Company registration number 03223165 (England and Wales)
CALJAN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CALJAN LIMITED
COMPANY INFORMATION
Directors
Mr D Wright
Mr H Olesen
Secretary
Mr D Wright
Company number
03223165
Registered office
1 Patriot Drive
Rooksley
Milton Keynes
Bucks
MK13 8PU
Auditor
Mercer & Hole LLP
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
CALJAN LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Profit and loss account
12
Statement of comprehensive income
13
Balance sheet
14
Statement of changes in equity
15
Notes to the financial statements
16 - 26
CALJAN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The profit for the year amounted to £3,266,339 (2022- £5,765,585).

The company monitors its business using several key performance indicators including revenue and operating profit (EBIT, earnings before interest and tax).

For 2023 the company recorded revenue of £40,864,515 (2022- £48,822,085) and delivered operating profit (EBIT) of £3,758,162 (2022- £6,904,559).

The results and performance of the business have been summarised below:

 

Year

Revenue

£

EBIT

£

EBIT

%

 

2023

40,864,515

3,758,162

9.2%

2022

48,822,085

6,904,559

14.1%

During 2023, we continued to build our position in the marketplace, providing our customers with effective solutions across a broad spectrum of conveyor and service projects. We have developed strategic relationships with our key customers which has reinforced our core business model. There has been a reduction in revenue and profitability in the reporting period but the result for the year was satisfactory.

Principal risks and uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies, procedures, and internal controls.

 

All policies are subject to Board approval and ongoing review by management.

We have maintained a healthy positive cash position and, based on the current outlook, this is fully expected to continue for the foreseeable future, enabling us to maintain our strong position, even in the event of a significant change in turnover.

Credit Risk

Credit risk is very low for the business and is managed through our framework of policies and internal procedures. Individual credit limits are set based on external ratings and compliance with these is regularly monitored. Customers are required to pay deposits for project sales at the point of agreement, ensuring exposure to the business is minimised.

 

Liquidity risk

The company monitors its cash position regularly to ensure there are enough resources in place to meet all current and future obligations. Cashflow sensitivities show that, even if the event of a significant change in market conditions or turnover, the confirmed orders and our strong position cash position ensure liquidity remains a very low risk.

Business environment

We remain confident that demand for our products, solutions and services will continue to grow and thrive, in the short, medium, and long term, particularly from our key customers.

Our market share continues to strengthen and the undeniable trend of online shopping, driven by consumer spending habits, drives the continued investment in automation equipment by our customer base and clearly demonstrates a demand for our products well into the future.

CALJAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Strategy and future developments

The UK and Global strategies are fully aligned and will continue to strengthen our position as the market leader in offering high quality and efficient solutions for a broad spectrum of customers, covering a wide range of needs.

Innovation and safety are at the heart of what we do and our aim to ensure the customer receives the best and most cost-effective solution that performs above and beyond their expectations.

S172 Companies Act disclosures

The directors are fully appraised of their responsibilities under section 172 of the Companies Act 2006. The following disclosures describes how the Directors have had regard to the matters set.

Suppliers

Our suppliers can be grouped into 3 main areas, category A,B and C. Category A supply items that are critical to operations and machine installations. Category B supply back up materials or parts or key on site labour support and category C supply mainly indirect support materials such as stationary or recruitment services, generally low risk items.

How we engage

Our suppliers our evaluated on this scale and complete varying levels of documentation to support our working relationship together. All suppliers are invited to send their invoices in electronically.

Where possible our trading arrangements are supported by contracts and / or purchase orders.

What matters to them

We believe in paying our suppliers ethically and in accordance to the terms that were agreed at the point of engagement. The company's policy is to pay to the terms agreed and this will vary for each supplier.

Why they matter to us

Without our suppliers, we could not provide the level of service we do for our customers, they are key in ensuring equipment can be installed or repaired in a timely manner and that labour to facilitate this smooth and seamless process is available when needed. They are vital to allow us to provide our customers with the best possible experience.

Customers

Caljan prides itself on assessing the priorities for each customer and those with whom we do business.

