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Registered number: 01873269










ATLAS COPCO IAS UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
ATLAS COPCO IAS UK LIMITED
 
 
COMPANY INFORMATION


Directors
M. A. Ayres 
A. T. Bell 
A. C. J. Bongaerts 
A. Crellin 
O. Leonhardt 




Registered number
01873269



Registered office
Parkway One
Parkway Zone 2

Deeside Industrial Park

Flintshire

CH5 2NS




Independent auditors
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditors

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ




Bankers
SEB Bank PLC
One Carter Lane

London

EC4V 5AN





 
ATLAS COPCO IAS UK LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditors' report
7 - 10
Statement of comprehensive income
11
Statement of financial position
12 - 13
Statement of changes in equity
14
Notes to the financial statements
15 - 35


 
ATLAS COPCO IAS UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
Atlas Copco IAS UK Limited is a part of the Atlas Copco Group, which is a world-leading provider of sustainable productivity solutions. The Group serves customers in more than 180 countries with products and service focused on productivity, energy efficiency, safety and ergonomics. Its vision is to become and remain 'First in Mind - First in Choice' for all of its stakeholders. This principle also drives the Group's strategy which is to create positive value for customers, shareholders and employees in an increasingly resource-constrained world.

Business review and key performance indicators
 
Atlas Copco IAS UK Limited ("the Company") is principally engaged in the design, development, manufacturing and supply of self-piercing riveting systems, rivets, and associated technology.
The Company has continued with its strategy of maintaining its market leading position. This strategy is based largely on established products as well as developing its product range. To achieve future market growth the company is committed to developing innovative assembly systems whilst maintaining a competitive pricing structure. Customer focus is a guiding principle for Atlas Copco IAS UK Limited. We aim to have close relationships with our customers and to help them increase their productivity in a sustainable way.
The company's key financial performance measures are revenue and gross profit margin, and are shown below for continuing operations:
      
 2024   2023
Revenue      £43m               £44m
Profit before tax     £13.6m  £14.1m
Gross profit margin     26%   27.6%
Operating profit margin    31.6%   31.9%
Total revenue, including discontinued operations, is £43m in 2024 (2023: £44m). This is a reduction of 2% from prior year. There was no revenue from any discontinued operations in 2024 (2023: £nil).
The decrease in profit for continuing operations is mainly attributable to reduced revenue, especially in Asia where the market has slowed down, resulting in reduced sales to the customer centre in China. The Company is looking to further reduce production costs with research into new products and continued investment to drive efficiency improvements in order to maintain a competitive advantage and maximise profitability.
Research & Development (R&D) remains an integral part of the business with a continuous focus on further investments in this area. This year the total investment in R&D has been £4.6m in 2024 (2023: £4.4m).
The Company has a provision of £2m (2023: £1.74m) for general product warranties, which relates to expected claims on products sold in the last three years and specific warranty claims on products sold in the previous years.

Page 1

 
ATLAS COPCO IAS UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties
 
The management of the business and the nature of the company's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business.
The Company is exposed to financial risks through its financial assets and liabilities. The Directors are of the opinion that a thorough risk management process is adopted and implemented on a continual improvement basis and a regular appraisal of the potential risks that could present to the business. The Company employs a formal review of all the risks identified below and where possible, processes are in place to monitor and mitigate such risks.
The Directors have considered the impact of the resulting Ukraine crisis and expect to experience an increase in costs. This has been mitigated with price increases and the Directors have concluded that the Ukraine crisis will not have a significant impact on the business overall.
Competition
The market in which the company operates is competitive. As a result, there is downward pressure on margins and the additional risk of being unable to meet customers' expectations on price. Policies of product engineering aimed at cost efficiencies, constant price monitoring and ongoing market research are in place to mitigate such risks.
Product obsolescence
Due to the nature of the market in which the company operates, products are subject to technological advances and as a result, obsolescence. The directors are committed to the research and development strategy in place and are confident that the company is able to react effectively to developments within the market.
Financial risk management objectives and policies
The Company's activities expose it to a number of financial risks the most important elements being credit risk and liquidity risk.
The company has used various financial instruments including loans, cash, and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments was to raise finance for the company's operations. Since the Company was acquired by Atlas Copco AB in September 2014 the company has been funded by the Group's internal resources.
Credit risk
The Company's principal financial assets are bank balances and cash, trade and other receivables.
The Company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds is limited because the counterparties are inter-company and banks with high credit- ratings assigned by international credit-rating agencies.
The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company utilises group funds.

