| REGISTERED NUMBER: |
| COILCRAFT EUROPE LIMITED |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| REGISTERED NUMBER: |
| COILCRAFT EUROPE LIMITED |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 | to | 3 |
| Report of the Directors | 4 | to | 6 |
| Report of the Independent Auditors | 7 | to | 10 |
| Income Statement | 11 |
| Other Comprehensive Income | 12 |
| Balance Sheet | 13 |
| Statement of Changes in Equity | 14 |
| Cash Flow Statement | 15 |
| Notes to the Cash Flow Statement | 16 |
| Notes to the Financial Statements | 17 | to | 25 |
| COILCRAFT EUROPE LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| Statutory Auditor |
| Titanium 1 |
| King's Inch Place |
| Renfrew |
| PA4 8WF |
| BANKERS: |
| 116 Cowgate |
| Kirkintilloch |
| G66 1JX |
| SOLICITORS: |
| Third Floor |
| Quay 2 |
| 139 Fountainbridge |
| Edinburgh |
| EH3 9QG |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their strategic report for the year ended 31 December 2024. |
| REVIEW OF BUSINESS |
| The key financial highlights are as follows: |
| 2024 | 2023 | 2022 |
| $ | $ | $ |
| Turnover | 64,870,772 | 75,682,712 | 78,594,033 |
| Turnover growth / (fall) | (14.3% | (3.7% | ) | 6.2% |
| Exchange gains / (losses) within administration expenses | 153,413 | 5,963 | (64,145 | ) |
| Profit before tax | 2,508,955 | 3,079,209 | 3,196,446 |
| The net assets of the Company have increased from $19,508,074 at 31 December 2023 to $21,384,465 at 31 December 2024. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Our customers continue to be vulnerable to disruptions caused by ongoing conflicts and political instabilities. |
| SECTION 172(1) STATEMENT |
| As a privately owned business with a global presence the long term success of the Company is always at the heart of our operations. |
| ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
| Coilcraft are a preferred supplier in our marketplace because of our reputation for quality, reliable delivery, engineering support and the superior performance of our products. |
| In support of our customers we offer, in addition to a large selection of standard products, a custom design and build service, the most comprehensive website in the magnetics industry and a liberal free sample policy to support their technical innovations. |
| We are supplied by our own group manufacturing companies, thereby spreading the risk of production. All plants are ISO/TS 16949 and ISO 9001 certified. |
| We work hard to reduce costs and eliminate waste from our operations wherever possible and are mindful of the impact our operations may have on the environment. |
| FINANCIAL INSTRUMENTS |
| The Company's principal financial instruments comprise bank balances, trade creditors and group balances. The main purpose of these instruments is to finance the Company's operations. |
| Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the monitoring of amounts outstanding. |
| Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Credit risk on liquid funds is limited due to the counterparties being banks with credit ratings assigned by international credit-rating agencies. |
| ENVIRONMENT |
| The Company recognises the importance of its environmental responsibilities, and has policies in place to manage its impact on the environment. In addition the Company is ISO14001 accredited. |
| FUTURE DEVELOPMENTS |
| The directors aim to maintain the management policies adopted during the year to 31 December 2024 and consider the Company well placed to take advantage of opportunities which may arise in the current year. |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| EMPLOYEES |
| The Company recognises that a successful business requires a stable, healthy and motivated workforce. Staff recruitment, retention and training are given high priority in the business. The Company benefits from a high level of long serving staff. |
| GOING CONCERN |
| Based on current trading levels and projected future results, the directors have assessed the Company to be a going concern. |
| ON BEHALF OF THE BOARD: |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the Company in the year under review was that of the distribution and promotion of Coilcraft Inc products worldwide. The directors are not aware, at the date of this report, of any likely major changes in the company's activities in the year. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 December 2024 was £nil (2023: £nil) |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS |
| As a privately owned business with a global presence the long term success of the Company is always at the heart of our operations. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| This statement reports on the Company's energy and carbon emissions consumption in compliance with Streamlined Energy and Carbon Reporting (SECR) legislation introduced by the UK Government. It covers our UK energy use and associated greenhouse gas emissions, reports our intensity ratios and describes the measures taken to improve energy efficiency throughout the year. |
| Consumption is split into three categories, or 'scopes' as defined in the greenhouse gas protocol standard: |
| Scope 1 (direct) emissions are greenhouse gas emissions released on an organisation's site or from its vehicles. More accurately they are CO2e emissions that come from sources owned or controlled by an organisation. Typically, these are emissions generated by gas boilers and owned or leased cars, vans & lorries. |
