REGISTERED NUMBER: 02754482 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 30 September 2024

for

Thermal Transfer Technology Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

11

Statement of Financial Position

12

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

DIRECTORS:

A G Thomsen

D Hill

K Tumilty

C W Thomsen

T O Thomsen

SECRETARY:

A G Thomsen

REGISTERED OFFICE:

Hall Dene Way Seaham Grange Ind

Seaham Hall Dene Way

County Durham

SR7 0PU

REGISTERED NUMBER:

02754482 (England and Wales)

AUDITORS:

TTR Barnes Limited

Chartered Accountants and Statutory Auditors

3-5 Grange Terrace

Stockton Road

Sunderland

Tyne & Wear

SR2 7DG

BANKERS:

Barclays Bank PLC

Market Street Branch

7 Market Street

Newcastle

NE1 4GL

SOLICITORS:

Watson Burton LLP

1 St James' Gate

Newcastle Upon Tyne

NE99 1YQ

The directors feel at present, the market for the industry is positive and trading conditions are improving despite past and ongoing challenges from Covid-19, brexit and global supply chain issues.

A key performance indicator used by the director's is turnover achieved and operating profit achieved. Results for the year under review indicate that turnover has increased and profitability has increased, both being in line with company objectives

REVIEW OF BUSINESS

The key performance indicators for the company during the year were as follows:

2024

2023

Change

£'000

£'000

%

Turnover

8,754

8,582

2.00

Operating profit

162

270

-30.74

Profit before tax

112

220

-33.72

Shareholders' funds

3354

3283

2.74

Current assets as % of current liabilities

232%

227%

The results for the year was an operating profit which is 40.11% lower than the prior year, there was also a small increase of 2.00% in the turnover.

Future developments

The directors are expecting to improve on the current level of business with positive signs of improvements in our core markets.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risk Management Policy

The company's principal financial instruments comprise cash and loans. Other financial assets and liabilities, such as trade creditors and trade debtors arise directly from the company's operating activities.

The main risks associated with the company's financial assets and liabilities are set out below. Given that the majority of risks below are not considered significant and derive from normal trading activities, the company does not undertake any hedging activity. Significant financial risks are addressed on a case-by-case basis as and if they arise.

Interest rate risk

The company borrows using variable rate debt. The company is exposed to cash flow interest rate risk, but there is opportunity for the company to enjoy a reduction in borrowing costs in markets where rates are falling. In contrast, floating rate borrowings are exposed to cash flow risk as costs increase if market rates rise.

Price Risk

The company does not deem the exposure to price changes in raw materials to be significant enough to consider hedging the cost of the materials as any increases are reflected in sales prices to recover costs.

Credit Risk

Company policies are aimed at minimizing such losses and require that deferred terms are only granted to customers who demonstrate appropriate credit worthiness. The company aims to maintain tight control of credit limits and cash collection targets.

Liquidity Risk

The company aims to mitigate liquidity risk by managing cash generated by its operations. Capital expenditure is approved by the directors. Flexibility is maintained by retaining surplus cash in readily accessible bank deposit accounts.

Foreign Currency Risk

The Company's principal transactions in foreign currency arise directly from operating activities. The main risk arises from movements in the Danish Kroner, Euro and Euro related exchange rates. The company does not consider the risk to be of such significance to warrant any hedging activity due to price variations being passed on to customers.

ON BEHALF OF THE BOARD:

A G Thomsen - Director

16 April 2025

The directors present their report with the financial statements of the company for the year ended 30 September 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of finned tube heat exchangers.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

A G Thomsen

D Hill

K Tumilty

C W Thomsen

T O Thomsen

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), 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 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.

AUDITORS

The auditors, TTR Barnes Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A G Thomsen - Director

16 April 2025

Opinion

We have audited the financial statements of Thermal Transfer Technology Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 30 September 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the finned tube heat exchangers manufacturing sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

- and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety responsible individual, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Allan Russell FCA CTA (Senior Statutory Auditor)

for and on behalf of TTR Barnes Limited

Chartered Accountants and Statutory Auditors

3-5 Grange Terrace

Stockton Road

Sunderland

Tyne & Wear

SR2 7DG

16 April 2025

TURNOVER

3

8,754,675

8,582,077

Cost of sales

6,768,439

6,269,538

GROSS PROFIT

1,986,236

2,312,539

Distribution costs

322,406

311,899

Administrative expenses

1,502,304

1,730,937

1,824,710

2,042,836

OPERATING PROFIT

5

161,526

269,703

Interest payable and similar expenses

6

49,636

49,500

PROFIT BEFORE TAXATION

111,890

220,203

Tax on profit

7

41,251

77,403

PROFIT FOR THE FINANCIAL YEAR

70,639

142,800

Retained earnings at beginning of year

2,068,103

1,925,303

RETAINED EARNINGS AT END OF YEAR

2,138,742

2,068,103

FIXED ASSETS

Tangible assets

8

727,244

866,456

Investments

9

300

300

727,544

866,756

CURRENT ASSETS

Stocks

10

1,891,424

2,486,795

Debtors

11

2,481,709

1,628,205

Cash at bank and in hand

412,997

399,887

4,786,130

4,514,887

CREDITORS

Amounts falling due within one year

12

2,064,792

1,984,294

NET CURRENT ASSETS

2,721,338

2,530,593

TOTAL ASSETS LESS CURRENT LIABILITIES

3,448,882

3,397,349

PROVISIONS FOR LIABILITIES

16

94,832

113,938

NET ASSETS

3,354,050

3,283,411

CAPITAL AND RESERVES

Called up share capital

17

1,215,308

1,215,308

Retained earnings

18

2,138,742

2,068,103

SHAREHOLDERS' FUNDS

3,354,050

3,283,411

The financial statements were approved by the Board of Directors and authorised for issue on 16 April 2025 and were signed on its behalf by:

