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Company registration number: 05680377







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024


LOESCHE ENERGY SYSTEMS LIMITED






































                      

 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
COMPANY INFORMATION


Directors
D Hughes 
R N Kleusch 
R Zerbe 




Registered number
05680377



Registered office
4th Floor Springfield House
Springfield Road

Horsham

West Sussex

RH12 2RG




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY





 


LOESCHE ENERGY SYSTEMS LIMITED
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 28


 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors hereby present their strategic report together with the audited financial statements for the year ended 31 December 2024.

Business review
 
Our success lies in our strategic framework, business model, strategy, sustainability and our people.
In 2024, Loesche Energy Systems continued to implement its strategy of targeting the UK market for the supply of grinding terminals for various customer products. Loesche grinding terminals provide a complete grinding system, catering to specific fineness requirements while offering efficiency and flexibility that benefit our customers' operations. A key driver behind the demand for this technology is the sustainability and CO2 reduction targets set by our customers across multiple industries, with the cement sector being a notable example. The cement industry’s increasing reliance on substitute materials in the manufacturing process has fueled this demand. In 2023, the company secured a contract for the supply of a grinding terminal in the UK, focusing on aggregate grinding, which commenced in February 2024. This market is expected to be a key focus in the coming years, as the demand for grinding terminals continues to grow. Loesche also operates an in-house test facility, enabling customers to test the grinding of various materials. Many customers actively utilize this facility, with the test results forming the foundation for the guarantees provided regarding the quality of their final products, including product throughput, fineness, power cosumption and mosture gurantees.
Regarding the power market, the company is concentrating on the Polish sector, specifically focusing on the conversion of outdated coal-fired power plants to biomass. Loesche provides specially designed biomass mills as retrofits to replace the existing coal mills, delivering the optimal technical solution for our customers during the transition from coal to biomass fuel.
The Company's strategy in the waste market shows a large potential in the coming years. The Company was awarded a significant contract of $36m in Q4 FY 2020 in waste for this market with the project site located in the Caribbean which has been re-negotiated to $48M in 2022. This contract now sits close to $54M in 2024 after further variations. The notice to proceed is expected in Q2 2025. Furthermore, additional orders are expected to be realized during FY 2025 detailed in our business planning and forecasting.
The company continues to experience long-term success in its after-sales segment. While spare parts sales reached £400K in 2024, we secured orders totalling approximately £3M, which will be delivered and invoiced in 2025. We expect continued growth, driven by substantial inquiries from returning clients in Botswana and Poland. This segment will remain a strategic focus in 2025 and 2026, with a projected turnover of over £5.6M across the two years. Our customer base remains geographically diverse, a trend we expect to persist in the coming years.
A summary of the current financial position of the Company shows the Company has ended the year with a net current liabilities position of £1,410,664 (2023 - £323,948). The Company has overall net liabilities of £9,139,963 (2023 - £8,465,577), principally due to amounts owed to group undertakings. Although the Company is reliant upon group undertakings, the amounts owed in the form of loans are not due until 31 December 2025 with an option to extend. The Company expects to be in a position to reduce amounts owed to group undertakings during 2025 once the project in the Caribbean commences.
The Company increased turnover to £5.2m (2023 - £2.3m) due tothe commencement of a UK Project and made a net loss of £1.1m (2023 – £1.6M). Unfortunately the loss made in the financial year was mostly attributable to the write off of a significant large amount owed due to a clients bankruptcy proceedings.  The Company made foreign exchange gains during the year of £327K (2023 £142K). The focus is now to sustainably increase profitability through our diversification into the waste market as well as further development of other markets.
Subsidiary investment
The company took the strategic decision to set up a subsidiary company in India mamed Loesche Energy Systems India Private limited (LESI); the company effectively moved the Power market business to LESI as the Power market opportunities are today mostly around the far East and Asia markets. LESI continues to perform very well and for the year ended 31.03.2024, the company reported Sales Revenues of £7.2M. LESI has proven to be a profitable venture for us, delivering a pre-tax profit of £627K for the year ended 31.03.2024 (y.e. 31.03.23 – £359K).
The Loesche Group Turnover for 2024 was €394M (€276M in 2022) with currently approximately 850 employees worldwide.

