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REGISTERED NUMBER: 02376439 (England and Wales)















ZAPI UK LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024






ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Notes to the Financial Statements 10


ZAPI UK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: F Gatti
G Jones
G Zanichelli





REGISTERED OFFICE: Unit 2
Halesfield 17
Telford
Shropshire
TF7 4PW





REGISTERED NUMBER: 02376439 (England and Wales)





AUDITORS: Burrows Scarborough Limited
(Statutory Auditor)
Sovereign House
12 Warwick Street
Coventry
CV5 6ET

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their strategic report for the year ended 31 December 2024.

The company's principle activities are to import, distribute and support Zapi Group products into the UK. The primary application of our products and services, is electrification of industrial vehicles.

REVIEW OF BUSINESS
Turnover for the year was down 8% to £13.7m (2023: £14.8m), resulting in a gross profit margin of 12.2% (2023:
12.2%). The decrease of growth was mainly seen in domestic market, specifically from a downturn in electrically powered Construction Equipment sales. Profit before tax reduced from £1.3m to £1.1m.
Net assets increased to £8.4m at the year-end (2023: £7.6m), while net cash and cash equivalents have increased to £3.1m (2023: £2.2m).

Our main target markets in order of success; Material Handling, Construction Equipment, Access Work Platforms and OPE/Turf. Supporting customers with system integration and design of sub-assemblies remains a key activity for the company.

PRINCIPAL RISKS AND UNCERTAINTIES
The company monitors risks in line with our ISO 9001 accreditation. Risks are evaluated and actions to mitigate are carried out and reviewed.

The uncertainty around the world, driven by the multifaceted global geopolitical challenges, will potentially cause impacts to the business of Zapi UK Ltd. The company is well placed to weather the storm from the global turbulence, due to a proactive effort to diversify into multiple markets and applications.

The Construction market is seeing significant slowdowns and Material Handling is still sluggish to bounce back after the post Covid overstock situation. Other markets and customers are doing well and while we have a mixed bag, the overall situation weights the balance positively in favour of growth for the next years.

The risk of supply chain disruption risk is being mitigated by diversifying the supply chain, ensuring minimal reliance of any specific geographical area.

FUTURE DEVELOPMENTS AND R&D
The company is engaged in multiple projects which will assist the move to a 'net zero' future. The company believes in this and is using its existing experience around electrification, to enable our customers to electrify their machines.

The company will be further expanding the scope of supply, that it offers to its customer base, as the group acquires companies to increase the product portfolio. The latest additions bring more capability and products in the telematics and automation sectors, which the company will use to further grow the business.

The Company is investing in people and is growing the headcount, signalling expectation for future growth and expansion.

The company is finding lots of new electrification projects and while the global position on electrification has relaxed a little, we are still able to easily find enough good opportunities for future revenue growth.

OTHER KPI’S
The company reduced the electricity consumption during the year to 26,152kWh (28,719 kWh 2023) maintaining the trend seen over the past 3 years. This has been achieved through several initiatives, including upgrading the heating and lighting within the company. The company reduced the total Carbon emissions by over 10% and achieved the lowest carbon emissions/ revenue since we started to monitor.

AUDITS
The company had its surveillance audits for ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018, which were all passed without any Non Conformities.

ON BEHALF OF THE BOARD:





G Jones - Director


1 April 2025

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacture of electrical control equipment.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

There have been no dividends since the year end up to the date of this report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

F Gatti
G Jones
G Zanichelli

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.

AUDITORS
The auditors, Burrows Scarborough Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





G Jones - Director


1 April 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ZAPI UK LIMITED

Opinion
We have audited the financial statements of Zapi Uk Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ZAPI UK LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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:

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the company's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks;
- enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are the health and safety legislation, employment law, FRS 102, the Companies Act 2006 and tax law. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included:

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and assessing whether the judgements made in making accounting estimates are indicative of potential bias.
- Enquiring of management around actual and potential litigation and claims, including health and safety.
- Enquiring of company's staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of management.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
ZAPI UK 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.




