Company registration number 02429938 (England and Wales)
SOMFY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SOMFY LIMITED
COMPANY INFORMATION
Directors
Mr S Montgomery
Mr S Van Witzenburg
Secretary
Mr L Fox
Company number
02429938
Registered office
Unit 7 Lancaster Way
Airport West
Yeadon
West Yorkshire
LS19 7ZA
Auditor
Constantin
25 Hosier Lane
London
EC1A 9LQ
SOMFY LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 24
SOMFY LIMITED
STRATEGIC REPORT true
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Description of Group Activities

SOMFY designs, assembles and distributes motors and automated devices (remote controls and sensors) as well as smart systems which control their operation. SOMFY’s main manufacturing activity is the assembly of subunits and parts designed by it but produced by subcontractor partners. The R&D activity’s role is to anticipate people’s new habits and needs in relation to homes and buildings, to design the corresponding solutions, guarantee the performance and compatibility of products from the same brand, and ensure their interoperability with other brands in the field of connected homes and buildings.

SOMFY controls its distribution (international supply chain, local sales and marketing presence), which means SOMFY can deliver its products worldwide. Its customers are manufacturers and installers, who integrate SOMFY solutions into carrier products: blinds, shutters, doors and gates, or by replacing existing equipment in buildings, by leveraging the strength of the Group’s brands.

SOMFY also distributes finished products (a selection of motors and control panels, connected objects, digital applications) that are sold by prescribers, networks, retailer installers or resellers, via large specialist and DIY stores, and online, either directly or indirectly. SOMFY products are installed indiscriminately in individual homes, small businesses, apartment blocks, office blocks, hotels and collective residences.

 

Executive Summary

Somfy Ltd experienced a steady year during 2024, with a modest increase in both turnover and profitability compared to the prior year. The company reported a turnover of £18,944,746, representing 2% year-on-year growth, and a profit before tax (PBT) of £1,641,347, an increase of just over 1%.

Market conditions remained challenging throughout the year due to persistent inflation, high interest rates, and ongoing geopolitical uncertainty. Nonetheless, the business outperformed expectations and stabilised following a turbulent 2023.

 

Company Overview

Somfy Ltd operates in the sale and distribution of motors and controls for the window and door industry in the UK and Ireland. The business has maintained its strategic focus on operational efficiency, digital transformation, and improving customer service through its online platforms.

The company continues to operate strongly in the residential access channel and motorisation of window fashion treatments, maintaining its status as a key player in a competitive and evolving sector.

 

Financial Performance Analysis

Revenue Analysis:

Revenue grew by 2% year-over-year. This growth reflects the normalisation of sales activity and resilience in customer demand.

 

Profitability Analysis:

Profit before taxation rose slightly to £1,641,347 from £1,622,490. However, this increase must be viewed in light of a one-off historic import VAT reclaim of circa £1m in 2023, which had boosted prior-year margins. A reduction in administrative expenses, driven by lower management charges, also supported profitability.

Net profit for 2024 was £1,228,347, compared to £1,234,664 in 2023.

SOMFY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Expense Analysis:

Administrative expenses totalled £4,901,400, down from £6,066,118 in 2023. This reduction is primarily due to lower management charges and tighter cost control measures implemented across the business.

 

Financial Position

Balance Sheet Review:

Total assets decreased to £1,459,245, largely due to increased dividend payments in both 2023 and 2024. This, combined with modest profitability, resulted in a decrease in net assets.

 

Total equity stood at £1,452,245 at year-end.

 

Capital Structure and Liquidity:

Somfy Ltd maintained a strong current ratio of 1.38, ensuring the business remains well-positioned to meet its short-term obligations. Liquidity remains stable, aided by the company’s group cash pooling arrangements.

