Company registration number 02131010 (England and Wales)
Quality Hydraulic Power Limited
Annual Report and Financial Statements
for the year ended 31 December 2024
Quality Hydraulic Power Limited
Company information
Directors
K G Brownlee
R Bowden
T M Leyland
Dr A C Dieter
F Bauer
Company number
02131010
Registered office
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Auditor
B M Howarth Ltd
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Bankers
HSBC Bank plc
47 Eastgate Street
Chester
Cheshire
CH1 1XW
Quality Hydraulic Power Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Statement of financial position
8
Statement of cash flows
9
Notes to the financial statements
10 - 19
Quality Hydraulic Power Limited
Strategic Report
for the year ended 31 December 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Business review
The results show turnover of £22.3m (2023: £21.5m) and a pre tax profit of £4.3m (2023: £3.6m) for the year. The gross profit margin was 46.4% of sales (2023: 43.2%). The performance meets the director’s expectation for the year.
Net assets for the company have increased to £22.0m (2023: £21.7m) with a cash balance of £6.2m (2023: £4.8m), stocks of £7.4m (2023: £8.2m) and tangible assets of £7.4m (2023: £7.4m). This has been achieved through good cash flow management.
The company has reacted to increase capacity in key areas to cope with demand in specific sectors and fulfil the requirements of its customers. The company invested heavily to further enhance its position in the marketplace.
Financial risks and uncertainties
Financial risks affecting the company include the risk of reduced liquidity, finance cost risk and exchange rate risk. These risks are managed on a daily basis by controlling the cash flow including the purchase of raw materials and other services in relation to future orders.
All debts are rigorously chased as they fall due. Competitive pressure is also a continuing risk for the company. The company manages the risk by maintaining strong relations with its customers, reacting efficiently to meet their demands and supplying quality products and services. The company has an exceptionally high level of customer retention and repeat customer business.
Payment of creditors
The company's policy is to pay creditors in line with each of the suppliers' credit terms.
Future developments
The company carries forward a significant order book and the directors believe that 2025 will be another strong year financially.
The company has sufficient resources and the directors are committed to continue to invest in assets throughout 2025 and beyond to support the company’s prospects in the short and long term.
K G Brownlee
Director
10 March 2025
Quality Hydraulic Power Limited
Directors' Report
for the year ended 31 December 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of engineers and designers of hydraulic equipment.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £3,000,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr W H Dieter
(Resigned 8 June 2024)
K G Brownlee
R Bowden
T M Leyland
Dr A C Dieter
(Appointed 16 August 2024)
F Bauer
(Appointed 5 September 2024)
Auditor
The auditor, B M Howarth Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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; and
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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Quality Hydraulic Power Limited
Directors' Report (continued)
for the year ended 31 December 2024
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
K G Brownlee
Director
10 March 2025
Quality Hydraulic Power Limited
Independent Auditor's Report
to the members of Quality Hydraulic Power Limited
- 4 -
Opinion
We have audited the financial statements of Quality Hydraulic Power Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the statement of financial position, the statement of cash flows and notes to the financial statements, including 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Quality Hydraulic Power Limited
Independent Auditor's Report
to the members of Quality Hydraulic Power Limited (continued)
- 5 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Based on our understanding of the company and the sector in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the Company accounting policies, the financial reporting framework and the UK Companies Act 2006.
We evaluated management incentives and opportunities for manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:
Agreement of the financial statements disclosures to underlying supporting documentation;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions, accounting estimates and judgements made by Directors;
Identifying and testing journal entries to ensure they are appropriate;
Sample testing of income and expenditure to ensure correct cut-off has been applied.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.
There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Quality Hydraulic Power Limited
Independent Auditor's Report
to the members of Quality Hydraulic Power Limited (continued)
- 6 -
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 an auditor's report 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.
Charles R Moorby (Senior Statutory Auditor)
For and on behalf of B M Howarth Ltd, Statutory Auditor
Chartered Accountants
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
10 March 2025
Quality Hydraulic Power Limited
Statement of Income and Retained Earnings
for year ended 31 December 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
22,266,522
21,532,422
Cost of sales
(11,940,572)
(12,229,900)
Gross profit
10,325,950
9,302,522
Administrative expenses
(6,182,727)
(5,781,592)
Operating profit
3
4,143,223
3,520,930
Interest receivable
158,750
102,477
Profit before taxation
4,301,973
3,623,407
Tax on profit
7
(1,047,361)
(937,273)
Profit for the financial year
3,254,612
2,686,134
Retained earnings brought forward
21,657,082
19,970,948
Dividends
8
(3,000,000)
(1,000,000)
Retained earnings carried forward
21,911,694
21,657,082
The income statement has been prepared on the basis that all operations are continuing operations.
