| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| STULZ U.K. LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| STULZ U.K. LIMITED |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Statement of Income and Retained Earnings | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10 |
| STULZ U.K. LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors |
| 15 West Street |
| Brighton |
| East Sussex |
| BN1 2RL |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their strategic report for the year ended 31 December 2024. |
| REVIEW OF BUSINESS |
| The principal activity of the company continues to be that of buying, selling, commissioning and servicing air conditioning equipment, primarily of the Stulz brand and primarily to the Data Centre and Telecommunications markets. |
| The turnover was derived nearly exclusively from sales within the United Kingdom. |
| The company has one shareholder, Stulz GmbH, Hamburg, Germany holding the entire called up share capital of £214,000. |
| RESEARCH AND DEVELOPMENT |
| The company does not carry out research and development activities. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| In common with all businesses the company faces risks and uncertainties. The Directors adopt prudent policies to minimise risks and are actively involved in reducing the effects of any adverse circumstances which might arise. Further details of the risks faced by the company are outlined in the directors report. |
| DEVELOPMENT AND PERFORMANCE |
| Business performance |
| The majority of the business came from selling and servicing Stulz cooling products into new build and retrofit expansions of data centres in the UK. The data centre segment of the air conditioning market still heavily relies on the traditional model of downflow computer room air conditioning units (CRAC's) but due to the massive demand for more high-density computing power there is an increasing and urgent need to develop more efficient ways of removing the generated heat. The main drivers behind these new developments and technologies have been increasing energy prices, a reduction in power availability and contingency, plus a significant amendment to the ASHRAE guidelines for increased operating temperatures of servers (ASHRAE TC 9.9, 2011 Thermal Guidelines for Data Processing Environments). Consequently, the market for traditional "Precision Cooling" and "Close Control Air Conditioning" has been significantly penetrated since 2015 to date by various non-traditional competitors. |
| The company has an active service department attracting revenue from service, maintenance contracts and spare part sales to achieve and maintain customer satisfaction. |
| Results of operations |
| Turnover has risen by £0.8 million (6.31%) this year to £13.6 million. Gross profit has risen by £0.76 million (21.80%) to £4.30 million. Gross profit margin has risen from 27.33% to 31.31%. Administrative expenses have increased by £0.04 million (1.16%) to £3.4 million. Net profit before tax has increased by £0.74 million (466%) to £0.9 million. |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| KEY PERFORMANCE INDICATORS |
| Financial position, financial performance and liquidity. |
| Financial position, financial performance and liquidity |
| The financial position of the company remains strong with a robust balance sheet and adequate cash to finance operations despite the recent coronavirus pandemic and Brexit agreement. While both these events undoubtedly had an effect on the business with a drop in turnover and return on capital employed, the directors have taken (and continue to take) appropriate action to safeguard the company's assets and minimise the impact to its customers, suppliers and other stakeholders. |
| There were no capital commitments as at 31 December 2024 or 2023. |
| There have been no significant post-balance sheet events that require disclosure. |
| Financial and non-financial key performance indicators |
| Financial: |
| 2024 | 2023 |
| Gross profit/ratio | 31.31% | 27.33% |
| Return of capital employed | 29.99% | 5.62% |
| Asset utilisation | 171.74 | 72.75 |
| Liquidity | 1.52 | 1.45 |
| Non-Financial: |
| Environmentally responsible and Health & Safety conscious, the company has put in place environmental policies and procedures. The company is accredited with ISO14001-2015 Environmental Management Standard and the construction industries Safecontractor scheme. The company takes its responsibility of health and safety of its staff and sub-contractors seriously and irrespective of the current wave of legislation has in place safety training, risk assessments and method statements to minimise the risk of accidents. |
| The Company is accredited with ISO 9001:2015 for development, manufacturing, sales, service and capacity test facility of air-conditioning units and liquid chillers for the business division products. |
| The Company is accredited with ISO 14001: 2015 Environmental Management Standard and the construction industries Safecontractor Scheme. |
| The results for the period were considered satisfactory by the directors. The financial position of the company at the year end remained robust with adequate cash retained to finance ongoing operations for the foreseeable future. |
| £0.5 million worth of dividends were declared in the year (2023: £NIL). |
| ON BEHALF OF THE BOARD: |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| 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. |
| The company operates in a highly regulated and diverse business environment. The Directors and management of the company therefore perform regular reviews of business and regulatory risks to ensure that these are addressed and minimised as far as possible. |
| Liquidity risk |