Page 2

 
ATLAS COPCO IAS UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The Board of Directors confirm that during the year under review, it has acted to promote the long-term success
of the Company for the benefit of shareholders, whilst having due regard to the matters set out in section 172(1)
(a) to (f) of the Companies Act 2006, being:
(a) The likely consequences of any decision in the long term
(b) The interests of the Company's employees
(c) The need to foster the Company's business relationships with suppliers, customers and others
(d) The impact of the Company's operations on the community and the environment
(e) The desirability of the Company maintaining a reputation for high standards of business conduct
(f) The need to act fairly between members of the Company
In reaching our decisions we consider our purpose, vision, values and the Group's strategic priorities as outlined
in the Annual Report of Atlas Copco AB (https://www.atlascopcogroup .com/en/investor -relations/financial -reportspresentations /financial-publications ). We have a process in place for decision-making and we aim to make sure that our decisions are consistent across the board.
As is usual practice for similar companies, we delegate authority for day-to-day management to the management team and then engage them in setting, approving and overseeing execution of the business strategy and related policies. We review health and safety, financial and operational performance and legal and regulatory compliance at our Board meetings.
We are not aware of any significant impact of the Company's operations on the community. However, we
constantly consult with our stakeholders who assess impacts of the Company's operations and the wider Group
on climate change. As part of the Group vision, it is vital we maintain our reputation for high standards of business conduct and act fairly between members of the company. The Company has a business code of practice in place which is applicable to all our employees and business partners.


This report was approved by the board on 9 June 2025 and signed on its behalf.



A. Crellin
Director

Page 3

 
ATLAS COPCO IAS UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £9,814 thousand (2023 - £9,715 thousand).

A dividend of £15 million was declared and paid during the year (2023: £6 million). A dividend of £7 million has been declared and will be paid in June 2025.

Directors

The directors who served during the year were:

M. A. Ayres 
A. T. Bell 
A. C. J. Bongaerts 
A. Crellin 
R. Lamire (resigned 31 May 2024)
O. Leonhardt 

Page 4

 
ATLAS COPCO IAS UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Future developments

The Company will continue with its strategy of maintaining its market leading position. This strategy is based largely on established products as well as developing and advancing its product range through on-going investment in R&D. To achieve future market growth the company is committed to developing innovative assembly systems whilst maintaining a competitive pricing structure. Customer focus is a guiding principle for Atlas Copco IAS UK Limited. We aim to have close relationships with our customers and to help them increase their productivity in a sustainable way.

Engagement with suppliers, customers and others

Below we set out how we have engaged with various stakeholders during the year, the key issues raised and
outcomes:
Employees: We engage with our employees throughout the year on a number of topics. Employees are
encouraged to participate in the group-wide employee insight survey which takes place every other year. We hold regular team meetings with all staff members and operate an "open door" policy.
Atlas Copco IAS UK Limited strives to be a good employer to attract, develop, and keep qualified and
motivated people. Employees are responsible for their own professional career and supported by continuous
competence development and an internal job market. Employees are encouraged to grow professionally and take up new positions. A set of KP ls to measure the Company's performance in terms of training and internal mobility is included in the people management reporting.
Suppliers: We have an open and transparent engagement style with our suppliers in line with our business code
of practice. We engage on a number of matters including quality, Health & Safety, environmental issues and
ethics.

Greenhouse gas emissions, energy consumption and energy efficiency action

The company takes environmental sustainability seriously and is committed to reducing the carbon footprint and limit its negative contribution to climate change from operations where practicable. Energy from operations is a key measure for the business and is reviewed regularly with the goal to continuously decrease CO2 emissions, decrease waste, and reduce water consumption. In addition to investing in renewable energy, the company is also investigating ways to reduce plastic usage and promote use of reusable packaging.
Measure                                                                                              2024              2023
Energy Consumption used to calculate emissions: kWh                  5,567,141      6,299,400
Emissions from combustion of gas tCO2e (Scope 1)                      10                  11
Emissions from combustion of fuel for transport purposes
(Scope 1) - i.e. fuel purchase for company/pool cars. tCO2e           0                    0
Emissions from business travel in rental cars or
employee-owned vehicles where company is responsible
for purchasing the fuel (Scope 3) i.e. expenses for
private car mileage                                                                           0                    0
Emissions from purchased electricity (Scope 2, location-based)    100% renewable      100% renewable
Total gross CO2 (tonnes) based on above                                        10                  11
Intensity ratio: tCO2e Gross figure based on mandatory
fields above/ per £M Cost of Sales                                                   0.3                  0.4
 





Page 5

 
ATLAS COPCO IAS UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsLangtons Professional Services Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 9 June 2025 and signed on its behalf.
 





