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REGISTERED NUMBER: 02113767 (England and Wales)











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: J Stulz
B A Leonard
A H N Fens





REGISTERED OFFICE: Unit 64 Barwell Business Park
Leatherhead Road
Chessington
Surrey
KT9 2NY





REGISTERED NUMBER: 02113767 (England and Wales)





AUDITORS: Galloways Accounting
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:





B A Leonard - Director


17 April 2025

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 2.34 per share was paid on 24 April 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 500,000 .

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

J Stulz
B A Leonard

Other changes in directors holding office are as follows:

A H N Fens - appointed 3 April 2024


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:





B A Leonard - Director


17 April 2025

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.




Colin Young (Senior Statutory Auditor)
for and on behalf of Galloways Accounting
Statutory Auditors
15 West Street
Brighton
East Sussex
BN1 2RL

23 April 2025

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 13,605,919 12,798,071

Cost of sales 9,345,461 9,300,217
GROSS PROFIT 4,260,458 3,497,854

Administrative expenses 3,401,164 3,362,185
OPERATING PROFIT 5 859,294 135,669

Interest receivable and similar income 34,219 22,293
PROFIT BEFORE TAXATION 893,513 157,962

Tax on profit 6 245,645 44,913
PROFIT FOR THE FINANCIAL YEAR 647,868 113,049

Retained earnings at beginning of year 1,798,250 1,685,201

Dividends 7 (500,000 ) -

RETAINED EARNINGS AT END OF YEAR 1,946,118 1,798,250

STULZ U.K. LIMITED (REGISTERED NUMBER: 02113767)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 8 79,225 175,929

CURRENT ASSETS
Stocks 9 136,984 123,940
Debtors 10 3,249,011 3,251,448
Cash at bank 3,122,553 2,884,707
6,508,548 6,260,095
CREDITORS
Amounts falling due within one year 11 4,280,957 4,316,654
NET CURRENT ASSETS 2,227,591 1,943,441
TOTAL ASSETS LESS CURRENT LIABILITIES 2,306,816 2,119,370

PROVISIONS FOR LIABILITIES 13 146,698 107,120
NET ASSETS 2,160,118 2,012,250

CAPITAL AND RESERVES
Called up share capital 14 214,000 214,000
Retained earnings 15 1,946,118 1,798,250
SHAREHOLDERS' FUNDS 2,160,118 2,012,250

The financial statements were approved by the Board of Directors and authorised for issue on 17 April 2025 and were signed on its behalf by:





B A Leonard - Director


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
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.

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
£    £   
Contract sales 7,819,722 8,140,118
Spare sales and service work 5,786,197 4,657,953
13,605,919 12,798,071

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 13,603,593 12,706,773
Europe 2,326 91,298
13,605,919 12,798,071

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 3,127,152 2,913,412
Social security costs 394,803 358,783
Other pension costs 241,223 222,215
3,763,178 3,494,410

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
51 49

2024 2023
£    £   
Directors' remuneration 189,239 153,696
Directors' pension contributions to money purchase schemes 12,744 11,233

5. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 129,111 30,411
Depreciation - owned assets 40,021 66,056
Loss on disposal of fixed assets 8,986 23,212
Auditors' remuneration 19,000 30,000
Foreign exchange differences (53,064 ) (30,334 )
Other operating leases - rent 112,500 112,500

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 245,645 57,338

Deferred tax - (12,425 )
Tax on profit 245,645 44,913

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 893,513 157,962
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
25%)

223,378

39,491

Effects of:
Expenses not deductible for tax purposes 11,720 14,231
Income not taxable for tax purposes (1,441 ) -
Depreciation in excess of capital allowances 14,094 12,111
General bad debt provision increase (2,106 ) (4,888 )
Deferred tax - (12,425 )
Change in tax rate - (3,607 )
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 500,000 -

8. TANGIBLE FIXED ASSETS
Fixtures
Short and Motor
leasehold fittings vehicles Totals
£    £    £    £   
COST
At 1 January 2024 91,074 89,739 385,635 566,448
Additions - 17,613 - 17,613
Disposals - - (217,530 ) (217,530 )
At 31 December 2024 91,074 107,352 168,105 366,531
DEPRECIATION
At 1 January 2024 57,513 66,487 266,519 390,519
Charge for year 18,600 10,216 11,205 40,021
Eliminated on disposal - - (143,234 ) (143,234 )
At 31 December 2024 76,113 76,703 134,490 287,306
NET BOOK VALUE
At 31 December 2024 14,961 30,649 33,615 79,225
At 31 December 2023 33,561 23,252 119,116 175,929

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 136,984 123,940

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,671,087 2,726,458
Other debtors 8,550 9,500
Prepayments and accrued income 569,374 515,490
3,249,011 3,251,448

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 280,079 398,309
Amounts owed to group undertakings 1,307,155 990,456
Tax 176,786 17,467
Social security and other taxes 78,938 88,963
VAT 763,824 788,388
Accrued expenses 1,674,175 2,033,071
4,280,957 4,316,654

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 228,143 174,043
Between one and five years 289,563 284,208
517,706 458,251

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 107,120
Provided during year 39,578
Balance at 31 December 2024 146,698

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
214,000 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.