| REGISTERED NUMBER: |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| SHIMA SEIKI EUROPE LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| SHIMA SEIKI EUROPE LIMITED |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 6 |
| Report of the Independent Auditors | 8 |
| Income Statement | 11 |
| Balance Sheet | 12 |
| Statement of Changes in Equity | 13 |
| Notes to the Financial Statements | 14 |
| SHIMA SEIKI EUROPE LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: |
| AUDITORS: |
| and Statutory Auditors |
| Granville Hall |
| Granville Road |
| Leicester |
| LE1 7RU |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their strategic report for the year ended 31 December 2024. |
| Shima Seiki Europe Limited is a subsidiary of Shima Seiki Manufacturing Ltd, a world leader in the manufacture of flat knitting machines and related computer graphic systems. The Company was established in 1985 in Milton Keynes, England, and moved to its current headquarters in Castle Donnington in 2000. Shima Seiki Europe Limited has a team on average of 20 staff and operates in the UK, Ireland, Scandinavia and the Baltics. The Company also has a subsidiary in France that services France and Benelux. |
| REVIEW OF BUSINESS |
| Shima Seiki Europe Limited is a leading provider of flat knitting machines for the fashion, sportswear and homeware industries. The Company's machines are known for their high quality, productivity and flexibility. Shima Seiki Europe Limited also offers a range of computer graphic systems that support the design and production of knitted garments. |
| The results for the year and financial position of the company are as shown in the annexed financial statements. |
| Our KPI's for the year show how much we have achieved this year: |
| KPI's £ | 2024 | 2023 |
| Turnover | 5,321 | 7,557 |
| Gross Profit | 2,006 | 2,700 |
| Net Profit | 311 | 915 |
| Net Assets | 9,572 | 9,261 |
| The company completes monthly management accounts, agreeing these to budgets to measure actual performance. |
| In recent years, Shima Seiki Europe Limited has expanded its product offering to include subscription-based software aimed at designers, retailers and other stakeholders in the fashion industry. The Company's software solutions provide users with access to a range of tools and resources that can help them to improve their design and production processes. |
| Shima Seiki Europe Limited is committed to providing its customers with the best possible service and support. The Company has a team of experienced engineers and technicians who are available to provide support to customers around the world, including a range of training courses that can help customers to get the most out of their machine and software. |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The global economy is facing a number of challenges, including the war in Ukraine, and the Red Sea conflict. These challenges have had a significant impact on the textile industry and Shima Seiki Europe Limited is no exception. The Company has faced delays in the delivery of machines and components, as well as increased costs. However, the Parent Company Shima Seiki Manufacturing Ltd has taken steps to mitigate these challenges, now having much improved delivery times. The Company is confident that it will continue to grow and prosper in the years to come. |
| One of the ongoing challenges facing Shima Seiki Europe Limited is the need to diversify its customer base. The Company's traditional markets such as fashion and sportswear industries, have been hit hard in recent years. As a result, Shima Seiki Europe Limited is looking to expand into new markets, such as the composite industry for aerospace and automotive. |
| STRATEGIC OPPORTUNITIES |
| Despite the challenges facing the global economy, there are a number of opportunities for Shima Seiki Europe Limited to grow and prosper. The Company is well-positioned to benefit from the growing demand for knitted garments in the global fashion industry. |
| Shima Seiki Europe Limited is also well-positioned to benefit from the growth of the composite industry. In addition to these opportunities, Shima Seiki Europe Limited is also well positioned to benefit from the Company's strong brand reputation and its commitment to customer service. The Company has a long history of providing its customers with high-quality products and services, and this reputation is likely to continue to attract new customers in the years to come. |
| In conclusion, Shima Seiki Europe Limited is a well established Company with a good track record of success. The Company had been facing a number of challenges with delayed deliveries, but it is well positioned to benefit from a number of opportunities. Management regularly meets to discuss such opportunities or matters which may affect the Company. Information is passed down the chain if deemed necessary. |
| Shima Seiki Europe Limited is confident that it will continue to grow and prosper in the years to come. |
| FINANCIAL KEY PERFORMANCE INDICATORS |
| Shima Seiki Europe Limited use several financial measures to monitor progress against strategies and objectives: |
| - Sales growth |
| - Gross profit growth; and |
| - Asset turnover |
| The Board monitor the Company's operations within the objectives to ensure economic growth. |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| SECTION 172(1) STATEMENT |
| The directors have had regards to the matters set out in S172(1) (a) to (f) of the Companies Act 2016. They have acted in good faith to promote the success of the Company for the benefit of its members, with specific actions as below. |
| S172(1) (A) The likely consequence of any decisions in the long term |
| The directors strategy is to grow the business in the long term utilising the groups extensive knowledge in sustainable manufacturing and digitalisation of the industry. We see the implications of this are not only beneficial to us but also to our customers and wider textile industry. |
| In line with the Company's strategy to further grow the business, increase revenue and strengthen our position, we also continue to target burgeoning sections of the industry. |
