Company registration number 00960163 (England and Wales)
KARDEX SYSTEMS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KARDEX SYSTEMS (UK) LIMITED
COMPANY INFORMATION
Directors
Michael Tyler
(Appointed 17 January 2025)
Simon Coles
(Appointed 17 January 2025)
Sally Howard
(Appointed 17 January 2025)
Company number
00960163
Registered office
North Suite First Floor Staghouse
Old London Road
Hertford
Herts
SG13 7CA
Auditor
HB Accountants
28 Plumpton House
Plumpton Road
Hoddesdon
Hertfordshire
EN11 0LB
KARDEX SYSTEMS (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
KARDEX SYSTEMS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Kardex Systems (UK) Limited remains the market leader in the UK for the supply and servicing of automated storage and retrieval systems.
Review of the business
The directors focus on turnover and gross profit margin as key financial metrics. In 2023 we had an Autostore project that accounted for £7m of revenue which was a one off, thus this years turnover has reduced from £23.2 million to £15.2 million. Gross profit margin increased to 39.6% (2023: 30.8%), profit before tax was £2.26 million (2023: £3.28 million).
The outlook remains positive, particularly in Wholesale / Retail / E-commerce and logistics, as customers seek to optimize storage, boost productivity, and enhance picking accuracy. The ongoing development of Kardex Autostore has expanded our capabilities. Kardex are now implementing a business plan for Mlog to increase market coverage in the UK, enabling us to deliver scalable, long-term solutions for our customers.
Our Life Cycle Service business continues to perform strongly, supported by industry-leading products and enhanced digital services that improve response times and remote issue resolution. Through ongoing product innovation and the implementation of Kardex Connect, we are able to deliver faster issue resolution and enhanced customer service. These developments align with our broader digitalisation strategy.
Principal risks and uncertainties
Kardex Systems (UK) Limited operates in a competitive market and is exposed to several external risks, including:
Fluctuations in the GBP/EUR exchange rate
Global health crises (e.g. pandemics)
New trade tariffs or import/export restrictions
The broader UK economic environment
Market Competition, Intense competition within the automated storage and retrieval systems sector
The UK Board regularly reviews these risks and implements strategies to mitigate their impact.
Kardex AG, the parent company, conducts an annual, structured risk assessment based on a defined risk universe and insights from interviews with Group and divisional management, including UK directors. Risks are evaluated by likelihood, reputational exposure, and financial impact, and are categorized across key areas such as:
A comprehensive risk matrix supports this process, detailing both risks and mitigation measures. Kardex Systems (UK) also maintains a business continuity policy to address unforeseen market disruptions.
Going concern
The directors have prepared operational budgets through December 2025 and strategic plans extending to 2030. These demonstrate that the company’s confirmed order book, forecast operating costs, and available liquid resources are sufficient to support ongoing operations for at least 12 months from the expected date of financial statement approval.
Having conducted appropriate enquiries, the directors are confident that the company has adequate resources to continue trading for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.
The outlook for intralogistics solutions remains positive, driven by continued demand for automation to enhance productivity. Growth opportunities persist across key sectors, including Military, Automotive, Retail, E-commerce, and Warehouse & Distribution. The UK-EU Trade and Cooperation Agreement has provided a more stable framework for cross-border trade, helping to reduce some Brexit-related uncertainty, particularly for multinational clients. While regulatory and logistical challenges remain, global supply chains have largely stabilised, supporting more consistent internal production operations.
KARDEX SYSTEMS (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Simon Coles
Director
30 May 2025
KARDEX SYSTEMS (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of marketing, distribution, installation and servicing of automated storage and retrieval systems, software and ancillary equipment.
Results and dividends
Ordinary dividends were paid amounting to £2,500,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Anita Heen
(Resigned 17 January 2025)
Stefano Cavezzale
(Appointed 1 March 2024 and resigned 17 January 2025)
David Calvo
(Appointed 1 March 2024 and resigned 17 January 2025)
Michael Tyler
(Appointed 17 January 2025)
Simon Coles
(Appointed 17 January 2025)
Sally Howard
(Appointed 17 January 2025)
Future developments
Kardex Systems (UK) Limited will continue to strengthen and expand its systems division throughout 2025/26, with a strategic focus on key market segments and core product and application software. This area is expected to drive significant growth in the UK, supported by increasing demand for integrated intralogistics solutions.
In parallel, the UK product market is projected to grow in line with broader economic trends through to 2030 and will remain the primary revenue stream for the business. To support this growth, the company will leverage the latest software innovations within the Kardex Group, including web-based applications, to enhance product reach and engagement with both new and existing clients.
The continued drive of Kardex Connect, our digital platform, is a corner stone in our digitalisation strategy. It enables the delivery of higher-value, data-driven solutions that empower customers to better manage and optimise their intralogistics operations.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
KARDEX SYSTEMS (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Qualifying third party indemnity provisions
The company has made qualifying third-party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Simon Coles
Sally Howard
Director
Director
30 May 2025
KARDEX SYSTEMS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KARDEX SYSTEMS (UK) LIMITED
- 5 -
Opinion
We have audited the financial statements of Kardex Systems (UK) Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
KARDEX SYSTEMS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KARDEX SYSTEMS (UK) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included:
Evaluation of the design of management’s controls designed to prevent and detect irregularities.
Testing unusual or unexpected journal entries, particularly those impacting revenue.
