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REGISTERED NUMBER: 01705389 (England and Wales)















HOCO PARTS UK LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024






HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4

Report of the Independent Auditors 5 to 7

Income Statement 8

Other Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12 to 20


HOCO PARTS UK LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: M A Fenwick
A Van De Glind
B D Smaal



REGISTERED OFFICE: Unit 1 Station Road
Bradley
Huddersfield
HD2 1US



REGISTERED NUMBER: 01705389 (England and Wales)



SENIOR STATUTORY AUDITOR: Tara Bellamy FCA



AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS
Hoco Parts UK Ltd is a prominent distributor of motorcycle parts and accessories in the United Kingdom. In 2019, the company underwent a significant transformation by merging Bradbury Bros and Rob Hunter, both established entities in the motorcycle parts industry, to form Bradbury Hunter. Subsequently, it rebranded as Hoco Parts UK Ltd to align with its parent company, Hoco Parts B.V., which is a market leader in the Benelux region.
Since 2019 Hocoparts has evolved to become a key player in the motorcycle aftermarket sector.

Hocoparts product portfolio is extensive, offering over 160,000 stock items (SKUs) that range from technical parts to consumables and accessories for both bikes and riders. This comprehensive range ensures that Hoco Parts UK Ltd caters to a wide array of customer needs within the motorcycle repair and maintenance sectors. Operating from our logistical centre in Huddersfield, the company employs a team of ten field-based sales managers who serve customers across the UK and Ireland, ensuring a robust and responsive distribution network backed up with a strong knowledgeable team of internal sales professionals.

Financially, the company has demonstrated resilience and adaptability in today's economy. Hoco Parts UK Ltd reported turnover of £16,582,211 (increase of 24.87% from previous year), cash reserves of £205,121 and Net Profit amounting to £424,932 (increase of 577% from previous year). The financial position shows strong strategic initiatives aimed at improving profitability and strengthening the balance sheet.

KEY PERFORMANCE INDICATORS (KPIs)

The company uses KPIs where relevant throughout the business to monitor sales and profitability performance, return on capital employed and the management of working capital. Some of the key performance indicators are below:

Turnover is one of the main KPIs, this has grown by £3.3m (24.87%) from £13.2m to £16.6m.

Gross profit margin has also improved, this has grown by £0.9m (24.4%) from £3.7m to £4.6m. This has been driven by a combination of increased revenues and improved cost control measures. Implementing pricing strategies to maintain margins on key product lines, additionally the introduction of higher margin product lines contributed to the overall improvement in profitability This in turn has led to an increase in gross profit margins from 28.1% to 28%.

Profit before tax has increased by £0.5m (451% ) from £0.1m to £0.6m.

PRINCIPAL RISKS AND UNCERTAINTIES
Hoco Parts UK Ltd operates in a dynamic and competitive environment, which presents several risks that could impact its business operations and financial performance. The principal risks include:

a. Market Competition: The motorcycle parts distribution industry is highly competitive, with numerous companies trying for market share. The presence of both established companies and new entrants intensifies price competition and puts pressure on profit margins. To mitigate this risk, Hoco Parts UK Ltd focuses on differentiating itself through a diverse product range and exceptional customer service.

b. Economic Conditions: The demand for motorcycle parts is closely linked to the overall economic climate. Economic downturns can lead to reduced consumer spending on non-essential items, including motorcycle maintenance and accessories. The company must remain vigilant to economic indicators and adjust its strategies accordingly to maintain financial stability.

c. Supply Chain Disruptions: As a distributor, Hoco Parts UK Ltd relies heavily on a seamless supply chain to maintain inventory levels and meet customer demands. Disruptions such as supplier insolvency, logistical challenges, or geopolitical factors can adversely affect product availability. Implementing robust supply chain management practices and diversifying suppliers are crucial to mitigating this risk.

d. Technological Advancements: The rapid pace of technological innovation in the motorcycle industry necessitates continuous adaptation. Failure to keep abreast of new technologies could render some product offerings obsolete. Investing in research and development and fostering partnerships with innovative manufacturers are essential strategies to address this risk.

e. Regulatory Compliance: The company must adhere to various regulations, including environmental standards, safety protocols, and trade compliance. Non-compliance can result in legal penalties and damage to the company's reputation. Regular audits and compliance training are vital to ensure adherence to all applicable laws and regulations.

