Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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HRS INVESTMENTS LIMITED
COMPANY INFORMATION
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HRS INVESTMENTS LIMITED
CONTENTS
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HRS INVESTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
HRS Investments Limited has its head office in the UK and is the immediate parent company of HRS’s other UK companies, along with its overseas subsidiaries in Spain, Australia, Malaysia and New Zealand.
The HRS Group of Companies has evolved from the formation of Heat Recovery Systems Ltd in 1981, which sold products only into the UK market, to a global heat exchanger design and process solutions business operating at the forefront of thermal technology. The Group delivers innovative, customized engineering design solutions leveraging its global manufacturing footprint and supply chain expertise to customers in a variety of industries around the world. The Group has expanded over time through organic growth and acquisitions, and it currently has sales, design, and service outlets in each of the aforementioned locations, as well as manufacturing facilities in Spain and India. In July 2021, the entire share capital of the Company was purchased by Exchanger Industries UK Limited, a 100% owned subsidiary of Exchanger Industries Limited, a Canadian based market leader and globally recognised designer and manufacturer of heat transfer products for the energy, petrochemical, industrial, and clean power generation sectors.
During the year, the Company received management fees of £429,426 (2023: £241,844) from its subsidiaries.
The Company saw an overall loss of £983,994 (2023: Loss £983,413). No dividends were declared in 2024 (2023: nil).
The principal risks and uncertainties affecting the Company primarily relate to economic and trading conditions affecting its subsidiaries around the world, which may affect the level of profits within these regions. In addition, currency fluctuations will affect the profitability of the Company through the translation of primarily the Indian Rupees, Euros, and United States Dollar transactions back into Sterling.
The Company looks to provide an efficient head office function to its subsidiaries throughout the world.
The management fees that it charges for these services are primarily based on expected sales volumes of the individual subsidiaries. The Company’s costs are then expected to be in line with these management charges.
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HRS INVESTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors of the Company present their Section 172(1) statement pursuant to the requirements of the Companies Act 2006. In performing their duty to promote the success of the Company for the benefit of its members as a whole, the directors have had regard to the matters set out in Section 172(1) of the Act.
As a holding company with minimal activity, Exchanger Industries UK Limited primarily supports the wider group. The Company has minimal employees aside from the directors. The company's principal external relationships are with its related parties and a small number of suppliers. In considering their decision-making processes during the year, the directors have had particular regard to the following key factors:
1.The likely long-term consequences of decisions - the directors are committed to ensuring the financial stability of the company and the wider group. Decisions regarding intercompany loans are made with careful consideration of the Company's long-term financial position and liquidity requirements, as well as the group's operational needs.
2.The interests of the Company's employees - although the Company has a small number of employees, the directors ensure that their interests are considered. This includes providing a supporting and rewarding working environment, where employees can contribute to the Company and wider group's overall objectives. The directors are committed to offering fair compensation and supporting employee development.
3.The need to foster the Company's business relationships with suppliers and others - while the Company has limited suppliers due to the nature of its activities, the directors ensure that supplier relationships are managed responsibly. Payments to suppliers are made on time and in accordance with agreed terms.
4.The impact of the Company's operations on the community and environment - as a holding Company with minimal operational activities, the Company's environmental impact is negligible. The directors remain mindful of the wider group's environmental responsibilities and ensure their decisions align with the group's broader sustainability objectives.
5.The desirability of maintaining a reputation for high standards of business conduct - the directors are committed to upholding high standards of governance, ensuring that the Company complies with all legal and regulatory requirements. Financial reporting is prepared in accordance with applicable standards, and transparency is maintained in all dealings with stakeholders.
6.The need to act fairly between members of the Company - the directors ensure that all decisions are taken in a manner that treats all shareholders fairly and equitably. They look to consider the best interests of the Company's shareholders as a whole, focusing on preserving the company's financial health and ability to support the wider group. This includes ensuring that intercompany transactions are concluded on an arm's length basis where appropriate.
The directors will continue to act in a matter consistent with their duties under Section 172(1) as they oversee the Company's operations in support of the group.
This report was approved by the board on 3 May 2025 and signed on its behalf.
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HRS INVESTMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the audited financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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.
The directors who served during the year were:
Subsequent to the year end, P Ortin was appointed as a director on 4 April 2025.
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HRS INVESTMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditors, Wilder Coe Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 3 May 2025 and signed on its behalf.
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HRS INVESTMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HRS INVESTMENTS LIMITED
We have audited the financial statements of HRS Investments Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual 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.
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HRS INVESTMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HRS INVESTMENTS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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HRS INVESTMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HRS INVESTMENTS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:
∙Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law, tax and pensions legislation and distributable profits legislation.
∙Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include employment legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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HRS INVESTMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HRS INVESTMENTS LIMITED (CONTINUED)
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
1st Floor Sackville House
143-149 Fenchurch Street
EC3M 6BL
Date: 6 May 2025
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HRS INVESTMENTS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HRS INVESTMENTS LIMITED
REGISTERED NUMBER: 03737053
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
3 May 2025.
The notes on pages 11 to 21 form part of these financial statements.
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HRS Investments Limited (company number 03737053), having its registered office and principal place of business at 3 Abloy House, Hatters Lane, Watford, Hertfordshire, WD18 8AJ, is a private limited company incorporated in England and Wales.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of its immediate parent undertaking incorporated in England and Wales. The Company is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006. Financial Reporting Standard 102 - reduced disclosure exemptions: The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": • the requirement of Section 7 'Statement of Cash Flows'; • the requirement of Section 3 'Financial Statement Presentation' paragraph 3.17(d); and • the requirement of Section 11 'Basic Financial Instruments' paragraph 11.41. This information is included in the consolidated financial statements of Exchanger Industries UK Limited as at 31 December 2024 and these financial statements may be obtained from 3 Abloy House, Hatters Lane, Watford, Hertfordshire, WD18 8AJ. The Company has also taken advantage from the exemption in Financial Reporting Standard 102, Section 33.1A not to disclose transactions with group entities which are wholly owned by a member of the group. The following principal accounting policies have been applied:
The Company has made a loss of £983,994 (2023: £983,413) during the year and has net liabilities of £911,018 (2023: net assets £72,976).
The Directors consider it appropriate to prepare the accounts on the going concern basis as the Company continues to have the support of Exchanger Industries Limited, the ultimate parent undertaking, so that it will be able to meet its liabilities as they fall due.
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date.
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
Analysis of turnover by country of destination:
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company has trading losses of £38,082 (2023: £38,082), non-trade loan relationship losses of £7,872 (2023: £9) and management expense losses of £1,914,144 (As restated 2023: £950,218) available to carry forward which may affect future tax charges.
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The following were direct subsidiary undertakings of the Company:
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The following were indirect subsidiary undertakings of the Company:
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss reserves
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £26,874 (2023: £36,082). There were no amounts outstanding at the year end.
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HRS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
As at 31 December 2024 and 31 December 2023, the Company's immediate parent undertaking was Exchanger Industries UK Limited, a company incorporated in England and Wales.
As at 31 December 2024 and 31 December 2023, the Company's ultimate parent undertaking was Exchanger Industries Limited, a company incorporated in Canada. The smallest group in which the Company's results are consolidated is headed by Exchanger Industries UK Limited. These consolidated accounts may be obtained from: 3 Abloy House, Hatters Lane, Watford, Hertfordshire, WD18 8AJ.
As at 31 December 2024 and 31 December 2023, the ultimate controlling party is Cooperatie Nova Argent U.A. by virtue of its shareholding in the ultimate parent undertaking.
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