 

Financial KPIs

KPI

2023

2024

Change

Revenue

£18.58m

£18.94m

+2%

Net Profit

£1.23m

£1.23m

Flat

Profit Before Tax

£1.62m

£1.64m

+1.2%

Gross Margin

40.7%

34.0%

Operating Margin

8.0%

8.2%

↑ Slightly

Current Ratio

1.37

1.38

Stable

 

Non-financial KPIs

1. Customer Satisfaction

SOMFY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

 

Risk Analysis

Geopolitical Risks

While there is no direct exposure to conflict regions, rising energy prices and shipping disruption (especially via the Suez Canal) continue to impact costs and logistics. These are being monitored closely.

 

Inflation and Interest Rate Impact

Inflation eased in 2024, but high interest rates persist and continue to affect end-user disposable income. This has limited demand growth in the home improvement sector.

 

US Tariffs

Although Somfy Ltd is not currently directly affected by US-imposed tariffs, these measures are having wider impacts on global markets. There is potential for indirect consequences on international supply chains, input costs, and economic sentiment that may affect consumer demand and sales within the UK market. This remains a risk area under ongoing monitoring.

Main Group Risks

Ongoing risks include supply chain resilience, cybersecurity, evolving regulations, and competitive pressure. SOMFY’s strategy includes diversification, product innovation, and compliance with evolving sustainability and privacy regulations​

Environmental Objectives (Group-Level)

The Group’s "Ambition 2030" strategy continues across three pillars:

 

Somfy Ltd’s carbon data contributions in 2024 will support Science-Based Targets benchmarking in 2025.

 

Outlook and Strategic Focus for 2025

Somfy Ltd enters 2025 with a cautiously optimistic outlook. The business will continue investing in:

 

 

Strategic opportunities exist in smart shading, increased uptake of connected home technologies, and emerging commercial applications.

SOMFY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

Conclusion

Despite ongoing macroeconomic and geopolitical uncertainty, Somfy Ltd delivered stable financial performance in 2024, maintaining profitability and strengthening its market position. Strategic initiatives around customer experience, operational efficiency, and environmental responsibility continue to underpin a sustainable long-term outlook.

The business is well-placed to capitalise on evolving customer needs in 2025 and remains committed to delivering value through innovation, partnership, and responsible growth.

 

On behalf of the board

Mr S Montgomery
Director
9 April 2025
SOMFY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of the sale and distribution of wholesale household electrical goods.

Results and dividends

The results for the year are set out on page 11.

Ordinary interim dividends were paid during the year of £1,500,000 (2023: £2,000,000). The directors do not recommend payment of a final dividend.

 

Financial Risk Management Objectives and Policies

The Company’s activities expose it to a number of financial risks including credit risk, price risk, cash flow risk, and liquidity risk.

 

Credit Risk
The Company’s principal financial assets are bank balances and cash and trade and other receivables. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

 

Price Risk
The Company is exposed to price risk through fluctuations in the cost of goods within global supply chains. Although the Company is not currently directly affected by US-imposed tariffs, these measures are impacting global pricing across certain product categories and materials. The Company monitors these developments closely and reviews pricing policies and supplier arrangements to mitigate any indirect impacts. The majority of the companies’ purchases are internal and the transfer pricing is reviewed and set on an annual basis which gives a level of certainty in purchase pricing.

 

Cash Flow Risk
Cash flow risk is considered low due to the group cash pooling service that ensures liquidity is maintained across group entities. This structure allows the Company to access cash resources efficiently to support operational needs and strategic initiatives.

 

Liquidity Risk
In order to maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the Company utilises group cash pooling arrangements and short-term finance where required.

Further details regarding financial risks can be found in the Statement of Accounting Policies in the financial statements.

SOMFY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
Directors

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

Mr S Montgomery
Mr S Van Witzenburg
Auditor

The auditor, Constantin, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

 

Managing Director Comments

 

Geopolitical Unrest in Eastern Europe and the Middle East
The ongoing conflicts in Eastern Europe and the Middle East present limited direct risk to the operations of Somfy Ltd. There are no significant suppliers in Ukraine or Israel. However, effects on energy pricing levels have resulted in downstream price increases in various parts of the supply chain. While these pressures persisted in 2024, their impact has been relatively stable. The situation continues to be closely monitored for further potential escalation.