In conclusion, while Hoco Parts UK Ltd faces several challenges inherent to its industry, its longstanding presence, comprehensive product range, and strategic initiatives position it well to navigate these risks and capitalise on opportunities for growth.


HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

FUTURE DEVELOPMENTS
Looking ahead, we are focused on sustained growth within the UK market, further identifying new product ranges to capture new market segments and adapting to emerging trends from our dealer network.

ON BEHALF OF THE BOARD:





M A Fenwick - Director


23 May 2025

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of wholesale trade of motor vehicle parts and accessories.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

M A Fenwick
A Van De Glind
B D Smaal

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M A Fenwick - Director


23 May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOCO PARTS UK LTD

Opinion
We have audited the financial statements of Hoco Parts UK Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOCO PARTS UK LTD


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

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

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements, (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimate and judgemental areas of the financial statements such as depreciation of tangible fixed asset, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified compliance with the Health and Safety regulations as most likely to have such an effect.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. We enquired with management and inspected health and safety report from visits in the year, along with our enquires confirming that the company provides regular training for employees and has appropriate policies and procedures in place. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOCO PARTS UK LTD


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




Tara Bellamy FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR

30 May 2025

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
as restated
Notes £    £    £   

TURNOVER 3 16,582,211 13,278,978

Cost of sales 11,913,880 9,547,331
GROSS PROFIT 4,668,331 3,731,647

Distribution costs 2,288,941 1,917,671
Administrative expenses 1,731,346 1,677,830
4,020,287 3,595,501
OPERATING PROFIT 5 648,044 136,146

Income from shares in group undertakings - 280,937
648,044 417,083
Amounts written off investments 6 1 304,390
PROFIT BEFORE TAXATION 648,043 112,693

Tax on profit 7 205,794 49,967
PROFIT FOR THE FINANCIAL YEAR 442,249 62,726

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
as restated
Notes £    £   

PROFIT FOR THE YEAR 442,249 62,726


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 442,249 62,726

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2024

2024 2023
as restated
Notes £    £    £   
FIXED ASSETS
Intangible assets 9 1,303,508 1,405,275
Tangible assets 10 530,673 562,187
Investments 11 - 1
1,834,181 1,967,463

CURRENT ASSETS
Stocks 12 4,983,958 4,376,167
Debtors 13 1,125,457 1,273,130
Cash at bank and in hand 205,121 494,839
6,314,536 6,144,136
CREDITORS
Amounts falling due within one year 14 7,091,813 7,569,123
NET CURRENT LIABILITIES (777,277 ) (1,424,987 )
TOTAL ASSETS LESS CURRENT LIABILITIES 1,056,904 542,476

PROVISIONS FOR LIABILITIES 16 89,272 17,093
NET ASSETS 967,632 525,383

CAPITAL AND RESERVES
Called up share capital 17 2,000 2,000
Capital redemption reserve 18 1,000 1,000
Fair value reserve 18 - 98,511
Retained earnings 18 964,632 423,872
SHAREHOLDERS' FUNDS 967,632 525,383

The financial statements were approved by the Board of Directors and authorised for issue on 23 May 2025 and were signed on its behalf by:





M A Fenwick - Director


HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

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

Called up Capital Fair
share Retained redemption value Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 January 2023 2,000 361,146 1,000 98,511 462,657

Changes in equity
Profit for the year - 62,726 - - 62,726
Total comprehensive income - 62,726 - - 62,726
Balance at 31 December 2023 2,000 423,872 1,000 98,511 525,383

Changes in equity
Profit for the year - 442,249 - - 442,249
Other comprehensive income - 98,511 - (98,511 ) -
Total comprehensive income - 540,760 - (98,511 ) 442,249
Balance at 31 December 2024 2,000 964,632 1,000 - 967,632

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1. STATUTORY INFORMATION

Hoco Parts UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

This information is included in the consolidated financial statements of Powersports Distribution Group Bv and these financial statements may be obtained by the public at the following address, Harselaarseweg 104, 3771 MB Barneveld, The Netherlands.

