Company registration number 08265471 (England and Wales)
APELSON APPLIANCES UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
APELSON APPLIANCES UK LIMITED
COMPANY INFORMATION
Directors
J J Morales Del Pino
Mr J Hunter-Jones
(Appointed 12 September 2024)
Mr S Torrent Lopez De LaMadrid
(Appointed 12 September 2024)
Company number
08265471
Registered office
Apelson Appliances UK Ltd
Good Hope Close
Normanton
West Yorkshire
United Kingdom
WF6 1TB
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
APELSON APPLIANCES UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
APELSON APPLIANCES UK LIMITED
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 UK domestic appliances market faced a slight decline in the financial year due to subdued demand and cautious consumer spending amid ongoing financial pressures, exacerbated by comparatively higher interest rates than in prior years.
Moreover, the Leisure and Tourism market in the UK continued to correct itself after the boom of the pandemic, leading to challenges for customers of overstocking and financial constraints. This led to lower demand for our product in this sector and a reduction in revenue of 47% in 2024 compared to the previous year.
The Company continued to concentrate on building market share in its B2B and trade business, outside of the national kitchen retailers and increased its revenue in this sector by 32%.
Apelson continued to closely monitor its B2C pricing to ensure it would not impact on its B2B business. This resulted in a drop in revenue of over 35% in that business segment.
As a result, overall revenue decreased by 7.8% in 2024 v 2023, with the increased B2B revenue failing to fully offset the reductions in Leisure and B2C sector.
Gross margin on product sales increased by 1% in 2024 due to more robust pricing, which led to an increase in Gross Profit from £5.5m to £6.4m. However shipping costs increased significantly in 2024 due to conflicts and political instability leading to disruption to shipping routes, increased insurance costs and port congestion. Third party storage and handling costs also increased, due to increased fuel costs and the relatively high levels of stocks held, in order to mitigate the risk of stock outage due to shipping issues.
Consequently, Apelson recorded a small post tax profit of £0.026m in 2024 (2023: loss of £0.142m).
The Group’s balance sheet continues to show a strong position with net assets amounting to £2.9m (2023 - £3.1m).
The Group recognises the importance of maintaining good business relationships with its suppliers and remains committed to paying all invoices in accordance with agreed terms.
Despite the above challenges, and due to the change of focus of the Company to business to business operations, new product developments and an improved outlook around shipping costs, the long term future looks very encouraging and the Directors fully expect that the financial results for 2025 will show a more positive outlook.
APELSON APPLIANCES UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
Risk is an inevitable part of business. Management monitors the key risks that the business faces and take action to mitigate those risks.
Economic risk
We have seen recent and somewhat unexpected increase in inflation in the UK economy and along with increased interest rates these factors have combined to limit the spending capacity of consumers. The business is exposed to different aspects of consumer spending (capital / refurbishment, discretionary / replacement, and necessary / break down) and management feel that through the diversification of the customer base and sales channels this provides a mitigation to this risk.
Strategic risk
We continue to invest in new opportunities and areas of growth in order to diversify our offering. Significant work is undertaken to develop and source products that are at the right price points and market position for our customers. Management closely monitors consumer trends and preferences in order to maintain stock of relevant products for our customers.
Manufacture and supply chain risk
The business has developed associations with several manufacturers both near shore and in the Far East and has a broad portfolio of products which helps reduce the risk around supply issues and delays. Along with holding increased stock levels throughout 2024, the business has developed relationships with transport businesses to aid in the fluid movement of goods.
Financial risk
The principal financial risk is having the funds available at the right time to meet business needs. This risk is managed by forecasting cash flow to ensure that adequate funds are available to meet liabilities. The business has working capital facilities in place to fund operations and growth opportunities.
Product purchases are largely denominated in foreign currency and the management team utilise the cash flow forecast to assess the timing and amount of foreign currency requirements. Forward contracts are utilised to cover a portion of the foreign currency exposure in order to provide greater certainty on the cash requirement to settle the liabilities. Payments are also made using spot rates. The business does not have a policy to buy forward or hold foreign currency speculatively. Currency forward contracts are hedge accounted for at fair value.
