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Registered number: 02813126










HANKOOK TYRE U.K. LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
HANKOOK TYRE U.K. LIMITED
 
 
COMPANY INFORMATION


Directors
Mr P Emery 
Mr C Han 
Mr S Jung 




Registered number
02813126



Registered office
Hankook House
Parsons Road

Drayton Fields Industrial Estate

Daventry

NN11 8RA




Independent auditor
MHA

11 Merus Court

Meridian Business Park

Leicester

LE19 1RJ





 
HANKOOK TYRE U.K. LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 5
Directors' Report
 
6 - 9
Independent Auditor's Report
 
10 - 13
Profit and Loss Account
 
14
Balance Sheet
 
15 - 16
Statement of Changes in Equity
 
17
Notes to the Financial Statements
 
18 - 36


 
HANKOOK TYRE U.K. LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal activity
 
The principal activity of the Company during the year was to import, distribute and sell tyres in the UK. 
Hankook tyres are imported from the Hankook Group company factories in South Korea, China, Indonesia and Hungary.
The tyres are sold principally into the replacement market and this year the value of the sales was £173 million (2023: £169 million) (before rebates), representing 94.1% (2023: 92.1%) of total company turnover. The remaining 5.9% (2023: 7.9%) is represented by original equipment supplies to vehicle manufacturers.
The result of the Company shows a pre tax loss of £1.015 million (2023: a pre-tax loss £0.966 million) for the year and sales (net of rebates) of £157.8 million (2023: £164.7 million).

Business review
 
The demand within the UK tyre market remained the same as 2023 in general. However, demand within Europool registered manufacturers decreased in 2024 by 3% vs 2023, mainly due to increase in the volume of non-Europool registered imported tyres to the UK market. Shipping cost from far eastern countries like China has reduced, and the volume of imported tyres increased by double digits vs 2023. Continuous increase in the general cost of living and energy costs have continued to make consumers, including fleets re-evaluate their purchase habits and they are buying lower tier brands of tyre despite potential performance differences.
Market competition is getting stronger as channels continue to consolidate with business acquisitions by larger groups and some looking for exit strategies, while some businesses also look for more control, or different channels of distribution. 
In the car tyre market, the demand for all season tyre products continued to replace the demand for winter tyre products. The demand for all season tyre products in 2024 has increased by 18% vs 2023. There’s also consistent growth in SUV and 4X4 tyre products sales as the volume of SUV and 4X4 has been growing over the last several years. The demand for Van tyre products is quite consistent as the need for last mile distribution grows.
Recovery and growth in Hankook’s flagship product brands, Hankook & Laufenn resulted in Hankook gaining market share overall and maintaining sales revenue and achieving an acceptable growth. Hankook has lost market share in the truck/bus sector, mainly due to strong competition in free sales market even though Hankook has built strong partnerships with fleet management solution companies to win more business with HGV fleet companies. Hankook has been able to increase a strong footprint in the UK market to serve the needs of our dealer network, and to support its fleet businesses.

Page 1

 
HANKOOK TYRE U.K. LIMITED
 

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

Principal risks and uncertainties
 
The management of the business and the execution of the Company's strategy are subject to a number of risks.
Risks are formally reviewed by the Board and appropriate processes are put into place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the Company.
The key business risks affecting the company are set out below:
Competition
The Company operates in a highly competitive market positioned around price and quality. In order to mitigate this risk, our sales team put more effort on customer development, particularly focusing on tyre retailers in the market. By increasing the number of customers and regional coverage, the risk to Hankook will be minimised as it is spread more evenly, and dependence on a smaller number of wholesale customers is mitigated.
Regular market price surveys are performed to ensure Hankook position their product as 'reasonably priced' within the market. Furthermore, market research is undertaken to identify if the customers' needs are being met.
Credit risks
It is important to ensure that all the Company's debts are collected in full. If the economic situation were to worsen Hankook's bad debt risk exposure will increase. To mitigate potential credit risk, the company's trade debts are fully insured by 3rd party insurers.
Supply chain and Logistics
Throughout 2024, the Company has been able to maintain the correct level and mix of stock without any issue. However, as the supply to OE customers (original equipment tyres to vehicle manufacturers) continues to increase and the imbalance of supply and demand continues to be expected due to seasonality of EU countries, Hankook needs to ensure continuity of supply to the customers in the UK throughout the whole year 2025 as well. 
Research and development
Hankook maintains a substantial investment in the development of new and improved products achieving enhanced performance characteristics, giving consideration to environmental issues and meeting evolving legislative requirements. Hankook also continues to invest in the development of tyres specific for use on electric vehicles as they continue to become more prevalent in the marketplace. As new and more advanced products are developed, they are introduced into the UK, thereby ensuring that the latest and very best tyres are always available for our customers. 