Challenging assumptions and judgements made by management in respect of significant accounting estimates.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
KARDEX SYSTEMS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KARDEX SYSTEMS (UK) LIMITED (CONTINUED)
- 7 -
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Keith Grover (Senior Statutory Auditor)
For and on behalf of HB Accountants, Statutory Auditor
Chartered Accountants
28 Plumpton House
Plumpton Road
Hoddesdon
Hertfordshire
EN11 0LB
30 May 2025
KARDEX SYSTEMS (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
15,226,274
23,223,415
Cost of sales
(9,200,508)
(16,061,037)
Gross profit
6,025,766
7,162,378
Distribution costs
(1,686,326)
(1,348,573)
Administrative expenses
(2,511,702)
(2,770,543)
Other operating income
195,325
Operating profit
4
2,023,063
3,043,262
Interest receivable and similar income
7
269,165
248,736
Interest payable and similar expenses
8
(35,865)
(12,749)
Profit before taxation
2,256,363
3,279,249
Tax on profit
9
(564,000)
(773,075)
Profit for the financial year
1,692,363
2,506,174
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KARDEX SYSTEMS (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
85,447
81,938
Current assets
Stocks
12
259,923
188,479
Debtors
13
10,941,017
7,667,420
Cash at bank and in hand
2,962,189
3,623,199
14,163,129
11,479,098
Creditors: amounts falling due within one year
14
(10,295,808)
(6,800,631)
Net current assets
3,867,321
4,678,467
Net assets
3,952,768
4,760,405
Capital and reserves
Called up share capital
16
828,000
828,000
Share premium account
3,000
3,000
Capital redemption reserve
10,000
10,000
Profit and loss reserves
3,111,768
3,919,405
Total equity
3,952,768
4,760,405
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 May 2025 and are signed on its behalf by:
Simon Coles
Sally Howard
Director
Director
Company registration number 00960163 (England and Wales)
KARDEX SYSTEMS (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
828,000
3,000
10,000
2,913,231
3,754,231
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
2,506,174
2,506,174
Dividends
10
-
-
-
(1,500,000)
(1,500,000)
Balance at 31 December 2023
828,000
3,000
10,000
3,919,405
4,760,405
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
1,692,363
1,692,363
Dividends
10
-
-
-
(2,500,000)
(2,500,000)
Balance at 31 December 2024
828,000
3,000
10,000
3,111,768
3,952,768
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Kardex Systems (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is North Suite First Floor Staghouse, Old London Road, Hertford, Herts, SG13 7CA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Kardex AG. These consolidated financial statements can be obtained from the address given in note 16.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is the total amount receivable by the Company in the ordinary course of business with outside customers for goods supplied and services provided excluding VAT.
Service revenue is recognised evenly over the period to which the customer is entitled to receive benefits under the service agreement.
Order and installation revenues are recognised on completion of the installation, when the outcome of the transaction can be assessed reliably, and the risk and rewards are transferred. Where cash received exceeds the revenues receivable based on work performed to date, the balance is included as payments on account within creditors.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
five years or the unexpired period of the lease if less than five years
Fixtures and fittings
three to five years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Each asset is depreciated on a straight-line basis.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (continued)
- 13 -
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 transaction 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (continued)
- 15 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
As lessee
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,180,274
22,652,415
Rest of Europe
1,046,000
571,000
15,226,274
23,223,415
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue (continued)
- 16 -
2024
2023
£
£
Other revenue
Interest income
269,165
248,736
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(16,134)
9,448
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
22,000
Depreciation of owned tangible fixed assets
38,343
35,936
Operating lease charges
146,905
69,946
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and Services
66
61
Administrative and Management
15
8
Total
81
69
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,757,949
3,711,000
Social security costs
448,397
434,000
Pension costs
161,009
150,000
4,367,355
4,295,000
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
62,415
157,000
Company pension contributions to defined contribution schemes
14,155
18,000
76,570
175,000
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Directors' remuneration (continued)
- 17 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
269,165
248,736
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
35,865
12,749
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
564,000
773,075
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,256,363
3,279,249
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
564,091
771,279
Tax effect of expenses that are not deductible in determining taxable profit
(91)
1,796
Taxation charge for the year
564,000
773,075
10
Dividends
2024
2023
£
£
Final paid
2,500,000
1,500,000
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
11
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
139,685
352,837
492,522
Additions
42,977
42,977
Disposals
(56,039)
(220,634)
(276,673)
At 31 December 2024
83,646
175,180
258,826
Depreciation and impairment
At 1 January 2024
110,737
299,847
410,584
Depreciation charged in the year
8,336
30,007
38,343
Eliminated in respect of disposals
(55,316)
(220,232)
(275,548)
At 31 December 2024
63,757
109,622
173,379
Carrying amount
At 31 December 2024
19,889
65,558
85,447
At 31 December 2023
28,948
52,990
81,938
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
259,923
188,479
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,695,598
4,094,842
Contract costs recoverable
3,011,925
143,693
Amounts owed by group undertakings
4,178,223
3,104,590
Other debtors
812,692
153,829
Prepayments and accrued income
242,579
170,466
10,941,017
7,667,420
KARDEX SYSTEMS (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
4,532,521
903,063
Trade creditors
465,463
347,162
Amounts owed to group undertakings
642,903
401,785
Corporation tax
84,470
418,821
Other taxation and social security
844,618
1,302,081
Accruals and deferred income
3,725,833
3,427,719
10,295,808
6,800,631
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
161,009
150,000
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
828,000
828,000
828,000
828,000
17
Operating lease commitments
As lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
423,791
217,000
Years 2-5
728,095
295,000
1,151,886
512,000
18
Ultimate controlling party
Within the meaning of the companies Act 2006, Kardex AG, a company incorporated in Switzerland, is the company's ultimate parent company and controlling party, which is the parent undertaking of the smallest and largest group to consolidate these financial statements.
Kardex AG owns 100% of the issued share capital of Kardex Systems (UK) Limited. Copies of the Kardex AG financial statements are available from the investor relations section of the Kardex AG web site www.kardex.com.
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