Caljan has a large customer base many of which are centered around logistics and online retail sectors.

How we engage

We listen to our customers needs and work out solutions on an individual basis at the point of order placement to find the best method for their automation and logistics requirements. This is done through a consultative process.

CALJAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Employees

We have an experienced and committed workforce and value the levels of engagement we have with them. Many of them have remained committed and loyal to the company for a long period of time which Caljan values deeply in its workforce.

Regular meetings and townhalls are held with employees at all levels in the organisation to promote inclusion and engagement. Opportunity is given at these meetings for senior management to be questioned about matters which concern the employees and to update the workforce on company performance. These meetings are usually held quarterly.

The Company complies with all employment legislation including requirements concerning equal opportunities in employment of disabled people and health and safety at work.

The Company gives full and fair consideration to applications for employment made by disabled persons having regard to their particular skills and abilities. Appropriate training is arranged for disabled persons where necessary and this includes any retraining for alternative work for employees who become disabled and to promote their career development within the organisation.

What matters to them

Our employees require a safe workplace that gives job security, opportunities for progression, challenging roles and good communication throughout the company.

What we are doing

Caljan conducts an annual employee survey and invites everyone to take part in this. The results of this are communicated throughout the organisation and any actions are taken as appropriate.

Each new employee undergoes an induction which will include information about the company, specific training for their role, safety, health, quality and environmental protection, mental health awareness and introduction to each department and their core responsibilities.

Caljan also has a team of trained mental health first aiders who can help employees that require additional support during difficult or emotional circumstances.

Caljan has also introduced a social committee that focus on activities for inclusion and boosting morale and engagement.

An annual appraisal program is followed for all employees.

Community and Environment

Caljan and its owners care deeply about the environment and are committed to monitor and control Co2 emissions.

Along with our owners, Investment AB Latour, we believe that care for the internal environment of the company goes hand in hand with consideration for the environment in general. Our aim is run the operations with as little negative environmental impact as possible. In every context where we can contribute positively to a sustainable ecological development, we must do so.

CALJAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

How we engage

Caljan must submit annual returns to its owners to demonstrate a reduction in Co2 emissions, through the four core targets as follows:

  1. We will annually reduce the energy consumption in relation to net sales by at least 5%

  2. We will only use renewable energy in our operations by 2030

  3. We will annually reduce the CO2 emissions in relation to net sales by at least 5%

  4. All production facilities must be environmentally certified according to ISO 14001 by 2025

What we are doing

Looking at ways to reduce the use of fossil fuels such as introducing electric or hybrid cars to our fleet. The Caljan Group has a goal to

have a fully electric fleet, including plant and service vans by 2030.

Investing in motion activated lights to avoid excessive power consumption at our head office.

Introduction of source segregated recycling bins at head office to reduce the amount of waste sent to landfill.

The Latour Group and its subsidiaries have a goal to only use renewable power by 2030, Caljan UK is aligned with this goal and is actively seeking ways to ensure the power we source comes from renewable sources through targeted Procurement.

Caljan UK is continually looking for ways to reduce Co2 emissions by introducing process change or improvements where necessary.

Shareholder engagement

Caljan is part of the Caljan Group and its ultimate parent company and owners are Investment AB Latour.

The UK business is mainly governed by the Caljan Group head office in Denmark, but the UK business has delegated authority to deal with operational matters.

On behalf of the board

Mr D Wright
Director
11 April 2025
CALJAN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of installation and servicing of conveyor systems.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £4,000,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr D Wright
Mr H Olesen
Auditor

Mercer & Hole LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

Caljan Limited operates from its head office in Milton Keynes and travels to customer sites to perform reactive or planned preventative maintenance and to install logistics automation technology at our customers premises from small to large scale projects.

Caljan Limited does not manufacture the equipment in the UK, products are sourced from other Group companies in Denmark, Latvia and Germany and also from third party suppliers, mainly with the UK.

During 2023, Caljan Limited undertook over 176 separate installations of varying sizes and serviced various equipment for over 70 customers.

