Company registration number 01261214 (England and Wales)
HYDAC TECHNOLOGY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HYDAC TECHNOLOGY LIMITED
COMPANY INFORMATION
Directors
R. Huber
K. Brownlee
D. Wait
A . Dieter
Company number
01261214
Registered office
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
Auditor
Rouse Audit LLP
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
Bankers
Lloyds Bank (High Wycombe)
27-31 White Hart Street
High Wycombe
Bucks
HP11 2HL
HYDAC TECHNOLOGY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
HYDAC TECHNOLOGY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

The business continues to operate predominantly in the U.K. and Republic of Ireland, however it is also the design authority for a number of global products and as such a proportion of its business is exported accordingly. Traditionally the markets served are Industrial OEM & MRO and Off-highway OEM & MRO and a proportion of our business also goes through ‘resellers’ predominantly within our distribution network.

 

Within the off-highway market there is a growing shift for ‘e-mobility’ in a variety of ways although in the last 12 months due to a slowdown in end-user adoption this has slowed. However, the company has continued to develop its product portfolio to meet the new potential that this offers. This continues to not only open the possibility of new product sales to existing accounts but also new customers who historically were not on our radar or are new to the market.

 

The company is resourcing and growing to meet the new demands put on us by the technology changes and we will continue to do so through 2025 as the need demands.

 

Principal risks and uncertainties

The business has risk management processes that seek to identify, assess and manage financial risk. The following risks have been identified:

 

Financial instruments
Liquidity risk
The company monitors and reviews liquidity risks regularly on an ongoing basis and also as part of the planning process. The board considers short-term requirements against available sources of funding, taking into account cash flow and responds to any identified needs as necessary to support the business.
Currency, market and price risk

Exchange rate of the Pound to the Euro still impacted on purchases, however the business continues to achieve the margins expected through active management of their pricing strategy.

Credit risk
The company's credit risk relates to the recovery of amounts owed by the customers for invoiced sales. The credit risk is managed by regular monitoring of outstanding amounts and through credit checks.
Covid risk

Whilst the virus is still a threat the company feels the level of risk is now minimal with the vaccination program and general immunity within the population having lessened the effects on day-to-day business.

HYDAC TECHNOLOGY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators
Financial indicators
31 December 2024
31 December 2023
Turnover (£)
30,282,255
32,872,661
Gross Profit (%)
28%
29%
Operating Profit (%)
3%
6%
On behalf of the board
D. Wait
Director
6 June 2025
HYDAC TECHNOLOGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company is to manufacture hydraulic components and systems primarily aimed at the OEM industry; Off Highway and Construction, Agricultural, Municipal, Oil & Gas and Industrial as well as the After Sales and MRO Markets attached to these sectors. Components comprise a wide spectrum including hydraulic accumulators, fluid filters, coolers, electro-hydraulic controls, industrial valves, sensor systems, measuring equipment, cylinders and pumps. The company principally manufactures in Germany, and also has manufacturing in global areas including the UK, USA, China, Switzerland, Sweden and Italy. The marketing of the product is global, mainly via wholly owned distribution centres.

Results and dividends

The results for the year are set out on page 8.

The directors have approved and paid dividends in the year of £18,616,794 (2023 : £25,916,534 ).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

W. Dieter
(Resigned 8 June 2024)
R. Huber
K. Brownlee
D. Wait
A . Dieter
Future developments

The future development of the company is discussed within the Strategic Report on page 1 in accordance with s414C (11).

Statement of directors' responsibilities
The directors are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the directors to prepare financial statements for each financial year which 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 year. In preparing those financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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 proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to 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 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.

HYDAC TECHNOLOGY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Going concern

The directors continue to closely monitor the market situation and take the necessary action to ensure profitability is always maintained. New technologies play an increasing role within some of our traditional markets and the company continue to develop our product portfolio to meet these new potentials that will inevitably influence our traditional business.

Taking these factors into consideration, the directors believe the business will have sufficient resources available in order to meet its obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements. Consequently, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future and for this reason they continue to adopt the going concern basis for preparing the financial statements.

