenue items to dispatch documentation. 
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


img0e58.png
Page 7

 
Warmflow Engineering Co. Limited
 

 
Independent Auditors' Report to the Members of Warmflow Engineering Co. Limited (continued)


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 2006Our 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 Auditors' 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.





Adrian Patton (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco NI Ltd
 
Statutory Auditor
  
Glendinning House
6 Murray Street
Belfast
Antrim
BT1 6DN

25 October 2024
img42fa.png
Page 8

 
Warmflow Engineering Co. Limited
 

Statement of Comprehensive Income
For the Year Ended 30 June 2024

2024
2023
Note
£
£

  

Turnover
 5 
20,216,005
19,413,973

Cost of sales
  
(12,918,432)
(12,077,410)

Gross profit
  
7,297,573
7,336,563

Administrative expenses
  
(6,301,177)
(4,509,890)

Other operating income
 6 
3,681
16,829

Operating profit
 7 
1,000,077
2,843,502

Interest receivable and similar income
 10 
45,957
17,457

Interest payable and similar expenses
 11 
-
(212)

Profit before tax
  
1,046,034
2,860,747

Tax on profit
 12 
(28,847)
(224,429)

Profit for the financial year
  
1,017,187
2,636,318

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 29 form part of these financial statements.

img6c90.png
Page 9

 
Warmflow Engineering Co. Limited
Registered number: NI016292

Balance Sheet
As at 30 June 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
398,743
321,658

Investments
 15 
100
100

  
398,843
321,758

Current assets
  

Stocks
 16 
5,441,465
6,886,583

Debtors: amounts falling due within one year
 17 
8,783,047
7,675,712

Cash at bank and in hand
 18 
2,280,260
579,201

  
16,504,772
15,141,496

Creditors: amounts falling due within one year
 19 
(3,081,626)
(2,455,068)

Net current assets
  
 
 
13,423,146
 
 
12,686,428

Total assets less current liabilities
  
13,821,989
13,008,186

Provisions for liabilities
  

Deferred tax
 20 
(67,129)
(38,302)

Other provisions
 21 
(306,332)
(279,282)

  
 
 
(373,461)
 
 
(317,584)

Net assets
  
13,448,528
12,690,602


Capital and reserves
  

Called up share capital 
 22 
11,228
11,228

Capital redemption reserve
 23 
9,680
9,680

Profit and loss account
 23 
13,427,620
12,669,694

  
13,448,528
12,690,602


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 October 2024.




................................................
Mr S K Cousins
Director

The notes on pages 14 to 29 form part of these financial statements.

img018a.png
Page 10

 
Warmflow Engineering Co. Limited
 

Statement of Changes in Equity
For the Year Ended 30 June 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2022
11,228
9,680
10,338,125
10,359,033



Profit for the year
-
-
2,636,318
2,636,318

Dividends: Equity capital
-
-
(304,749)
(304,749)



At 1 July 2023
11,228
9,680
12,669,694
12,690,602



Profit for the year
-
-
1,017,187
1,017,187

Dividends: Equity capital
-
-
(259,261)
(259,261)


At 30 June 2024
11,228
9,680
13,427,620
13,448,528


The notes on pages 14 to 29 form part of these financial statements.

img14da.png
Page 11

 
Warmflow Engineering Co. Limited
 

Statement of Cash Flows
For the Year Ended 30 June 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,017,187
2,636,318

Adjustments for:

Depreciation of tangible assets
143,179
559,426

Profit on disposal of tangible assets
(36,368)
(37,376)

Government grants
(3,681)
(16,829)

Interest paid
(417)
212

Interest received
(45,540)
(17,459)

Taxation charge
28,847
224,429

Decrease in stocks
1,445,118
175,119

Decrease/(increase) in debtors
492,666
(230,035)

(Increase) in amounts owed by groups
(1,600,000)
(3,788,508)

Increase in creditors
780,641
53,478

Increase in amounts owed to groups
146,406
-

Increase/(decrease) in provisions
27,050
(56,061)

Corporation tax (paid)/received
(300,510)
-

Net cash generated from operating activities

2,094,578
(497,286)


Cash flows from investing activities

Purchase of tangible fixed assets
(243,062)
(234,063)

Sale of tangible fixed assets
59,166
56,900

Government grants received
3,681
16,829

Interest received
45,540
17,459

Net cash from investing activities

(134,675)
(142,875)

Cash flows from financing activities

Dividends paid
(259,261)
(304,749)

Interest paid
417
(212)

Net cash used in financing activities
(258,844)
(304,961)

Net increase/(decrease) in cash and cash equivalents
1,701,059
(945,122)
img0ddf.png
Page 12

 
Warmflow Engineering Co. Limited
 

Statement of Cash Flows (continued)
For the Year Ended 30 June 2024


2024
2023

£
£



Cash and cash equivalents at beginning of year
579,201
1,524,323

Cash and cash equivalents at the end of year
2,280,260
579,201


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,280,260
579,201

2,280,260
579,201


The notes on pages 14 to 29 form part of these financial statements.

img4ce5.png
Page 13

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

1.