Financial key performance indicators
 
Due to the straightforward nature of the business the directors do not consider that there are any financial key performance indicators other than can be derived from the Profit and Loss Account.

Page 2

 
HANKOOK TYRE U.K. LIMITED
 

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

Other key performance indicators
 
The Company's objective is to achieve sustainable rates of growth through a combination of sales growth and a closer connection with customers. 
The key elements to the Company's strategy for growth over the coming years include:
 - Continue to build a broad range of quality products and re-treaded commercial tyre sales in the UK;
 - Capitalising strong original equipment presence for replacement market;
 - Expanding the customer base to enhance regional coverage;
 - Launching new products in line with market demand; and
 - Additional marketing activities to increase brand value and awareness in the UK.
Continue to build a broad range of quality product and re-treaded commercial tyre sales in the UK:
In order to adapt to changing customer needs, Hankook will expand the range of All Season tyres, and specialist truck tyres for specific market requirements, for example: X Fit Van 4S on all season Van tyres, Smart Work tread on heavy duty off-road tyres, and tyres with a higher load rating. Hankook has also re-launched Laufenn Truck Tyre range in 2023. This will enable growth of market share in the UK while customer demand will be more focused on quality products. The customer's need for quality products shall only increase in the future and will be further enhanced by the introduction of stricter tyre labelling legislation. Furthermore, due to environmental issues in the UK, there is a demand for companies to produce re-treaded commercial tyres.  The company introduced the “Alphatread” brand re-treaded tyres for the UK market in June 2013. This has brought more choice to our customers for new and re-treaded tyres. Hankook will continue to manufacture, promote and update this product as an environmentally friendly tyre, prolonging the life of new tyres.
Capitalizing strong OE presence for replacement market (* OE – original equipment):
Hankook continues to invest in the development and expansion of its OE customers (original equipment tyres to vehicle manufacturers), this will help enable Hankook to continue to increase market share as some consumers purchase like for like tyre replacements. Hankook is one of key suppliers to premium car manufacturers in Europe – Porsche, Mercedes, BMW, Audi, Tesla, et cetera.
Expanding the customer base to enhance regional coverage:
Our primary activity is to focus on increasing the fulfilment rate from the Daventry warehouse to the customer and improving customer satisfaction in terms of supplying tyre volumes quickly. This will then increase warehouse sales this year.
Our key measure of success is the expansion of regional coverage.  We are continuing to supply our products to Kwik Fit, the UK’s largest retailer of tyres, giving us national coverage. We will look to continue to expand our portfolio of customers concentrating on quality regional retailers and small retailers where there may still be coverage missing. Even though we now deal with the UK’s largest retailer of tyres, we will continue to invest in our relationship with Kwik Fit to maintain a presence in this retailer and look to increase our penetration in Car fleet sales and the Car dealer network to support the investment in original equipment fitments.
Launching new products in line with market demand:
Hankook launched several new products in 2024 and in 2025: Summer UHP & EV specific tyres in car tyres, and Smart Flex AL51 & DL51, the new truck tyres. As EV demand in the car market has increased dramatically, EV specific all season products, iON Flexclimate, and EV specific the highest level of low rolling resistant products, iON GT and Hankook’s advanced technology will ensure we are leaders in this emerging market. The new commercial vehicle tyres will bring more opportunities to gain direct fleet businesses for the future.
Additional marketing activities to increase brand value and awareness in the UK for 2024:
Since 2022 Hankook has participated in the Road Transport Expo. Hankook also has sponsored key events like the NTDA Awards and Commercial Motor Awards for a long time. Hankook implemented a few successful retail promotions throughout 2024 to increase exposure of image of Hankook to consumers. Hankook also continues to invest in online, and digital marketing and aim to build closer relationships with its retailers to offer them unique marketing propositions tailored specifically to their individual requirements. Since 2023, as an “Official
Page 3

