|
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's 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 other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The director is 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. |
|
| 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 the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| ● |
the director's report has been prepared in accordance with applicable legal requirements. |
|
| Matters on which we are required to report by exception |
| Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an effect: employment legislation; health and safety legislation; trade and export legislation; GDPR; anti-bribery and corruption legislation. |
| International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements. |
In relation to fraud, we performed the following specific procedures in addition to those already noted: • Challenging assumptions made by management in its significant accounting estimates in particular: useful economic life of fixed assets, bad debt provision and the warranty provision; • Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account; • Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud; • Ensuring that testing undertaken on both the performance statements, and the Balance Sheet includes several items selected on a random basis; |
| These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements. |
| 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 International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud. |
|
| 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
|
|
|
|
| Simon Thomas ACA |
| (Senior Statutory Auditor) |
10 Station Road |
| for and on behalf of |
Henley on Thames |
| Kench & Co Ltd |
Oxfordshire |
| Chartered Accountants |
RG9 1AY |
| Statutory Auditor |
| 11 June 2025 |
|
|
Motor vehicles |
20-100% Straight line on cost |
|
|
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
|
|
Impairment of fixed assets |
|
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
|
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
|
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
|
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
|
|
Stocks |
|
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss. |
|
|
Cash and cash equivalents |
|
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
|
|
Financial instruments |
|
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
|
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
|
|
Basic financial assets |
|
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest rate method. Financial assets classified as receivable within one year are not amortised. |
|
Basic financial liabilities |
|
Basic financial liabilities, including creditors and bank loans that are classified as debt, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 rate method. |
|
|
Equity instruments |
|
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
|
|
Taxation |
|
The tax expense represents the sum of the tax currently payable and deferred tax. |
|
Current tax |
|
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
|
|
Deferred tax |
|
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. |
|
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities relate to taxes levied by the same tax authority. |
|
|
Provisions |
|
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises. |
|
|
Employee benefits |
|
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
|
|
Retirement benefits |
|
Employer's contributions payable to employees' personal pension plans are charged to the profit and loss account in the period to which they relate. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Government grants |
|
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. |
|
|
| 2 |
Critical accounting estimates and judgements |
|
|
In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
|
|
| 3 |
Analysis of turnover |
2024 |
|
2023 |
| £ |
£ |
|
|
Sale of goods |
14,871,041 |
|
20,104,669 |
|
Recharge expenses |
473,006 |
|
491,632 |
|
|
|
|
|
|
15,344,047 |
|
20,596,301 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
14,125,601 |
|
18,988,411 |
|
Europe |
1,056,737 |
|
1,600,507 |
|
Rest of world |
161,709 |
|
7,383 |
|
|
|
|
|
|
15,344,047 |
|
20,596,301 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Operating profit |
2024 |
|
2023 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
154,803 |
|
141,215 |
|
Operating lease rentals - land and buildings |
265,448 |
|
239,886 |
|
Research and development expenditure |
- |
|
75,039 |
|
Auditors' remuneration for audit services |
21,270 |
|
21,270 |
|
Carrying amount of stock sold |
5,937,074 |
|
12,518,987 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Director's emoluments |
2024 |
|
2023 |
| £ |
£ |
|
|
Emoluments |
319,581 |
|
330,993 |
|
|
|
|
|
|
|
|
|
|
|
Highest paid director: |
|
Emoluments |
319,581 |
|
330,993 |
|
Company contributions to defined contribution pension plans |
46,934 |
|
52,043 |
|
|
|
|
|
|
366,515 |
|
383,036 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors to whom retirement benefits accrued: |