Business interruption
A significant disaster at our operational sites would have a substantial impact on our business. To mitigate this risk, our systems are cloud based and remotely accessible by staff meaning neither a loss of data or lack of access by staff. Stock is also at multiple sites which would minimise disruption on supply.
Key performance indicators
The main financial key performance indicators that are monitored by the management team are revenue, product gross margin and EBITDA. Overall revenue decreased by £1.7m (7.8%), this was driven by a £1.4m decrease in Leisure sector revenue and £1.3m decrease in E-commerce revenue, only partially offset by an increase in B2B revenue. Product gross margin increased to c33% as a result of improved pricing in Trade and Electrical Retail sectors and lower B2C sales generating a higher margin. EBITDA finished the year at £0.6m (2023: £0.5m).
APELSON APPLIANCES UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Mr J Hunter-Jones
Director
31 July 2025
APELSON APPLIANCES UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company and group continued to be that of the importation and distribution of kitchen appliances and the provision of after sales support services.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J J Morales Del Pino
Mr J Hunter-Jones
(Appointed 12 September 2024)
Mr S Torrent Lopez De LaMadrid
(Appointed 12 September 2024)
M Johnson
(Resigned 21 November 2024)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr J Hunter-Jones
Director
31 July 2025
APELSON APPLIANCES UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
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 group and company, and of the profit or loss of the group 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 group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
APELSON APPLIANCES UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF APELSON APPLIANCES UK LIMITED
- 6 -
Opinion
We have audited the financial statements of Apelson Appliances UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
APELSON APPLIANCES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF APELSON APPLIANCES UK LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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, 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 parent 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 parent 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
APELSON APPLIANCES UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF APELSON APPLIANCES UK LIMITED
- 8 -
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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
31 July 2025
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
APELSON APPLIANCES UK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
19,523,481
21,177,966
Cost of sales
(13,110,548)
(15,692,481)
Gross profit
6,412,933
5,485,485
Distribution costs
(934,042)
(940,049)
Administrative expenses
(5,161,756)
(4,385,733)
Operating profit
4
317,135
159,703
Interest receivable and similar income
8
201,730
201,510
Interest payable and similar expenses
9
(493,399)
(455,361)
Profit/(loss) before taxation
25,466
(94,148)
Tax on profit/(loss)
10
(48,062)
Profit/(loss) for the financial year
25,466
(142,210)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(275,571)
114,556
Total comprehensive income for the year
(250,105)
(27,654)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
APELSON APPLIANCES UK LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
110,790
134,388
Other intangible assets
11
848,038
996,292
Total intangible assets
958,828
1,130,680
Tangible assets
12
725,755
682,363
1,684,583
1,813,043
Current assets
Stocks
15
7,509,969
8,919,348
Debtors
16
9,843,872
9,497,609
Cash at bank and in hand
57,895
198,400
17,411,736
18,615,357
Creditors: amounts falling due within one year
19
(14,974,177)
(15,670,265)
Net current assets
2,437,559
2,945,092
Total assets less current liabilities
4,122,142
4,758,135
Creditors: amounts falling due after more than one year
20
(658,334)
(951,584)
Provisions for liabilities
Provisions
21
500,112
592,750
Deferred tax liability
22
73,133
73,133
(573,245)
(665,883)
Net assets
2,890,563
3,140,668
Capital and reserves
Called up share capital
24
20,000
20,000
Profit and loss reserves
2,870,563
3,120,668
Total equity
2,890,563
3,140,668
The financial statements were approved by the board of directors and authorised for issue on 31 July 2025 and are signed on its behalf by:
31 July 2025
Mr J Hunter-Jones
Director
Company registration number 08265471 (England and Wales)
APELSON APPLIANCES UK LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
434,252
495,191
Tangible assets
12
725,755
682,363
Investments
13
1,098,394
1,098,394
2,258,401
2,275,948
Current assets
Stocks
15
7,509,969
8,919,348
Debtors
16
9,338,733
8,920,221
Cash at bank and in hand
52,684
182,295
16,901,386
18,021,864
Creditors: amounts falling due within one year
19
(14,917,161)
(15,548,308)
Net current assets
1,984,225
2,473,556
Total assets less current liabilities
4,242,626
4,749,504
Creditors: amounts falling due after more than one year
20
(658,334)
(951,584)
Provisions for liabilities
Provisions
21
500,112
592,750
Deferred tax liability
22
73,133
73,133
(573,245)
(665,883)
Net assets
3,011,047
3,132,037
Capital and reserves
Called up share capital
24
20,000
20,000
Profit and loss reserves
2,991,047
3,112,037
Total equity
3,011,047
3,132,037
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £120,990 (2023 - £169,574 loss).