Adam Bexon MChem FCA (Senior Statutory Auditor)
for and on behalf of Burrows Scarborough Limited
(Statutory Auditor)
Sovereign House
12 Warwick Street
Coventry
CV5 6ET

1 April 2025

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   

TURNOVER 3 13,679,587 14,831,246

Cost of sales 12,017,220 13,025,013
GROSS PROFIT 1,662,367 1,806,233

Administrative expenses 647,162 524,748
1,015,205 1,281,485

Other operating income 7,531 2,586
OPERATING PROFIT 5 1,022,736 1,284,071

Interest receivable and similar income 66,372 52,163
PROFIT BEFORE TAXATION 1,089,108 1,336,234

Tax on profit 6 215,947 272,338
PROFIT FOR THE FINANCIAL YEAR 873,161 1,063,896

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

873,161

1,063,896

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 1,018,381 1,051,462

CURRENT ASSETS
Stocks 8 3,469,752 3,198,788
Debtors 9 2,778,935 2,993,458
Cash at bank 3,072,335 2,178,216
9,321,022 8,370,462
CREDITORS
Amounts falling due within one year 10 1,759,671 1,707,083
NET CURRENT ASSETS 7,561,351 6,663,379
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,579,732

7,714,841

PROVISIONS FOR LIABILITIES 13 131,634 139,904
NET ASSETS 8,448,098 7,574,937

CAPITAL AND RESERVES
Called up share capital 14 40,000 40,000
Revaluation reserve 314,713 322,037
Retained earnings 8,093,385 7,212,900
SHAREHOLDERS' FUNDS 8,448,098 7,574,937

The financial statements were approved by the Board of Directors and authorised for issue on 1 April 2025 and were signed on its behalf by:





G Jones - Director


ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2023 40,000 6,141,680 329,361 6,511,041

Changes in equity
Total comprehensive income - 1,063,896 - 1,063,896
Depreciation on revaluation - 7,324 (7,324 ) -
Balance at 31 December 2023 40,000 7,212,900 322,037 7,574,937

Changes in equity
Total comprehensive income - 873,161 - 873,161
Depreciation on revaluation - 7,324 (7,324 ) -
Balance at 31 December 2024 40,000 8,093,385 314,713 8,448,098

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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

1. STATUTORY INFORMATION

Zapi Uk 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.

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 as modified by the revaluation of certain assets.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption 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.

Critical accounting judgements and key sources of estimation uncertainty
Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimation is contained in these accounting policies and/or the notes to the financial statements and the key areas are summarised below:

Judgements in applying accounting policies
The main judgemental area in the financial statements is the valuation of the freehold land and property. The company regularly reviews the average square foot rental prices of similar advertised local units and compares it to the price used in the current valuation. If any material variation is noted, the valuation is updated.

The main assumptions in applying this policy are that the quality and condition of the company's property is average compared to the other properties in the local area and that the advertised rent prices are actually achieved.

On a year by year basis this judgement is not very sensitive to changes in rental yields. Rental yields would need to fluctuate by at total of more than 20% from the initial valuation in order for the market valuation to be materially different from the carrying value in the accounts.

Sources of estimation uncertainty
Depreciation rates are based on estimates of the useful lives and residual values of the assets involved (see the Tangible fixed assets accounting policy).
Slow moving stock provisions are based on estimates of the likely recoverable amounts (see the Stocks accounting policy).

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods).

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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

2. ACCOUNTING POLICIES - continued

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 revalued amount
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 15% on reducing balance

With the exception of land and buildings, tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

From 31st December 2021, the revaluation model has been adopted for Land and buildings. Land and buildings are carried at the fair value at the date of revaluation less subsequent accumulated depreciation and impairment losses. Land is not depreciated.

Revaluations shall be made with sufficient regularity to ensure that the carrying amount of land and buildings does not differ materially from the fair value at the reporting date.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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
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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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 goods 13,612,655 14,684,483
Sale of services 66,932 146,763
13,679,587 14,831,246

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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

3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 7,527,985 9,043,601
Overseas 6,151,602 5,787,645
13,679,587 14,831,246

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 796,590 721,733
Social security costs 73,638 62,833
Other pension costs 16,245 18,840
886,473 803,406

The average number of employees during the year was as follows:
2024 2023

Operations 13 12
Sales & engineering 6 6
Management & administrative 3 4
22 22

2024 2023
£    £   
Directors' remuneration 101,550 105,914
Directors' pension contributions to money purchase schemes 1,216 2,010

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 48,985 48,019
Loss on disposal of fixed assets 347 1,350
Auditors' remuneration 11,000 10,000
Foreign exchange (gains)/losses (11,553 ) 218,958

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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

