IRIS Accounts Production v25.1.0.734 01931062 Board of Directors 1.1.24 31.12.24 31.12.24 Medium entities sales of knitting machines together with related programmes and servicing. true true false true true false false true true true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh019310622023-12-31019310622024-12-31019310622024-01-012024-12-31019310622022-12-31019310622023-01-012023-12-31019310622023-12-3101931062ns15:EnglandWales2024-01-012024-12-3101931062ns14:PoundSterling2024-01-012024-12-3101931062ns10:Director12024-01-012024-12-3101931062ns10:PrivateLimitedCompanyLtd2024-01-012024-12-3101931062ns10:MediumEntities2024-01-012024-12-3101931062ns10:Audited2024-01-012024-12-3101931062ns10:Medium-sizedCompaniesRegimeForDirectorsReport2024-01-012024-12-3101931062ns10:Medium-sizedCompaniesRegimeForAccounts2024-01-012024-12-3101931062ns10:FullAccounts2024-01-012024-12-3101931062ns10:OrdinaryShareClass12024-01-012024-12-3101931062ns10:Director22024-01-012024-12-3101931062ns10:Director32024-01-012024-12-3101931062ns10:Director42024-01-012024-12-3101931062ns10:RegisteredOffice2024-01-012024-12-3101931062ns5:CurrentFinancialInstruments2024-12-3101931062ns5:CurrentFinancialInstruments2023-12-3101931062ns5:ShareCapital2024-12-3101931062ns5:ShareCapital2023-12-3101931062ns5:RetainedEarningsAccumulatedLosses2024-12-3101931062ns5:RetainedEarningsAccumulatedLosses2023-12-3101931062ns5:ShareCapital2022-12-3101931062ns5:RetainedEarningsAccumulatedLosses2022-12-3101931062ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3101931062ns5:RetainedEarningsAccumulatedLosses2024-01-012024-12-3101931062ns5:LandBuildingsns5:OwnedOrFreeholdAssets2024-01-012024-12-3101931062ns5:PlantMachinery2024-01-012024-12-3101931062ns5:FurnitureFittings2024-01-012024-12-3101931062ns5:ReportableOperatingSegment12024-01-012024-12-3101931062ns5:ReportableOperatingSegment12023-01-012023-12-3101931062ns5:ReportableOperatingSegment22024-01-012024-12-3101931062ns5:ReportableOperatingSegment22023-01-012023-12-3101931062ns5:ReportableOperatingSegment32024-01-012024-12-3101931062ns5:ReportableOperatingSegment32023-01-012023-12-3101931062ns5:ReportableOperatingSegment42024-01-012024-12-3101931062ns5:ReportableOperatingSegment42023-01-012023-12-3101931062ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2024-01-012024-12-3101931062ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3101931062ns15:UnitedKingdom2024-01-012024-12-3101931062ns15:UnitedKingdom2023-01-012023-12-3101931062ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2024-01-012024-12-3101931062ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3101931062ns5:OwnedAssets2024-01-012024-12-3101931062ns5:OwnedAssets2023-01-012023-12-3101931062ns5:LandBuildings2023-12-3101931062ns5:PlantMachinery2023-12-3101931062ns5:FurnitureFittings2023-12-3101931062ns5:LandBuildings2024-01-012024-12-3101931062ns5:LandBuildings2024-12-3101931062ns5:PlantMachinery2024-12-3101931062ns5:FurnitureFittings2024-12-3101931062ns5:LandBuildings2023-12-3101931062ns5:PlantMachinery2023-12-3101931062ns5:FurnitureFittings2023-12-3101931062ns5:CostValuation2023-12-3101931062ns5:Subsidiary12024-01-012024-12-31019310621ns5:Subsidiary12024-01-012024-12-3101931062ns5:WithinOneYearns5:CurrentFinancialInstruments2024-12-3101931062ns5:WithinOneYearns5:CurrentFinancialInstruments2023-12-3101931062ns5:WithinOneYear2024-12-3101931062ns5:WithinOneYear2023-12-3101931062ns5:BetweenOneFiveYears2024-12-3101931062ns5:BetweenOneFiveYears2023-12-3101931062ns5:AllPeriods2024-12-3101931062ns5:AllPeriods2023-12-3101931062ns5:AcceleratedTaxDepreciationDeferredTax2024-12-3101931062ns5:AcceleratedTaxDepreciationDeferredTax2023-12-3101931062ns5:DeferredTaxation2023-12-3101931062ns5:DeferredTaxation2024-01-012024-12-3101931062ns5:DeferredTaxation2024-12-3101931062ns10:OrdinaryShareClass12024-12-3101931062ns5:RetainedEarningsAccumulatedLosses2023-12-31
REGISTERED NUMBER: 01931062 (England and Wales)






























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: Mr T Hashimoto
Mr H Kato
Mr M Nakanishi
Mr R Webster



REGISTERED OFFICE: Sills Road
Willow Farm Business Park
Castle Donington
Derbyshire
DE74 2US



REGISTERED NUMBER: 01931062 (England and Wales)



SENIOR STATUTORY AUDITOR: Mark Harrison BA FCA



AUDITORS: Mark J Rees LLP Chartered Accountants
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

Mr R Webster - Director


8 April 2025

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.

Mr T Hashimoto
Mr M Nakanishi
Mr R Webster

Other changes in directors holding office are as follows:

Mr H Kato - appointed 1 July 2024

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:





Mr R Webster - Director


8 April 2025

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.




