| REGISTERED NUMBER: |
| AUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| SCHWANK LIMITED |
| REGISTERED NUMBER: |
| 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: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 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 |
| Tangible assets | 6 |
| CURRENT ASSETS |
| Stocks | 7 |
| Debtors | 8 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 9 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) |
| CREDITORS |
| Amounts falling due after more than one year | 10 |
| NET LIABILITIES | ( |
) | ( |
) |
| CAPITAL AND RESERVES |
| Called up share capital | 13 |
| Retained earnings | 14 | ( |
) | ( |
) |
| SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| SCHWANK LIMITED (REGISTERED NUMBER: 01135984) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Schwank Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 |
| Tangible fixed assets |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| 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 |
| 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 |
| AMORTISATION |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 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 |
| Additions |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 7. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Stocks |
| 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 |
| Other debtors |
| Prepayments and accrued income |
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 11) |
| Other loans (see note 11) |
| Trade creditors |
| Amounts owed to group undertakings |
| Social security and other taxes |
| VAT | 54,122 | 79,725 |
| Other creditors |
| Accruals and deferred income |
| 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) |
| Other loans (see note 11) |
| 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 |
| Bank loans |
| Intercompany loan < 1 year |
| 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 |
| Intercompany loan 1-2 years | 613,233 |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Intercompany loan 2-5 years |
| 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: | £ | £ |
| 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 | ( |
) |
| Deficit for the year | ( |
) |
| At 31 December 2024 | ( |
) |
| 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. |
| for and on behalf of |
| 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. |