| Liquidity risk arises from the company's management of working capital. It is the risk that the company will encounter difficulty in meeting its financial obligations as they fall due. At the end of the financial year, projections prepared for the Board of Directors indicated that the company expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances. The company also seeks to reduce liquidity risk by agreeing forward rate contracts (this is further discussed in the "exchange rate risk" section below). |
| The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to provide funds for the company's operations and to finance the company's operations. The liquidity of the business is regularly reviewed by the Directors to ensure that sufficient resources are maintained to fund the company's transactions. |
| Bank balances are managed by maintaining a balance between the continuity of funding and flexibility through the use of money market facilities where funds are available. Trade debtors credit and cash flow risks are managed by keeping a tight control on the company's credit control regime and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
| Interest rate risk |
| The company manages its cash and borrowing requirements to maximise interest income and minimise interest expenses, whilst ensuring that sufficient resources are maintained to meet the operating needs of the business. |
| Foreign currency risk |
| A substantial proportion of the company's purchases are undertaken in Euro's and the company is therefore exposed to exchange rate risk in relation to these transactions. The Directors manage this risk and look to mitigate the effect of exchange rate fluctuations through the use of use hedging and foreign exchange forward contracts as appropriate. |
| Stulz UK has taken proactive steps to minimise the potential impact on our Customers, as a result of the United Kingdom leaving the European Union. These steps include but are not limited to, increasing component stock levels, working with our suppliers and putting plans in place with our European supply chain. These steps will maximise our chances to maintain continuity of supply to our valued customers. |
| However, Stulz UK is not insulated from the effects of Brexit, and due to the continued level of uncertainty that surrounds this issue, there may be some material impact on Stulz UK's costs, or supply of products or services. With this in mind we are looking to maintain a close level of communication with our customers to ensure that the pricing and lead time information is accurate. |
| Credit risk |
| Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is mainly exposed to credit risk from credit sales and it is the company's policy to assess the credit risk of new customers before entering contracts. |
| Debtor balances are therefore monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
| Investments of cash surpluses and derivative instruments are only made through banks and companies which have sufficient credit ratings according to the Board of Directors. |
| Operating risk |
| The Directors will regularly review the operation of the business and have put management in place to ensure that operating systems and internal controls are adequate. Risks are identified, assessed and appropriate remedial action decided upon by the Directors as appropriate. |
| DIVIDENDS |
| An interim dividend of |
| The total distribution of dividends for the year ended 31 December 2024 will be £ |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| Other changes in directors holding office are as follows: |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| Galloways Accounting were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| STULZ U.K. LIMITED |
| Opinion |
| We have audited the financial statements of Stulz U.K. Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet 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. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| STULZ U.K. LIMITED |
| 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. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
| We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included: |
| - | discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; |
| - | reviewing minutes of meetings between those charged with governance. |
| - | challenging assumptions and judgements made by management in determining their significant accounting estimates; |
| - | challenging why certain items are excluded or included from the underlying profit. |
| - | reviewing journal entries for appropriateness and to identify any unusual accounting entries. |
| There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
| 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. |
| 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. |
| for and on behalf of |
| Statutory Auditors |
| 15 West Street |
| Brighton |
| East Sussex |
| BN1 2RL |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| STATEMENT OF INCOME AND |
| RETAINED EARNINGS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| PROFIT BEFORE TAXATION |
| Tax on profit | 6 |
| PROFIT FOR THE FINANCIAL YEAR |
| Retained earnings at beginning of year |
| Dividends | 7 | ( |
) |
| RETAINED EARNINGS AT END OF YEAR |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| BALANCE SHEET |
| 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 8 |
| CURRENT ASSETS |
| Stocks | 9 |
| Debtors | 10 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 11 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 13 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 14 |
| Retained earnings | 15 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Tangible fixed assets |
| Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
| Depreciation and amortisation have been provided at rates estimated to reduce the assets to their net realisable value over their estimated useful lives. |
| The following rates have been used: |