A. Crellin
Director

Page 6

 
ATLAS COPCO IAS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ATLAS COPCO IAS UK LIMITED
 

Opinion

We have audited the financial statements of Atlas Copco IAS UK 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 the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (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 United Kingdom, including the Financial Reporting Council'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 Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.

Page 7

 
ATLAS COPCO IAS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ATLAS COPCO IAS UK LIMITED (CONTINUED)


Opinion 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 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.

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 set out on page 4, 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.

Page 8

 
ATLAS COPCO IAS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ATLAS COPCO IAS UK LIMITED (CONTINUED)


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 an Auditors' 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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit, in respect to fraud, are:
• to identify and assess the risks of material misstatement of the financial statements due to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 101 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).
• We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved:
enquiries of management; and
journal entry testing, with a focus on manual journals indicating large or unusual transactions based on our understanding of the business.
• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
 
Page 9

 
ATLAS COPCO IAS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ATLAS COPCO IAS UK LIMITED (CONTINUED)



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 Auditors' report.

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 2006Our 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 Auditors' 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.




Stephen Talbot (Senior statutory auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditors
  
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

9 June 2025
Page 10

 
ATLAS COPCO IAS UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
43,115
43,996

Cost of sales
  
(31,889)
(31,842)

Gross profit
  
11,226
12,154

Administrative expenses
  
(4,354)
(4,298)

Other operating income
 5 
6,544
5,775

Operating profit
 6 
13,416
13,631

Interest receivable and similar income
 10 
363
455

Interest payable and similar expenses
 11 
(147)
(24)

Profit before tax
  
13,632
14,062

Tax on profit
 12 
(3,818)
(4,347)

Profit for the financial year
  
9,814
9,715

Other comprehensive income:
  

Items that will not be reclassified to profit or loss:
  

Total comprehensive income for the year
  
9,814
9,715

The notes on pages 15 to 35 form part of these financial statements.

Page 11

 
ATLAS COPCO IAS UK LIMITED
REGISTERED NUMBER: 01873269

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£000
£000

  

Fixed assets
  

Intangible assets
 14 
5,057
3,953

Tangible assets
 15 
12,913
13,494

  
17,970
17,447

Current assets
  

Stocks
 16 
7,953
8,563

Debtors: amounts falling due within one year
 17 
16,200
24,851

  
24,153
33,414

Creditors: amounts falling due within one year
 18 
(5,320)
(9,549)

Net current assets
  
 
 
18,833
 
 
23,865

Total assets less current liabilities
  
36,803
41,312

  

Creditors: amounts falling due after more than one year
 19 
(305)
(294)

  
36,498
41,018

Provisions for liabilities
  

Deferred taxation
 22 
(1,364)
(954)

Other provisions
 23 
(1,993)
(1,737)

  
 
 
(3,357)
 
 
(2,691)

  

Net assets
  
33,141
38,327


Capital and reserves
  

Called up share capital 
 24 
1,510
1,510

Share premium account
 25 
221
221

Profit and loss account
 25 
31,410
36,596

  
33,141
38,327


Page 12

 
ATLAS COPCO IAS UK LIMITED
REGISTERED NUMBER: 01873269
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 June 2025.




A. Crellin
Director

The notes on pages 15 to 35 form part of these financial statements.

Page 13

 
ATLAS COPCO IAS UK LIMITED
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2023
1,510
221
32,881
34,612


Comprehensive income for the year

Profit for the year
-
-
9,715
9,715
Total comprehensive income for the year
-
-
9,715
9,715


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(6,000)
(6,000)


Total transactions with owners
-
-
(6,000)
(6,000)



At 1 January 2024
1,510
221
36,596
38,327


Comprehensive income for the year

Profit for the year
-
-
9,814
9,814
Total comprehensive income for the year
-
-
9,814
9,814


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(15,000)
(15,000)


Total transactions with owners
-
-
(15,000)
(15,000)


At 31 December 2024
1,510
221
31,410
33,141


The notes on pages 15 to 35 form part of these financial statements.