2024 |
|
2023 |
| Number |
Number |
|
|
Defined contribution plans |
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Staff costs |
2024 |
|
2023 |
| £ |
£ |
|
|
Wages and salaries |
3,650,585 |
|
3,264,688 |
|
Social security costs |
456,386 |
|
410,056 |
|
Other pension costs |
410,632 |
|
363,173 |
|
|
|
|
|
|
4,517,603 |
|
4,037,917 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
(including directors) |
|
Total |
48 |
|
44 |
|
|
|
|
|
|
48 |
|
44 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Interest payable |
2024 |
|
2023 |
| £ |
£ |
|
|
Other loans |
20,771 |
|
2,930 |
|
|
|
|
|
|
20,771 |
|
2,930 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Taxation |
2024 |
|
2023 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
160,912 |
|
288,916 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
45,823 |
|
26,563 |
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
206,735 |
|
315,479 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Profit on ordinary activities before tax |
817,622 |
|
1,232,325 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
23% |
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
204,406 |
|
283,435 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
(43,494) |
|
5,481 |
|
|
Current tax charge for period |
160,912 |
|
288,916 |
|
|
|
|
|
|
|
|
|
|
| 9 |
Tangible fixed assets |
|
|
|
|
Land and buildings |
|
Plant and machinery |
|
Total |
|
|
|
|
At cost |
|
At cost |
| £ |
£ |
£ |
|
Cost or valuation |
|
At 1 January 2024 |
396,843 |
|
1,486,540 |
|
1,883,383 |
|
Additions |
139,427 |
|
235,727 |
|
375,154 |
|
Disposals |
- |
|
(650) |
|
(650) |
|
At 31 December 2024 |
536,270 |
|
1,721,617 |
|
2,257,887 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2024 |
353,516 |
|
1,068,912 |
|
1,422,428 |
|
Charge for the year |
17,385 |
|
137,418 |
|
154,803 |
|
At 31 December 2024 |
370,901 |
|
1,206,330 |
|
1,577,231 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2024 |
165,369 |
|
515,287 |
|
680,656 |
|
At 31 December 2023 |
43,327 |
|
417,628 |
|
460,956 |
|
|
|
|
|
|
|
|
|
|
|
| 10 |
Stocks |
2024 |
|
2023 |
| £ |
£ |
|
|
Finished goods and goods for resale |
524,470 |
|
1,290,395 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Debtors |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade debtors |
1,935,576 |
|
3,689,558 |
|
Other debtors |
21,443 |
|
30,825 |
|
Prepayments and accrued income |
217,271 |
|
147,202 |
|
|
|
|
|
|
2,174,290 |
|
3,867,585 |
|
|
|
|
|
|
|
|
|
|
|
Amounts due after more than one year included in: |
|
Other debtors |
12,543 |
|
12,226 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade creditors |
906,394 |
|
4,145,821 |
|
Corporation tax |
110,912 |
|
288,916 |
|
Other taxes and social security costs |
329,408 |
|
697,070 |
|
Other creditors |
284,654 |
|
417,354 |
|
Accruals and deferred income |
148,125 |
|
149,753 |
|
|
|
|
|
|
1,779,493 |
|
5,698,914 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Deferred taxation |
2024 |
|
2023 |
| £ |
£ |
|
|
Accelerated capital allowances |
140,501 |
|
98,442 |
|
Other temporary differences |
(11,150) |
|
(14,914) |
|
|
|
|
|
|
129,351 |
|
83,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
83,528 |
|
56,965 |
|
Charged to the profit and loss account |
45,823 |
|
26,563 |
|
|
At 31 December |
129,351 |
|
83,528 |
|
|
|
|
|
|
|
|
|
|
|
| 14 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
3,500 |
|
3,500 |
|
3,500 |
|
|
|
|
|
|
|
|
|
|
| 15 |
Share premium |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
137,749 |
|
137,749 |
|
|
At 31 December |
137,749 |
|
137,749 |
|
|
|
|
|
|
|
|
|
|
| 16 |
Profit and loss account |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
3,200,006 |
|
2,283,160 |
|
Profit for the financial year |
610,887 |
|
916,846 |
|
|
At 31 December |
3,810,893 |
|
3,200,006 |
|
|
|
|
|
|
|
|
|
|
| 17 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| £ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
191,364 |
|
131,832 |
|
19,875 |
|
39,967 |
|
within two to five years |
564,546 |
|
139,862 |
|
37,399 |
|
57,379 |
|
|
755,910 |
|
271,694 |
|
57,274 |
|
97,346 |
|
|
|
|
|
|
|
|
|
|
| 18 |
Related party transactions |
|
|
All transactions with related parties were concluded under normal market conditions, and therefore no disclosure is required. |
|
|
| 19 |
Controlling party |
|
|
The ultimate parent company is Elektra I GmbH, a company registered in Germany. Elektra I GmbH prepares group accounts and copies can be obtained from Hulshorstweg 20, 33415 Verl, HR B 7386, Germany. These financial statements present information about the company as an individual entity and not about its group. |
|
| 20 |
Presentation currency |
|
|
The financial statements are presented in Sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
|
|
| 21 |
Legal form of entity and country of incorporation |
|
|
Beckhoff Automation Limited is a private company limited by shares and incorporated in England. |
|
|
| 22 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
The Boathouse |
|
Station Road |
|
Henley on Thames |
|
Oxfordshire |
|
RG9 1AZ |