| S172(1) (B) The interests of the Company's employees |
| The Company has a long established 'open door policy' for any employee to be able to communicate freely with the director's or any managers, with ideas, views and suggestions for consideration. |
| To encourage and maintain healthy lifestyle all employees are offered regular health assessments and ongoing support through the annual health plan. |
| The directors are committed to our equal employment and non-discrimination policy which also relates to how we provide services to our customers. |
| S172(1) (C) The need to foster the Company's business relationships with suppliers, customers and others |
| By maintaining a clear and honest relationship with our customers and providing a professional and timely service, these values have helped grow a strong customer base. The same qualities are held throughout the business and applied to suppliers and organisations dealt with during business activities. |
| S172(1) (D) The impact of the Company's operations on the community and the environment |
| The Company is aware of its impact on the community and the environment, and conducts business in an environmentally manner, complying with current legislation. Working with our headquarters by reducing the amount of packaging and using more environmentally friendly materials when shipping goods. |
| S172(1) (E) The desirability of the Company maintaining a reputation for high standards of business conduct |
| The Company has a defined set of ethical standards including a zero-tolerance approach to modern slavery, bribery and corruption. These are laid out in Company policy and are reviewed and updated regularly. |
| S172(1) (F) The need to act fairly as between members of the Company |
| Consistent with the Company strategy the directors take a long term view to achieve growth and profitability, working with a fair and balance approached considering all stakeholders to attain the best results. |
| ON BEHALF OF THE BOARD: |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2024. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| Other changes in directors holding office are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| AUDITORS |
| The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SHIMA SEIKI EUROPE LIMITED |
| Opinion |
| We have audited the financial statements of Shima Seiki Europe Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SHIMA SEIKI EUROPE LIMITED |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, stock valuation and significant one-off or unusual transactions. |
| Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud). |
| Our audit procedures included but were not limited to: |
| - A review of a sample of stock lines to ensure the valuation of stock is at the lower of cost and net realisable value and testing the stock provision is in line with the company policy along with attendance at stocktake to sample the stock count of stock lines. |
| - A review of a sample of orders received in the year to ensure these were correctly recorded in revenue and detailed cut off testing around the year end to ensure revenue is correctly recognised. |
| - A review of laws and regulations the company is subject to is followed by compliance checks and discussion with management to ensure no instances of non compliance. |
| - Addressing the risks of fraud through management override of controls by performing journal entry test and testing other adjustments for appropriateness, evaluation the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
| 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 Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| SHIMA SEIKI EUROPE LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
| and Statutory Auditors |
| Granville Hall |
| Granville Road |
| Leicester |
| LE1 7RU |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Distribution costs |
| Administrative expenses |
| 1,734,120 | 1,668,432 |
| 272,121 | 1,031,385 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 444,733 | 1,212,165 |
| Interest payable and similar expenses | 6 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 |
| PROFIT FOR THE FINANCIAL YEAR |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| BALANCE SHEET |
| 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 8 |
| Investments | 9 |
| CURRENT ASSETS |
| Stocks | 10 |
| Debtors | 11 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 12 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 15 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Shima Seiki Europe Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| • | the requirements of Section 7 Statement of Cash Flows; |
| • | the requirement of paragraph 3.17(d); |
| • | the requirement of paragraph 33.7. |
| The information is included in the consolidated financial statements of Shima Seiki Manufacturing Limited as at 31 December 2024 and these financial statements may be obtained from 85 Sakata, Wakayama City 641-8511, Japan. |
| Preparation of consolidated financial statements |
| The financial statements contain information about the company as an individual company and do not contain consolidated financial information as the parent of a group. The company is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepared consolidated financial statements under section 401 of the Companies Act 2006. |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
| Sales of goods |
| Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
| - the Company has transferred the significant risks and rewards of ownership to the buyer; |
| - the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
| - the amount of revenue can be measured reliably; |
| - it is probable that the Company will receive the consideration due under the transaction; and |
| - the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| Rendering of services |
| Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
| - the amount of revenue can be measured reliably; |
| - it is probable that the Company will receive the consideration due under the contract; |