 
HANKOOK TYRE U.K. LIMITED
 

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

Partner” and the sole tyre supplier to the Formula-e series, which is the highest level of electric vehicle powered racing in the world, Hankook was recognised and awarded for its contribution for the best fan experience. Starting with the 2025 season, Hankook will also exclusively supply rally tyres for all WRC classes over the next 3 years. These exposures will bring awareness and brand recognition of Hankook’s technologies and products on a global scale and therefore increasing brand value. Hankook Tyre UK will continue to leverage this opportunity to maximise exposure in the local market through 2025.  
Future outlook
This year was another difficult year for the whole industry due to a volatile global economy, but in SUV/4X4/Van and All Season segments the market demand remains consistent and still shows signs of growth in the UK. 
 
In the commercial sector, service network development and fleet management solutions are becoming crucial to maintain business volumes and ensure sustainable growth. During 2024, overall market demand stayed static, and at the same time Hankook has foreseen that competition would become stronger. 
However, while focusing on consistent strategy and direction to defend existing sales volumes we aim to develop opportunities in new sales channels, with new customers to continue to strengthen Hankook’s position in the market. Hankook foresees that OE demand will be stagnant as new car registration in 2025 is expected to stay the same as 2024 based on SMMT forecast.
We aim to maintain our existing customer base and develop regional customers to ensure a better UK coverage which will enable us to grow in the market and strengthen our market position.

Page 4

 
HANKOOK TYRE U.K. LIMITED
 

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

Directors' statement of compliance with duty to promote the success of the Company
 
As required by Section 172 of the Companies Act, a director of a company must act in good faith in a way which promotes the success of the Company for the benefit of the shareholders. 
In doing so, each director has regard, amongst other matters, to the following: 
The likely consequences of any decision in the long term 
The directors understand the business and the markets in which it operates. With their considerable industry experience, they are well equipped to understand the consequences of any strategic long-term decisions.  
The interests of the Company's employees 
The directors recognise that its employees are fundamental to the business and the delivery of the Company's goals and ambitions. The success of the company depends upon attracting, retaining and motivating our employees. The directors strive towards providing a positive and safe environment with opportunities for staff to grow and develop. 
The need to foster the Company's business relationships with suppliers, customers and others 
Our company operates within the automotive and tyre industry in the UK and Ireland markets and therefore supplying good quality products and services to customers is key to our ongoing success. Maintaining strong mutually beneficial relationships with customers is also key in delivery of our strategy and as such we continually assess the priorities of our customers by engaging with them. To ensure the quality of service in the whole process of supply chain satisfies customers, we monitor our third party suppliers regularly, supporting locally situated businesses where possible ensuring payment practices are adhered to. 
The impact of the Company's operations on the community and environment 
Our company, locally and on a global level, is proud of its contribution to not only in its local communities and its contribution to local charitable causes, but also its overall low impact on the environment. 
The Company's reputation for high standards of business conduct 
The Company continually aims to meet the highest standards in relation to its reputation and business conduct. All standards need to be maintained throughout the business in order to retain our reputation within the market in which we operate. 
Need to act fairly between members of the Company 
The Company will always act fairly between members of the group. The directors consider which course of action best enables delivery of the groups strategy with regards to the long term, taking into consideration the impact on its stakeholders.


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



................................................
Mr C Han
Director

Date: 30 May 2025

Page 5

 
HANKOOK TYRE U.K. LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Principal activity

The principal activity of the Company during the year was to import, distribute and sell tyres in the UK.

Results and dividends

The loss for the year, after taxation, amounted to £1,014,903 (2023 - loss £966,547).

No dividend has been recommended.