General information

Warmflow Engineering Co. Limited is a private company limited by shares incorporated in Northern Ireland within the United Kingdom. The registration number and address of the registered office are given in the company information section of these financial statements. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements are presented in sterling, rounded to the nearest pound.
The company is itself a subsidiary company and is exempt from the requirement to prepare group accounts by virtue of Section 400 of the Companies Act 2006. The company and its subsidiary will be included in the consolidated accounts of a larger group called KVS Group (UK) Limited.

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

img08c5.png
Page 14

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. A full year of depreciation is charged in the year of acquisition of an asset.

Depreciation is provided on the following basis:

Plant and machinery
-
20% straight line
Motor vehicles
-
20/25% years straight line
Fixtures and fittings
-
25% years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

 
2.4

Investments

Investments held as fixed assets are shown at cost less provision for impairment.

 
2.5

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is based on the cost of purchase on a first in, first out basis.  Finished goods include direct labour cost. Net realisable value is the estimated selling price less costs to complete and sell.

img44b9.png
Page 15

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)

 
2.6

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.7

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 

img72d0.png
Page 16

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)


2.7
Financial instruments (continued)

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

img70a4.png
Page 17

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Foreign currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Exchange gains and losses are recognised in the Statement of Comprehensive Income.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.12

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

 
2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

img1511.png
Page 18

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)

  
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
The company provides warranty cover on a number of its inventory lines, for periods between one and five years. A provisional estimate of the cost of the warranty claims has been made in these financial statements.

 
2.15

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


  
2.16

Research and development

Research expenditure is written off to the Profit and Loss Account in the year in which it is incurred.  Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

img6b7f.png
Page 19

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors. Including expectations of future events are believed to be reasonable under the circumstances.
 
(a) Critical judgements in applying the entity’s accounting policies:
There are no critical judgements in applying the entity's accounting policies.
(b) Key accounting estimates and assumptions:
 
Due to the nature of the company’s activities, the Company provides warranty cover on a number of its inventory lines for periods between one and five years. A provisional estimate of the cost of the warranty claims has been made in these financial statements, and is reviewed annually against actual warranty costs. In making these estimates, the directors have drawn on their knowledge of the industry and prior experience with warranty estimates.


4.


Going concern

The Company has a strong, cash rich balance sheet with low levels of debt. At the date of this report, the directors are confident that the company can continue to demonstrate its resilience and navigate these challenging times successfully. The directors have prepared budgets and cash flow forecasts. As a result, the directors continue to prepare the financial statements on a going concern basis as they are satisfied that the company has the ability to meet its liabilities as and when they fall due for a period not less than 12 months from this report.


5.


Turnover

The whole of the turnover is attributable to the principal activity of the business.
The directors have chosen not to disclose turnover per geographical location as it would seriously prejudice the Company's interest.


6.


Other operating income

2024
2023
£
£

Government grants receivable
3,681
16,829

3,681
16,829


img04c2.png
Page 20

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

7.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
143,179
559,426

Fees payable to the Company's auditor
13,000
12,425

Exchange differences
49,199
(12,145)

Other operating lease rentals
699,351
618,432

Defined contribution pension cost
100,504
74,569

(Profit)/loss on sale of tangible assets
(36,368)
(37,376)


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,991,134
2,769,711

Social security costs
210,920
264,272

Cost of defined contribution scheme
100,504
74,569

3,302,558
3,108,552


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production
26
29



Sales
11
12



Administration
43
43

80
84

img6c43.png
Page 21

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

9.


Directors' remuneration

2024
2023
£
£



Directors' emoluments
84,260
104,491

Company contributions to defined contribution pension schemes
6,000
12,000

90,260
116,491


10.


Interest receivable

2024
2023
£
£


Other interest receivable
45,957
17,457

45,957
17,457


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
-
212

-
212


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
20
294,881


20
294,881


Total current tax
20
294,881

Deferred tax


Origination and reversal of timing differences
28,827
(70,452)

Total deferred tax
28,827
(70,452)


Tax on profit
28,847
224,429
img4119.png
Page 22

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19% and 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,046,034
2,860,747


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 19/25%)
261,509
586,336

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
35,795
114,659

Capital allowances for year in excess of depreciation
(63,701)
(64,903)

Adjustments to tax charge in respect of prior periods
20
(5,609)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(120,046)
(89,151)

Tax deduction arising from patent box
(305,155)
(253,766)

Deferred tax movement
28,827
(70,452)

Other differences leading to an increase (decrease) in the tax charge
191,598
7,315

Total tax charge for the year
28,847
224,429


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends paid
259,261
304,749

259,261
304,749

img70f9.png
Page 23

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

14.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 July 2023
6,058,949
398,603
538,528
6,996,080


Additions
115,823
119,239
8,000
243,062


Disposals
(112,083)
(80,958)
(80,792)
(273,833)



At 30 June 2024

6,062,689
436,884
465,736
6,965,309



Depreciation


At 1 July 2023
5,938,334
208,685
527,403
6,674,422


Charge for the year on owned assets
62,558
67,496
13,125
143,179


Disposals
(112,083)
(58,160)
(80,792)
(251,035)



At 30 June 2024

5,888,809
218,021
459,736
6,566,566



Net book value



At 30 June 2024
173,880
218,863
6,000
398,743



At 30 June 2023
120,615
189,918
11,125
321,658


15.