Page 14

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Atlas Copco IAS UK Limited (the Company) is a private Company incorporated by shares in the United Kingdom under the Companies Act 2006. The address of the registered office is in England and given on page 1. The nature of the business is principally the design, development, manufacturing and supply of self-piercing riveting systems, rivets and associated technology.
These financial statements are presented to the nearest £'000 in pounds sterling because that is the currency of the primary economic environment in which the Company operates.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

This information is included in the consolidated financial statements of Atlas Copco AB as at 31 December 2023 and these financial statements may be obtained from Patent and Registration Office, Bolagsavdelningen, Storgatan 13, S85181, Sundsvall, Sweden.

Page 15

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Going concern

In accordance with their responsibilities, the directors of the company have considered the appropriateness of the going concern basis, which has been used in the preparation of these financial statements.
The company continues to manage its liquidity needs through a group bank pooling facility managed by the ultimate parent company, Atlas Copco AB. The company has no external debt and with the bank pooling facility it ensures sufficient resources are immediately available if need be.
The going concern of Atlas Copco IAS UK Limited is linked to that of the overall group. The Directors made enquiries of the group to ascertain the group position on going concern. Following these enquiries, the Directors are satisfied the group's strategy is robust and that they will continue as a going concern. The directors have considered the company’s current and prospects and its availability of intercompany financing.
In turn, the company has received assurances, in the form of a letter of support, that Atlas Copco Airpower NV will continue to provide sufficient cash resources as required to enable the company to meet its liabilities as they fall due for the period to 30 September 2026.
The company therefore continues to adopt the going concern basis in preparing its financial statements which has been applied consistently throughout the year.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 16

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

The Company has contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company adjusts the transaction prices of these contracts for the time value of money.

Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Rendering of services

Revenue from providing services is recognised in the accounting period in which the services are rendered.

For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

Royalties
Royalty revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement (provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably). Royalties determined on a time basis are recognised on a straight-line basis over the period of the agreement. Royalty arrangements that are based on production, sales and other measures are recognised by reference to the underlying arrangement. Royalty revenue is recognised in the financial statements under revenue.

 
2.6

Leases

The Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be
Page 17

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.6
Leases (continued)

readily determined, the Company uses its incremental borrowing rate. [Provide an explanation how the incremental borrowing rate is determined].

Lease payments included in the measurement of the lease liability comprise:

fixed lease payments (including in-substance fixed payments), less any lease incentives;

variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

the amount expected to be payable by the lessee under residual value guarantees;

the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is included in 'Creditors' on the Statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised discount rate.

the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The Company did not make any such adjustments during the periods presented.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. The costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use
Page 18

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.6
Leases (continued)

asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in the 'Intangible Assets', 'Tangible Fixed Assets' and 'Investment Property' lines, as applicable, in the Statement of financial position.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.12.

Variable rents that do not depend on an index or rate are not included in the measurement the lease liability and the right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in profit or loss.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

For a contracts that contain a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 19

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2% to 10%
Long-term leasehold property
-
20%
Plant and machinery
-
10% to 15%
Fixtures and fittings
-
15% to 33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 21

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.17

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value. 

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Fair value through profit or loss

All of the Company's financial assets are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset. 

Impairment of financial assets

The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

Financial liabilities

Fair value through profit or loss

Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.

At amortised cost

Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a
Page 22

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)

financial liability.

 
2.18

Financial liabilities

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and are initially measured at fair value. The subsequent measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are issued principally for the purpose of repurchasing in the near term, or form part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking, or are derivatives, including separately embedded derivatives unless they are financial guarantee contracts or are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in profit or loss.

Financial liabilities at amortised cost

Financial liabilities which are not held for trading or are not financial liabilities designated upon initial recognition as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Derecognition of financial liabilities

A liability is derecognised when the contract that gives rise to it is settled, sold, cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as an exchange or modification, this is treated as a derecognition of the original liability, such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised in profit or loss.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 23

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2.1, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
There were no critical accounting judgements in the preparation of the financial statements.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
Warranty provision
The provision (note 24), is based on both specific and general warranty claims. Specific provision is for equipment projects with known technical issues. General provision is an estimate based on the average warranty claims of the last 2 years.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£000
£000

Sale of goods
43,115
43,996

43,115
43,996


Analysis of turnover by country of destination:

2024
2023
£000
£000

United Kingdom
4,295
6,718

Rest of Europe
8,140
8,474

Rest of the world
30,680
28,804

43,115
43,996


Page 24

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Other operating income

2024
2023
£000
£000

Royalty receivable
6,510
5,745

Profit on disposal of tangible assets
-
(4)

Management fees receivable
34
34

6,544
5,775



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Research & development charged as an expense
2,833
2,558

Depreciation of tangible fixed assets
1,115
1,115

Amortisation of intangible assets, including goodwill
886
253

Exchange differences
168
(18)

Defined contribution pension cost
819
772

Cost of stocks recognised as an expense
31,785
31,077


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£000
£000

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
47
46

Non audit services - accounts

All non-audit services not included above
4
4

Page 25

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£000
£000

Wages and salaries
10,097
9,615

Social security costs
1,116
1,022

Cost of defined contribution scheme
819
772

12,032
11,409


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production and administrative staff
209
209


9.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
204
347

Company contributions to defined contribution pension schemes
19
9

223
356


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £102 thousand (2023 - £299 thousand).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8 thousand (2023 - £NIL).


10.


Interest receivable

2024
2023
£000
£000


Interest receivable from group companies
363
455

363
455

Page 26

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Interest payable and similar expenses

2024
2023
£000
£000


Other loan interest payable
5
-

Interest on lease liabilities
23
8

Other interest payable
119
16

147
24


12.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
3,511
3,000

Adjustments in respect of previous periods
(104)
827


3,407
3,827


Total current tax
3,407
3,827

Deferred tax


Origination and reversal of timing differences
411
581

Changes to tax rates
-
37

Prior year adjustment
-
(98)

Total deferred tax
411
520


Tax on profit
3,818
4,347
Page 27

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
13,632
14,062


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
3,408
3,305

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
9
(46)

Adjustments to tax charge in respect of prior periods
(104)
729

Other timing differences leading to an increase (decrease) in taxation
-
322

Changes in tax rates
-
37

Other differences leading to an increase (decrease) in the tax charge
505
-

Total tax charge for the year
3,818
4,347


Factors that may affect future tax charges

The standard rate of tax applied to reported profit on ordinary activities is 25% (2023 - 23.5%). Following the substantive enactment of the Finance Act 2021 the applicable tax rate increased from 19% to 25% from 1 April 2023. As a result deferred tax has been calcuated at 25% (2023 - 25%).


13.


Dividends

2024
2023
£000
£000

Ordinary


Dividends paid in the year
15,000
6,000

15,000
6,000



Page 28

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Intangible assets




Develop-  ment expenditure
Develop- ment expenditure - WIP
Computer software
Total

£000
£000
£000
£000



Cost


At 1 January 2024
1,598
2,802
694
5,094


Additions - internal
-
2,024
52
2,076


Disposals
-
(10)
-
(10)


Transfers between classes
2,375
(2,375)
-
-



At 31 December 2024

3,973
2,441
746
7,160



Amortisation


At 1 January 2024
488
14
639
1,141


Charge for the year on owned assets
734
189
39
962


Transfers between classes
14
(14)
-
-



At 31 December 2024

1,236
189
678
2,103



Net book value



At 31 December 2024
2,737
2,252
68
5,057



At 31 December 2023
1,110
2,788
55
3,953




Page 29

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Other fixed assets
Total

£000
£000
£000
£000
£000
£000



Cost or valuation


At 1 January 2024
14,120
21,065
415
1,904
-
37,504


Additions
71
180
69
158
148
626


Disposals
-
(66)
-
(31)
-
(97)


Transfers between classes
235
(396)
-
152
9
-



At 31 December 2024

14,426
20,783
484
2,183
157
38,033



Depreciation


At 1 January 2024
3,813
19,017
86
1,095
-
24,011


Charge for the year on owned assets
436
391
-
154
-
981


Charge for the year on right-of-use assets
-
15
97
21
-
133


Disposals
-
(4)
-
(1)
-
(5)



At 31 December 2024

4,249
19,419
183
1,269
-
25,120



Net book value



At 31 December 2024
10,177
1,364
301
914
157
12,913



At 31 December 2023
10,308
2,048
329
809
-
13,494


The net book value of owned and leased assets included as "Tangible fixed assets" in the Statement of financial position is as follows:

2024
2023
£000
£000


Tangible fixed assets owned
12,494
13,112

Right-of-use tangible fixed assets
419
382

12,913
13,494

Page 30

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           15.Tangible fixed assets (continued)

Information about right-of-use assets is summarised below:

Net book value

2024
2023
£000
£000

Plant and machinery
37
52

Motor vehicles
302
330

Office and computer equipment
80
-

419
382

Depreciation charge for the year ended

2024
2023
£000
£000

Plant and machinery
15
9

Motor vehicles
97
48

Office and computer equipment
21
-

133
57


Additions to right-of-use assets

2024
2023
£000
£000

Additions to right-of-use assets
170
393


16.


