Company registration number 05209361 (England and Wales)
EQUIP4WORK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
EQUIP4WORK LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
EQUIP4WORK LTD
COMPANY INFORMATION
Directors
Mr C Reilly
Mrs S Sharp
(Appointed 31 July 2024)
Company number
05209361
Registered office
St. Albans Road Industrial Estate
Common Road
Stafford
United Kingdom
ST16 3DR
Auditor
Constantin
25 Hosier Lane
London
United Kingdom
EC1A 9LQ
EQUIP4WORK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The principal activity of the company is retail of office furniture and industrial products via multiple channels (online, call centre and field sales).
Results for the year
Turnover for the year dropped to £26.4m (2023 - £32.0m). Gross profits have dropped from £10.5m to £8.9m but gross profit percentage rose from 32.6% to 33.8%. The company returned a profit before tax of £599k, down from last year's £1m.
Principal risks and uncertainties
Recognizing that it operates in a highly competitive market and one in which pressure on profit margins remains high, the company mitigates this risk through active management of channel mix, customer mix, and of current and future product portfolios.
The company is exposed to some commodity price risk as a result of its purchasing agreements but mitigates this with regular reviews of sourcing strategy and with currency management and hedging via its parent company.
Key performance indicators
As shown in the income statement, the company’s turnover for 2024 has been down on the previous year and net profit margin has decreased from 3.26% to 2.27%.
Revenue, gross margin and costs are monitored continuously, and associated action plans are put in place.
Other performance indicators
Given the straightforward nature of the business, the directors are of the opinion that there are no additional KPI's other than the measures of turnover and net profit reported above that are necessary for an understanding of the development, performance or position of the business. The sales decline was due to less spending from the public sector due to uncertainty with the general election and reduction in their budgets.
Going concern
As detailed in accounting policy 1.2, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Future Development
The company will continue to build on its’ strong foundations with offering quality products via various online and offline channels.
Mr C Reilly
Director
11 June 2025
EQUIP4WORK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of retail of office furniture and industrial products via the internet to businesses of all sizes, local government, schools and universities throughout the UK.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C Reilly
Mrs S Sharp
(Appointed 31 July 2024)
Mrs S Andrews
(Resigned 31 July 2024)
Auditor
In accordance with section 487 of the Companies Act 2006, the company has appointed Constantin as auditor, and they will therefore continue in office.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
EQUIP4WORK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
On behalf of the board
Mr C Reilly
Director
11 June 2025
EQUIP4WORK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EQUIP4WORK LTD
- 4 -
Opinion
In our opinion the financial statements of EQUIP4WORK LTD (the ‘company’):
give a true and fair view of the state of the company’s affairs as at December 31, 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
the statement of income and retained earnings;
the statement of financial position;
the statement of changes in equity;
the statement of accounting policies; and
the related notes 1 to 21.
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).
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 Financial Reporting Council’s (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.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual 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.
EQUIP4WORK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EQUIP4WORK LTD
- 5 -
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of
irregularities, including those that are specific to the company’s business sector.
We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:
had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, tax legislation; and
do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC.
EQUIP4WORK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EQUIP4WORK LTD
- 6 -
Report on other legal and regulatory requirements
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 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 any material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters 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.
We have nothing to report in respect of these matters.
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.
Thierry de Gennes ACA
Senior Statutory Auditor
For and on behalf of Constantin
11 June 2025
Chartered Accountants
Statutory Auditor
25 Hosier Lane
London
United Kingdom
EC1A 9LQ
EQUIP4WORK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Revenue
3
26,408,046
31,991,480
Cost of sales
(17,469,240)
(21,538,063)
Gross profit
8,938,806
10,453,417
Administrative expenses
(8,229,902)
(9,328,236)
Other operating income
273
Operating profit
4
708,904
1,125,454
Investment income
7
9,892
Finance costs
8
(120,138)
(81,933)
Profit before taxation
598,658
1,043,521
Tax on profit
9
(54,254)
(333,126)
Profit for the financial year
544,404
710,395
The income statement has been prepared on the basis that all operations are continuing operations.