A G Thomsen - Director

Cash flows from operating activities

Cash generated from operations

1

94,934

498,044

Interest paid

(49,636

)

(49,500

)

Tax paid

(29,994

)

(40,663

)

Net cash from operating activities

15,304

407,881

Cash flows from investing activities

Purchase of tangible fixed assets

(29,394

)

(289,390

)

Net cash from investing activities

(29,394

)

(289,390

)

Cash flows from financing activities

Amount introduced by directors

43,234

2,290

Amount withdrawn by directors

(16,034

)

(13,229

)

Net cash from financing activities

27,200

(10,939

)

Increase in cash and cash equivalents

13,110

107,552

Cash and cash equivalents at beginning of year

2

399,887

292,335

Cash and cash equivalents at end of year

2

412,997

399,887

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

111,890

220,203

Depreciation charges

168,606

217,823

Finance costs

49,636

49,500

330,132

487,526

Decrease/(increase) in stocks

595,371

(216,886

)

(Increase)/decrease in trade and other debtors

(878,627

)

493,862

Increase/(decrease) in trade and other creditors

48,058

(266,458

)

Cash generated from operations

94,934

498,044

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2024

30/9/24

1/10/23

£

£

Cash and cash equivalents

412,997

399,887

Year ended 30 September 2023

30/9/23

1/10/22

£

£

Cash and cash equivalents

399,887

292,335

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/10/23

Cash flow

At 30/9/24

£

£

£

Net cash

Cash at bank and in hand

399,887

13,110

412,997

399,887

13,110

412,997

Debt

Debts falling due within 1 year

(900,000

)

-

(900,000

)

(900,000

)

-

(900,000

)

Total

(500,113

)

13,110

(487,003

)

1.	STATUTORY INFORMATION

Thermal Transfer Technology Limited 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.

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.

The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future and meet its liabilities as they fall due.

Preparation of consolidated financial statements

The financial statements contain information about Thermal Transfer Technology Ltd as an individual company and do not contain consolidated financial information. The company have not prepared group financial statements on the grounds that it's subsidiary undertakings have not traded and are immaterial to the group.

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.

Significant judgements and estimates

The following estimates have been made in the process of applying the above accounting policies, these are the estimates that have the most significant effect on the financial statements:

Depreciation - depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset. An estimate of the useful economic life of assets is detailed in the depreciation accounting policy. The depreciation charge for the year is £168,606.

The following judgements have been made in the process of applying the above accounting policies, these are the judgements that have the most significant effect on the financial statements

Valuation of Stock - stock is held at the lower of cost and net realisable value, a judgement has been made to establish if there should be a provision for stock items that have reduced in value.

Accruals - accruals are included as items that are deemed highly probable to be an obligation that the company has to pay or deliver in the next 12 months.

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, which is stated net of value of added tax, represents the amount invoiced to third parties and is usually recognised on delivery of goods.

Income recognition

Income is recognised when all risks and rewards are transferred to the customer, usually on delivery of goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

-

Straight line over 40 years

Plant and machinery

-

Straight line over 10 years

Fixtures and fittings

-

Straight line over 10 years

Motor vehicles

-

Straight line over 5 years

Computer equipment

-

Straight line over 5 years

Freehold land is not subject to depreciation as it is expected to appreciate over time.

The carrying values of fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. The directors do not consider that there are any indicators of impairment in any of the company's tangible fixed assets in the current year.

Investments in subsidiaries

Investment in subsidiary undertakings are recognised at cost less impairments.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition as follows:

Raw materials and goods for resale - Purchase cost on a first-in, first-out basis

Work in progress - cost of direct materials and labour plus attributable overheads based on a normal level of activity.

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company contributes to private pension schemes for its directors and employees. Contributions are charged to the income statement as they become payable in accordance with the rules of the schemes.

Financial instruments

Assets

Short term assets including prepayments and trade debtors are measured at transaction price. Other financial assets including cash are measured at fair value.

Liabilities

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

Preference shares

Preference shares are held at cost less impairment.

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

£

£

United Kingdom

7,187,322

6,612,410

Europe

1,567,353

1,969,667

8,754,675

8,582,077

The turnover and pre-tax profit is attributable to one continuing activity, the manufacture of finned tube heat exchanges.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,783,713

2,619,875

Social security costs

29,942

28,643

Other pension costs

32,820

28,623

2,846,475

2,677,141

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

2024

2023

Management, sales and administration

19

20

Manufacturing

74

75

Directors

3

3

96

98

2024

2023

£

£

Directors' remuneration

239,726

233,889

Directors' pension contributions to money purchase schemes

21,868

19,999

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

96,733

93,475

Pension contributions to money purchase schemes

12,548

12,549

5.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Other operating leases

16,800

16,800

Depreciation - owned assets

168,606

217,823

Auditors' remuneration

20,000

19,200

Auditors' remuneration for non audit work

3,290

1,544

Foreign exchange differences

29,622

11,477

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Loan interest

49,636

49,500

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

60,357

29,994

Under/(over) in prior years

-

(6,069

)

Total current tax

60,357

23,925

Deferred tax

(19,106

)

53,478

Tax on profit

41,251

77,403