The financial statements were approved by the board of directors and authorised for issue on 31 July 2025 and are signed on its behalf by:
31 July 2025
Mr J Hunter-Jones
Director
Company registration number 08265471 (England and Wales)
APELSON APPLIANCES UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
20,000
3,148,322
3,168,322
Year ended 31 December 2023:
Loss for the year
-
(142,210)
(142,210)
Other comprehensive income:
Currency translation differences
-
114,556
114,556
Total comprehensive income
-
(27,654)
(27,654)
Balance at 31 December 2023
20,000
3,120,668
3,140,668
Year ended 31 December 2024:
Profit for the year
-
25,466
25,466
Other comprehensive income:
Currency translation differences
-
(275,571)
(275,571)
Total comprehensive income
-
(250,105)
(250,105)
Balance at 31 December 2024
20,000
2,870,563
2,890,563
APELSON APPLIANCES UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
20,000
3,281,611
3,301,611
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(169,574)
(169,574)
Balance at 31 December 2023
20,000
3,112,037
3,132,037
Year ended 31 December 2024:
Profit and total comprehensive income
-
(120,990)
(120,990)
Balance at 31 December 2024
20,000
2,991,047
3,011,047
APELSON APPLIANCES UK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,999,058
481,988
Interest paid
(493,399)
(455,361)
Income taxes paid
(109,327)
(297,834)
Net cash inflow/(outflow) from operating activities
1,396,332
(271,207)
Investing activities
Purchase of intangible assets
(38,677)
(68,937)
Purchase of tangible fixed assets
(140,670)
(292,535)
Proceeds from disposal of tangible fixed assets
-
900
Interest received
201,730
201,510
Net cash generated from/(used in) investing activities
22,383
(159,062)
Financing activities
Repayment of borrowings
(499,999)
(500,000)
Repayment of bank loans
(701,459)
953,701
Payment of finance leases obligations
(100,542)
(82,187)
Net cash (used in)/generated from financing activities
(1,302,000)
371,514
Net increase/(decrease) in cash and cash equivalents
116,715
(58,755)
Cash and cash equivalents at beginning of year
198,400
157,551
Effect of foreign exchange rates
(257,220)
99,604
Cash and cash equivalents at end of year
57,895
198,400
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information
Apelson Appliances UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of Apelson Appliances UK Limited and all of its subsidiaries.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
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.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Apelson Appliances UK Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.7
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
10 - 50% straight line basis
Patents & licences
5 years straight line
Development costs
5 years straight line
1.8
Tangible fixed assets
Tangible fixed assets 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:
Leasehold improvements
10 years straight line
Plant and equipment
10 - 50% straight line basis
Motor vehicles
4 years straight line
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 recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.10
Impairment of fixed assets
At each reporting period end date, the group 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
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.
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest 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.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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 group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest 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.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
1.16
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Warranty provision
Warranty provisions are calculated as a percentage of the average annual sales figures, based upon historic warranty claims data, and included as an expense within sales.
Inventories
Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete inventories. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.