 

On behalf of the board
D. Wait
Director
6 June 2025
HYDAC TECHNOLOGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HYDAC TECHNOLOGY LIMITED
- 5 -
Opinion

We have audited the financial statements of Hydac Technology Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:

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 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.

Other information

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:

HYDAC TECHNOLOGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HYDAC TECHNOLOGY LIMITED (CONTINUED)
- 6 -
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:

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

HYDAC TECHNOLOGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HYDAC TECHNOLOGY LIMITED (CONTINUED)
- 7 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

Leighton Bower (Senior Statutory Auditor)
For and on behalf of Rouse Audit LLP, Statutory Auditor
Chartered Accountants
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
6 June 2025
HYDAC TECHNOLOGY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
30,282,255
32,872,661
Cost of sales
(21,829,987)
(23,445,221)
Gross profit
8,452,268
9,427,440
Distribution costs
(4,323,032)
(4,344,800)
Administrative expenses
(3,280,454)
(3,147,882)
Operating profit
4
848,782
1,934,758
Investment income
8
16,236,310
25,960,706
Profit before taxation
17,085,092
27,895,464
Tax on profit
9
(268,773)
(505,494)
Profit for the financial year
16,816,319
27,389,970

The income statement has been prepared on the basis that all operations are continuing operations.

HYDAC TECHNOLOGY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
7,676,714
7,761,028
Investments
12
2,835,582
2,835,582
10,512,296
10,596,610
Current assets
Inventories
14
5,393,252
5,414,045
Trade and other receivables
15
5,307,728
5,730,471
Cash and cash equivalents
6,135,008
7,606,554
16,835,988
18,751,070
Current liabilities
16
(4,124,587)
(4,361,842)
Net current assets
12,711,401
14,389,228
Total assets less current liabilities
23,223,697
24,985,838
Provisions for liabilities
Provisions
17
66,000
59,000
Deferred tax liability
18
438,364
407,030
(504,364)
(466,030)
Net assets
22,719,333
24,519,808
Equity
Called up share capital
21
1,000,000
1,000,000
Retained earnings
21,719,333
23,519,808
Total equity
22,719,333
24,519,808
The financial statements were approved by the board of directors and authorised for issue on 6 June 2025 and are signed on its behalf by:
D. Wait
Director
Company registration number 01261214 (England and Wales)
HYDAC TECHNOLOGY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2023
1,000,000
22,046,372
23,046,372
Year ended 31 December 2023:
Profit and total comprehensive income
-
27,389,970
27,389,970
Dividends
10
-
(25,916,534)
(25,916,534)
Balance at 31 December 2023
1,000,000
23,519,808
24,519,808
Year ended 31 December 2024:
Profit and total comprehensive income
-
16,816,319
16,816,319
Dividends
10
-
(18,616,794)
(18,616,794)
Balance at 31 December 2024
1,000,000
21,719,333
22,719,333
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company Information

Hydac Technology Limited is a limited company domiciled and incorporated in England and Wales. The registered office is 55 Station Road, Beaconsfield, Buckinghamshire, HP9 1QL. Its principal place of business is De Havilland Way, Windrush Park, Witney, Oxfordshire, OX29 0YG.

1.1
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 have been prepared under the historical cost convention, modified to include the revaluation for some of the freehold properties and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

 

In these financial statements, the company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:

 

1.2
Going concern

The directors continue to closely monitor the market situation and take the necessary action to ensure profitability is always maintained. New technologies play an increasing role within some of our traditional markets and the company continue to develop our product portfolio to meet these new potentials that will inevitably influence our traditional business.true

Taking these factors into consideration, the directors believe the business will have sufficient resources available in order to meet its obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements. Consequently, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future and for this reason they continue to adopt the going concern basis for preparing the financial statements.

1.3
Revenue
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Revenue is recognised on despatch of goods.
1.4
Long term contracts
Turnover is recognised on the basis of the level of completion of the contract. Revenue is recognised using the “percentage complete” method, as work is completed against the project.  The percentage complete is determined through the costs incurred to date over the total expected costs. Costs therefore drive the percentage complete. Revenue follows costs under this method and any differences from the amounts invoiced are recognised as either deferred or accrued income as appropriate.