| Leasehold improvements- 20% straight line |
| Fixtures, fittings & equipment- 25% reducing balance / 33.33% straight line |
| Motor vehicles- 17.5% reducing balance |
| Stocks |
| Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. |
| Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential. |
| 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. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| 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. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | ACCOUNTING POLICIES - continued |
| 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. |
| The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
| The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
| Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
| Cash and cash equivalents |
| Cash and cash equivalents 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. |
| 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. |
| 2. | CRITICAL ACCOUNTING 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. |
| Critical judgements: The following critical judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
| Treatment of leases |
| Determine whether leases entered into by the company either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
| Tangible fixed assets |
| Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life-cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Regular reviews are carried out to determine whether there are indicators of impairment of the company's tangible fixed assets. |
| Key sources of estimation uncertainty: The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
| Warranty provisions |
| The company measures warranty provisions at the Directors’ best estimate of the amount required to settle the obligation at the balance sheet date, discounted where the time value of money is considered material. These estimates take account of available information, historical experience and the likelihood of different possible outcomes. Both the amount and the maturity of these liabilities could be different from those estimated. |
| 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 |
| £ | £ |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| 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 |
| Europe |
| Turnover represents amounts receivable for buying, servicing and commissioning of air conditioning equipment net of VAT and trade discounts. |
| 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 dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| Revenue from maintenance contracts is recognised on a straight line basis over the life of the contract. Amounts relating to contract periods after the balance sheet date is deferred, to be released in the following accounting period. |
| Revenue from long-term contracts for the design and installation of air conditioning equipment is recognised on the stage of completion method, where costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, manly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Profits are recognised at a constant rate across the life of a contract and, if it becomes evident that any contract will become loss-making, this loss is recognised to the profit and loss account immediately. Where the outcome of a contract cannot be measured reliably revenue is recognised only to the extent that the expenses recognised will be recovered. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Administrative | 6 | 6 |
| Service | 20 | 19 |
| Service administrative | 11 | 11 |
| Sales | 5 | 5 |
| Sales support | 9 | 8 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Loss on disposal of fixed assets |
| Auditors' remuneration |
| Foreign exchange differences | ( |
) | ( |
) |
| Other operating leases - rent |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| 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 |
| Deferred tax | ( |
) |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) |
| Depreciation in excess of capital allowances |
| General bad debt provision increase | ( |
) | ( |
) |
| Deferred tax | ( |
) |
| Change in tax rate | ( |
) |
| Total tax charge | 245,645 | 44,913 |
| The company is due to pay corporation tax of £245,645 (2023: £57,338) based on its trading results in the year under review. |
| 7. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| 8. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Short | and | Motor |
| leasehold | fittings | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 9. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Stocks |
| 10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Prepayments and accrued income |
| 11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Tax |
| Social security and other taxes |
| VAT | 763,824 | 788,388 |
| Accrued expenses |
| 12. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| 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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. |
| 13. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Other provisions | 146,698 | 107,120 |
| Warranty |
| provision |
| £ |
| Balance at 1 January 2024 |
| Provided during year |
| Balance at 31 December 2024 |
| 14. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 214,000 | 214,000 |
| 15. | RESERVES |
| All Profit/Loss Reserves shown in the Statement of Changes in Equity are distributable. |
| STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 16. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of the exemption available in FRS 102 "Related party disclosures" whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group. |
| 17. | CONTROL |
| The company is a wholly-owned subsidiary of Stulz GmbH, a company incorporated in Germany. Group consolidated financial statements can be obtained from Holsteiner Chaussee 283, 22457 Hamburg, Germany, the registered office of Stulz GmbH. |