Bad debt provision
The recoverability of debtors is based upon management judgement if a debtor is not to pay within their set payment terms. The recognition point at which a debtor is deemed to become bad and is to be written off is also considered a key estimate, however this risk is mitigated to an extent as a result of the company having credit insurance so a bad debt would still have an element of recovery.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Product sales
16,140,631
17,718,777
After sales servicing income
3,161,355
3,233,925
Brand royalties
221,495
225,264
19,523,481
21,177,966
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,086,388
20,444,542
EU
1,437,093
733,424
19,523,481
21,177,966
2024
2023
£
£
Other revenue
Interest income
201,730
201,510
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
118,985
7,729
Depreciation of owned tangible fixed assets
97,278
43,193
Depreciation of tangible fixed assets held under finance leases
-
18,752
Profit on disposal of tangible fixed assets
-
(900)
Amortisation of intangible assets
192,178
269,625
Operating lease charges
445,833
330,232
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
31,000
21,500
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
3
2
3
2
Administrative staff
56
54
56
54
Total
59
56
59
56
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,115,603
2,021,192
2,115,603
2,021,192
Social security costs
219,393
213,525
219,393
213,525
Pension costs
133,335
147,155
133,335
147,155
2,468,331
2,381,872
2,468,331
2,381,872
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
115,764
99,917
Company pension contributions to defined contribution schemes
14,073
11,840
129,837
111,757
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
201,730
201,510
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
492,446
454,408
Interest on finance leases and hire purchase contracts
953
953
Total finance costs
493,399
455,361
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
67,056
Deferred tax
Origination and reversal of timing differences
(18,994)
Total tax charge
48,062
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 26 -
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
25,466
(94,148)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
6,367
(22,125)
Tax effect of expenses that are not deductible in determining taxable profit
967
263
Adjustments in respect of prior years
67,056
Permanent capital allowances in excess of depreciation
3,063
2,250
Other permanent differences
162
Other Adjustments
(10,559)
618
Taxation charge
-
48,062
11
Intangible fixed assets
Group
Goodwill
Software
Patents & licences
Development costs
Total
£
£
£
£
£
Cost
At 1 January 2024
235,980
630,677
715,859
240,238
1,822,754
Additions
38,677
38,677
Exchange adjustments
(26,216)
(26,216)
At 31 December 2024
235,980
669,354
689,643
240,238
1,835,215
Amortisation and impairment
At 1 January 2024
101,592
327,676
214,758
48,048
692,074
Amortisation charged for the year
23,598
51,568
68,964
48,048
192,178
Exchange adjustments
(7,865)
(7,865)
At 31 December 2024
125,190
379,244
275,857
96,096
876,387
Carrying amount
At 31 December 2024
110,790
290,110
413,786
144,142
958,828
At 31 December 2023
134,388
303,001
501,101
192,190
1,130,680
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Intangible fixed assets
(Continued)
- 27 -
Company
Software
Development costs
Total
£
£
£
Cost
At 1 January 2024
630,677
240,238
870,915
Additions
38,677
38,677
At 31 December 2024
669,354
240,238
909,592
Amortisation and impairment
At 1 January 2024
327,676
48,048
375,724
Amortisation charged for the year
51,568
48,048
99,616
At 31 December 2024
379,244
96,096
475,340
Carrying amount
At 31 December 2024
290,110
144,142
434,252
At 31 December 2023
303,001
192,190
495,191
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
386,153
549,360
54,918
990,431
Additions
122,419
18,251
140,670
At 31 December 2024
508,572
567,611
54,918
1,131,101
Depreciation and impairment
At 1 January 2024
146,961
135,045
26,062
308,068
Depreciation charged in the year
43,281
40,267
13,730
97,278
At 31 December 2024
190,242
175,312
39,792
405,346
Carrying amount
At 31 December 2024
318,330
392,299
15,126
725,755
At 31 December 2023
239,192
414,315
28,856
682,363
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Tangible fixed assets
(Continued)
- 28 -
Company
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
386,153
549,360
54,918
990,431
Additions
122,419
18,251
140,670
At 31 December 2024
508,572
567,611
54,918
1,131,101
Depreciation and impairment
At 1 January 2024
146,961
135,045
26,062
308,068
Depreciation charged in the year
43,281
40,267
13,730
97,278
At 31 December 2024
190,242
175,312
39,792
405,346
Carrying amount
At 31 December 2024
318,330
392,299
15,126
725,755
At 31 December 2023
239,192
414,315
28,856
682,363
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
254,956
275,867
254,956
275,867
Motor vehicles
9,132
20,091
9,132
20,091
264,088
295,958
264,088
295,958
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
1,098,394
1,098,394
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
1,098,394
Carrying amount
At 31 December 2024
1,098,394
At 31 December 2023
1,098,394
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Zerin 5000 S.L
Barcelona 08036, Spain
Ordinary Shares
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,332,706
1,451,762
1,332,706
1,451,762
Finished goods and goods for resale
6,177,263
7,467,586
6,177,263
7,467,586
7,509,969
8,919,348
7,509,969
8,919,348
The stock provision in the period is £95,602 (2023: £95,602).