Preparation of consolidated financial statements
The financial statements contain information about Hoco Parts UK Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty
The estimated and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Stock provisioning
The company has products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision, management considers the nature, age and condition of the stock, as well as applying assumptions around the saleability/useability of the stock.

Useful economic lives of tangible assets
The annual deprecation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical conditions of the assets. See note 11 for the carrying amount of the property, plant and equipments and note 2 for the useful economic lives for each class of assets.

Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of trade debtors.

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Goodwill
Goodwill, being the amounts paid in connection with acquisitions of business in 2019, 2020 and 2023, are being amortised evenly over its estimated useful life of 10 years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and impairment losses.

Patents and licences are being amortised at a rate of 20% per annum

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 15% on cost
Motor vehicles - 25% on reducing balance
Computer equipment - 20% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the average cost price. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments
The company has chosen to adopt the FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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 income statement.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.


HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the statement of financial position date are translated using the closing rate.

All differences are taken to the income statement.

Hire purchase and leasing commitments
Rentals payable and receivable under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024 2023
as restated
£    £   
United Kingdom 16,523,855 13,082,700
Europe 54,493 195,087
Rest of the world 3,863 1,191
16,582,211 13,278,978

4. EMPLOYEES AND DIRECTORS
2024 2023
as restated
£    £   
Wages and salaries 1,509,254 1,268,691
Social security costs 124,998 124,719
Other pension costs 25,751 21,358
1,660,003 1,414,768

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2024 2023
as restated

Management 3 3
Sales 19 18
Production & Warehouse 17 15
Finance & IT 3 3
42 39

2024 2023
as restated
£    £   
Directors' remuneration 94,302 88,635
Directors' pension contributions to money purchase schemes 9,821 6,321

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

5. OPERATING PROFIT

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

2024 2023
as restated
£    £   
Hire of plant and machinery 23,975 12,905
Other operating leases 269,753 243,390
Depreciation - owned assets 173,368 135,226
Profit on disposal of fixed assets (2,120 ) -
Goodwill amortisation 150,927 110,174
Patents and licences amortisation 840 840
Auditors' remuneration 13,595 13,250
Foreign exchange differences (115,858 ) (32,382 )

6. AMOUNTS WRITTEN OFF INVESTMENTS
2024 2023
as restated
£    £   
Amounts written off investments 1 304,390

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
as restated
£    £   
Current tax:
UK corporation tax 133,615 (16,344 )

Deferred tax 72,179 66,311
Tax on profit 205,794 49,967

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
as restated
£    £   
Profit before tax 648,043 112,693
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
25%)

162,011

28,173

Effects of:
Expenses not deductible for tax purposes 73 86,054
Income not taxable for tax purposes (9,092 ) (70,536 )
Capital allowances in excess of depreciation - (4,691 )
Depreciation in excess of capital allowances 43,409 -
Utilisation of tax losses (62,786 ) (39,000 )
Timing differences 72,179 66,311
Taxation refund - (16,344 )
Total tax charge 205,794 49,967

8. PRIOR YEAR ADJUSTMENT

The financial statements for 2023 have been restated to incorporate the correct treatment of stock. The change has resulted in profits available for distribution at 31 December 2023 decreasing by £25,999.


Summary of the prior year accounting impact: £

Decrease in stock25,999
Prior year adjustment - decrease in distributable profits25,999

9. INTANGIBLE FIXED ASSETS
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 January 2024 1,672,310 4,200 1,676,510
Additions 50,000 - 50,000
At 31 December 2024 1,722,310 4,200 1,726,510
AMORTISATION
At 1 January 2024 268,715 2,520 271,235
Amortisation for year 150,927 840 151,767
At 31 December 2024 419,642 3,360 423,002
NET BOOK VALUE
At 31 December 2024 1,302,668 840 1,303,508
At 31 December 2023 1,403,595 1,680 1,405,275

