Company registration number 02072970 (England and Wales)
HOERBIGER UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HOERBIGER UK LIMITED
COMPANY INFORMATION
Directors
L Westlund
A Howker
Company number
02072970
Registered office
Unit 2
Maple Park
Lowfields Avenue
Leeds
West Yorkshire
United Kingdom
LS12 6HH
Auditor
Azets Audit Services
6th Floor, Bank House
8 Cherry Street
Birmingham
United Kingdom
B2 5AL
HOERBIGER UK LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8 - 9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
HOERBIGER UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the sale and distribution of compressor parts, compressor component repair and the overhaul, maintenance, upgrading and revamping of compressors and other rotating equipment. The company also acts as a holding company for the HOERBIGER UK Group, holding shares in Newson Gale Limited and IEP Technologies Limited. Further details of their operation, results and risks are included in their respective financial statements.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L Westlund
A Howker
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the approval of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
After reviewing the company’s latest management information, cash flow forecasts and making enquiries regarding the continuing performance and dividend paying ability of it's subsidiary undertaking Newson Gale Limited, the directors have a reasonable expectation that the company has adequate resources to continue in operation for at least 12 months from the approval of the financial statements, meeting it’s liabilities as they fall due.
A letter of support has been received from the company's parent company, which provides continued support if required for at least 12 months from the signing of the financial statements. The directors have made enquiries to assess the ability of the parent company to provide such support if it was required, and have assessed that Hoerbiger Wien GmbH can provide such support.
For the reasons set out above, the directors have prepared the financial statements on a going concern basis and have concluded that there are no material uncertainties relating to going concern.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
HOERBIGER UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
On behalf of the board
A Howker
Director
20 May 2025
HOERBIGER UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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.
HOERBIGER UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HOERBIGER UK LIMITED
- 4 -
Opinion
We have audited the financial statements of Hoerbiger UK Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
HOERBIGER UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOERBIGER UK LIMITED
- 5 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
HOERBIGER UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOERBIGER UK LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Ben Sheldon ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
6th Floor, Bank House
8 Cherry Street
Birmingham
United Kingdom
B2 5AL
HOERBIGER UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
£
£
Turnover
6,170,381
3,634,138
Cost of sales
(3,273,351)
(1,776,846)
Gross profit
2,897,030
1,857,292
Administrative expenses
(3,291,112)
(2,220,653)
Other operating income
840,079
763,224
Operating profit
445,997
399,863
Income from shares in group undertakings
1,042,973
1,003,780
Other interest receivable and similar income
5,238
3,650
Interest payable and similar expenses
(467,698)
(562,993)
Profit before taxation
1,026,510
844,300
Tax on profit
5,702
38,180
Profit for the financial year
1,032,212
882,480
The profit and loss account has been prepared on the basis that all operations are continuing operations.
HOERBIGER UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
6,851
Tangible assets
6
103,251
112,163
Investments
7
19,226,401
19,226,401
19,336,503
19,338,564
Current assets
Stocks
441,913
184,205
Debtors
9
1,459,094
1,253,738
Cash at bank and in hand
88,837
1,901,007
1,526,780
Creditors: amounts falling due within one year
10
(3,989,048)
(3,329,094)
Net current liabilities
(2,088,041)
(1,802,314)
Total assets less current liabilities
17,248,462
17,536,250
Creditors: amounts falling due after more than one year
11
(1,500,000)
(3,000,000)
Provisions for liabilities
13
(180,000)
Net assets excluding pension liability
15,568,462
14,536,250
Defined benefit pension liability
14
Net assets
15,568,462
14,536,250
Capital and reserves
Called up share capital
15
4,600,000
4,600,000
Revaluation reserve
(2,281)
(2,281)
Other reserves
100,000
100,000
Profit and loss reserves
10,870,743
9,838,531
Total equity
15,568,462
14,536,250
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
HOERBIGER UK LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
The financial statements were approved by the board of directors and authorised for issue on 20 May 2025 and are signed on its behalf by:
A Howker
Director
Company Registration No. 02072970
HOERBIGER UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2023
4,600,000
(2,281)
100,000
8,956,051
13,653,770
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
882,480
882,480
Balance at 31 December 2023
4,600,000
(2,281)
100,000
9,838,531
14,536,250
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
-
1,032,212
1,032,212
Balance at 31 December 2024
4,600,000
(2,281)
100,000
10,870,743
15,568,462
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Hoerbiger UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Maple Park, Lowfields Avenue, Leeds, West Yorkshire, United Kingdom, LS12 6HH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of HOERBIGER Holding AG. These consolidated financial statements are available from Baarerstrasse, 18 Postfache, 4348 CH-Zug, Switzerland.
The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Hoerbiger UK Limited is a wholly owned subsidiary of HOERBIGER Wien GmbH and the results of Hoerbiger UK Limited and it's subsidiary undertakings are included in the consolidated financial statements of HOERBIGER Wien GmbH which are available from Baarerstrasse, 18 Postfache, 4348 CH-Zug, Switzerland.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the approval of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
After reviewing the company’s latest management information, cash flow forecasts and making enquiries regarding the continuing performance and dividend paying ability of it's subsidiary undertaking Newson Gale Limited, the directors have a reasonable expectation that the company has adequate resources to continue in operation for at least 12 months from the approval of the financial statements, meeting it’s liabilities as they fall due.
A letter of support has been received from the company's parent company, which provides continued support if required for at least 12 months from the signing of the financial statements. The directors have made enquiries to assess the ability of the parent company to provide such support if it was required, and have assessed that Hoerbiger Wien GmbH can provide such support.
For the reasons set out above, the directors have prepared the financial statements on a going concern basis and have concluded that there are no material uncertainties relating to going concern.
1.3
Turnover
Turnover represents amounts chargeable, excluding value added tax and trade discounts, in respect of the sale of goods and services to customers. Turnover from the sale of goods is recognised when the goods are physically dispatched to the customer. Turnover relating to service activity is recognised in line with completion of the service work in line with Hoerbiger group accounting policy.
Other income relates to recharges to group companies in respect of particular payroll cost and freight charged on sales to customers and freight income relates to recharges of freight costs to customers.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33% straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
6.7% straight line
Plant and equipment
10-20% straight line
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stock and work in progress are stated at the lower of cost, based on moving average prices, and net realisable value. Cost includes direct labour, materials and appropriate production overheads. Stock held relates to items required to fulfil service obligations to customers. Provision is made for obsolete and slow moving stocks. Work in progress balances consist of costs incurred on behalf of customer orders.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
Employee benefits
For defined benefit schemes the amounts charged to operating profit are the costs arising from employee services rendered during the period and the cost of plan introductions, benefit changes, settlements and curtailments. They are included as part of staff costs. The net interest cost on the net defined benefit liability is charged to profit or loss and included within finance costs. Re-measurement comprising actuarial gains and losses and the return on scheme assets (excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in other comprehensive income. The scheme currently shows a surplus, however, this surplus has not been recognised in these accounts as the scheme is in the process of being wound up and the costs associated with this wind up are being met directly by the scheme. It is anticipated that any resultant scheme surplus would be minimal.
Defined benefit schemes are funded, with the assets of the scheme held separately from those of the Group, in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.16
Retirement benefits
For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shows as either accruals or prepayments in the balance sheet.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In preparing these financial statements the directors have made the following judgement:
Recoverability of defined benefit scheme surplus
The directors have considered the ability to recognise the asset of £52,333 (2023: £89,036) in respect of the defined benefit surplus. Having regard to the ongoing administrative costs that the pension scheme is expected to incur then the directors consider it highly unlikely that there would be any future return of asset to the company. On this basis no asset has been recognised at the balance sheet date (2023 - £Nil.).
Dilapidations provision
Dilapidations provisions represent an estimate of the liability to be incurred by the company in respect of operating leases pertaining to buildings that need to be returned to their original condition. The company has indicated it's intention to vacate it's current building in 2025 and to move premises in order to accodomate a potential merger with the company's subsidiary - IEP Technologies Limited. The dilapidations provision is made using management's best estimate of costs to be incurred through consultation with building contractors and solicitors.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
22
19
4
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
108,061
116,297
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
5
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2024
277,227
277,227
Additions
7,474
7,474
At 31 December 2024
277,227
7,474
284,701
Amortisation and impairment
At 1 January 2024
277,227
277,227
Amortisation charged for the year
623
623
At 31 December 2024
277,227
623
277,850
Carrying amount
At 31 December 2024
6,851
6,851
At 31 December 2023
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2024
108,269
1,495,648
1,603,917
Additions
20,958
20,958
Disposals
(1,038)
(1,038)
At 31 December 2024
108,269
1,515,568
1,623,837
Depreciation and impairment
At 1 January 2024
52,818
1,438,936
1,491,754
Depreciation charged in the year
6,793
23,077
29,870
Eliminated in respect of disposals
(1,038)
(1,038)
At 31 December 2024
59,611
1,460,975
1,520,586
Carrying amount
At 31 December 2024
48,658
54,593
103,251
At 31 December 2023
55,451
56,712
112,163
7
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
19,226,401
19,226,401
8
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
IEP Technologies Limited
Unit 1 Neptune Business Centre, Cheltenham, Gloucestershire, GL51 9FB
Explosion protection systems
Ordinary shares
100.00
Newson Gale Limited
Regent House, Clinton Avenue, Nottingham, NG5 1AZ
Static electricity protection systems
Ordinary shares
100.00
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,168,100
893,226
Amounts owed by group undertakings
213,869
312,369
Other debtors
77,125
48,143
1,459,094
1,253,738
Amounts owed by group undertakings are trading balances and are unsecured, interest free and are repayable on demand.
10
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
12
4,082
Intragroup loan
12
1,500,000
1,500,000
Trade creditors
117,176
45,512
Amounts owed to group undertakings
1,091,151
1,365,261
Taxation and social security
442,831
205,908
Other creditors
57,169
11,297
Accruals and deferred income
776,639
201,116
3,989,048
3,329,094
Amounts owed to group undertakings include balances held in the group cashpooling facility totalling £810,178 (2023: £1,010,315) and are uncommitted, repayable on demand and interest bearing at current LIBOR rate plus a mark up. Other balances are trading balances and are unsecured, interest free and are repayable on demand.
The intragroup loan represents the current portion of a loan received from Interhoerbiger Finanz AG and accrues interest charged at 3 month SONIA plus 4.25% with an ultimate maturity date for the loan of 31 December 2026.
11
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
1,500,000
3,000,000
The intragroup loan represents the non-current portion of a loan received from Interhoerbiger Finanz AG and accrues interest charged at 3 month LIBOR plus 4.25% with an ultimate maturity date for the loan of 31 December 2026.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
12
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
4,082
Loans from group undertakings and related parties
3,000,000
4,500,000
3,004,082
4,500,000
Payable within one year
1,504,082
1,500,000
Payable after one year
1,500,000
3,000,000
Loan balances are unsecured.
Borrowings represent a loan received from Interhoerbiger Finanz AG that accrues interest charged at 3 month SONIA plus 4.25% with an ultimate maturity date for the loan of 31 December 2026.
13
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
180,000
-
Movements on provisions:
Dilapidations provision
£
Additional provisions in the year
180,000
Dilapidations provisions represent an estimate of the liability to be incurred by the company in respect of operating leases pertaining to buildings that need to be returned to their original condition. The company has indicated it's intention to vacate it's current building in 2025 and to move premises in order to accodomate a potential merger with the company's subsidiary - IEP Technologies Limited. The dilapidations provision is made using management's best estimate of costs to be incurred through consultation with building contractors and solicitors.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
52,763
52,232
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Retirement benefit schemes
(Continued)
- 21 -
Defined benefit schemes
The company operates a defined benefit scheme for qualifying employees who are entitled to retirement benefits as a percentage of their final salary. The scheme is now closed to new members and future accruals.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 31 December 2024 by Mercer Limited, Fellow of the Institute of Actuaries. The scheme completed a buy-out of its remaining liabilities on 31 March 2022 with Phoenix. Upon completion of the Buy-out all the remaining cash sums due to the members of the scheme were secured with Phoenix.
2024
2023
Key assumptions
%
%
Discount rate
5.3
5.8
Discount rate - Date of settlement
N/A
N/A
2024
2023
Amounts recognised in the profit and loss account
£
£
Net interest on net defined benefit liability/(asset)
(4,280)
(5,870)
Other costs and income
(30,820)
(23,650)
Total costs/(income)
(35,100)
(29,520)
2024
2023
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
5,883
3,834
Less: calculated interest element
4,280
5,870
Return on scheme assets excluding interest income
10,163
9,704
Effect of changes in the amount of surplus that is not recoverable
(41,867)
(34,009)
Total costs/(income)
(31,704)
(24,305)
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Retirement benefit schemes
(Continued)
- 22 -
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2023
£
£
Fair value of plan assets
(52,333)
(89,036)
Surplus in scheme
(52,333)
(89,036)
Restriction on scheme assets
52,333
89,036
Total liability recognised
-
-
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 January 2024 and 31 December 2024
-
Liabilities at 1 January 2024 and 31 December 2024
-
The defined benefit obligations arise from plans which are wholly or partly funded.
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 January 2024
89,036
Interest income
4,280
Return on plan assets (excluding amounts included in net interest)
(10,163)
Administration expense paid from plan assets
(30,820)
At 31 December 2024
52,333
The actual return on plan assets was £5,883 (2023 - £3,834).
2024
2023
Fair value of plan assets at the reporting period end
£
£
With profits policy
52,333
89,036
HOERBIGER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Retirement benefit schemes
(Continued)
- 23 -
The long term expected rate of return on the With Profits Policy is determined by reference to long dated government bond yields with an allowance for out-performance in part of the assets in relation to the underlying asset split.
None of the fair values of the assets above include any of the company's own financial instruments or any property occupied by, or other assets used by, the company.
The company expects to contribute £Nil to this defined benefit pension scheme in the next accounting period.
In March 2022 the remaining sums due to members of the scheme were secured through a payment to a third party. The payment represented a discharge of benefits due to members of the scheme and as such was treated as a settlement event. As a result, the defined benefit obligation at 31 December 2024, 31 December 2023 and 31 December 2022 is £nil.
15
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
4,600,000
4,600,000
4,600,000
4,600,000
The company has one class of ordinary share with no right to fixed income. The profit and loss account represents cumulative profits or losses. The Directors are of the opinion that the other reserves are non-distributable.
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
104,333
168,388
17
Related party transactions
The company has taken advantage of the exemption granted in Section 33 of Financial Reporting Standards not to disclose related party transactions with wholly owned group companies. There were no other related party transactions.
18
Parent company
The company's immediate parent company is HOERBIGER Wien GmbH, incorporated in Austria, whose principal place of business and address is SeestadtstraBe 25, A-1220 Vienna, Austria. The ultimate reporting and controlling company is HOERBIGER Holding AG whose principal place of business is Switzerland and whose address is Baarerstrasse, 18 Postfache, 4348 CH-Zug, Switzerland. HOERBIGER Holding AG is the only company that prepares consolidated financial statements. Being a trust there is no ultimate controlling party.
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