6. 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 281,799 307,503
Overprovision in prior years (57,582 ) (43,187 )
Total current tax 224,217 264,316

Deferred tax (8,270 ) 8,022
Tax on profit 215,947 272,338

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,089,108 1,336,234
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 23.500%)

272,277

314,015

Effects of:
Expenses not deductible for tax purposes 1,252 1,253
Adjustments to tax charge in respect of previous periods (57,582 ) (43,235 )
deferred tax
Effect of super deduction - (410 )
Other effects - 715
Total tax charge 215,947 272,338

Deferred tax:

The defereed tax charge credit consists of a credit for the deferred tax on the property revaluation (£4,055) and a credit related to accelerated capital allowances (£4,215).

Deferred tax included in the balance sheet is as follows:

20242023
££

Included in provisions for liabilities (note 14)131,634139,904

The expectation is that the deferred tax liability will decrease by £31,730 in the next financial year. £27,865 of this consists of the tax on depreciation that will be charged in excess of capital allowances to be claimed in the year to 31st December 2025 on the specific assets on the balance sheet at 31st December 2024 that are eligible for capital allowances. The remaining £3,866 relates to the deferred tax unwinding relating to the depreciation of the revalued freehold property.

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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

7. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2024 884,926 209,859 176,856 1,271,641
Additions - 7,671 8,580 16,251
Disposals - - (2,015 ) (2,015 )
At 31 December 2024 884,926 217,530 183,421 1,285,877
DEPRECIATION
At 1 January 2024 31,578 124,571 64,030 220,179
Charge for year 16,755 16,734 15,496 48,985
Eliminated on disposal - - (1,668 ) (1,668 )
At 31 December 2024 48,333 141,305 77,858 267,496
NET BOOK VALUE
At 31 December 2024 836,593 76,225 105,563 1,018,381
At 31 December 2023 853,348 85,288 112,826 1,051,462

Included in cost or valuation of land and buildings is freehold land of £ 100,000 (2023 - £ 100,000 ) which is not depreciated.

Cost or valuation at 31 December 2024 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
Valuation in 2015 106,209 - - 106,209
Valuation in 2021 260,000 - - 260,000
Cost 518,717 217,530 183,421 919,668
884,926 217,530 183,421 1,285,877

If the freehold property had not been revalued it would have been included at the following historical cost:

2024 2023
£    £   
Cost 518,717 518,717
Aggregate depreciation 26,361 16,930

Value of land in freehold land and buildings 100,000 100,000

The freehold land & building was valued on an open market basis on 31 December 2021 by Butters John Bee RICS Chartered Surveyors .

8. STOCKS
2024 2023
£    £   
Raw materials 253,628 292,458
Finished goods 3,216,124 2,906,330
3,469,752 3,198,788

The replacement cost of stocks is not materially different from the value stated above.

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,590,404 2,907,248
Tax 90,273 10,424
Prepayments and accrued income 98,258 75,786
2,778,935 2,993,458

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Payments on account 46,173 -
Trade creditors 1,367,586 1,254,814
Social security and other taxes 268,496 393,936
Other creditors 4,028 3,484
Accrued expenses 73,388 54,849
1,759,671 1,707,083

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 7,071 315
Between one and five years 14,141 -
21,212 315

12. FINANCIAL INSTRUMENTS

All financial assets and liabilities are measured at amortised cost.

13. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 131,634 139,904

Deferred
tax
£   
Balance at 1 January 2024 139,904
Provided during year (8,270 )
Balance at 31 December 2024 131,634

The deferred tax liability is broken down as follows:

20242023
£   £   
Accelerated capital allowances51,89756,112
Deferred tax on property revaluation79,73783,792
Total131,634139,904

ZAPI UK LIMITED (REGISTERED NUMBER: 02376439)

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

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
40,000 Ordinary £1 40,000 40,000

15. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company amounted to £16,245 (2023 £18,840).

At the balance sheet date £4,028 (2023 £3,484) was due to the pension scheme.

16. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

17. ULTIMATE CONTROLLING PARTY

The parent company is Zapi S.p.A, Via Parma 59 - 42028 Poviglio RE, Italy.

The ultimate parent company is ZF S.p.A, Viale Mentana, 27 - 43121 Parma (PR), Italy. Copies of group accounts can be obtained from this address.

The company is under the control of Mr Zanichelli by virtue of his shareholding in ZF S.p.A.