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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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AEVI UK LIMITED
COMPANY INFORMATION
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AEVI UK LIMITED
CONTENTS
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AEVI UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The AEVI Group (hereinafter referred to as “AEVI” or the “Group”) is a provider of non-cash payment solutions. Its business activities entail both software and hardware solutions as well as the execution of retail payment transactions worldwide. Its corporate activities are managed from Germany, the United Kingdom, the Czech Republic, and the United States while the main focus of its business is on America and Europe.
The Group parent is AEVI International GmbH, which has its registered offices at Heinz-Nixdorf-Ring 1, 33106 Paderborn, Germany. The Company AEVI UK Ltd. is registered under No. 9669211 with the registered office being 71-91 Aldwych, London WC2B 4HN, United Kingdom. AEVI UK is a local distributor / sales entity of AEVI products and services as well as internal service provider to other AEVI Group members.
Established company in the FinTech market
AEVI is a provider of IT solutions and services in the area of processing cashless payment transactions as well as further services. The core component of the AEVI solution is the cloud-based transaction platform, which for the first time enables retailers and their payment and IT service providers to freely control the payment flow in brick-and-mortar retail across partners, distribution channels and national borders. This allows all participating partners to break down silo structures in times of rapidly advancing digitalization and adapt their services quickly and flexibly to the needs of their respective customers. The solution enables AEVI's customers to consolidate their payment processing in face-to-face business across countries in order to achieve scaling effects, to connect the billing processes of stationary retail more effectively with their eCommerce activities and to rapidly increase the speed of innovation. The focus of AEVI's business activities is on optimizing processes for merchants who benefit from the AEVI solution either directly (larger merchants) or indirectly (SMEs via banks and payment service providers). The focus of AEVI’s business is on optimizing processes for merchants. Our reporting is differentiated according to business streams and regions. Business Types:
∙Platform Services
∙Professional Services
∙Hardware & Related Services
In the year 2024 AEVI UK’s 3rd party revenues decreased to £2.1m (prior year £4.6m). The decline is attributable to Trust Payments and Secure Retail where the parties jointly decided (for operational and commercial reasons) for AEVI to no longer supply these clients with hardware devices which they will not buy directly; the services revenue streams remained stable.
Cost transfers to other AEVI entities (for local statutory purposes classified as revenues) went down from £7.4m to £5.1m. The main reason for this decline is the reduced cost structure across the AEVI Group (including AEVI UK) as a consequence of the ongoing path to profitability. Through the cost saving program as well as the reduction in the hardware business AEVI UK cost went down from £11.7m to £7.3m. Consequently, EBITA resulted at a small loss of £0.2m.
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AEVI UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
AEVI is regularly confronted with opportunities and risks that can have both positive and negative effects on assets, profits, cash flow, but also on intangible values such as reputation and are inextricably linked to business activities. In this risk report we explain the main opportunities and risks for the company.
Opportunities and risks are continuously identified and assessed based on operational business development. The basis of the assessment is the possible positive impact on earnings due to opportunities and negative impact on earnings due to risks within the next financial year. Economic factors Significant effects on the budgeted EBITA can result from individual economies and also the general global economic situation developing differently than forecast. Reasons for this can be of various nature, e.g. economic fluctuations in AEVI's focus sales markets. In this respect, it is plausible that this external influence, which can only be controlled to a limited extent, opens the fluctuation interval on both sides. After a period of high volatility in recent years, characterized by the pandemic, geopolitical fragmentation, supply bottlenecks and high inflation, followed by a tentative economic stabilization of the global economy, we are now facing times of geopolitical uncertainty again. Due to the character of AEVI UK as an entity we believe such implications will be limited. However, generally speaking AEVI UK as an entity of the Group might be positively or negatively impacted by the described developments as any other Group member. Relevant market In addition to the economic factors, the category of strategic opportunities and risks also includes changes within the markets specifically relevant to the AEVI portfolio. We refer to the sales areas in which we operate with our product portfolio for commercial banks and acquirers as relevant markets. This portfolio consists of hardware, software and services. In addition, we see risks in the event that companies with similar product portfolios decide to enter the regional market or influence the market with a changed verticalization strategy and this is subsequently reflected in reduced earnings at AEVI. In contrast, there is the possibility of an increase in earnings if competitors give up individual markets or if AEVI can strengthen its own market position in dedicated segments compared to the competition. Regardless of the competitive situation, a high level of acceptance of products on the market can result in dynamics in both positive and negative directions due to the limited predictability of the market reaction to individual portfolio elements. Specifically, we consider the opportunities and risks to be identified in this context to be balanced by the constant expansion of our product portfolio. Customer projects One of the risks we see on the customer side is the complexity of projects. AEVI positions itself as a provider of complex IT solutions and services. In complex projects, deadlines and cost overruns cannot be ruled out, despite prior planning. Clearly defined project organizations, project management methods and experienced project managers ensure the implementation of projects. In addition, the following opportunities/risks are mentioned as examples in the course of customer projects: dependence on individual customers, additional and reduced effort in fixed-price contracts, partner dependencies, time shifts, liability and penalty regulations. In case of doubt, these increase cost pressure in certain segments or customer projects, but can also be an opportunity for continuous operational or customer-driven improvements, both in terms of processes and the product.