Directors

The directors who served during the year were:

Mr P Emery 
Mr C Han 
Mr S Jung 

Going concern

The directors have assessed the financial position of the Company, including its trading forecasts, cash position and funding requirements and concluded that the Company is reliant on the ongoing financial and operational support of the Parent Company. The Company has received confirmed ongoing financial and operational support (including the continued supply of product) from its ultimate parent undertaking, Hankook Tire & Technology Co., Ltd for a period of two years from the 26 May 2025. The Directors therefore have a reasonable expectation that the Company will be able to continue in operational existence for the foreseeable future and no material uncertainty has been identified. The Company therefore continues to adopt the going concern basis of accounting in preparing the financial statements.

Disclosure of information to auditor

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

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

Auditor
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Future developments

The Company’s future developments are set out in the Group strategy and future outlook section of the Strategic Report in accordance with s414C(11) of the Companies Act 2006 as the directors consider this to be a strategic importance to the Company.

Page 6

 
HANKOOK TYRE U.K. LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Post balance sheet events

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

Streamlined Energy & Carbon Reporting

We are conscious of our duty to use resources responsibly and to minimise any environmental impacts of our business activities.

UK energy usage in the year was as follows:


Energy Type
2024
2023
(Restated)

KWh
KWh
Gas
187,215
162,760
Cars (by market segment)
536,067
727,263
Electricity
582,928
483,330
Total
1,306,210
1,373,353

UK Scope 1 and 2 greenhouse gas emissions were as follows:



2024
2024
2023
2023
Scope

Conversion rate
Metric Tonnes CO2e
Conversion rate
Metric Tonnes CO2e
Scope 1
Combustion of Gas
0.18290
34.2
0.18000
29.3

Passenger Vehicles
Various
139.7
Various
189.5
Scope 2
Purchase of electricity
0.20705
120.7
0.20707
100.1

Intensity Ratio


2024






Metric Tonnes CO2e
Turnover £m
Intensity Ratio
Scope 1
Combustion of Gas
34.2
184.1418
0.185726

Passenger Vehicles
139.7
184.1418
0.758654
Scope 2
Purchase of electricity
120.7
184.1418
0.655473



2023






Metric Tonnes CO2e
Turnover £m
Intensity Ratio
Scope 1
Combustion of Gas
29.3
183.6821
0.159515

Passenger Vehicles
189.6
183.6821
1.032218
Scope 2
Purchase of electricity
100.1
183.6821
0.544963

The figures above represent Hankook Tyres UK Limited energy use and associated GHG emissions from electricity and gas for the 2024 reporting year arising from activities. We have followed the 2024/25 UK Government environmental reporting guidelines along with the 2024 UK Government GHG Conversion Factors. We have also used the GHG Protocol Value Chain (Scope 2) Standard, but we are not as yet able to report on all categories that may be relevant. The figures relate to the required elements of each scope 2 category rather than the optional elements. We have used 2024 UK Government’s Conversion Factors for Company Reporting.

 
Page 7

 
HANKOOK TYRE U.K. LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Energy efficiency improvements

Lighting

LED lighting has been installed throughout our office and warehouse which are furthermore operated on motion sensors to reduce running costs and improve energy efficiencies.

Temperature Control
Our heating and climate control system has been reviewed and serviced to be more efficient alongside a new energy saving boiler being installed.

Equipment
When purchasing new capital equipment consideration is given to the energy efficiency of the equipment. In addition, the company is looking to convert the company car fleet from diesel to hybrid vehicles.


Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 8

 
HANKOOK TYRE U.K. LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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





................................................
Mr C Han
Director

Date: 30 May 2025

Hankook House
Parsons Road
Drayton Fields Industrial Estate
Daventry
NN11 8RA

Page 9

 
HANKOOK TYRE U.K. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED
 

Opinion


We have audited the financial statements of Hankook Tyre U.K. Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 loss 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 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 10

 
HANKOOK TYRE U.K. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 11

 
HANKOOK TYRE U.K. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED (CONTINUED)


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:

Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud; 
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit work over the risk of management override, 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 bias; 
Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and 
Discussions amongst engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.