EQUIP4WORK LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
11
3,257
Property, plant and equipment
12
888,549
922,702
888,549
925,959
Current assets
Inventories
13
3,807,114
3,630,885
Trade and other receivables
14
1,162,940
1,573,549
Cash and cash equivalents
59,217
54,040
5,029,271
5,258,474
Current liabilities
15
(4,352,129)
(4,913,146)
Net current assets
677,142
345,328
Net assets
1,565,691
1,271,287
Equity
Called up share capital
17
1,026
1,026
Retained earnings
1,564,665
1,270,261
Total equity
1,565,691
1,271,287
The financial statements were approved by the board of directors and authorised for issue on 11 June 2025 and are signed on its behalf by:
Mr C Reilly
Director
Company Registration No. 05209361
EQUIP4WORK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2023
1,026
2,859,866
2,860,892
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
710,395
710,395
Dividends
10
-
(2,300,000)
(2,300,000)
Balance at 31 December 2023
1,026
1,270,261
1,271,287
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
544,404
544,404
Dividends
10
-
(250,000)
(250,000)
Balance at 31 December 2024
1,026
1,564,665
1,565,691
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Accounting policies
Company information
Equip4Work Ltd is a private company limited by shares incorporated in England and Wales. The registered office is St. Albans Road Industrial Estate, Common Road, Stafford, United Kingdom, ST16 3DR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of TAKKT AG. These consolidated financial statements are available from its registered office, Presselstrae 12, 70191 Stuttgart, Germany.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. As described further in the Principal risks and uncertainties section of the Strategic Report on page 1, the directors are confident that they have taken the necessary steps to manage the challenges faced by the company.true
1.3
Revenue
Turnover comprises of revenue recognised by the company in respect of sales of office furniture and similar items processed before close of business on the last working day of the year, excluding value added tax. Some internet orders are paid for in advance and are recognised at point of order. Credit sales however are only recognised at the point of despatch of goods.
Interest receivable is recognised within the financial statements and attributed to the financial period to which it relates.
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33% on cost
Website
25% on cost
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
1% on cost
Plant and equipment
25% on cost
Office equipment
25% on cost
Computer equipment
33% 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.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. The cost also includes the absorption of associated transport costs.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.
1.8
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.
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.9
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables 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 method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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 income statement 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.
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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 income statement, 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 and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
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 non-current 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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
The directors do not believe there are any other critical judgements or estimation uncertainties that have a significant risk of causing a material adjustments within the next financial year.
3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Sales of goods
26,408,046
31,991,480
2024
2023
£
£
Other revenue
Interest income
9,892
-
All revenue is derived from the UK.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(15,751)
37,722
Fees payable to the company's auditor for the audit of the company's financial statements
40,010
12,000
Depreciation of owned property, plant and equipment
41,023
113,976
(Profit)/loss on disposal of property, plant and equipment
-
5,494
Amortisation of intangible assets
3,257
12,723
Operating lease charges
299,910
237,920
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Direct Staff
24
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
616,323
Social security costs
-
61,627
Pension costs
20,667
698,617
As a result of a corporate reconstruction within the group, all of the staff transferred to another group company under TUPE at the end of June 2023. Although the same staff continued to carry out the same functions as before, they were no longer employees and instead the company pays a management charge within the group for their staffing costs.
6
Directors' remuneration
No remuneration was paid to the directors (2023:£nil).
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
9,892
8
Finance costs
2024
2023
£
£
Interest payable to group undertakings
120,138
81,933
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
138,141
348,473
Adjustments in respect of prior periods
5,475
Total current tax
143,616
348,473
Deferred tax
Origination and reversal of timing differences
14,267
Adjustment in respect of prior periods
(103,629)
(15,347)
Total deferred tax
(89,362)
(15,347)
Total tax charge
54,254
333,126
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
598,658
1,043,521
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
149,665
245,447
Tax effect of expenses that are not deductible in determining taxable profit
2,743
91,838
Tax effect of income not taxable in determining taxable profit
(5,475)
Depreciation on assets not qualifying for tax allowances
16,663
Under/(over) provided in prior years
5,475
Deferred tax adjustments in respect of prior years
(103,629)
(15,347)
Taxation charge for the year
54,254
333,126
Factors That May Affect Future Tax Charges
Finance Act 2021, which was substantively enacted on 24 May 2021, has enacted an increase in the UK corporation tax main rate to 25% from 1 April 2023.
As this rate change had been substantively enacted before the balance sheet date, the closing deferred tax assets and liabilities have been calculated at 25%, on the basis that this is the rate at which those assets and liabilities are expected to unwind.
Pillar Two of the Organisation for Economic Co-Operation and Development's (“OECD's”) Two Pillar Solution provides for the taxation of income of large groups at a minimum effective rate of 15% on a jurisdictional basis.
The Company is a wholly-owned subsidiary of Takkt Industrial & Packaging Gmbh, which is incorporated in Germany and is the ultimate parent undertaking for the Group. The Group is within scope of the OECD Pillar Two model rules.