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AEVI UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Distribution and procurement related risks
AEVI's target markets are characterized by varying levels of competition and concentration. Individual and project-related decisions regarding the services and conditions offered - such as a higher than expected price drop - can, in the context of the given customer or competitive situation, have a different effect on EBITA than the planned one. This effect can be both positive and negative. Due to the increasing reluctance of current and potential customers to invest, we have noticed a slight decline in sales activities (partly due to the fact that customers are currently very restrictive with their budgets for technological innovations). Recent activities by the new US government put additional pressure on distribution / procurement related risk. However, we believe AEVI UK (as well as AEVI as a Group) will not be affected directly, however potentially indirectly through the global economic climate. IT security As a provider of IT services in the area of payment transactions, security is a crucial factor. Despite all relevant certifications, compliance with regulatory requirements and scalability of the IT landscape, there is always a certain minimal risk of IT failure or security risks when processing transactions. AEVI counters this with redundant IT landscapes, cyber security protection measures as well as extensive tests, so called penetration tests, where AEVI tests its IT and its security under stressful situations. The latter can of course also give AEVI a competitive advantage for customers and therefore represent an opportunity. Financial risks Credit risks AEVI tries to reduce the risk of default on original financial instruments through trading information, credit limits and debtor management including dunning and aggressive debt collection. There is currently no concentration of risk with regard to credit risks. Liquidity risks AEVI has recently obtained €8m incremental funding in the form of a convertible loan agreement from existing plus new shareholders. Additionally, AEVI is well on its track to become operationally cash flow positive by the end of 2025. As a consequence of these two points, the overall liquidity risk is classified as low. Currency risks In the company, income and expenses are mostly made in GBP and currency risks are therefore minimal. Conclusion The Company assesses the significance of the aforementioned risks for AEVI as follows:
At the time of the report and in the foreseeable future, AEVI management does not see any individual risks that could endanger the continued existence of AEVI. From the perspective of AEVI management, AEVI management cannot identify any threat to AEVI from the overall portfolio of opportunities and risks at the time this report was prepared.
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AEVI UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The AEVI Group’s management and control processes are based on annual strategic plans.
In the strategic planning, markets, their size, development, and innovative potential in the field of cashless payment are examined and an international analysis of customers is conducted so as to define strategic objectives. The results are incorporated into the corporate planning, taking any regional focus into account. Key corporate functions, such as production and procurement, research & development and services, are included in the planning so that they are geared to customer and market requirements. The annual strategic planning is the basis for the medium-term objectives. Strategic considerations feed into a three-year plan, which also includes our budget target for the following year. This target is applied to operational planning for AEVI, at which point it is linked to more detailed objectives and measures at an operational level. Every month, based on the latest results and developments, we draw up a rolling plan (forecast) with updated financial control indicators for the current fiscal year. By monitoring this rolling plan, we are able to identify any deviations from agreed targets at an early stage and, if required, initiate measures to safeguard that those targets are met. An integrated IT system and additional analyses are used to map all of AEVI’s planning, control, and reporting processes. Capital Enables Investment AEVI’s capital is used for investing in sales, internationalization (e.g. exploitation of the US market) and technology. Moreover, its financial strength is bolstered by its equity and there is also an adequate supply of liquidity to permit future growth. Managing Success with the Help of Selected Financial Indicators The parameters used by the AEVI Group reflect the interests and expectations of our shareholders and underpin our value driven approach to corporate management. Our main focus is on indicators of financial performance that are compiled at Group level. The principal financial performance indicators used to control the AEVI Group and as the basis for senior management decisions are revenue and operating profit or loss (EBITA). Operating profit (EBITA) is a key measurement and control indicator for the entire AEVI Group and for its underlying profitability. EBITA stands for earnings before interest, taxes and amortization (of intangibles). Starting from EBITA as the base, both EBITDA and net income generally move in the same direction. The following supplementary financial indicators are also considered and used for group level variance analyses: cash flows from operating activities, working capital, gross margin, research and development expenses and selling, general, and administrative expenses. The supplementary financial indicators themselves are, however, not part of the key financial performance indicators.