Page 1

 


LOESCHE ENERGY SYSTEMS LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties

A management review of the principal risks facing the Company is undertaken at each board meeting. Company strategies are then developed to either mitigate or take advantage of the opportunity or uncertainty.
Revenue recognition
Uncertainties may arise from potential delays in the dates some orders are realised as observed in previous years. This in turn affects the year in which revenues are recognised. The Company operates in markets worldwide and therefore order intake timings are to some extent not subject to regional fluctuations.
Foreign exchange
The Company operates on a global basis and is subject to foreign exchange fluctuations. Due to the nature of long-term construction contracts the Company monitors closely foreign exchange rates and applies instruments to help mitigate these risks when required, however this is not always possible where the timing and amount of cash flows are not known.

Credit risk
Credit risk remains a key area for most businesses. The Company operates credit checks on both suppliers and customers. The recoverability of debt is a potential major risk when retention payments are held on long term construction contracts. These debts are closely reviewed and reported. Wherever possible the Company will require financial protection in the form of letters of credit from our customers.
Inflation
The Company continue to monitor price increases from suppliers. Whilst these increases are in line with our forecasts, we do not see any other alternative other than passing on the price increases to our customers. Our processes ensure current supplier prices are included in our costings and are continuously reviewed as well as ensuring price validity periods are utilised on both cost and revenue contracts. 

Financial key performance indicators
 
Turnover and pre-tax profitability remains as the focal point of the Company's KPI's. Measuring these KPI's across each revenue stream allows the Company to measure and achieve better efficiencies.
Moving forward, our strategic focus will be on driving growth in the cement and aggregates market, while simultaneously securing opportunities in the thermal and waste energy sectors. This will support the continued development of the mineral markets in collaboration with our parent company. The successful execution of this diversification strategy will lead to a stronger order pipeline, reduced dependence on individual customers, and better positioning of the Company in a low-carbon economy.


This report was approved by the board and signed on its behalf.



D Hughes
Director

Date: 27 June 2025

Page 2

 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
DIRECTORS' REPORT 
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The Company's principal activity is the supply of grinding and classification products to customers predominantly in the electricity generating industry. As well as providing fuel conditioning systems within the field of waste for producing renewable fuels for substitution of traditional fossil fuels.

Going Concern

The Company made a loss before tax of £1,052,530 (2023 - £1,529,673) in the year and has net current liabilities of £1,410,664 (2023 - £323,948) at the year end and net liabilities of £9,139,963 (2023 - £8,465,577). Within short term creditors due in less than one year is a balance of £5,087,707 (2023 - £5,259,418) which Loesche Energy Systems Limited owes to the ultimate parent undertaking, Loesche GmbH.
 
The ultimate parent undertaking, Loesche GmbH, has confirmed that they will not recall the short term creditor due and will  provide additional support of up to €3m should the Company require it to ensure it is able to meet its liabilities as they fall due.
 
The directors have performed an assessment of going concern, giving due consideration to the Company's historical and current trading, together with its forward-looking projections. Given this, the directors consider that the financial statements should be prepared on a going concern basis. 

Results and dividends

The loss for the year, after taxation, amounted to £1,110,372 (2023 -loss £1,590,006).

During the year no dividend was paid to the parent Company Loesche GmbH (2023 - £Nil).

Page 3

 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


Directors

The directors who served during the year were:

D Hughes 
R N Kleusch 
R Zerbe 

Future developments

Future and on-going developments at Loesche Energy Systems Limited include:
Development of waste to energy business
After recent success in this field, the Company has on hand a significant order. This project incorporates further technology which is critical to the business model in a drive to substitute fossil fuels.
Development of joint development agreement with key partners including the gasification process of fuels to produce renewable liquid fuels. 
Developments have progressed to establish a joint development platform with our key technology partners which will give us a platform to develop projects jointly on a global level.  The know-how and experience gained through projects already executed together will ensure the approach will be unique in the market.
Co firing of waste fuels and other alternative fuels
Looking ahead a key segment for Loesche Energy Systems will be plants with the capability of co firing waste fuels/biomass. 

Matters covered in the Strategic Report

As permitted by Paragraph 1A of Schedule 7 to the large and medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the Directors' Report have been omitted as they are included in the Strategic Report on page 1. These matters relate to the review and analysis of the business during the year.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

Under section 487 (2) of the Companies House act of 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the register, whichever is earlier.