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 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 Auditor's Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Page 12

 
HANKOOK TYRE U.K. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED (CONTINUED)





Liam Hammond FCA (Senior Statutory Auditor)
  
for and on behalf of MHA, Statutory Auditors
Leicester, United Kingdom





30 May 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
Page 13

 
HANKOOK TYRE U.K. LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
157,823,288
164,685,025

Cost of sales
  
(147,290,955)
(155,066,547)

Gross profit
  
10,532,333
9,618,478

Administrative expenses
  
(9,599,135)
(9,160,445)

Other operating income
  
13,426
565

Operating profit
 5 
946,624
458,598

Interest receivable and similar income
 9 
35,678
61,610

Interest payable and similar expenses
 10 
(1,997,205)
(1,486,755)

Loss before tax
  
(1,014,903)
(966,547)

Loss for the financial year
  
(1,014,903)
(966,547)

There were no recognised gains and losses for 2024 or 2023 other than those included in the Profit and Loss Account.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 18 to 36 form part of these financial statements.

Page 14

 
HANKOOK TYRE U.K. LIMITED
REGISTERED NUMBER: 02813126

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
5,718,147
196,701

  
5,718,147
196,701

Current assets
  

Stocks
 13 
44,132,022
43,949,494

Debtors: amounts falling due within one year
 14 
58,199,546
57,378,362

Cash at bank and in hand
 15 
2,453,954
3,890,911

  
104,785,522
105,218,767

Current liabilities
  

Creditors: amounts falling due within one year
 16 
(94,868,342)
(88,765,238)

Net current assets
  
 
 
9,917,180
 
 
16,453,529

Total assets less current liabilities
  
15,635,327
16,650,230

Provisions for liabilities
  

Deferred tax
 17 
(19,164)
(19,164)

  
 
 
(19,164)
 
 
(19,164)

Net assets
  
15,616,163
16,631,066


Capital and reserves
  

Called up share capital 
 18 
25,000
25,000

Profit and loss account
  
15,591,163
16,606,066

  
15,616,163
16,631,066


Page 15

 
HANKOOK TYRE U.K. LIMITED
REGISTERED NUMBER: 02813126
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr C Han
Director

Date: 30 May 2025

The notes on pages 18 to 36 form part of these financial statements.

Page 16

 
HANKOOK TYRE U.K. LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
25,000
17,572,613
17,597,613



Loss for the year
-
(966,547)
(966,547)



At 1 January 2024
25,000
16,606,066
16,631,066



Loss for the year
-
(1,014,903)
(1,014,903)


At 31 December 2024
25,000
15,591,163
15,616,163


The notes on pages 18 to 36 form part of these financial statements.

Profit and loss account
Includes all current and prior year retained profits and losses. All amounts are distributable.

Page 17

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Hankook Tyre U.K. Limited is a private company limited by shares incorporated and registered in England. Registered number is 02813126. It's registered address is Hankook House, Parsons Road, Drayton Fields Industrial Estate, Daventry, NN11 8UG.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 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 management to exercise judgement in applying the Company's accounting policies (see note 3).

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
 
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirement of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Hankook Tire and Technology Co., Ltd as at 31 December 2024 and these financial statements may be obtained from 133 Teheran-Ro (Yeoksam-Dong), Gangnam-Ku, Seoul, Korea.
Going concern
The directors have assessed the financial position of the Company, including its trading forecasts, cash position and funding requirements and concluded that the Company is reliant on the ongoing financial and operational support of the Parent Company. The Company has received confirmed ongoing financial and operational support (including the continued supply of product) from its ultimate parent undertaking, Hankook Tire & Technology Co., Ltd for a period of two years from the 26 May 2025. The Directors therefore have a reasonable expectation that the Company will be able to continue in operational existence for the foreseeable future and no material uncertainty has been identified. The Company therefore continues to adopt the going concern basis of accounting in preparing the financial statements. 

The following principal accounting policies have been applied:

Page 18

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is British Pound Sterling (£).

Transactions and balances

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

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

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

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account. All other foreign exchange gains and losses are presented in the Profit and Loss Account.

Page 19

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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.