Projects are reviewed on a annual basis and profit is recognised based on percentage stage of completion (based on costs incurred to date). Any losses will be identified as part of the review against budget so that losses are provided for as soon as management are aware of them.
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold land and buildings
Land Nil/Buildings 2% on cost/10% reducing balance
Plant and equipment
25% reducing balance
Motor vehicles
25% reducing balance

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.

1.6
Impairment of tangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Inventories

Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. A provision is made for slow moving inventories. The cost of finished goods and work in progress comprises raw materials, direct labour, and other direct costs.

1.8
Financial assets

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

1.9
Financial liabilities

Basic financial liabilities, including trade and other payables and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

The company contributes to a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.15
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.

1.16

Group accounts

The company has taken advantage of the exemption under section 401 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.

 

Hydac Technology Limited is a wholly owned subsidiary of INTHOL Beteiligungs-und-Verwaltungs GmbH and the results of Hydac Technology Limited are included in the consolidated financial statements of INTHOL Beteiligungs-und-Verwaltungs GmbH which are publicly available.

HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2
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.

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.

Inventory Provision

A provision for slow moving inventory is included in order to provide for slow moving items in line with group policy and is based upon usage levels.

Deferred and accrued income

Revenue on long term projects is recognised based on level of completion of the project. The percentage complete is determined through the costs incurred to date over the total expected costs.

3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Industrial
13,117,808
13,603,098
Mobile
13,937,232
16,358,297
Export
3,227,215
2,911,266
30,282,255
32,872,661
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
24,487,223
26,140,816
Europe
4,374,277
5,320,901
Rest of World
1,420,755
1,410,944
30,282,255
32,872,661
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
262,389
123,825
Fees payable to the company's auditor for the audit of the company's financial statements
28,234
52,378
Depreciation of owned property, plant and equipment
441,025
434,921
Loss/(profit) on disposal of property, plant and equipment
13,238
(935)
Operating lease charges
356,378
334,401
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
37,577
52,378
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration
29
30
Warehouse and production
41
42
Selling and technical
86
85
Total
156
157

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,471,921
6,332,431
Social security costs
663,666
676,679
Pension costs
519,730
484,107
7,655,317
7,493,217
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
187,949
252,806
Company pension contributions to defined contribution schemes
12,222
9,775
200,171
262,581
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
178,223
Company pension contributions to defined contribution schemes
n/a
9,775

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

8
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
119,299
43,951
Other interest income
217
221
Total interest revenue
119,516
44,172
Income from fixed asset investments
Income from shares in group undertakings
16,116,794
25,916,534
Total income
16,236,310
25,960,706
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
237,439
456,951
Deferred tax
Origination and reversal of timing differences
31,334
48,543
Total tax charge
268,773
505,494
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 18 -

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
17,085,092
27,895,464
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
4,271,273
6,973,866
Tax effect of expenses that are not deductible in determining taxable profit
8,655
4,497
Effect of change in corporation tax rate
(8,366)
(28,742)
Permanent capital allowances in excess of depreciation
31,336
29,412
Deferred tax adjustments in respect of prior years
(4,927)
5,595
Dividend income
(4,029,198)
(6,479,134)
Taxation charge for the year
268,773
505,494
10
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Final paid
2.50
-
0
2,500,000
-
0
Interim paid
15.37
2.59
16,116,794
25,916,534
17.87
2.59
18,616,794
25,916,534

 

HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Property, plant and equipment
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 January 2024
8,564,055
4,474,643
3,541
13,042,239
Additions
48,697
321,249
-
0
369,946
Disposals
-
0
(59,073)
-
0
(59,073)
Transfers
76,028
(76,028)
-
0
-
0
At 31 December 2024
8,688,780
4,660,791
3,541
13,353,112
Depreciation and impairment
At 1 January 2024
1,747,705
3,530,438
3,068
5,281,211
Depreciation charged in the year
156,474
284,432
118
441,024
Eliminated in respect of disposals
-
0
(45,837)
-
0
(45,837)
At 31 December 2024
1,904,179
3,769,033
3,186
5,676,398
Carrying amount
At 31 December 2024
6,784,601
891,758
355
7,676,714
At 31 December 2023
6,816,350
944,205
473
7,761,028

