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Registered number:
For the Year Ended
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Rotex Europe Limited
Company Information
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Rotex Europe Limited
Contents
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Rotex Europe Limited
Group Strategic Report
For the Year Ended 30 September 2024
The Directors present the Group Strategic Report for the year ended 30 September 2024.
The Directors announce a profit before taxation of £4,873k for the Group for the year ending 30 September 2024, which is 94% higher than the previous year. The current year incurred extreme fluctuations in exchange rates resulting in an exceptional loss of £592k compared to a slightly higher loss of £623k in the previous year.
£691k is still provided for in respect of overseas sales taxes incurred where recovery thereof is not certain due to Audit with Bulgarian Tax authorities. The consolidated balance sheet continues to be strong and cash in hand increased by £4,473k vs the previous year. No dividends were declared in 2024 for Rotex Europe. Rotex Japan paid dividends of 87,018,000 JPY (£456k). The Group management team continues to support the strategic development of its subsidiary Rotex Japan Limited. As an innovative leader, our goals continue to be profitable growth and market leadership achieved through continuous improvement, high quality product offerings, and excellence in our associates. The Group continues to benefit from product development activity undertaken by Rotex Global LLC. Economic Challenges While global supply chains have recently suffered from various headwinds, those supporting our products have generally remained intact, providing access to sufficient inventory of the key materials needed for manufacturing. We have experienced significant delays in certain raw materials and components, but we have largely been able to mitigate the impact of these delays on our consolidated results of operations. We continue to identify and qualify alternative sources to mitigate risk associated with single or sole sources of supply, and we may choose to purchase certain materials in safety stock where we have supply chain continuity concerns. We have experienced, and it remains possible that we may experience interruptions to our supply chains, and such an interruption could materially affect our ability to timely manufacture and distribute our products and could also have a significant impact on the Group’s consolidated net revenue, results of operations, and cash flows during fiscal 2025 and beyond. We also experienced material and supply chain inflation during fiscal 2024, yet not to the extent of previous years. Pricing actions and supply chain productivity initiatives have mitigated and are expected to continue to mitigate some of these inflationary pressures, but we may not be successful in fully offsetting these incremental costs, which could have a significant impact on the Group’s consolidated results of operations, and cash flows during fiscal 2025 and beyond.
As a large proportion of the trading of the Group is conducted abroad, we are exposed to the relative strength of sterling against other world currencies. Although we may address this risk through financing activities and the use of derivative financial instruments through other group companies, those actions may not prove to be fully effective.
Uncertainties about a potential global recession exist and could negatively impact the business in the near term should there be a downturn in order volume. However, we anticipate driving future growth as we continue to focus on bringing a global sales approach to the capital sales team, emphasizing share gain in our aftermarket segments, and working on improvements in our supply chain to obtain cost reductions and improve profitability.
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Rotex Europe Limited
Group Strategic Report (continued)
For the Year Ended 30 September 2024
The directors present below the financial key performance indicators:
This report was approved by the board and signed on its behalf.
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Rotex Europe Limited
Directors' Report
For the Year Ended 30 September 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £3,559,463 (2023 - £1,937,266).
No dividends were declared in 2024 for Rotex Europe.
The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
Currently our focus is to build up our customer bases by bringing a global sales approach to the capital sales team and to emphasise share gain in our aftermarket segments. In addition, we are working on improvements in our supply chain to bring cost reductions and improved profitability.
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Rotex Europe Limited
Directors' Report (continued)
For the Year Ended 30 September 2024
The group's principal financial instruments comprise bank balances, trade creditors, trade debtors, operating lease agreements and forward exchange contracts. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's operations.
Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below: In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding, and the group makes use of money market facilities where funds are available. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. The group is a lessee in respect of operating leased assets. The liquidity risk in respect of these is managed in the same way as trade creditors above. Where deemed significant, currency risk is managed through foreign exchange forward contracts.
There are no post balance sheet events that have affected the group or company.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Rotex Europe Limited
Independent Auditors' Report to the Members of Rotex Europe Limited
We have audited the financial statements of Rotex Europe Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group 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.
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 Group's or the parent 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.