| - the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
| - the costs incurred and the costs to complete the contract can be measured reliably. |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Showroom assets | - |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value, being estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
| At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Profit and Loss Accounts. |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| The Company's functional and presentation currency is British Pound Sterling (£). |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Profit and Loss Account within 'other operating income'. |
| Leasing commitments - company as lessee |
| Rentals paid under operating leases are charged to the Profit and Loss Account on a straight-line basis over the lease term. |
| Pension costs and other post-retirement benefits |
| The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. |
| The contributions are recognised as an expense in the Profit and Loss Accounts when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds. |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
| Creditors |
| Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 2024 | 2023 |
| £ | £ |
| An analysis of turnover by geographical market is given below: |
| 2024 | 2023 |
| £ | £ |
| United Kingdom |
| Rest of Europe | 2,121,631 | 2,550,230 |
| Rest of the World | 312,800 | 439,593 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Sales and distribution | 4 | 5 |
| Administrative | 4 | 4 |
| Management | 1 | 1 |
| Technical | 11 | 9 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| During the year retirement benefits were accruing to 1 director (2023: 1) in respect of defined contribution pension schemes. |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 2024 | 2023 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Auditors remuneration |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| CT Interest |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior year |
| UK corporation tax | (747 | ) | - |
| Total current tax |
| Deferred taxation | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 25% (2023 - 25%). |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Changes in tax rate leading to an increase/(decrease) in the tax charge | ( |
) |
| Other differences leading to an increase in the tax charge | ( |
) | ( |
) |
| Total tax charge | 123,284 | 294,361 |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 7. | TAXATION - continued |
| During last year, the tax charge was apportioned at a rate of 19% to 31 March 2023 and subsequently increased to a rate of 25% to the period ended 31st December 2023. |
| Taxable profits in excess of £250,000 from 1 April 2023 were taxed at a higher rate of 25%, hence the apportionment. |
| Shima Seiki Europe Limited is part of a Group that operates in a number of jurisdictions. The standard tax rate in the UK at the end of financial year 2024 was 25% (2023: 25%). The effective tax rate for the financial year 2024 was 25.0% (2023: 23.5%). The difference is due to the combination of non-deductible expenses and capital allowances in excess of depreciation. |
| From 1 January 2024 new legislation applied to ensure the effective tax rate of the UK companies within the Group would be at least 15%, subject to various complex calculations. This is in line with the minimum taxation rules announced by the G7 and progressed by the OECD Inclusive Framework on Base Erosion and Profit Shifting. These rules were implemented in the UK via the Domestic Top Up Tax legislation during last year. |
| Historically Shima Seiki Europe Limited's effective rate has been above 15% and the Company has assessed its future exposure to Domestic Top Up Tax to be immaterial. In addition, the temporary exemption has been taken in relation to recognising any deferred tax assets or liabilities in relation to the OECD pillar two income taxes. |
| 8. | TANGIBLE FIXED ASSETS |
| Freehold | Plant and | Showroom |
| property | machinery | assets | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| Included in cost of land and buildings is freehold land of £ 321,993 (2023 - £ 321,993 ) which is not depreciated. |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 9. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 |
| PROVISIONS |
| At 1 January 2024 |
| and 31 December 2024 | 21,871 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| The company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Registered office: Espace Lumière, 55 Bd de la République, Bâtiment 7, 78400 Chatou, France |
| Nature of business: |
| % |
| Class of shares: | holding |
| 10. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Stocks |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Prepayments and accrued income |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Taxation |
| Paye/Ni payable | 24,496 | 31,955 |
| VAT | 131,422 | 149,489 |
| Other creditors |
| Accruals and deferred income |
| 13. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| 14. | CONTINGENCIES |
| HM Revenue & Customs hold a maximum guarantee of £200,000 over the Company in the form of a duty deferment bond. |
| 15. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2024 |
| Provided during year |
| Balance at 31 December 2024 |
| SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 1,000,000 | 1,000,000 |
| 17. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 January 2024 |
| Profit for the year |
| At 31 December 2024 |
| 18. | PENSION COMMITMENTS |
| The Company operates a group personal pension scheme arrangement. The scheme and its assets are held by independent managers. Contributions totalling £Nil (2023: £Nil) were payable to the fund at the balance sheet date. |
| 19. | ULTIMATE PARENT COMPANY |
| The Company heading the largest and smallest group for which consolidated accounts are prepared is Shima Seiki Manufacturing Limited. This is the ultimate parent company and controlling entity and is incorporated in Japan. A copy of the group accounts, in which Shima Seiki Europe Limited is consolidated is available at 85 Sakata Wakayama 641, Japan. |