Pillar Two legislation received Royal Assent on 11 July 2023 in the United Kingdom and applies to accounting periods beginning on or after 31 December 2023. Pillar Two will apply to the Group from the accounting period ended 30 June 2025. As the Group’s effective tax rate in the UK is above 15%, the Company does not suffer any additional Pillar two top-up taxes by the application of Pillar Two.
10
Dividends
2024
2023
£
£
Interim paid
250,000
2,300,000
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
11
Intangible fixed assets
Software
Website
Total
£
£
£
Cost
At 1 January 2024 and 31 December 2024
56,879
309,423
366,302
Amortisation and impairment
At 1 January 2024
56,879
306,166
363,045
Amortisation charged for the year
3,257
3,257
At 31 December 2024
56,879
309,423
366,302
Carrying amount
At 31 December 2024
At 31 December 2023
3,257
3,257
12
Property, plant and equipment
Freehold property
Plant and equipment
Office equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
967,520
477,640
79,996
204,920
1,730,076
Additions
6,650
220
6,870
At 31 December 2024
967,520
484,290
79,996
205,140
1,736,946
Depreciation and impairment
At 1 January 2024
84,658
459,882
72,410
190,424
807,374
Depreciation charged in the year
9,675
11,648
6,260
13,440
41,023
At 31 December 2024
94,333
471,530
78,670
203,864
848,397
Carrying amount
At 31 December 2024
873,187
12,760
1,326
1,276
888,549
At 31 December 2023
882,862
17,758
7,586
14,496
922,702
13
Inventories
2024
2023
£
£
Finished goods and goods for resale
3,807,114
3,630,885
An impairment provision of £366,277 (2023: £394,407) has been recognised in the year against inventories.
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
14
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
755,684
1,150,259
Corporation tax recoverable
110,716
64,920
Other receivables
27,240
38,653
Prepayments and accrued income
101,624
241,403
995,264
1,495,235
Deferred tax asset (note 16)
167,676
78,314
1,162,940
1,573,549
Trade receivables are stated after bad debt provisions of £3,482 (2023: £nil). The impairment charge is included within administrative expenses.
15
Current liabilities
2024
2023
£
£
Trade payables
1,494,916
2,344,164
Taxation and social security
175,490
108,666
Other intercompany payables
2,462,072
2,203,132
Accruals and deferred income
219,651
257,184
4,352,129
4,913,146
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
72,857
78,314
Other short term timing differences
94,819
-
167,676
78,314
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Asset at 1 January 2024
(78,314)
Credit to profit or loss
(89,362)
Asset at 31 December 2024
(167,676)
The future reversal of the deferred tax asset primarily relates to the reversal of timing differences between tangible fixed asset capital allowances and depreciation and also expected tax deductions when provisions are utilised. The net deferred tax asset expected to reverse in 2025 is £Nil.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Class of £1 each
1,000
1,000
1,000
1,000
B Class of £1 each
1
1
1
1
C Class of £1 each
1
1
1
1
D Class of £1 each
1
1
1
1
E Class of £1 each
1
1
1
1
F Class of £1 each
1
1
1
1
G Class of £1 each
1
1
1
1
H Class of £1 each
2
2
2
2
I Class of £1 each
2
2
2
2
J Class of £1 each
2
2
2
2
K Class of £1 each
2
2
2
2
L Class of £1 each
2
2
2
2
M Class of £1 each
2
2
2
2
N Class of £1 each
2
2
2
2
O Class of £1 each
2
2
2
2
P Class of £1 each
2
2
2
2
Q Class of £1 each
2
2
2
2
1,026
1,026
1,026
1,026
Only the A shares carry any voting rights. All of the other classes of shares only confer the rights to receive dividends in accordance with the votes of A class shareholders.
EQUIP4WORK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
263,261
229,000
Between two and five years
588,796
706,083
852,057
935,083
19
Events after the reporting date
No material events occurred after the reporting date.
20
Related party transactions
The company has taken advantage of exemption under section 33.1A from disclosing related party transactions with group members which are wholly owned.
21
Ultimate controlling party
TAKKT AG (incorporated in Germany) is regarded by the directors as being the company's ultimate parent company.
Group consolidated financial statements are available via www.takkt.de.
The registered office address of TAKKT AG is: Presselstraße 12, 70191 Stuttgart, Germany.
TAKKT Industrial & Packaging GmBH is the company's immediate parent company following its merger with previous parent company Newport. TAKKT GmBH on 14 May 2024.
The registered office address of TAKKT Industrial & Packaging GmBH is: Presselstraße 12, 70191 Stuttgart, Germany.
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