Fixed asset investments





Investments in subsidiary

£



Cost or valuation


At 1 July 2023
100



At 30 June 2024
100




img24dd.png
Page 24

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

Subsidiary undertaking





The following was an associate of the Company:


Name

Registered office

Class of shares

Holding

Warmflow Limited
Lissue Industrial Estate, Moira Road, Lisburn, BT28 2RF
Ordinary
100%


16.


Stocks

2024
2023
£
£

Raw materials and consumables
4,335,846
5,348,672

Finished goods and goods for resale
1,105,619
1,537,911

5,441,465
6,886,583



17.


Debtors

2024
2023
£
£


Trade debtors
2,938,743
2,922,840

Amounts owed by group undertakings
5,390,760
3,790,760

Other debtors
47,542
9,000

Prepayments and accrued income
406,002
953,112

8,783,047
7,675,712


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.


18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,280,260
579,201

2,280,260
579,201


img1296.png
Page 25

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,953,889
1,286,358

Amounts owed to group undertakings
146,406
-

Corporation tax
-
300,490

Other taxation and social security
329,267
408,142

Other creditors
21,436
2,156

Accruals and deferred income
630,628
457,922

3,081,626
2,455,068


Security
The company provides security by way of a floating charge over the book debts of the company and a chattel mortgage on plant and machinery. There is also a cross company guarantee in favour of its parent company, KVS Group (UK) Limited.


20.


Deferred taxation




2024
2023


£

£






At beginning of year
(38,302)
(108,754)


Charged to profit or loss
(28,827)
70,452



At end of year
(67,129)
(38,302)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(67,129)
(38,302)

(67,129)
(38,302)

img7172.png
Page 26

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

21.


Provisions




Warranty provision

£





At 1 July 2023
279,282


Charged to profit or loss
27,050



At 30 June 2024
306,332

The company provides warranty cover on a number of its inventory lines, for periods between one and five years. An extra period of warranty can be provided at a charge. An estimate of the cost of the warranty claims has been made in these financial statements.


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



11,220 Ordinary A shares of £1.00 each
11,220
11,220
1 Ordinary B share of £1.00
1
1
1 Ordinary C share of £1.00
1
1
1 Ordinary D share of £1.00
1
1
1 Ordinary E share of £1.00
1
1
1 Ordinary F share of £1.00
1
1
1 Ordinary G share of £1.00
1
1
1 Ordinary H share of £1.00
1
1
1 Ordinary I share of £1.00
1
1

11,228

11,228



23.


Reserves

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve that represents paid up share capital.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

img503b.png
Page 27

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

24.


Capital commitments


At 30 June 2024 the Company had capital commitments as follows:

2024
2023
£
£


Fixed assets
61,250
-

61,250
-


25.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £100,504 (2023: £74,569).  Contributions totalling £15,578 (2023: £15,507) were payable to the fund at the balance sheet date and are included in creditors.


26.


Commitments under operating leases

At 30 June 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£

Land and Buildings


Not later than 1 year
691,909
753,882

691,909
753,882

2024
2023

£
£

Other


Not later than 1 year
104,174
101,186

Later than 1 year and not later than 5 years
164,263
199,294

268,437
300,480



img2775.png
Page 28

 
Warmflow Engineering Co. Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

27.


Related party transactions

During the year, rental, service charge, and insurance payments of £901,510 (2023: £873,348) were made by Warmflow Engineering Co. Limited to KVS Group (UK) Limited. Warmflow Engineering Co. Limited charged £112,611 (2023: £120,600) to the KVS Group (UK) Limited in respect of rechargeable costs. Management charges were paid by KVS Group (UK) Limited to Warmflow Engineering Co. Limited in the amount of £65,053 (2023: £77,163). At the balance sheet date there was a balance of £146,046 (2023: £58,766) owed to KVS Group (UK) Limited from Warmflow Engineering Co. Limited. The outstanding balance on the loan due from KVS Group (UK) Limited amounted to £5,390,760 (2023: £3,790,760) which is net of interest during the year of £25,339 (2023: £9,132).
Donations of £1,200,925 were made by Warmflow Engineering Co. Limited to The House of Vic Ryn Trust Limited (2023: £850). 
Dividends of £259,261 (2023: £304,749) were paid to the shareholders.


28.


Controlling party

Warmflow Engineering Co. Limited is a subsidiary of its parent undertaking KVS Group (UK) Limited. KVS Group (UK) Limited is a company incorporated in Northern Ireland (NI046773) and is the parent entity of the largest and smallest group of which the company is a member and for which consolidated group financial statements are prepared. Copies of the group financial statements are available from Lissue Industrial Estate, Moira Road, Lisburn, County Antrim, BT28 2RF. The Ultimate Controlling party is Mr James Kenneth Cousins.


img55f2.png
Page 29