By the end of 2023, a total of 140 staff were employed within the UK.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
4,264,453
3,644,149
CALJAN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
56.00
17.00
- Fuel consumed for owned transport
590.00
729.00
646.00
746.00
Scope 2 - indirect emissions
- Electricity purchased
24.00
4.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
670.00
750.00
Intensity ratio
Tonnes CO2 per full-time employee
5
6
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

 

Caljan Limited's carbon footprint has been calculated using a methodology aligned with the principles of the Greenhouse Gas Protocol (GHG) Standard for Corporate Accounting and Reporting produced by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI) - a globally recognised standard. The GHG Protocol Standard is one of the recommended methodologies under SECR guidelines. The footprint utilizes UK Government conversion factors for the year of reporting. For energy use where figures were not already in kWh these have been converted using their density and gross calorific taken from the UK government GHG conversion factors fuel properties tab for the year of reporting.

The data captured within this year's carbon footprint has been derived from a summary spreadsheet collated by Caljan Limited. This included an overview of consumption figures for electricity, gas and fuel, which was demonstrated through annual totals. This information is used in the CSR reporting for the Investment AB Latour Group

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full-time employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

In the year, Caljan Limited in the UK has undertaken the following energy efficiency measures:

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

CALJAN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
On behalf of the board
Mr D Wright
Director
11 April 2025
CALJAN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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.

CALJAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CALJAN LIMITED
- 9 -
Opinion

We have audited the financial statements of Caljan Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in Basis for qualified Opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 31 December 2023 and thus did not observe the counting of stock at the end of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2023, which are included in the balance sheet at £3,064,586, by using other audit procedures. Consequently we were unable to determine whether the stock value is materially correct and, as a result, whether the reported cost of sales for the year is correct.

 

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's 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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

CALJAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CALJAN LIMITED (CONTINUED)
- 10 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Explanation as to what extent the audit was considered capable of detecting irrregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

CALJAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CALJAN LIMITED (CONTINUED)
- 11 -

Audit procedures performed by the engagement team included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

James Wooldridge MSci FCA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP, Statutory Auditor
Chartered Accountants
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
11 April 2025
CALJAN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
Turnover
3
40,864,515
48,822,085
Cost of sales
(32,287,591)
(38,175,711)
Gross profit
8,576,924
10,646,374
Administrative expenses
(4,818,762)
(3,741,815)
Operating profit
4
3,758,162
6,904,559
Interest receivable and similar income
7
507,799
180,163
Profit before taxation
4,265,961
7,084,722
Tax on profit
8
(999,622)
(1,319,137)
Profit for the financial year
3,266,339
5,765,585

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CALJAN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
£
£
Profit for the year
3,266,339
5,765,585
Other comprehensive income
-
-
Total comprehensive income for the year
3,266,339
5,765,585
CALJAN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
968,850
1,048,855
Current assets
Stocks
12
3,064,586
9,188,392
Debtors
13
11,420,915
16,118,347
Cash at bank and in hand
1,961,997
3,135,912
16,447,498
28,442,651
Creditors: amounts falling due within one year
14
(7,133,538)
(18,475,035)
Net current assets
9,313,960
9,967,616
Total assets less current liabilities
10,282,810
11,016,471
Provisions for liabilities
Deferred tax liability
15
109,653
109,653
(109,653)
(109,653)
Net assets
10,173,157
10,906,818
Capital and reserves
Called up share capital
17
5,000,000
5,000,000
Share premium account
750,000
750,000
Profit and loss reserves
4,423,157
5,156,818
Total equity
10,173,157
10,906,818
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
Mr D Wright
Director
Company registration number 03223165 (England and Wales)
CALJAN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
5,000,000
750,000
3,391,233
9,141,233
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
5,765,585
5,765,585
Dividends
9
-
-
(4,000,000)
(4,000,000)
Balance at 31 December 2022
5,000,000
750,000
5,156,818
10,906,818
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
3,266,339
3,266,339
Dividends
9
-
-
(4,000,000)
(4,000,000)
Balance at 31 December 2023
5,000,000
750,000
4,423,157
10,173,157
CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Caljan Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Patriot Drive, Rooksley, Milton Keynes, Bucks, MK13 8PU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Investment Latour AB (publ).