| Scope 2 (indirect) emissions are greenhouse gases released into the atmosphere as a result of the consumption of purchased electricity, steam, heat and cooling. Although these CO2e emissions result from an organisation's activities, they occur at sources it doesn't own or control. As a result, they are referred to as indirect emissions. |
| Scope 3 (other indirect) emissions are a consequence of an organisation's actions, which occur at sources which it does not own or control and which are not classed as scope 2 emissions. Examples of scope 3 emissions are business travel by means not owned or controlled by an organisation, waste disposal which is not owned or controlled, or purchased materials or fuels. |
| Methodology Used |
| The energy consumption (mWh) in the table below is taken from the Company's ISO14001 monitoring system and is collected by means of metered data, data collectors or supplier invoices. The emissions reported below are in metric tonnes of carbon dioxide (CO2e) calculated using the Government conversion factors for company reporting of greenhouse gas emissions 2023. |
| Intensity Ratio |
| An intensity ratio is a way of defining emissions data in relation to an appropriate business metric. This allows comparison of energy efficiency performance over time and with other similar types of organisations. The Company has chosen to calculate its ratio by dividing its emissions by its business premises square meterage. |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
Emission Source |
Scope |
2024 Consumption (mWh) |
2024 Emissions (tCO2e) |
2023 Consumption (mWh) |
2023 Emissions (tCO2e) |
| Combustion of Gas | 1 | 231.90 | 42.41 | 231.00 | 42.26 |
| Purchase of Electricity | 2 | 92.47 | 19.15 | 94.20 | 19.51 |
| Combustion of Transport Fuel |
1 |
9.73 |
2.33 |
7.93 |
2.00 |
| Business travel in rental cars or employee-owned vehicles where company is responsible for purchasing the fuel |
3 |
11.74 |
2.60 |
24.66 |
5.88 |
| Total Gross | 345.84 | 66.49 | 357.79 | 69.64 |
| mWh/m2 | tCO2E/m2 | mWh/m2 | tCO2E/m2 |
| Intensity Ratio | 0.1434 | 0.0276 | 0.1484 | 0.0289 |
| Energy Efficiency Actions |
| The business's electrical energy consumption has stabilised as hybrid working patterns have become the new norm. We continued to upgrade fluorescent lighting with energy efficient LED lighting to reduce electricity consumption. |
| Environment Strategy |
| The Company has been ISO14001 certified since 1999 and actively seeks new ways to reduce its impact on the environment by focusing on energy, waste, water and understanding the impact of global climate change on its activities. These focus areas have been identified based on an overall evaluation of environmental aspects and impacts and in particular those which it can positively influence. |
| Renewable Energy |
| Since December 2016, the Company has been sourcing 100% renewable electricity, and since October 2017, it has been using 100% Green Gas. |
| Carbon Offsetting |
| The Company participates in the EcoPoints program offered by its fuel card provider All Star, contributing to tree planting efforts to offset its carbon footprint. Over the next 100 years, these trees will offer numerous societal benefits, including carbon dioxide capture, habitat for biodiversity, flood mitigation, cleaner rivers and air, recreational spaces, and job creation. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | 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 adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| COILCRAFT EUROPE LIMITED |
| Opinion |
| We have audited the financial statements of Coilcraft Europe Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| COILCRAFT EUROPE LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| COILCRAFT EUROPE LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud. |
| We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. |
| In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: |
| - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; |
| - Reviewing minutes of meetings of those charged with governance; |
| - Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; |
| - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
| - Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. |
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| COILCRAFT EUROPE LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Accountants |
| Statutory Auditor |
| Titanium 1 |
| King's Inch Place |
| Renfrew |
| PA4 8WF |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | $ | $ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Sales and marketing cost | ( |
) | ( |
) |
| Administrative expenses | ( |
) | ( |
) |
| OPERATING PROFIT |
| Interest receivable and similar income |
| PROFIT BEFORE TAXATION | 5 |
| Tax on profit | 6 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | $ | $ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| BALANCE SHEET |
| 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | $ | $ | $ |
| FIXED ASSETS |
| Tangible assets | 7 |
| CURRENT ASSETS |
| Stocks | 8 |
| Debtors | 9 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 10 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 14 |
| Retained earnings | 15 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| $ | $ | $ |
| Balance at 1 January 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | $ | $ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
5,727,709 |