Items deducted from sales are done on the following principal:
 
Sales rebate - for customers with large volumes purchases or routine trading; sales amounts shall be reduced or certain amounts shall be paid depending on accumulated transactions volume or transactions for a certain period.
Volume discount - on purchasing certain volumes, a certain portion supply price shall be discounted for sales promotion.
 

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Profit and Loss Account on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in the Profit and Loss Account using the effective interest method.

 
2.6

Finance costs

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

Page 20

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Borrowing costs

All borrowing costs are recognised in the Profit and Loss Account in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

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

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

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

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


Page 21

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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

Depreciation is provided on the following basis:

Leasehold improvements
-
10 years
Fixtures and fittings
-
5 years
Computer equipment
-
3 years

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 the Profit and Loss Account.

 
2.11

Stocks

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

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

 
2.12

Debtors

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

Page 22

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

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

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) 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 Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
 

Page 23

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Profit and Loss Account. 

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 and Loss Account.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments 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 creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors 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.
 

Page 24

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the Profit and Loss Account.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

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 Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

  
2.17

Contingent assets

When an inflow of economic benefits is probable (more likely than not) but not virtually certain, the Company will disclose a description of the nature of the contingent assets at the end of the reporting period, and, when practicable, an estimate of their financial effect.
When the flow of future economic benefits to the Company is virtually certain, then the related asset is not a contingent asset, and its recognition is appropriate. 

Page 25

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below. 
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimates useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of assets.
(ii) Impairment of assets
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
(iii) Revenue recognition and Rebate accrual
The Company has commercial rebate agreements in place with certain customers based on volumes and other incentives. Management use judgement to determine the amount of the expense in the year. 
The Company recognises an accrual in relation to rebates due to customers at the year end. These are dependant on the level of trade with those customers during the year. 


4.


Turnover

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


2024
2023
£
£

Tyre sales
157,823,288
164,685,025

157,823,288
164,685,025


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
157,823,288
164,685,025

157,823,288
164,685,025


Page 26

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Operating profit

The operating profit is stated after charging/(crediting):

2024
2023
£
£

Exchange gains
(31,688)
(51,627)

Depreciation of owned tangible fixed assets
164,115
67,854

Loss on disposal of tangible fixed assets
-
21,416

Impairment of stocks recognised or reversed
(40,846)
(9,769)

Operating lease charges
2,385,548
2,053,047


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor and its associates:


2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
68,685
61,900

Fees payable to the Company's auditor and its associates in respect of:

Taxation compliance services
5,500
5,250

All assurance services not included above
17,000
-

All other non-audit services
4,500
3,500

Page 27

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
2,711,556
2,621,256

Social security costs
374,102
318,510

Cost of defined contribution scheme
150,536
152,770

3,236,194
3,092,536


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


        2024
        2023
            No.
            No.







Sales
19
16



Administration
26
27

45
43


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
610,893
555,282

Company contributions to defined contribution pension schemes
15,956
15,038

626,849
570,320


During the year retirement benefits were accruing to 1 directors (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £256,595 (2023 - £234,519).

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

Page 28

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Interest receivable

2024
2023
£
£


Interest on bank deposits
35,678
61,610

35,678
61,610


10.


Interest payable and similar expenses

2024
2023
£
£


Interest on bank overdrafts and loans
1,997,205
1,486,755

1,997,205
1,486,755

Page 29

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Tax on loss
-
-
Page 30

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2024
2023
£
£


Loss on ordinary activities before tax
(1,014,903)
(966,547)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
(253,726)
(241,637)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
20,543
36,553

Capital allowances for year in excess of depreciation
(466,053)
(38,731)

Unrelieved tax losses carried forward
711,378
243,815

Other differences leading to an decrease in the tax charge
(12,142)
-

Total tax charge for the year
-
-


Factors that may affect future tax charges

There are no factors to note that may affect future tax charges.