Page 4

 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

This report was approved by the board and signed on its behalf.
 


D Hughes
Director
Date: 27 June 2025
4th Floor Springfield House
Springfield Road
Horsham
West Sussex
RH12 2RG



Page 5

 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOESCHE ENERGY SYSTEMS LIMITED

Opinion


We have audited the financial statements of Loesche Energy Systems Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its loss 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 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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 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 ReportOur 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.


Page 6

 


LOESCHE ENERGY SYSTEMS LIMITED



 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOESCHE ENERGY SYSTEMS LIMITED (CONTINUED)

Opinion 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.


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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 3, 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.


Page 7

 


LOESCHE ENERGY SYSTEMS LIMITED



 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOESCHE ENERGY SYSTEMS LIMITED (CONTINUED)

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.


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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
UK health and safety legislation;
General Data Protection Regulations; and 
UK tax legislation

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance consdiered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process
Challenging assumptions and judgements mad by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the Company's financial position;
Posting of unusual journals and complex transactions;
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.
Increased detection rsit due to turnover of staff within the Company's finance team

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 Auditor's Report.


Page 8

 


LOESCHE ENERGY SYSTEMS LIMITED



 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOESCHE ENERGY SYSTEMS LIMITED (CONTINUED)

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 2006Our 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.





Anna Johnston ACA (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

27 June 2025
Page 9

 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
5,215,449
2,284,828

Cost of sales
  
(4,065,510)
(1,315,974)

Gross profit
  
1,149,939
968,854

Administrative expenses
  
(2,051,749)
(2,297,979)

Operating loss
 5 
(901,810)
(1,329,125)

Loss from changes in fair value of investments
  
-
(124,999)

Interest receivable and similar income
 9 
119,645
200,950

Interest payable and similar expenses
 10 
(477,542)
(517,480)

Other finance income/(expense)
  
207,177
240,981

Loss before tax
  
(1,052,530)
(1,529,673)

Tax on loss
 12 
(57,842)
(60,333)

Loss after tax
  
(1,110,372)
(1,590,006)

  

  

Retained earnings at the beginning of the year
  
(11,088,640)
(9,498,634)

  
(11,088,640)
(9,498,634)

Loss for the year
  
(1,110,372)
(1,590,006)

Retained earnings at the end of the year
  
(12,199,012)
(11,088,640)
The notes on pages 13 to 28 form part of these financial statements.

Page 10

 


LOESCHE ENERGY SYSTEMS LIMITED
REGISTERED NUMBER:05680377



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
147,896
158,744

Investments
 14 
928,578
928,578

  
1,076,474
1,087,322

Current assets
  

Stocks
 15 
85,716
137,567

Debtors: amounts falling due after more than one year
 16 
3,229,758
4,585,664

Debtors: amounts falling due within one year
 16 
4,878,631
1,958,273

Cash at bank and in hand
  
1,676,931
745,484

  
9,871,036
7,426,988

Creditors: amounts falling due within one year
 17 
(11,281,700)
(7,750,936)

Net current liabilities
  
 
 
(1,410,664)
 
 
(323,948)

Total assets less current liabilities
  
(334,190)
763,374

Creditors: amounts falling due after more than one year
 18 
(8,719,729)
(9,142,907)

Provisions for liabilities
  

Other provisions
 20 
(86,044)
(86,044)

  
 
 
(86,044)
 
 
(86,044)

Net liabilities
  
(9,139,963)
(8,465,577)


Capital and reserves
  

Allotted, called up and fully paid share capital
 21 
2,152,205
2,152,205

Other reserves
 22 
906,844
470,858

Profit and loss account
 22 
(12,199,012)
(11,088,640)

  
(9,139,963)
(8,465,577)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




D Hughes
Director

Date: 27 June 2025

The notes on pages 13 to 28 form part of these financial statements.