| Cash and cash equivalents at end of year | 2 | 4,529,351 | 6,155,496 |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| $ | $ |
| Profit before taxation |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Finance income | (34,758 | ) | (46,438 | ) |
| 2,601,082 | 3,117,155 |
| Decrease in stocks |
| Decrease in trade and other debtors |
| Decrease in trade and other creditors | ( |
) | ( |
) |
| Cash generated from operations | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2024 |
| 31/12/24 | 1/1/24 |
| $ | $ |
| Cash and cash equivalents | 4,529,351 | 6,155,496 |
| Year ended 31 December 2023 |
| 31/12/23 | 1/1/23 |
| $ | $ |
| Cash and cash equivalents | 6,155,496 | 5,727,709 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1/1/24 | Cash flow | At 31/12/24 |
| $ | $ | $ |
| Net cash |
| Cash at bank and in hand | 6,155,496 | (1,626,145 | ) | 4,529,351 |
| 6,155,496 | ( |
) | 4,529,351 |
| Total | 6,155,496 | (1,626,145 | ) | 4,529,351 |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Coilcraft Europe Limited is a private company, limited by shares, registered in Scotland. The Company's registered number is SC209057 and registered office address is 21 Napier Place, Wardpark North, Cumbernauld G68 0LL. |
| The nature of the Company's operations and its principal activities for the year under review was that of the distribution and promotion of Coilcraft Inc. products worldwide. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements are prepared in US Dollars, which is deemed to be the functional currency of the Company as this is the currency of the primary ecomonic environment in which the Company operates. Monetary amounts in these financial statements are rounded to the nearest $. In previous years, the presentation currency had been Sterling. |
| Going concern |
| At the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
| Critical accounting judgements and key sources of estimation uncertainty |
| In preparing these financial statements, the directors have not made any critical accounting judgements or utilised any key sources of estimation uncertainty. |
| Turnover |
| 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. Consideration is given to the point at which the company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
| Revenue from the sale of goods is recognised when the goods are physically delivered to the customer. |
| Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied: |
| - the amount of revenue can be measured reliably; |
| - it is probable that the Company will receive the consideration due; |
| - the costs incurred can be measured reliably. |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
| Freehold property | - 2.5% straight line |
| Computer equipment | - 20% - 50% straight line |
| Plant and machinery | - 20% - 50% straight line |
| Fixtures and fittings | - 20% - 25% straight line |
| Motor vehicles | - 25% straight line |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value. Cost and net realisable value are calculated for bought-in finished goods from other members of the group, cost is the internal transfer price. |
| Net realisable value is based on estimated selling price less further costs to completion and disposal. |
| Financial instruments |
| The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 ' Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's balance sheet 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. |
| Basic financial assets |
| Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
| 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. |
| Classification of financial liabilities |
| Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. |
| Basic financial liabilities |
| Basic financial liabilities, including creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date. |
| Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. |
| Deferred tax assets are only 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. |
| If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. |
| Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
| With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income). |
| Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. |
| Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously. |
| Foreign currencies |
| Functional currency and presentation currency |
| The financial statements of the company are presented in the currency of the primary economic environment in which it operates (its functional currency). As such, the results and financial position are presented in Dollars ($). |
| Translations and balances |
| Assets and liabilities in foreign currencies are translated into US Dollars at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into US Dollars at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Cash and cash equivalents |
| Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Impairment of assets |
| Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below. |
| Non-financial assets |
| An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. |
| Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
| Financial assets |
| For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. |
| For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. |
| Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. |
| An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 2024 | 2023 |
| $ | $ |
| An analysis of turnover by geographical market is given below: |