 

US Tariffs
Although Somfy Ltd is not currently directly affected by US-imposed tariffs, these measures are impacting markets across the globe. There is potential for indirect consequences on international supply chains, input costs, and economic sentiment that may influence customer demand and ultimately affect sales in the UK. This remains a risk area under ongoing observation by management.

 

Inflationary Impacts
The global economic environment continues to be influenced by inflationary pressure and high interest rates. In 2024, inflation rates eased somewhat, but mortgage interest rates in the UK remain high, placing pressure on household disposable income. These economic conditions have had a modest impact on sales within the sector. The management team continues to monitor interest rate trends closely and assess their potential influence on consumer spending behaviour and demand for Somfy products

 

On behalf of the board
Mr S Montgomery
Director
9 April 2025
SOMFY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -

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) 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:

 

 

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.

SOMFY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOMFY LIMITED
- 8 -
Opinion

In our opinion the financial statements:

 

We have audited the financial statements which comprise:

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).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor'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 Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

SOMFY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOMFY LIMITED
- 9 -
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.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.

 

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

 

We discussed among the audit engagement team including relevant internal specialists such as tax specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

SOMFY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOMFY LIMITED
- 10 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

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:

 

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Thierry de Gennes ACA (Senior Statutory Auditor)
For and on behalf of Constantin
9 April 2025
Chartered Accountants and Statutory Auditor
25 Hosier Lane
London
EC1A 9LQ
SOMFY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
18,944,746
18,583,101
Cost of sales
(12,498,554)
(11,021,825)
Gross profit
6,446,192
7,561,276
Administrative expenses
(4,901,400)
(6,066,118)
Operating profit
4
1,544,792
1,495,158
Interest receivable and similar income
6
102,455
127,332
Interest payable and similar expenses
(5,900)
-
0
Profit before taxation
1,641,347
1,622,490
Tax on profit
7
(413,000)
(387,826)
Profit for the financial year
1,228,347
1,234,664

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

SOMFY LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
29,895
39,003
Current assets
Stocks
10
12,915
8,959
Debtors
11
5,609,005
6,302,516
5,621,920
6,311,475
Creditors: amounts falling due within one year
12
(4,192,570)
(4,617,580)
Net current assets
1,429,350
1,693,895
Total assets less current liabilities
1,459,245
1,732,898
Provisions for liabilities
Deferred tax liability
13
7,000
9,000
(7,000)
(9,000)
Net assets
1,452,245
1,723,898
Capital and reserves
Called up share capital
15
100,000
100,000
Profit and loss reserves
1,352,245
1,623,898
Total equity
1,452,245
1,723,898
The financial statements were approved by the board of directors and authorised for issue on 9 April 2025 and are signed on its behalf by:
Mr S Montgomery
Director
Company Registration No. 02429938
SOMFY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
100,000
2,389,234
2,489,234
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,234,664
1,234,664
Dividends
8
-
(2,000,000)
(2,000,000)
Balance at 31 December 2023
100,000
1,623,898
1,723,898
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
1,228,347
1,228,347
Dividends
8
-
(1,500,000)
(1,500,000)
Balance at 31 December 2024
100,000
1,352,245
1,452,245
SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

Somfy Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 7 Lancaster Way, Airport West, Yeadon, West Yorkshire, LS19 7ZA.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. 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:

 

 

Somfy Limited is a wholly owned subsidiary of Somfy SA, a company incorporated in France. The results of Somfy Limited are included in the consolidated financial statements of Somfy SA, which has a registered address of 50 Avenue du Nouveau Monde, 74300 Cluses, France.

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.

SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10 years straight line
Fixtures and fittings
3-5 years straight line

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

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.

SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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.

1.11
Employee benefits

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

 

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.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
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.

SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation policies have been set according to management's experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £27,787 (2023 - £36,347) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Stock provision

Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Business to business
18,944,746
18,583,101
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,944,746
18,583,101
2024
2023
£
£
Other revenue
Interest income
102,455
127,332
SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(10,824)
16,660
Fees payable to the company's auditor for the audit of the company's financial statements
20,500
19,300
Depreciation of owned tangible fixed assets
27,787
36,347
Operating lease charges
121,807
114,651
5
Employees

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

2024
2023
Number
Number
Directors
2
2
Operations and administration
24
25
Total
26
27

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,579,846
1,581,995
Social security costs
166,360
185,028
Pension costs
78,473
75,839
1,824,679
1,842,862
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
102,455
127,332
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
415,000
391,314
Adjustments in respect of prior periods
-
0
1,312
Total current tax
415,000
392,626
SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Taxation
2024
2023
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
(2,000)
(4,800)
Total tax charge
413,000
387,826

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

2024
2023
£
£
Profit before taxation
1,641,347
1,622,490
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
410,337
381,285
Tax effect of expenses that are not deductible in determining taxable profit
2,307
18,696
Tax effect of income not taxable in determining taxable profit
219
-
0
Adjustments in respect of prior years
(170)
1,312
Effect of change in corporation tax rate
-
0
(17,038)
Under/(over) provided in prior years
-
0
3,571
Other tax adjustments
307
-
0
Taxation charge for the year
413,000
387,826
8
Dividends
2024
2023
£
£
Interim paid
1,500,000
2,000,000
SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
9
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
36,115
177,771
213,886
Additions
-
0
18,679
18,679
At 31 December 2024
36,115
196,450
232,565
Depreciation and impairment
At 1 January 2024
18,503
156,380
174,883
Depreciation charged in the year
4,491
23,296
27,787
At 31 December 2024
22,994
179,676
202,670
Carrying amount
At 31 December 2024
13,121
16,774
29,895
At 31 December 2023
17,612
21,391
39,003
10
Stocks
2024
2023
£
£
Finished goods and goods for resale
12,915
8,959
11
Debtors
2024
2023                       as restated
Amounts falling due within one year:
£
£
Trade debtors
2,586,661
1,864,142
Amounts owed by group undertakings
2,867,729
4,282,239
Other debtors
93,700
47,755
Prepayments and accrued income
60,915
108,380
5,609,005
6,302,516

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

Previous year figures have been restated. The restatement is detailed in note 20.

SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
12
Creditors: amounts falling due within one year
2024
2023                   as restated
£
£
Trade creditors
424,053
122,460
Amounts owed to group undertakings
2,640,735
3,383,094
Corporation tax
201,390
85,271
Other taxation and social security
564,303
509,511
Other creditors
295,133
322,397
Accruals and deferred income
66,956
194,847
4,192,570
4,617,580

Amounts owed to group undertakings are unsecured and repayable on demand.

Previous year figures have been restated. The restatement is detailed in note 20.

13
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
7,000
9,000
2024
Movements in the year:
£
Liability at 1 January 2024
9,000
Credit to profit or loss
(2,000)
Liability at 31 December 2024
7,000

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
78,473
75,839

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.

SOMFY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
16
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:

2024
2023
£
£
Within one year
158,192
177,358
Between two and five years
142,247
305,335
300,439
482,693
17
Related party transactions

The company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

18
Ultimate controlling party

Somfy Limited is a wholly owned subsidiary of Somfy SA, a company incorporated in France. The results of Somfy Limited are included in the consolidated financial statements of Somfy SA, which has a registered address of 50 Avenue du Nouveau Monde, 74300 Cluses, France.

19
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
126,074
146,149
Company pension contributions to defined contribution schemes
12,187
10,604
138,261
156,753

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

20
Prior period adjustment

The restatement represents the reclassification of debit balances in trade creditors, credit balances in trade debtors, and reclassification of intercompany balances within trade debtors and creditors.

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