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AEVI UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
R&D is a strategic success factor. For AEVI as a technology company, research and development are extremely important. Innovations and developments in the area of platform technologies as well as the security and efficiency in processing payment transactions play a key role in determining the future performance of AEVI's portfolio. Convincing customers with special services largely determines the success and future viability of our company.
Accordingly, we aim to develop leading technologies and solutions especially at the interface between our customers and consumers. We want our customers to be able to assert themselves successfully in an environment of dynamic digitalisation and to penetrate further business areas and markets with new solutions. In addition, our customers should be able to leverage further efficiency potential in their processes through our conceptual and technological support. The Company's main developments fall into the area of software (client, server and cloud based platform technologies). The integration and orchestration of software and hardware components into a holistic solution approach is of central importance. Platform technologies for the processing of payment transactions as well as for the provision of and interaction with value added services play an essential role in the further digitalisation of the business of our customers or their end customers the merchants: transaction data can be consolidated independently of the underlying payment terminal hardware, linked to value added services, routed to the selected billing partners and uniformly summarized and evaluated with transaction data.
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AEVI UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Based on its financial planning - derived from the expense and income planning - the management expects a slightly cumulative negative result for the Company as of December 31, 2025 in the low single-digit million range however with a monthly positive result exiting the year 2025. The convertible loan received will be used to maintain the flow of liquidity throughout the year.
To ensure liquidity in 2025, AEVI International GmbH secured a convertible loan from existing and new shareholders for the total amount of €8m. AEVI International GmbH, through the above, will be able to continue its financial support of the AEVI UK entity for the next 12 months post the approval of the audit report.
This report was approved by the board and signed on its behalf.
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AEVI UK 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.
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 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Company is a subsidiary of AEVI International GmbH, which is a provider of IT solutions and services for handling cashless payment transactions and of further services. Its portfolio ranges from hardware and software to services such as operation of transaction platforms and marketplace technologies. The ultimate parent company is HPE Institutional Fund II Holdco B.V.
The loss for the year, after taxation, amounted to £276 thousand (2023 - profit £194 thousand).
No dividends have been recommended by the directors in the year (2023 - NIL).
The directors who served during the year were:
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AEVI UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
AEVI UK expects for its business to continue with local customers such as Trust Payments, Secure Retail and others. AEVI UK will also remain an important services provider for the group for admin, customer support and operations as well as engineering services.
The Company has put in place qualifying third party indemnity provisions for all of the directors.
Matters of strategic importance, including information regarding the Company's exposure to risks associated with the financial instruments and information on research and development activities are included in the Strategic Report.
There have been no significant events affecting the Company since the year end.
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.
This report was approved by the board and signed on its behalf.
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AEVI UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEVI UK LIMITED
We have audited the financial statements of AEVI UK Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
We draw attention to Note 2.3 in the financial statements, which states that the Company is reliant on financial support from its immediate parent company, AEVI International GmbH, in order to meet its financial obligations as they fall due. This support is dependent on the parent company’s ability to execute its business plans and to meet its financial covenants utilising the proceeds of a €8 million convertible loan secured in April 2025 from its existing and new shareholders. The directors believe that the convertible loan will provide the Aevi Group with sufficient liquidity to maintain business activities and meet payment obligations for the next 12 months.
As stated in Note 2.3, these events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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AEVI UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEVI UK LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the 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.
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.
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AEVI UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEVI UK LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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, those charged with governance around actual and potential litigation and claims;
∙performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
∙reviewing minutes of meetings of those charged with governance;
∙reviewing financial statement disclosures and testing to supporting documentation to asses compliance with applicable laws and regulations; and
∙maintaining professional scepticism throughout the course of our audit work.