Page 11

 


LOESCHE ENERGY SYSTEMS LIMITED
 



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


Allotted, called up and fully paid share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
2,152,205
-
(9,498,634)
(7,346,429)


Comprehensive income for the year

Loss for the year
-
-
(1,590,006)
(1,590,006)
Total comprehensive income for the year
-
-
(1,590,006)
(1,590,006)


Contributions by and distributions to owners

Capital contribution from parent company
-
470,858
-
470,858


Total transactions with owners
-
470,858
-
470,858



At 1 January 2024
2,152,205
470,858
(11,088,640)
(8,465,577)


Comprehensive income for the year

Loss for the year
-
-
(1,110,372)
(1,110,372)
Total comprehensive income for the year
-
-
(1,110,372)
(1,110,372)


Contributions by and distributions to owners

Capital contribution from parent company
-
435,986
-
435,986


At 31 December 2024
2,152,205
906,844
(12,199,012)
(9,139,963)


The notes on pages 13 to 28 form part of these financial statements.

Page 12

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

1.


General information

Loesche Energy Systems Limited is a private Company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office is given on the Company information page and the nature of the Company's operations and its principal activity are set out in the directors' report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Loesche GmbH as at 31 December 2024 and these financial statements may be obtained from Loesche GmbH, Hansaallee 243, 40543 Dusseldorf, Germany.

  
2.3

Exemption from preparing consolidated financial statements

The Company is a parent Company that is also a subsidiary included in the consolidated financial statements of its immediate parent undertaking established under the law of a non-UK state and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006. The consolidated financial statements of the immediate parent undertaking have been submitted to Companies House in accordance with the Companies Act 2006 and are filed alongside these financial statements.

Page 13

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

2.Accounting policies (continued)

 
2.4

Going concern

The Company made a loss before tax of £1,052,530 (2023 - £1,529,673) in the year and has net current liabilities of £1,410,664 (2023 - £323,948) at the year end and net liabilities of £9,139,963 (2023 - £8,465,577). Within short term creditors due in less than one year is a balance of £5,087,707 (2023 - £5,259,418) which Loesche Energy Systems Limited owes to the ultimate parent undertaking, Loesche GmbH.
 
The ultimate parent undertaking, Loesche GmbH, has confirmed that they will not recall the short term creditor due and will  provide additional support of up to €3m should the Company require it to ensure it is able to meet its liabilities as they fall due.
 
The directors have performed an assessment of going concern, giving due consideration to the Company's historical and current trading, together with its forward-looking projections. Given this, the directors consider that the financial statements should be prepared on a going concern basis. 

  
2.5

Turnover

Long-term contracts are assessed on a contract by contract basis and are reflected in the statement of income and retained earnings by recording turnover and related costs as contract activity progresses. Where the outcome of each long-term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the statement of comprehensive income as the difference between the reported turnover and related costs for that contract. Full provision is made  for losses on all contracts in the year in which the loss is first foreseen.
Sales of spare parts are recognised when the delivery conditions are satisfied such that the risks and rewards of ownership have passed to the customer. The point of recognition is determined on a case by case basis for each transaction based on the shipping terms as agreed with the customer.
Other turnover is recognised on an accruals basis according to the period in which the services are rendered.

 
2.6

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP and the accounts are rounded to the nearest £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

2.Accounting policies (continued)

 
2.7

Operating leases

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

Equipment hire income is recognised on a straight line basis of over the team of the relevant lease.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 15

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
4-10 years
Fixtures and fittings
-
4 years
Office equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in listed and unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at cost less impairment. If a reliable measure of fair value is no longer available for an asset measured at fair value its carrying amount at the last date the asset was reliably measurable becomes its new cost.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 16

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

2.Accounting policies (continued)

 
2.15

Financial instruments

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small Company, or a public benefit entity concessionary loan. 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

  
2.16

Warranty provision

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
The Company provides a warranty on all equipment supplied for a defined period. Provision is made for expected rectification work according to the value of the equipment supplied on completion of the contract.
Provisions are charged as an expense to the statement of comprehensive income in the year that the Company becomes aware of an obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the statement of financial position.

Page 17

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:
 
Determine whether leases entered into by the Company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. 
 
Determine whether there are indicators of impairment of the Company's investment in subsidiaries. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance.
 
Determine whether a reliable estimate of market value is ascertainable in respect of other fixed asset investments. Where a reliable market value is not ascertainable, these investments will be held at cost less impairment.
 
Determine whether there are indicators of impairment of the Company's other fixed asset investments which are recorded at cost less impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance.
 