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Motor Computer
property fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2024 358,564 466,788 151,279 83,664 1,060,295
Additions - 44,508 93,803 3,923 142,234
Disposals - (5,940 ) - - (5,940 )
At 31 December 2024 358,564 505,356 245,082 87,587 1,196,589
DEPRECIATION
At 1 January 2024 171,861 170,028 100,850 55,369 498,108
Charge for year 71,713 59,846 29,406 12,403 173,368
Eliminated on disposal - (5,560 ) - - (5,560 )
At 31 December 2024 243,574 224,314 130,256 67,772 665,916
NET BOOK VALUE
At 31 December 2024 114,990 281,042 114,826 19,815 530,673
At 31 December 2023 186,703 296,760 50,429 28,295 562,187

11. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2024 1
Disposals (1 )
At 31 December 2024 -
NET BOOK VALUE
At 31 December 2024 -
At 31 December 2023 1

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

FLL Holdings Limited
Registered office: Langton House, Lindum Business Park, Station Road, Lincoln, Lincolnshire, LN6 3FE
Nature of business: Holding company
%
Class of shares: holding
Ordinary 100.00

B & C Express Limited
Registered office: Langton House, Lindum Business Park, Station Road, Lincoln, LN6 3FE
Nature of business: Wholesale trade of vehicle parts
%
Class of shares: holding
Ordinary 100.00

The company is currently going through voluntary strike off procedures at Companies House.

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

12. STOCKS
2024 2023
as restated
£    £   
Finished goods 4,983,958 4,376,167

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£    £   
Trade debtors 846,495 890,459
Amounts owed by group undertakings 241,489 341,581
Other debtors 25,959 21,236
Tax 2,261 10,451
Prepayments and accrued income 9,253 9,403
1,125,457 1,273,130

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£    £   
Trade creditors 1,041,910 900,362
Amounts owed to group undertakings 5,498,007 5,967,530
Taxation 133,715 300
Other taxes and social security 39,035 38,522
VAT 142,728 159,131
Other creditors 15,455 265,683
Accrued expenses 220,963 237,595
7,091,813 7,569,123

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
as restated
£    £   
Within one year 394,832 503,999
Between one and five years 1,481,140 1,809,442
In more than five years 465,767 465,767
2,341,739 2,779,208

16. PROVISIONS FOR LIABILITIES
2024 2023
as restated
£    £   
Deferred tax
Accelerated capital allowances 89,272 82,838
Tax losses carried forward - (65,745 )
89,272 17,093

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2024 17,093
Charge to Income Statement during year 72,179
Balance at 31 December 2024 89,272

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: as restated
£    £   
2,000 Ordinary £1 2,000 2,000

18. RESERVES
Capital Fair
Retained redemption value
earnings reserve reserve Totals
£    £    £    £   

At 1 January 2024 423,872 1,000 98,511 523,383
Profit for the year 442,249 442,249
Transfer of fair value reserve 98,511 - (98,511 ) -
At 31 December 2024 964,632 1,000 - 965,632

Retained Earnings Account:

The retained earnings account represents cumulative profits and losses net of dividends and other adjustments.

Capital Redemption Account:

The capital redemption reserve arose on the re-purchase and subsequent cancellation of share capital.

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. Contributions payable to the company pension scheme are charged to the income statement in the period they related. Pension contributions outstanding at the period end total £5,322 (2023: £5,191).

20. RELATED PARTY DISCLOSURES

Entities over which the entity has control, joint control or significant influence
2024 2023
as restated
£    £   
Purchases 61,131 64,144
Amount due from related party 241,489 241,489

During the year, a total of key management personnel compensation of £ 94,302 (2023 - £ 88,635 ) was paid.

HOCO PARTS UK LTD (REGISTERED NUMBER: 01705389)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

21. ULTIMATE CONTROLLING PARTY

The parent undertaking and the smallest and largest Group of which the company was a member during the year and for which the group financial statements were prepared was Powersports Distribution Group BV, a company incorporated in the Netherlands.

Copies of the Powersports Distribution Group Bv group financial statements are available to the public at the following address, Harselaarseweg 104, 3771 MB Barneveld, The Netherlands.