Quality Hydraulic Power Limited
Statement Of Financial Position
as at 31 December 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
9,976
11,423
Tangible assets
10
7,431,387
7,376,777
Investments
11
494,078
494,078
7,935,441
7,882,278
Current assets
Stocks
13
7,434,889
8,223,056
Debtors
14
4,339,648
5,667,653
Cash at bank and in hand
6,244,250
4,822,015
18,018,787
18,712,724
Creditors: amounts falling due within one year
15
(3,237,480)
(4,177,460)
Net current assets
14,781,307
14,535,264
Total assets less current liabilities
22,716,748
22,417,542
Provisions for liabilities
16
(744,943)
(700,349)
Net assets
21,971,805
21,717,193
Capital and reserves
Called up share capital
17
1,111
1,111
Other reserves
59,000
59,000
Profit and loss reserves
21,911,694
21,657,082
Total equity
21,971,805
21,717,193
The financial statements were approved by the board of directors and authorised for issue on 10 March 2025 and are signed on its behalf by:
K G Brownlee
Director
Company Registration No. 02131010
Quality Hydraulic Power Limited
Statement of cash flows
for the year ended 31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
5,725,019
1,786,949
Income taxes paid
(1,056,632)
(495,888)
Net cash inflow from operating activities
4,668,387
1,291,061
Investing activities
Purchase of intangible assets
(8,070)
Proceeds from disposal of intangibles
8
Purchase of tangible fixed assets
(406,795)
(684,554)
Proceeds from disposal of tangible fixed assets
1,885
Interest received
158,750
102,477
Net cash used in investing activities
(246,152)
(590,147)
Financing activities
Dividends paid
(3,000,000)
(1,000,000)
Net cash used in financing activities
(3,000,000)
(1,000,000)
Net increase/(decrease) in cash and cash equivalents
1,422,235
(299,086)
Cash and cash equivalents at beginning of year
4,822,015
5,121,101
Cash and cash equivalents at end of year
6,244,250
4,822,015
Quality Hydraulic Power Limited
Notes to the financial statements
for the year ended 31 December 2024
- 10 -
1
Accounting policies
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Group accounts
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Quality Hydraulic Power Limited is a wholly owned subsidiary of A & E Holdings Limited and the results of Quality Hydraulic Power Limited are included in the consolidated financial statements of A & E Holdings Limited which are available from Companies House, Cardiff, CF14 3UZ.
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Intangible fixed assets other than goodwill
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Certification & licences
10 years straight line
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies
(continued)
- 11 -
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
50 years straight line
Plant and equipment
10% on written down value
Fixtures and fittings
10% on written down value
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Fixed asset investments
Interests in subsidiaries and unlisted investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
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.
At each reporting date, an assessment is made for stock obsolescence based on historical experience and knowledge of product sales. Any revision in the provision required is recognised immediately through profit or loss.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences. Such liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies
(continued)
- 12 -
Foreign exchange
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.
Research and development expenditure
Research and development expenditure is charged to profits in the period in which it is incurred.
2
Turnover and other revenue
Turnover analysed by geographical market
2024
2023
£
£
United Kingdom
5,902,530
6,167,348
Rest of World
16,363,992
15,365,074
22,266,522
21,532,422
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
30,816
69,229
Auditors remuneration
18,500
18,000
Depreciation of owned tangible fixed assets
326,675
264,173
Loss on disposal of tangible fixed assets
23,625
20,307
Amortisation of intangible assets
1,439
969
Operating lease charges
90,323
83,907
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 13 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
37
39
Engineering & quality
24
23
Sales, accounts & administration
24
24
Total
85
86
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,653,464
3,550,165
Social security costs
390,475
363,463
Pension costs
102,493
92,324
4,146,432
4,005,952
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
450,961
462,260
Company pension contributions
2,642
2,642
453,603
464,902
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
212,000
200,000
6
Retirement benefit schemes
2024
2023
£
£
Charge to profit or loss
102,493
92,324
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 14 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,002,767
641,811
Adjustments in respect of prior periods
(17,927)
Total current tax
1,002,767
623,884
Deferred tax
Origination and reversal of timing differences
44,594
313,389
Total tax charge
1,047,361
937,273
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,301,973
3,623,407
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
1,075,493
852,225
Tax effect of expenses that are not deductible in determining taxable profit
5,063
6,860
Adjustments in respect of prior years
(17,927)
Effect of change in corporation tax rate
161,562
Depreciation on assets not qualifying for tax allowances
19,305
12,039
Research and development tax credit
(52,500)
(69,981)
Enhanced capital allowances
(7,505)
Taxation charge for the year
1,047,361
937,273
8
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
2,700.27
900.09
3,000,000
1,000,000
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 15 -
9
Intangible fixed assets
Certification & licences
£
Cost
At 1 January 2024
14,393
Disposals
(8)
At 31 December 2024
14,385
Amortisation and impairment
At 1 January 2024
2,970
Amortisation charged for the year
1,439
At 31 December 2024
4,409
Carrying amount
At 31 December 2024
9,976
At 31 December 2023
11,423
10
Tangible fixed assets
Freehold buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2024
5,799,981
2,411,790
898,044
9,109,815
Additions
133,234
186,007
87,554
406,795
Disposals
(96,787)
(39,943)
(136,730)
At 31 December 2024
5,933,215
2,501,010
945,655
9,379,880
Depreciation and impairment
At 1 January 2024
342,519
879,796
510,723
1,733,038
Depreciation charged in the year
95,101
170,557
61,017
326,675
Eliminated in respect of disposals
(75,749)
(35,471)
(111,220)
At 31 December 2024
437,620
974,604
536,269
1,948,493
Carrying amount
At 31 December 2024
5,495,595
1,526,406
409,386
7,431,387
At 31 December 2023
5,457,462
1,531,994
387,321
7,376,777
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 16 -
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
435,218
435,218
Unlisted investments
58,860
58,860
494,078
494,078
12
Subsidiaries
Details of the subsidiary at 31 December 2024 are as follows:
Name of undertaking
Class of
% Held
shares held
Direct
Alton Precision Engineering Ltd
Ordinary
100.00
The registered office is 27a Chemical Lane, Longbridge Hays, Longport, Stoke on Trent, Staffordshire, England, ST6 4PB
13
Stocks
2024
2023
£
£
Raw materials and consumables
5,952,249
6,235,555
Work in progress
1,482,640
1,987,501
7,434,889
8,223,056
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,035,362
5,305,501
Amounts owed by group undertakings
69,702
69,702
Other debtors
66,859
65,217
Prepayments and accrued income
167,725
227,233
4,339,648
5,667,653
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 17 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,274,839
2,863,295
Corporation tax
212,946
266,811
Other taxation and social security
197,838
189,855
Accruals and deferred income
551,857
857,499
3,237,480
4,177,460
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
744,943
700,349
2024
Movements in the year:
£
Liability at 1 January 2024
700,349
Charge to profit or loss
44,594
Liability at 31 December 2024
744,943
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,111
1,111
1,111
1,111
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 18 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
94,563
127,197
Between two and five years
112,837
75,116
207,400
202,313
19
Related party transactions
The company has taken advantage of the exemption from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the immediate parent undertaking, A & E Holdings Limited.
During the year the company made sales of £4,456,846 (2023: £5,193,900) to other group companies in the Hydac group and purchases of £448,214 (2023: £560,853). The amount due from these companies at 31 December 2024 was £726,443 (2023: £806,847) and the amounts due to these companies at that date was £54,919 (2023: £85,528).
20
Ultimate controlling party
In the opinion of the directors, the ultimate parent undertaking in the current financial year is TIB GmbH, a company registered in Germany.
The company's immediate parent undertaking in the current and previous financial year is A & E Holdings Limited, a company registered in England and Wales, for which the company's consolidated accounts are available from Companies House, Cardiff, CF14 3UZ.
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
3,254,612
2,686,134
Adjustments for:
Taxation charged
1,047,361
937,273
Investment income
(158,750)
(102,477)
Loss on disposal of tangible fixed assets
23,625
20,307
Amortisation and impairment of intangible assets
1,439
969
Depreciation and impairment of tangible fixed assets
326,675
264,173
Movements in working capital:
Decrease/(increase) in stocks
788,167
(1,203,147)
Decrease/(increase) in debtors
1,328,005
(1,089,713)
(Decrease)/increase in creditors
(886,115)
273,430
Cash generated from operations
5,725,019
1,786,949
Quality Hydraulic Power Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 19 -
22
Company information
Quality Hydraulic Power Limited is a private company limited by shares incorporated in England and Wales. The registered office is West House, King Cross Road, Halifax, West Yorkshire, HX1 1EB.
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