Other key sources of estimation uncertainty:
 
Contract recognition
Ascertaining the progress of the contracts in place involved estimation of forecasting the projected future expenditure on each contract and using this to calculate a percentage of completion. The percentage of completion is calculated by taking the total costs to date and dividing the estimated total costs for the projects.
 
Provision for impairment of trade and other receivables
Impairment of trade and other receivables is made based on an assessment of the recoverability of the receivables, requiring management's judgement and estimates if there are indicators of impairment.
 
Recognition of deferred tax asset
The directors are required to estimate the appropriate amount of deferred tax assets to be recognised on carry forward assessed tax losses. The estimate is based on the expected level and timing of future taxable profits against which the losses can be offset.
 

Page 18

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Services
4,630,122
318,954

Goods
393,206
1,551,861

Royalties
58,959
86,720

Other
133,162
327,293

5,215,449
2,284,828


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
4,487,082
52,226

Rest of Europe
83,983
678,165

Rest of the world
644,384
1,554,437

5,215,449
2,284,828



5.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
34,544
37,125

(Gain)/loss on foreign exchange
(119,864)
99,424

Other operating lease rentals
68,676
64,287

Fees payable to the Company's auditor for the audit of the Company's annual 
financial statements
44,350
41,990

Page 19

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
638,525
660,573

Social security costs
72,759
70,587

Cost of defined contribution scheme
60,191
34,333

771,475
765,493


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
15
15


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
119,500
107,452

Company contributions to defined contribution pension schemes
8,414
5,664

127,914
113,116


During the year retirement benefits were accruing to 1 director (2023 -1) in respect of defined contribution pension schemes.


8.


Income (losses) from investments

2024
2023
£
£

Fair value movements on listed investments
-
(124,999)

-
(124,999)






Page 20

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

9.


Interest receivable

2024
2023
£
£


Interest receivable from group companies
119,645
113,093

Other interest receivable
-
87,857

119,645
200,950


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
-
3,292

Loans from group undertakings
477,542
514,188

477,542
517,480


11.


Other finance costs

2024
2023
£
£

Foreign currency gains (losses) on financing transactions
207,177
240,981



12.


Taxation


2024
2023
£
£


Foreign tax


Foreign tax in respect of prior periods
57,842
60,333

57,842
60,333

Total current tax
57,842
60,333

Deferred tax

Total deferred tax
-
-


Tax on loss
57,842
60,333
Page 21

 


LOESCHE ENERGY SYSTEMS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 -higher than) the standard rate of corporation tax in the UK of 25% (2023 -23.52%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(1,052,530)
(1,529,673)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -23.52%)
(263,133)
(359,779)

Effects of:


Adjustments to tax charge in respect of prior periods
(91,222)
-

Unrelieved tax losses not provided for
486,607
359,779

Irrecoverable withholdings tax
(74,410)
60,333

Total tax charge for the year
57,842
60,333


13.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost


At 1 January 2024
431,497
177,813
550,607
1,159,917


Additions
-
7,037
16,659
23,696



At 31 December 2024

431,497
184,850
567,266
1,183,613



Depreciation


At 1 January 2024
277,432
175,741
548,000
1,001,173


Charge for the year on owned assets
27,842
628
6,074
34,544



At 31 December 2024

305,274
176,369
554,074
1,035,717



Net book value



At 31 December 2024
126,223
8,481
13,192
147,896



At 31 December 2023
154,065
2,072
2,607
158,744

Page 22

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost and net book value


At 1 January 2024
928,578



At 31 December 2024
928,578







Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Loesche Energy Systems India Private Limited
D - 83, Sector - 2 Noida - 201301 Uttar Pradesh, India
Ordinary
97%

The results of the above are included in the consolidated financial statements of Loesche GmbH.


15.


Stocks

2024
2023
£
£

Raw materials and consumables
85,716
137,567

85,716
137,567


Page 23

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

16.


Debtors

2024
2023
£
£

Due after more than one year

Trade debtors
-
1,071,882

Amounts owed by group undertakings
1,865,376
2,149,400

Deferred tax asset
1,364,382
1,364,382

3,229,758
4,585,664


Amounts owed by group undertakings are unsecured, bear interest at 5% and were repaid by 31 March 2024.