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,723,349
3,087,937
2,700,453
2,905,721
Amounts owed by group undertakings
1,690,581
1,686,439
2,253,641
2,240,137
Other debtors
1,067,423
1,086,619
67,378
184,727
Prepayments and accrued income
1,594,303
1,041,318
1,549,045
994,340
7,075,656
6,902,313
6,570,517
6,324,925
Amounts falling due after more than one year:
Other debtors
2,768,216
2,595,296
2,768,216
2,595,296
Total debtors
9,843,872
9,497,609
9,338,733
8,920,221
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,195,893
3,897,352
3,195,893
3,897,352
Other loans
2,083,334
2,583,333
2,083,334
2,583,333
5,279,227
6,480,685
5,279,227
6,480,685
Payable within one year
5,279,227
6,397,352
5,279,227
6,397,352
Payable after one year
83,333
83,333
Other loans consists of two loans. One loan of £2m was recognised as part of a transaction where the business acquired a loan receivable and was reclassified from trade creditors. No interest is charged in relation to this loan.
The second loan consists of an unsecured cash flow loan that refinanced an existing secured loan in the year as part of a refinancing to provide increased working capital facilities. The loan was £1.5m reduced for directly relateable costs and has capital repayments of £500,000 per year. A market rate margin above the Bank of England base rate is payable on this loan.
Bank loans represents advances in respect of invoice financing and are secured on the book debts of the company.
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
96,426
76,969
96,426
76,969
In two to five years
32,450
152,449
32,450
152,449
128,876
229,418
128,876
229,418
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
17
3,195,893
3,897,352
3,195,893
3,897,352
Obligations under finance leases
18
96,426
76,969
96,426
76,969
Other borrowings
17
2,083,334
2,500,000
2,083,334
2,500,000
Trade creditors
6,584,474
5,590,832
6,584,416
5,590,772
Corporation tax payable
101,414
210,741
101,414
210,741
Other taxation and social security
325,240
589,485
325,240
579,279
Other creditors
94,425
184,976
37,821
73,285
Accruals and deferred income
2,492,971
2,619,910
2,492,617
2,619,910
14,974,177
15,670,265
14,917,161
15,548,308
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
32,450
152,449
32,450
152,449
Other borrowings
17
83,333
83,333
Accruals and deferred income
625,884
715,802
625,884
715,802
658,334
951,584
658,334
951,584
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Warranty provision
500,112
592,750
500,112
592,750
Movements on provisions:
Warranty provision
Group
£
At 1 January 2024
592,750
Additional provisions in the year
511,406
Utilisation of provision
(604,044)
At 31 December 2024
500,112
Warranty provision
Company
£
At 1 January 2024
592,750
Additional provisions in the year
511,406
Utilisation of provision
(604,044)
At 31 December 2024
500,112
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
207,200
207,200
Tax losses
(134,067)
(134,067)
73,133
73,133
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Deferred taxation
(Continued)
- 33 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
207,200
207,200
Tax losses
(134,067)
(134,067)
73,133
73,133
There were no deferred tax movements in the year.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
133,335
147,155
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £100 each
200
200
20,000
20,000
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
546,301
521,263
546,301
521,263
Between two and five years
1,824,470
1,886,924
1,824,470
1,886,924
In over five years
1,541,129
1,990,216
1,541,129
1,990,216
3,911,900
4,398,403
3,911,900
4,398,403
APELSON APPLIANCES UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
26
Controlling party
Apelson Appliances UK Limited is a subsidiary of ED Corporation S.a.r.l.