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Rotex Europe Limited
Independent Auditors' Report to the Members of Rotex Europe Limited (continued)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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Rotex Europe Limited
Independent Auditors' Report to the Members of Rotex Europe Limited (continued)
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 Group 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:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Rotex Europe Limited
Independent Auditors' Report to the Members of Rotex Europe Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error;
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, 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.
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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
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Rotex Europe Limited
Consolidated Statement of Comprehensive Income
For the Year Ended 30 September 2024
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Rotex Europe Limited
Registered number: 04307924
Consolidated Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 34 form part of these financial statements.
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Rotex Europe Limited
Registered number: 04307924
Company Statement of Financial Position
As at
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Rotex Europe Limited
Registered number: 04307924
Company Statement of Financial Position (continued)
As at 30 September 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 34 form part of these financial statements.
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Rotex Europe Limited
Registered number: 04307924
Consolidated Statement of Changes in Equity
For the Two Years Ended 30 September 2024
Company Statement of Changes in Equity
For the Two Years Ended 30 September 2024
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Rotex Europe Limited
Consolidated Statement of Cash Flows
For the Year Ended 30 September 2024
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Rotex Europe Limited
Consolidated Analysis of Net Debt
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
Rotex Europe Limited is a private company limited by members capital incorporated in England and Wales. The address of the registered office and principal place of business is C/O DTM Legal LLP, Knights Court, Weaver Street, Chester, England, CH1 2BQ
The nature of the company's and group’s operations and its principal activity is the design, assembly, commissioning, service and repair of screening, feeding and conveying equipment.
2.Accounting policies
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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 October 2014.
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
- the Group has transferred the significant risks and rewards of ownership to the buyer; - the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; - the amount of revenue can be measured reliably; - it is probable that the Group will receive the consideration due under the transaction; and - the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Land is not depreciated. Depreciation on other assets 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:
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.
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
Functional and presentation currency
The functional and presentational currency of Rotex Japan Limited, the company's subsidiary, is the Japanese Yen (JPY). On consolidation, the subsidiary's balances are translated into GBP, and any movements on translation are recognised in other comprehensive income.
Transactions and balances
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position 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; - 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.
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
Doubtful debtors Management reviews aged debts regularly and makes appropriate provision where recovery of the debt is considered doubtful. Amounts charged in respect of doubtful debts are disclosed in note 13. At the balance sheet date, an amount of £574,942 (2023: £688,976) was recognised on the group's balance sheet in respect of doubtful debts. Stock provisions Management reviews stock turnover on a regular basis, and makes appropiate provision for items where the net realisable value is lower than cost. Amounts charged in respect of stock provisions and associated carrying amounts at the balance sheet date are disclosed in note 12. Significant movements took place during the prior year due to activity with Russian and Belarusian entities being affected as a result of the Russian invasion of Ukraine. The outcome of these remains uncertain at this time. Warranty provision Management makes estimates of warranty provisions based on expected costs required to make good faults of which the group is aware. Such provisions are calculated based on the judgements made by the quality managers. At the balance sheet date, the group and company have recognised a warranty provision of £406,377 (2023: £385,007), and movements on warranty provisions are disclosed in note 17.
The whole of the turnover is attributable to the principal activity of the group as described in note 1.
Analysis of turnover by country of destination:
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
10.Tangible fixed assets (continued)
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
Share premium account
The share premium account comprises the value of premiums paid on the issue of share capital. Other reserves The foreign exchange reserve comprises differences arising on translation of subsidiaries that operate overseas from their functional currency. Profit and loss account The profit and loss account comprises all current and prior year profits and losses, net of dividends paid.
Bank Guarantees
The company provides bank guarantees for warranties given on the sale of some machines. These are approximately 10% of the total value of the machine sold and the customer can make a claim under the terms of the guarantee directly from the bank. The company has also given a bank guarantee of £200,000 (2023: £200,000) to HM Revenue and Customs, which is included below. As at 30 September 2024 the total value of bank guarantees is given as follows:
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £90,883 (2023: £83,350). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the reporting date.
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
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Rotex Europe Limited
Notes to the Financial Statements
For the Year Ended 30 September 2024
The immediate parent undertaking is
The ultimate parent undertaking is
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