| 2024 | 2023 |
| % | % |
| United Kingdom | 12 | 13 |
| Overseas | 88 | 87 |
| 100 | 100 |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| $ | $ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Warehouse and facilities | 12 | 13 |
| Management and administration | 36 | 35 |
| 2024 | 2023 |
| $ | $ |
| Directors' remuneration |
| 5. | PROFIT BEFORE TAXATION |
| The profit is stated after charging/(crediting): |
| 2024 | 2023 |
| $ | $ |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Auditors' remuneration |
| Taxation compliance services |
| Foreign exchange differences |
| Operating lease charges |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| $ | $ |
| Current tax: |
| Corporation tax charge | 644,108 | 714,632 |
| Deferred tax: |
| Originating and reversal of |
| timing differences | ( |
) |
| Effect of changes in tax rates | - | 2,635 |
| Total deferred tax | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 25% (2023 - 23.52%). |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 6. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| $ | $ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Disallowable expenses and non-taxable income | 5,325 | 4,244 |
| Deferred tax rate changes / increases | - | (13,781 | ) |
| Movement in unprovided deferred tax | - | 14,653 |
| Adjustment in respect of prior periods - deferred tax | - | (1,414 | ) |
| Total tax charge | 632,564 | 727,932 |
| 7. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Freehold | Plant and | and |
| property | machinery | fittings |
| $ | $ | $ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 7. | TANGIBLE FIXED ASSETS - continued |
| Motor | Computer |
| vehicles | equipment | Totals |
| $ | $ | $ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 8. | STOCKS |
| 2024 | 2023 |
| $ | $ |
| Finished goods |
| In the opinion of the directors, the difference between the purchase price of stocks and their replacement cost is not material. |
| 9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| $ | $ |
| Trade debtors |
| Corporation tax recoverable |
| Deferred tax asset |
| Prepayments and accrued income |
| 10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| $ | $ |
| Trade creditors |
| Amounts due to group |
| undertakings | 4,329,754 | 9,809,689 |
| Corporation tax |
| Social security and other taxes |
| Sundry creditors |
| Accruals and deferred income |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 11. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| $ | $ |
| Within one year |
| Between one and five years |
| 12. | FINANCIAL INSTRUMENTS |
| The carrying amount for each category of financial instrument is as follows: |
| 2024 | 2023 |
| $ | $ |
| Financial assets |
| Financial assets that are debt instruments measured at amortised cost | 8,861,928 | 10,090,963 |
| Cash and cash equivalents | 4,529,351 | 6,155,496 |
| 13,391,279 | 16,246,459 |
| Financial liabilities |
| Financial liabilities measured at amortised cost | 5,499,283 | 10,855,026 |
| 13. | DEFERRED TAX |
| $ |
| Balance at 1 January 2024 | ( |
) |
| Originating and reversal of |
| timing differences | (11,544 | ) |
| Balance at 31 December 2024 | ( |
) |
| Provision has been made for all deferred tax assets in respect of accelerated capital allowances, short term timing differences arising from transactions and events recognised in the financial statements of the current year and previous years. |
| Deferred taxation provided for at 25% (2023: 25%) in the financial statements is set out below: |
| 2024 | 2023 |
| $ | $ |
| Accelerated capital allowances | (24,483 | ) | (15,574 | ) |
| Other timing differences | (16,875 | ) | (14,240 | ) |
| (41,358 | ) | (29,814 | ) |
| COILCRAFT EUROPE LIMITED (REGISTERED NUMBER: SC209057) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 14. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | $ | $ |
| Ordinary | $1.50 | 5 | 150,500 | 150,500 |
| 15. | RESERVES |
| Retained |
| earnings |
| $ |
| At 1 January 2024 |
| Profit for the year |
| At 31 December 2024 |
| Profit and loss account |
| Includes all current and prior year retained profits and losses less dividends. |
| 16. | ULTIMATE PARENT COMPANY |
| The company's immediate and ultimate parent company is Coilcraft Inc. which is registered in the United States of America. |
| 17. | RELATED PARTY DISCLOSURES |
| During the year the company sold goods in the normal course of business to Coilcraft Inc., the parent undertaking and other related parties, at a price of $31,585 (2023: $27,413). |
| During the year the company purchased goods in the normal course of business from Coilcraft Inc. and other related entities, at a cost of $52,085,290 (2023 :$54,995,714). |
| Amounts owed to Coilcraft Inc. and other related entities at 31 December 2024 totalled $4,329,754 (2023: $9,809,689). |
| Key management personnel compensation in the year under review was $412,151 (2023: $408,722). |
| 18. | GUARANTEE |
| Cash and time deposits includes a bond guarantee of $250,400 (2023: $254,760) which is the subject of a letter of pledge guaranteed by Coilcraft Inc. to the Royal Bank of Scotland Plc in respect of the various duty and monetary facilities. |
| 19. | PENSION COMMITMENTS |
| Included within year end sundry creditors is pension contributions of $32,782 (2023: $31,125). Total pension contributions under the defined contribution scheme for the year were $111,405 (2023: $106,885). |