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 Auditors' Report.
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AEVI UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEVI UK LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Maidstone, United Kingdom
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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AEVI UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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AEVI UK LIMITED
REGISTERED NUMBER: 09669211
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 32 form part of these financial statements.
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AEVI UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
AEVI UK Limited is a private company, limited by shares, which is registered and domiciled in England and Wales under the Companies Act 2006. The address of the registered office is given on the Company Information page. The principal activities of the Company are set out in the Directors' Report on page 1.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 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 following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of Aevi International GmBH as at 31 December 2024 and these financial statements may be obtained from Ahornallee 9, 33106 Paderborn, Germany.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The directors have prepared projected cashflow information for AEVI UK Limited for the next twelve months from the date of approval of these financial statements in the assessment of the appropriateness of applying going concern basis of accounting in the company. AEVI UK Limited sells direct to customers as well as providing research and development and support services to the immediate parent company, AEVI International GmbH, and is reliant on the cash flows of the Group. The directors have therefore considered the appropriateness of applying the going concern basis for the Company in conjunction with an assessment of the wider Group’s cash flow forecast and liquidity position.
AEVI International GmbH has confirmed to the directors that it will continue to provide financial support to the Company to continue to meets its financial obligations as and when they are due and will not call upon payment of inter-company loans and balances for at least the next 12 months from the date of signing the financial statements until the company is able to repay these amounts. To secure liquidity in 2025, AEVI International GmbH secured a convertible loan from existing and new shareholders for the total amount of €8m. AEVI International GmbH, through the above, will be able to continue its financial support of the AEVI UK entity for the next 12 months post the approval of the audit report. The Company is reliant on the financial support of its parent company, whose ability to provide such support is dependent on its ability to execute its business plan within the limits of the funds it has now raised. The directors consider this indicates that a material uncertainty exists which may cast significant doubt on the Company’s ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business. The Directors anticipate that the funding will be forthcoming and therefore the going concern basis of preparation is deemed appropriate. The financial statements do not include the adjustments that would be required should the going concern basis no longer be appropriate.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company accounts for a contract, or a portion of a contract, as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria:
a) there is an identified asset; b) the Company obtains substantially all the economic benefits from use of the asset; and c) the Company has the right to direct use of the asset. The Company considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Company obtains substantially all the economic benefits from use of the asset, the Company considers only the economic benefits that arise from the use of the asset, not those incidental to legal ownership or other potential benefits. In determining whether the Company has the right to direct use of the asset, the Company considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Company considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Company applies other applicable IFRSs rather than IFRS 16. All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
∙leases of low value assets; and
∙leases with a duration of 12 months or less.
Lease Measurement Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the Company's incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
When the Company renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of the modification: For contracts that both convey a right to the Company to use an identified asset and require services to be provided to the Company by the lessor, the Company has elected to account for the entire contract as a lease, i.e. it does allocate any amount of the contractual payments to, and account separately for, any services provided by the supplier as part of the contract.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Impairment of fixed assets
The carrying amounts of the Company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
Impairment of financial assets
Financial liabilities
Fair value through profit or loss
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At amortised cost
The following judgements have had the most significant effect on amounts recognised in the financial statements: Key sources of estimation uncertainty Judgement in identifying whether a contract includes a lease At inception of a contract, an assessment is made whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Discount rate for Right of Use assets and expected lease term In estimating the recoverable amount of the right-of-use asset, the directors have made assumptions about the achievable market rates for similar properties with similar lease terms. Assessment as to whether the right-of-use assets are impaired In estimating the recoverable amount of the right-of-use asset, the directors have made assumptions about the achievable market rates for similar properties with similar lease terms.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The whole of the turnover is attributable to the Company's principal activity from services provided in the United Kingdom.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
A deferred tax asset of £399 thousand (2023 - £439 thousand) arising from carried forward tax losses of £1,597 thousand (2023 - £1,757 thousand) is not recognised, due to uncertainty of available future taxable profits.
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
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AEVI UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £231,000 (2023 - £301,000). Contributions totalling £NIL (2023 - £NIL) were payable to the fund at the balance sheet date.
The directors consider there to be no ultimate controlling party.
The Company is a subsidiary undertaking of The largest and smallest group in which the results of the Company are consolidated is that headed by AEVI International GmbH. The consolidated financial statements of these groups are available and may be obtained from
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