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
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:

Freehold land and buildings
50 years
Fixtures and fittings
5 to 10 years
Motor vehicles
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.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
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.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Installation activities
26,490,629
29,500,423
Servicing activities
14,373,886
19,321,662
40,864,515
48,822,085
2023
2022
£
£
Other revenue
Interest income
507,799
180,163

All revenue for the company is derived wholly within the UK

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
40,775
(10,772)
Research and development costs
-
950
Depreciation of owned tangible fixed assets
274,128
288,649
Operating lease charges
536,085
390,532
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
40,000
42,000
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Director
1
1
Administration
10
12
Installation/ Service engineers
125
111
Sales
4
4
Total
140
128
CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,941,214
8,233,043
Social security costs
852,992
767,095
Pension costs
195,144
161,996
8,989,350
9,162,134
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
70,295
-
0
Interest receivable from group companies
437,504
180,163
Total income
507,799
180,163
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
999,622
1,238,014
Deferred tax
Origination and reversal of timing differences
-
0
81,123
Total tax charge
999,622
1,319,137
CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
4,265,961
7,084,722
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,003,354
1,346,097
Tax effect of expenses that are not deductible in determining taxable profit
427
514
Permanent capital allowances in excess of depreciation
-
0
(51,924)
Depreciation on assets not qualifying for tax allowances
4,793
-
0
Other permanent differences
(8,952)
-
0
Deferred tax charge
-
0
81,123
Indexation on gains
-
0
(56,673)
Taxation charge for the year
999,622
1,319,137
9
Dividends
2023
2022
£
£
Final paid
4,000,000
4,000,000
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
661,802
Amortisation and impairment
At 1 January 2023 and 31 December 2023
661,802
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
504,935
400,133
925,311
1,830,379
Additions
-
0
194,123
-
0
194,123
Disposals
-
0
-
0
(153,293)
(153,293)
At 31 December 2023
504,935
594,256
772,018
1,871,209
Depreciation and impairment
At 1 January 2023
51,889
165,126
564,509
781,524
Depreciation charged in the year
52,240
47,092
174,796
274,128
Eliminated in respect of disposals
-
0
-
0
(153,293)
(153,293)
At 31 December 2023
104,129
212,218
586,012
902,359
Carrying amount
At 31 December 2023
400,806
382,038
186,006
968,850
At 31 December 2022
453,046
235,007
360,802
1,048,855
12
Stocks
2023
2022
£
£
Work in progress
1,615,509
8,134,133
Finished goods and goods for resale
1,449,077
1,054,259
3,064,586
9,188,392
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
9,674,468
5,480,726
Amounts owed by group undertakings
-
0
8,188,179
Other debtors
157,060
1,458,765
Prepayments and accrued income
1,589,387
990,677
11,420,915
16,118,347
CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
428,752
724,330
Amounts owed to group undertakings
988,285
-
0
Corporation tax
999,159
1,229,987
Other taxation and social security
1,226,700
740,973
Other creditors
12,577
52,446
Accruals and deferred income
3,478,065
15,727,299
7,133,538
18,475,035
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
109,653
109,653
There were no deferred tax movements in the year.

The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature over the lifetime of the assets to which they relate.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
195,144
161,996

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
5,000,000
5,000,000
5,000,000
5,000,000
CALJAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
718,783
443,290
Between two and five years
1,770,451
1,108,290
In over five years
465,548
622,532
2,954,782
2,174,112
19
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

20
Ultimate controlling party

The company's immediate parent undertaking is Caljan A/s (incorporated in Denmark). The smallest group of which the company is a member is Caljan A/s.

 

Investment AB Latour (publ) (incorporated in Sweden) is regarded by the directors as being the company's ultimate parent company and controlling party. The largest group in which the results of Caljan Limited are consolidated is Investment AB Latour (publ). Group financial statements of Investment AB Latour can be obtained from https://www.latour.se/en/investor-relations/reports-and-presentations.

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