The company took advantage of the transitional arrangements under FRS15 and later FRS 102 and in the financial statements for the year ended 31 December 2001, the company retained the book amounts as deemed cost at that date of the land and buildings that had previously been revalued in accordance with the company's accounting policies. The land and buildings concerned were independently valued in 1987 and are carried at their valuation at that date, being £621,389.

 

If the land and buildings had not been revalued, they would have been included at the following amounts:

Land and buildings
2024
2023
£
£
Cost
721,389
721,389
Accumulated depreciation
(522,581)
(508,153)
Carrying value
198,808
213,236
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
2,835,582
2,835,582

 

HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Fixed asset investments
(Continued)
- 20 -
Fair value of financial assets carried at amortised cost

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

13
Subsidiaries

These financial statements are separate company financial statements for Hydac Technology Limted.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Hydac Technology Corporation
USA
Hydraulic components
Ordinary
100.00
-
Hydac International Corporation
USA
Hydraulic components
Ordinary
100.00
-
Hydac International SADECV
Mexico
Hydraulic components
Ordinary
0
99.00
Hydac Corporation
Canada
Hydraulic components
Ordinary
0
100.00
14
Inventories
2024
2023
£
£
Work in progress
308,440
376,211
Finished goods and goods for resale
5,084,812
5,037,834
5,393,252
5,414,045
15
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
4,640,157
4,955,877
Amounts owed by group undertakings
403,838
533,912
Prepayments and accrued income
263,733
240,682
5,307,728
5,730,471
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
16
Current liabilities
2024
2023
Notes
£
£
Payments received on account
276,988
233,815
Trade payables
639,380
440,950
Amounts owed to group undertakings
1,681,166
2,096,941
Corporation tax
18,231
45,641
Other taxation and social security
926,830
830,546
Deferred income
19
309,593
469,802
Other payables
6,326
9,837
Accruals
266,073
234,310
4,124,587
4,361,842
17
Provisions for liabilities
2024
2023
£
£
Specific product defect reserve
66,000
59,000
Movements on provisions:
Specific product defect reserve
£
At 1 January 2024
59,000
Additional provisions in the year
7,000
At 31 December 2024
66,000

The defect reserve is in respect of the probable cost of rectification of defects which relate to specific products. These provisions have been made on an individual product basis.

18
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
438,364
407,030
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 January 2024
407,030
Charge to profit or loss
31,334
Liability at 31 December 2024
438,364

 

19
Deferred income
2024
2023
£
£
Other deferred income
309,593
469,802
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
519,730
484,107

The company contributes to 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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
HYDAC TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
22
Operating lease commitments
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements are as follows:

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
372,927
321,699
Between two and five years
489,139
588,735
862,066
910,434
23
Ultimate controlling party

The ultimate parent undertaking in the current and previous financial year is INTHOL Beteiligungs-und-Verwaltungs GmbH, a company registered in Germany.

 

The company's immediate parent undertaking in the current and previous financial year is Hydac Limited, a company registered in England and Wales.

 

The smallest and largest group into which the company is consolidated is headed up by INTHOL Beteiligungs-und-Verwaltungs GmbH. These group accounts are available from The Registrar, Companies House, Cardiff, CF4 3UZ.

 

24
Related party transactions

During the year, the company entered into transactions with other companies in the Hydac group as follows:

 

1) Sales of £2,807,644 (2023 : £2,731,290)

 

2) Purchases of £14,694,024 (2023 : £16,646,129)

 

The amounts due from these companies at the year end was £403,838 (2023 : £533,912)

 

The amounts due to these companies at the year end was £1,681,166 (2023 : £2,096,941)

 

 

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