BEPS 2.0 Pillar Two Legislation 
Hankook Tyre U.K. Limited is part of a group that operates in a number of jurisdictions. The effective tax rate for the financial year 2024 was 0% (2023: 0%) as a result of Capital allowances and trading losses utilised.
For periods which commenced on or after 1 January 2024, new tax legislation applied to ensure the effective tax rate of the UK companies within the group was at least 15%, subject to various complex calculations. This is in line with the minimum taxation rules announced by the G7 and progressed by the OECD Inclusive Framework on Base Erosion and Profit Shifting. These rules have been implemented in the UK via the Domestic Top Up Tax legislation during the year.
Historically Hankook Tyre U.K. Limited’s effective rate has been below 15% but the Company has assessed its exposure to Domestic Top Up Tax to be immaterial. In addition, Hankook Tyre U.K. Limited is taking advantage of the temporary deferred tax exemption within the “International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12)” in relation to the current year and retrospectively in accordance with IAS 8. This means the Company does not recognise deferred tax assets and liabilities related to OECD pillar two income taxes and does not disclose information about them.

Page 31

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets





Leasehold Improvements
Computer equipment
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2024
120,669
2,058,817
131,619
2,311,105


Additions
5,077,580
586,467
21,514
5,685,561


Disposals
-
-
(92,714)
(92,714)



At 31 December 2024

5,198,249
2,645,284
60,419
7,903,952



Depreciation


At 1 January 2024
120,669
1,873,593
120,142
2,114,404


Charge for the year on owned assets
59,042
95,813
9,260
164,115


Disposals
-
-
(92,714)
(92,714)



At 31 December 2024

179,711
1,969,406
36,688
2,185,805



Net book value



At 31 December 2024
5,018,538
675,878
23,731
5,718,147



At 31 December 2023
-
185,224
11,477
196,701


13.


Stocks

2024
2023
£
£

Finished goods and goods for resale
44,132,022
43,949,494

44,132,022
43,949,494


A gain of £40,846 (2023 - £9,769 gain) was recognised in cost of sales against stock during the year due to a decrease in the overall stock provision.


 

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HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Debtors

2024
2023
£
£


Trade debtors
50,537,754
54,234,856

Amounts owed by group undertakings
547,593
512,273

Other debtors
378,325
2,205,235

Prepayments and accrued income
1,271,715
324,757

Tax recoverable
101,241
101,241

Duty tax recoverable
5,362,918
-

58,199,546
57,378,362


Amounts owed by group undertakings are repayable on demand and do not attract interest.
Duty tax recoverable of £5,362,918 represents amounts refundable to the Company in respect of Countervailing and Anti-Dumping duties paid on historical imports of tyres. 


15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,453,954
3,890,911

2,453,954
3,890,911


Page 33

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
44,974,268
31,706,977

Trade creditors
2,001,711
1,673,969

Amounts owed to group undertakings
33,717,290
42,542,643

Other taxation and social security
3,124,207
4,571,322

Other creditors
16,429
15,559

Accruals and deferred income
11,034,437
8,254,768

94,868,342
88,765,238


The bank overdraft of £44,974,268 (2023: £31,706,977) is part of a cash pooling arrangement agreed between the bank and Hankook Tire & Technology Co.Ltd, the parent company, where the parent company is the principal customer to that agreement and has the ultimate responsibility for the repayment of balances.
There are fixed and floating charges over the undertaking and all property and assets present and future to secure the bond/guarantee facility the bank has with the Company. 
Amounts owed to group undertakings are repayable on demand and do not attract interest.

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HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Deferred taxation




2024


£






At beginning of year
19,164



At end of year
19,164

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
19,164
19,164

19,164
19,164


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



25,000 (2023 - 25,000) Ordinary shares of £1.00 each
25,000
25,000

Each ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up. 



19.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
3,238,405
1,339,761

Later than 1 year and not later than 5 years
12,272,626
240,899

Later than 5 years
28,121,646
-

43,632,677
1,580,660

Page 35

 
HANKOOK TYRE U.K. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Related party transactions

The Company has taken advantage of the exemption available under FRS 102 33.1A not to disclose transactions with wholly owned subsidiaries of the Group. 
There are no transactions or balances that require disclosure. 


21.


Controlling party

The parent company, ultimate controlling party and largest and smallest group for which group accounts are prepared, is Hankook Tire & Technology Co., Ltd and these group accounts can be obtained from the registered office address:
133 Teheran-Ro (Yeoksam-Dong), Gangnam-Ku, Seoul, Korea.

 
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