2024
2023
£
£

Due within one year

Trade debtors
311,392
657,914

Amounts owed by group undertakings
725,681
1,063,822

Other debtors
32,944
105,736

Prepayments and accrued income
739,582
130,801

Amounts recoverable on long-term contracts
3,069,032
-

4,878,631
1,958,273


Included within trade debtors is an amount of £NIL (2023 - £1,339,364) and an amount of £NIL (2023 - £NIL) included in amounts recoverable on long term contracts, both of which are due in installments over the next four years.


17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
142,741
324,067

Amounts owed to group undertakings
6,776,714
7,001,331

Other taxation and social security
21,849
18,776

Other creditors
756,839
46,514

Accruals and deferred income
3,583,557
360,248

11,281,700
7,750,936


The Company's bank overdraft facilties are secured on the assets of its parent Company, Loesche GmbH. This is not utilised as at 31 December 2024 or 2023.

Page 24

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Amounts owed to group undertakings
8,719,729
9,142,907

8,719,729
9,142,907


Amounts owed to group undertakings are unsecured, bear interest  and are repayable on 31 December 2028.


19.


Deferred taxation




2024


£






At beginning of year
1,364,382



At end of year
1,364,382

The deferred tax asset is made up as follows:

2024
2023
£
£


Fixed asset timing differences
(60,014)
(60,014)

Short term timing differences
1,872
1,872

Losses and other deductions
1,422,524
1,422,524

1,364,382
1,364,382


In addition to the above, the Company has an unprovided deferred tax asset of £2,238,101 (2023 - £2,033,485) relating to trading losses. This asset has not been recognised as there is uncertainty over its recovery at the balance sheet date.


20.


Provisions




Warranty provision

£





At 1 January 2024
86,044



At 31 December 2024
86,044

Page 25

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

21.


Share capital

2024
2023
£
£
Authorised, allotted, called up and fully paid



2,152,205 (2023 - 2,152,205) Ordinary shares of £1.00 each
2,152,205
2,152,205

Each ordinary share carries voting rights and there are no restrictions on the distribution of dividends.



22.


Reserves

The Company's capital and reserves are as follows:
Allotted, called up and fully paid share capital
Allotted, called up and fully paid share capital represents the nominal value of the shares issued.
Profit and loss account
The profit and loss account represents cumulative profits or losses net of dividends paid and other adjustments.
Other reserves
Other reserves represent capital contributions from the parent company.


23.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £60,191 (2023 - £34,333). At year end contributions payable of £8,414 (2023 - £5,357) were outstanding and are included in other creditors.

Page 26

 


LOESCHE ENERGY SYSTEMS LIMITED
 


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

24.


Commitments under operating leases

Lessee


At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
59,567
52,055

Later than 1 year and not later than 5 years
224,400
3,520

Later than 5 years
173,131
-

457,098
55,575

Lessor


At 31 December 2024 the future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:

2024
2023
£
£


Not later than 1 year
47,678
-

Later than 1 year and not later than 5 years
65,955
-

113,633
-


25.


Related party transactions

The Company is a wholly owned subsidiary of Loesche GmbH and has taken advantage of the exemption conferred by FRS 102 section 33.1A not to disclose transactions with Loesche GmbH or other wholly owned subsidiaries within the group.
At the year end, the Company was owed the following balances by its subsidiary, Loesche Energy Systems India Private Ltd:
£291,990 
(2023 - £415,284) trade debtor balance included within intercompany balances due within 1 year.
Loan debtor balance of  £1,865,376 (2023 - £2,149,400) included within intercompany balances due within more than 1 year, on which interest was accruing at a rate of 5%.
At the year end the Company owed the following balances to its subsidiary, Loesche Energy Systems India Private Ltd:
£274,112 
(2023 - £439,480)  trade creditor balance included within intercompany balances owing within 1 year.
 

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LOESCHE ENERGY SYSTEMS LIMITED
 


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

26.


Controlling party

The Company's controlling party is Loesche GmbH, a Company which is incorporated in Germany. The ultimate controlling party is T Loesche.
The largest and smallest group in which the results of the Company are consolidated is that headed by Loesche GmbH, incorporated in Germany. The consolidated accounts of this Company are available to the public and may be obtained from Loesche GmbH, Hansaallee 243, 40543 Dusseldorf, Germany.

 
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