Stocks

2024
2023
£000
£000

Raw materials and consumables
4,964
6,026

Work in progress (goods to be sold)
1,198
1,513

Finished goods and goods for resale
1,791
1,024

7,953
8,563



Page 31

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Debtors

2024
2023
£000
£000


Trade debtors
683
687

Amounts owed by group undertakings
14,619
22,630

Other debtors
540
963

Prepayments and accrued income
358
571

16,200
24,851



18.


Creditors: Amounts falling due within one year

2024
2023
£000
£000

Trade creditors
1,789
2,383

Amounts owed to group undertakings
407
306

Corporation tax
284
3,095

Other taxation and social security
245
482

Lease liabilities
128
92

Other creditors
76
483

Accruals and deferred income
2,391
2,708

5,320
9,549


Amounts owed to group undertakings relate to general trading. Amounts are normally due upon delivery following the month invoices are issued and are routinely settled in the monthly internal netting process.


19.


Creditors: Amounts falling due after more than one year

2024
2023
£000
£000

Lease liabilities
305
294

305
294


Page 32

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.

Leases

Company as a lessee

The weighted average lease incremental borrowing rate applied to lease liabilities recognised in the statement of financial position on 31 December 2024 is 4.8% (2023 - 4.7%).

Lease liabilities are due as follows:

2024
2023
£000
£000

Not later than one year
128
92

Between one year and five years
305
294

433
386

The total cash outflow for leases amount to £147,095 (2023 - £60,782).


The following amounts in respect of leases, where the Company is a lessee, have been recognised in profit or loss:

2024
2023
£000
£000

Interest expense on lease liabilities
23
8


21.


Financial instruments

2024
2023
£000
£000

Financial assets


Financial assets that are debt instruments measured at amortised cost
15,842
24,280


Financial liabilities


Financial liabilities measured at amortised cost
(4,664)
(5,878)


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings, and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors, and accruals and deferred income.

Page 33

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

22.


Deferred taxation




2024


£000






At beginning of year
(953)


Charged to profit or loss
(411)



At end of year
(1,364)

The provision for deferred taxation is made up as follows:

2024
2023
£000
£000


Accelerated capital allowances
(1,364)
(953)

(1,364)
(953)

Deferred tax assets and liabilities are offset only where the Company has a legally enforceable right to do so and where the assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity or another entity within the group.


23.


Provisions




Warranty provision

£000





At 1 January 2024
1,737


Charged to profit or loss
256



At 31 December 2024
1,993

Product warranties
The provision, is based on both specific and general warranty claims. Specific provision is for equipment projects with known technical issues. General provision is an estimate based on the average warranty claims of the last 2 years.

Page 34

 
ATLAS COPCO IAS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

24.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



1,509,808 (2023 - 1,509,808) Ordinary shares of £1.00 each
1,510
1,510



25.


Reserves

Share premium account

Represents the excess of the proceeds from the issue of shares over the nominal value of shares issued less related issue costs.

Profit and loss account

Represents the cumulative retained profit of the company.


26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund.


27.


Controlling party

The immediate parent undertaking of the company is Atlas Copco UK Holdings Limited. A company incorporated in Great Britain and registered in England and Wales. The Company's registered address is Swallow dale Lane, Hemel Hempstead, Hertfordshire, HP2 7EA. Atlas Copco UK Holdings Limited does not prepare group financial statements.
The ultimate parent undertaking and controlling party is Atlas Copco AB, Sweden, which is the only entity to consolidate these financial statements. This company is incorporated in Sweden and its registered address is SE-105 23 Stockholm., Sweden. Copies of its financial statements are available from the Patent and Registration Office, Bolagsavdelningen, Storgatan 13, S85181, Sundsvall, Sweden. This is the largest and smallest company which prepares group financial statements.

Page 35