The directors consider that JM Parlade De Elia the ultimate controlling party.
27
Cash generated from group operations
2024
2023
£
£
Profit/(loss) for the year after tax
25,466
(142,210)
Adjustments for:
Taxation charged
48,062
Finance costs
493,399
455,361
Investment income
(201,730)
(201,510)
Gain on disposal of tangible fixed assets
-
(900)
Amortisation and impairment of intangible assets
192,178
269,625
Depreciation and impairment of tangible fixed assets
97,278
61,945
Decrease in provisions
(92,638)
(50,924)
Movements in working capital:
Decrease in stocks
1,409,379
1,480,387
Increase in debtors
(346,263)
(896,340)
Increase/(decrease) in creditors
421,989
(541,508)
Cash generated from operations
1,999,058
481,988
28
Analysis of changes in net debt - group
1 January 2024
Cash flows
Exchange rate movements
31 December 2024
£
£
£
£
Cash at bank and in hand
198,400
116,715
(257,220)
57,895
Borrowings excluding overdrafts
(6,480,685)
1,201,458
-
(5,279,227)
Obligations under finance leases
(229,418)
100,542
-
(128,876)
(6,511,703)
1,418,715
(257,220)
(5,350,208)
2024-12-312024-01-01falsefalseCCH SoftwareCCH Accounts Production 2025.100J J Morales Del PinoMr J Hunter-JonesMr S Torrent Lopez De LaMadridM Johnsonfalse08265471bus:Consolidated2024-01-012024-12-31082654712024-01-012024-12-3108265471bus:Director12024-01-012024-12-3108265471bus:Director22024-01-012024-12-3108265471bus:Director32024-01-012024-12-3108265471bus:Director42024-01-012024-12-3108265471bus:RegisteredOffice2024-01-012024-12-3108265471bus:Consolidated2024-12-31082654712024-12-3108265471bus:Consolidated2023-01-012023-12-31082654712023-01-012023-12-3108265471core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-01-012024-12-3108265471core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-01-012023-12-3108265471core:Goodwillbus:Consolidated2024-12-3108265471core:Goodwillbus:Consolidated2023-12-3108265471core:OtherResidualIntangibleAssetsbus:Consolidated2024-12-3108265471core:OtherResidualIntangibleAssetsbus:Consolidated2023-12-3108265471bus:Consolidated2023-12-3108265471core:OtherResidualIntangibleAssets2024-12-3108265471core:OtherResidualIntangibleAssets2023-12-3108265471core:ComputerSoftwarebus:Consolidated2024-12-3108265471core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2024-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2024-12-3108265471core:ComputerSoftwarebus:Consolidated2023-12-3108265471core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3108265471core:ComputerSoftware2024-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-12-3108265471core:ComputerSoftware2023-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-31082654712023-12-3108265471core:LeaseholdImprovementsbus:Consolidated2024-12-3108265471core:PlantMachinerybus:Consolidated2024-12-3108265471core:MotorVehiclesbus:Consolidated2024-12-3108265471core:LeaseholdImprovementsbus:Consolidated2023-12-3108265471core:PlantMachinerybus:Consolidated2023-12-3108265471core:MotorVehiclesbus:Consolidated2023-12-3108265471core:LeaseholdImprovements2024-12-3108265471core:PlantMachinery2024-12-3108265471core:MotorVehicles2024-12-3108265471core:LeaseholdImprovements2023-12-3108265471core:PlantMachinery2023-12-3108265471core:MotorVehicles2023-12-3108265471core:ShareCapitalbus:Consolidated2024-12-3108265471core:ShareCapitalbus:Consolidated2023-12-3108265471core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3108265471core:ShareCapital2024-12-3108265471core:ShareCapital2023-12-3108265471core:RetainedEarningsAccumulatedLosses2024-12-3108265471core:RetainedEarningsAccumulatedLosses2023-12-3108265471core:ShareCapitalbus:Consolidated2022-12-3108265471core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3108265471core:ShareCapital2022-12-3108265471core:RetainedEarningsAccumulatedLosses2022-12-3108265471bus:Consolidated2022-12-3108265471core:Goodwill2024-01-012024-12-3108265471core:IntangibleAssetsOtherThanGoodwill2024-01-012024-12-3108265471core:ComputerSoftware2024-01-012024-12-3108265471core:PatentsTrademarksLicencesConcessionsSimilar2024-01-012024-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-01-012024-12-3108265471core:LeaseholdImprovements2024-01-012024-12-3108265471core:PlantMachinery2024-01-012024-12-3108265471core:MotorVehicles2024-01-012024-12-3108265471core:UKTaxbus:Consolidated2024-01-012024-12-3108265471core:UKTaxbus:Consolidated2023-01-012023-12-3108265471bus:Consolidated12024-01-012024-12-3108265471bus:Consolidated12023-01-012023-12-3108265471bus:Consolidated22024-01-012024-12-3108265471bus:Consolidated22023-01-012023-12-3108265471core:Goodwillbus:Consolidated2023-12-3108265471core:ComputerSoftwarebus:Consolidated2023-12-3108265471core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3108265471bus:Consolidated2023-12-3108265471core:ComputerSoftware2023-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-31082654712023-12-3108265471core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2024-01-012024-12-3108265471core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2024-01-012024-12-3108265471core:PatentsTrademarksLicencesConcessionsSimilarcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2024-01-012024-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2024-01-012024-12-3108265471core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2024-01-012024-12-3108265471core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2024-01-012024-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssets2024-01-012024-12-3108265471core:ExternallyAcquiredIntangibleAssets2024-01-012024-12-3108265471core:Goodwillbus:Consolidated2024-01-012024-12-3108265471core:ComputerSoftwarebus:Consolidated2024-01-012024-12-3108265471core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2024-01-012024-12-3108265471core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2024-01-012024-12-3108265471core:LeaseholdImprovementsbus:Consolidated2023-12-3108265471core:PlantMachinerybus:Consolidated2023-12-3108265471core:MotorVehiclesbus:Consolidated2023-12-3108265471core:LeaseholdImprovements2023-12-3108265471core:PlantMachinery2023-12-3108265471core:MotorVehicles2023-12-3108265471core:LeaseholdImprovementsbus:Consolidated2024-01-012024-12-3108265471core:PlantMachinerybus:Consolidated2024-01-012024-12-3108265471core:MotorVehiclesbus:Consolidated2024-01-012024-12-3108265471core:Subsidiary12024-01-012024-12-3108265471core:Subsidiary112024-01-012024-12-3108265471core:CurrentFinancialInstruments2024-12-3108265471core:CurrentFinancialInstruments2023-12-3108265471core:Non-currentFinancialInstrumentsbus:Consolidated2024-12-3108265471core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3108265471core:Non-currentFinancialInstruments2024-12-3108265471core:Non-currentFinancialInstruments2023-12-3108265471core:CurrentFinancialInstrumentsbus:Consolidated2024-12-3108265471core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3108265471core:WithinOneYearbus:Consolidated2024-12-3108265471core:WithinOneYearbus:Consolidated2023-12-3108265471core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3108265471core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108265471core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-12-3108265471core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3108265471core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3108265471core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3108265471core:WithinOneYear2024-12-3108265471core:WithinOneYear2023-12-3108265471core:BetweenTwoFiveYearsbus:Consolidated2024-12-3108265471core:BetweenTwoFiveYearsbus:Consolidated2023-12-3108265471core:BetweenTwoFiveYears2024-12-3108265471core:BetweenTwoFiveYears2023-12-3108265471core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-12-3108265471core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3108265471bus:PrivateLimitedCompanyLtd2024-01-012024-12-3108265471bus:FRS1022024-01-012024-12-3108265471bus:Audited2024-01-012024-12-3108265471bus:ConsolidatedGroupCompanyAccounts2024-01-012024-12-3108265471bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP