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REGISTERED NUMBER: 01135984 (England and Wales)









AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SCHWANK LIMITED

SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3 to 8


SCHWANK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: O Schwank
P S Wilkins
S G Sherman





SECRETARY: G N E Needham





REGISTERED OFFICE: Unit D2, Armthorpe Enterprise Park
Rands Lane
Armthorpe
Doncaster
South Yorkshire
DN3 3DY





REGISTERED NUMBER: 01135984 (England and Wales)





AUDITORS: Hartley Fowler LLP
Statutory Auditors
Chartered Accountants
4th Floor Tuition House
27-37 St George's Road
Wimbledon
London
SW19 4EU

SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 5 42,900 45,100
Tangible assets 6 193,694 95,143
236,594 140,243

CURRENT ASSETS
Stocks 7 157,385 151,298
Debtors 8 313,661 568,536
Cash at bank and in hand 489,053 124,671
960,099 844,505
CREDITORS
Amounts falling due within one year 9 1,115,193 1,210,837
NET CURRENT LIABILITIES (155,094 ) (366,332 )
TOTAL ASSETS LESS CURRENT LIABILITIES 81,500 (226,089 )

CREDITORS
Amounts falling due after more than one year 10 1,423,213 897,467
NET LIABILITIES (1,341,713 ) (1,123,556 )

CAPITAL AND RESERVES
Called up share capital 13 125,000 125,000
Retained earnings 14 (1,466,713 ) (1,248,556 )
SHAREHOLDERS' FUNDS (1,341,713 ) (1,123,556 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25 February 2025 and were signed on its behalf by:





P S Wilkins - Director


SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024


1. STATUTORY INFORMATION

Schwank 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. STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
In the process of applying the company's accounting policies the directors consider there to be no significant
judgements or estimates that have a significant effect on the amounts recognised in the financial statements.

Revenue recognition
Turnover is measured at the fair value of the consideration receivable, net of discounts and VAT. Turnover
includes revenue earned from the sale of goods and services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. In practice this means that revenue is recognised when goods are invoiced.

Other operating income includes foreign exchanges gains and losses.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of twenty five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 15% on reducing balance
Computer equipment - 25% on reducing balance

Stocks
Stocks are stated at the lower of cost and selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stock.

Basic financial instruments
Cash in hand is measured at transaction price.

Debtors. Trade and other debtors are measured at transaction price. Trade debtors are amounts due from
customers for goods or services performed in the ordinary course of business less any impairment provision.
These are recognised as current assets as collection is due within one year or less.

Creditors: amounts falling due within one year are measured at transaction price. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business. These are classified as current liabilities as payment is due in one year or less.


SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


3. 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 currency translation
The financial statements are presented in sterling which is the company's presentational currency.

The items included in these financial statements relating to the company are measured using the functional
currency, that is the currency of the primary economic environment in which the company operates. The
directors' consider the company's "functional currency" to be Sterling (GBP).

Foreign currency transactions are translated into the functional currency at the rates of exchange prevailing at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated at the
exchange rate ruling at that date. Foreign exchange gains and losses arising on translation are recognised in the income statement for the period, included in other income.

Leasing commitments
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the income statement on a straight line basis over the lifetime of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. The total expense recognised in the income statement represents contributions payable to the scheme by the company during the period.

Going concern
Due to the ongoing support of the company's parent undertaking the directors believe that it is appropriate to prepare the financial statements on the going concern basis, which assumes that the company will continue in operational existence for the foreseeable future.

If the company were unable to continue in operational existence for the foreseeable future, adjustments would be necessary to reduce the balance sheet value of assets to their recoverable amounts, and to provide for further liabilities that might arise, and to reclassify fixed assets and long term liabilities as current assets and liabilities.

Share capital
Ordinary shares are classified as equity.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2023 - 13 ) .

SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


5. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2024
and 31 December 2024 55,000
AMORTISATION
At 1 January 2024 9,900
Charge for year 2,200
At 31 December 2024 12,100
NET BOOK VALUE
At 31 December 2024 42,900
At 31 December 2023 45,100

In the year ended 31 December 2019 customer lists were acquired for £55,000 following the acquisition of another business. The customer lists are being amortised evenly over the directors' estimate of their useful life of 25 years.

6. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2024 5,534 113,203 108,923 227,660
Additions - 122,997 - 122,997
At 31 December 2024 5,534 236,200 108,923 350,657
DEPRECIATION
At 1 January 2024 5,087 38,010 89,420 132,517
Charge for year 114 19,532 4,800 24,446
At 31 December 2024 5,201 57,542 94,220 156,963
NET BOOK VALUE
At 31 December 2024 333 178,658 14,703 193,694
At 31 December 2023 447 75,193 19,503 95,143

7. STOCKS
2024 2023
£    £   
Stocks 157,385 151,298

Stocks consist of infrared gas heater parts for Schwank heating systems.

SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 283,829 520,424
Other debtors 17,376 34,085
Prepayments and accrued income 12,456 14,027
313,661 568,536

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 11) 10,000 314,212
Other loans (see note 11) 99,444 106,259
Trade creditors 136,230 199,413
Amounts owed to group undertakings 738,373 475,673
Social security and other taxes 26,570 22,080
VAT 54,122 79,725
Other creditors - 5,775
Accruals and deferred income 50,454 7,700
1,115,193 1,210,837

The balance owing to group undertakings, Schwank GmbH, is interest free and repayable on demand. Included in other loans is a group loan owing to Schwank GmbH (see note11).

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 11) 4,166 14,099
Other loans (see note 11) 1,419,047 883,368
1,423,213 897,467

Amounts falling due in more than five years:

Repayable by instalments
Intercompany loan over 5 years 507,480 458,334

Included in other loans is a group loan owing to Schwank GmbH (see note11).

11. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 304,212
Bank loans 10,000 10,000
Intercompany loan < 1 year 99,444 106,259
109,444 420,471

SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


11. LOANS - continued
2024 2023
£    £   
Amounts falling due between one and two years:
Bank loans - 1-2 years 4,166 10,000
Intercompany loan 1-2 years 613,233 106,258
617,399 116,258

Amounts falling due between two and five years:
Bank loans - 2-5 years - 4,099
Intercompany loan 2-5 years 298,334 318,776
298,334 322,875

Amounts falling due in more than five years:

Repayable by instalments
Intercompany loan over 5 years 507,480 458,334

(i) At 31 December 2024 the outstanding loan balance owed to Schwank GmbH was €1,212,376 (£1,004,703) (2023 €1,140,842 (£989,627).The loan is to be repaid over ten years in instalments. Interest is charged at 2% over ECB (european central rate) base rate.

(ii) During the year the company was loaned €270,000 (£225,639) on 1 September 2024 by Schwank GmbH. At 31 December 2024 the outstanding loan balance owed to Schwank GmbH was €270,000 (£223,747).The loan matures on 31 August 2026. Interest is charged at 5.25%.

(iii) During the year the company was loaned €320,000 (£292,764) on 27 June 2024 by Schwank GmbH. At 31 December 2024 the outstanding loan balance owed to Schwank GmbH was €350,000 (£290,042).The loan matures on 27 June 2026. Interest is charged at 5.25%.

(iv) In May 2020, the company arranged a 6 year Bounce Back Loan with Lloyds Bank plc. Interest on the loan is to be charged at 2.5% per annum. The loan is to be repaid in instalments over 5 years commencing 12 months after drawdown.The scheme provides the bank with a government guarantee against the balance on the loan. The Government will make Business Interruption Payments to cover the first 12 months of interest payments. At 31 December 2024 the outstanding loan balance was £14,166 (2023 £24,099).

12. LEASING AGREEMENTS
At 31 December 2024 the company had operating lease commitments amounting to £60,038 (2023 £78,430).

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
125,000 Ordinary £1 125,000 125,000

Called up share capital represents the nominal value of shares that have been issued.

SCHWANK LIMITED (REGISTERED NUMBER: 01135984)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024


14. RESERVES
Retained
earnings
£   

At 1 January 2024 (1,248,556 )
Deficit for the year (218,157 )
At 31 December 2024 (1,466,713 )

Retained earnings include all current and prior period profits and losses.

15. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified 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. As a result of the company's stock being held at various locations throughout the United Kingdom we were unable to attend the year end stocktake. We are therefore unable to satisfy ourselves of the stock value included in the balance sheet at £157,385.

Except as referred to above, 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 qualified opinion.

Jonathan Askew (Senior Statutory Auditor)
for and on behalf of Hartley Fowler LLP

17. RELATED PARTY DISCLOSURES

The following transactions took place in the course of the year ended 31 December 2024.

2024 2023
£    £   

Purchases of goods and services from Schwank GmbH 416,375 513,886
Intercompany loan interest charged by Schwank GmbH 71,078 36,173

Amount owed to Schwank GmbH for goods and services 475,673 475,673
Amount owed to Schwank GmbH in respect of a 10 year loan (note 13) 1,004,687 989,627
Amount owed to Schwank GmbH in respect of a capital loan (note 13) 513,789 -

Amount owed to the company from Schwank GmbH for goods and services 5,406 5,406

Schwank GmbH is deemed to be a related party of Schwank Ltd by virtue of common ownership.

18. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Bernd H. Schwank Besitzgesellschaft mbH & Co KG, a company incorporated in Germany and ultimately controlled by O Schwank. The registered office of Bernd H. Schwank Besitzgesellschaft mbH & Co KG is Bremerhaven Str. 43, 50735 Cologne.