Mark Harrison BA FCA (Senior Statutory Auditor)
for and on behalf of Mark J Rees LLP Chartered Accountants
and Statutory Auditors
Granville Hall
Granville Road
Leicester
LE1 7RU

10 April 2025

SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £    £   

TURNOVER 3 5,321,197 7,557,339

Cost of sales 3,314,956 4,857,522
GROSS PROFIT 2,006,241 2,699,817

Distribution costs 369,153 353,105
Administrative expenses 1,364,967 1,315,327
1,734,120 1,668,432
272,121 1,031,385

Other operating income 69,459 180,779
OPERATING PROFIT 5 341,580 1,212,164

Interest receivable and similar income 103,153 1
444,733 1,212,165

Interest payable and similar expenses 6 10,469 3,175
PROFIT BEFORE TAXATION 434,264 1,208,990

Tax on profit 7 123,284 294,361
PROFIT FOR THE FINANCIAL YEAR 310,980 914,629

SHIMA SEIKI EUROPE LIMITED (REGISTERED NUMBER: 01931062)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 8 1,241,929 1,276,536
Investments 9 148,115 148,115
1,390,044 1,424,651

CURRENT ASSETS
Stocks 10 2,114,947 1,951,609
Debtors 11 1,034,691 1,066,582
Cash at bank and in hand 5,628,998 5,814,959
8,778,636 8,833,150
CREDITORS
Amounts falling due within one year 12 571,055 975,764
NET CURRENT ASSETS 8,207,581 7,857,386
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,597,625

9,282,037

PROVISIONS FOR LIABILITIES 15 25,917 21,309
NET ASSETS 9,571,708 9,260,728

CAPITAL AND RESERVES
Called up share capital 16 1,000,000 1,000,000
Retained earnings 17 8,571,708 8,260,728
SHAREHOLDERS' FUNDS 9,571,708 9,260,728

The financial statements were approved by the Board of Directors and authorised for issue on 8 April 2025 and were signed on its behalf by:





Mr R Webster - Director


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 1,000,000 7,346,099 8,346,099

Changes in equity
Total comprehensive income - 914,629 914,629
Balance at 31 December 2023 1,000,000 8,260,728 9,260,728

Changes in equity
Total comprehensive income - 310,980 310,980
Balance at 31 December 2024 1,000,000 8,571,708 9,571,708

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Plant and machinery - various rates on cost & reducing balance
Showroom assets - 10% on cost

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
£    £   
Sale of machines 4,394,822 6,616,051
Sale of parts 585,160 646,882
Servicing income 127,989 120,914
Other income 213,226 173,492
5,321,197 7,557,339

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 2,886,766 4,567,516
Rest of Europe 2,121,631 2,550,230
Rest of the World 312,800 439,593
5,321,197 7,557,339

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 737,411 748,736
Social security costs 74,995 75,140
Other pension costs 31,301 52,163
843,707 876,039

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
20 19

2024 2023
£    £   
Directors' remuneration 115,765 135,412
Directors' pension contributions to money purchase schemes 3,556 23,413

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 1,110 2,711
Depreciation - owned assets 49,578 48,677
Auditors remuneration 27,934 24,497

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
CT Interest 10,469 3,175

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 119,423 302,083
Prior year
UK corporation tax (747 ) -
Total current tax 118,676 302,083

Deferred taxation 4,608 (7,722 )
Tax on profit 123,284 294,361

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 434,264 1,208,990
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

108,566

302,248

Effects of:
Expenses not deductible for tax purposes 2,758 2,002
Depreciation in excess of capital allowances 12,707 8,692
Changes in tax rate leading to an increase/(decrease) in the tax charge - (17,769 )
Other differences leading to an increase in the tax charge (747 ) (812 )
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 1,628,324 477,161 14,238 2,119,723
Additions - 14,971 - 14,971
At 31 December 2024 1,628,324 492,132 14,238 2,134,694
DEPRECIATION
At 1 January 2024 428,112 400,837 14,238 843,187
Charge for year 26,124 23,454 - 49,578
At 31 December 2024 454,236 424,291 14,238 892,765
NET BOOK VALUE
At 31 December 2024 1,174,088 67,841 - 1,241,929
At 31 December 2023 1,200,212 76,324 - 1,276,536

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 169,986
PROVISIONS
At 1 January 2024
and 31 December 2024 21,871
NET BOOK VALUE
At 31 December 2024 148,115
At 31 December 2023 148,115

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Shima Seiki France SARL
Registered office: Espace Lumière, 55 Bd de la République, Bâtiment 7, 78400 Chatou, France
Nature of business: Sale of knitting machines and servicing.
%
Class of shares: holding
Ordinary 100.00

10. STOCKS
2024 2023
£    £   
Stocks 2,114,947 1,951,609

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 683,958 525,736
Amounts owed by group undertakings 73,433 299,718
Prepayments and accrued income 277,300 241,128
1,034,691 1,066,582

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 148,052 67,492
Amounts owed to group undertakings 206,359 263,188
Taxation 3,734 106,535
Paye/Ni payable 24,496 31,955
VAT 131,422 149,489
Other creditors - 164,421
Accruals and deferred income 56,992 192,684
571,055 975,764

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 68,149 57,363
Between one and five years 113,986 119,119
182,135 176,482

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 25,917 21,309

Deferred
tax
£   
Balance at 1 January 2024 21,309
Provided during year 4,608
Balance at 31 December 2024 25,917

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: £    £   
1,000,000 Ordinary £1 1,000,000 1,000,000

17. RESERVES
Retained
earnings
£   

At 1 January 2024 8,260,728
Profit for the year 310,980
At 31 December 2024 8,571,708

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.