Company registration number 02319033 (England and Wales)
SHIMANO UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SHIMANO UK LIMITED
COMPANY INFORMATION
Directors
Mr I Latham
Mr W J Bassett
Mr J C M Van Rooij
Secretary
Mr C Lahouste
Company number
02319033
Registered office
Unit 2 Elm Court
Copse Drive
Coventry
United Kingdom
CV5 9RG
Auditor
Azets Audit Services
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
SHIMANO UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
SHIMANO 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.

Principal activities

The principal activity of the company continued to be that of selling and distrubution of fishing and bicycle equipment

Review of the business

2024 2023

£'000      £'000

Revenue                    5,151        6,136

Gross Profit                    1,967        2,163

Gross Profit as % of Revenue            38.2%        35.3%

Operating profit                    146        232

Profit for the year                    133        196

Shareholders equity                2,244        2,111

Average number of employees            17        16

 

In comparison to the performance in 2023, revenue for 2024 showed a decline. Two primary challenges contributed to this outcome. Firstly, the transition to a fully automated warehouse encountered significant difficulties, leading to severe delays in deliveries to the UK. Additionally, customs-related issues further impacted on the quality of service provided to our dealers.

Secondly, the demand for products exceeded the manufacturing capacity available, resulting in extended periods of product unavailability. This challenge was only partially mitigated during the final quarter of 2024.

The broader industry also experienced a slowdown, driven by consumer hesitancy to invest in high-value items such as reels and rods. Instead, customers prioritized spending on terminal tackle (accessories) and retained their existing equipment rather than purchasing new items.

On a positive note, margins improved due to reduced shipping costs and a favorable product mix, which included a higher proportion of reels sold to dealers compared to 2023. Despite the closure of several key dealers during the year, debt levels remained well managed, and the Accounts Receivable (ACR) position remained robust.

 

 

SHIMANO UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

The principal risks and uncertainties facing the Company are liquidity risk, interest rate risk, market risk, credit risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below:

 

Financial instruments

The company uses various financial instruments which include bank balances and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the company's financial instruments are liquidity risk, credit risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitability.

The company finances its investments in tangible fixed assets primarily through cash balances held. Trade debtors are managed in respect of credit and cash flow risk by policies in place concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits.

Development and performance

 

Managed by ensuring payment terms are managed to aid cashflow where necessary.

Interest rate risk

The company finances its operations through a combination of retained profits and cash reserves and therefore does not have any interest rate risk.

Market risk

Trading conditions are challenging due to aggressive discounting by some larger brands. The consumer has less disposable income available for luxury items.

Credit risk

The company's principal financial assets are cash and trade debtors. The principal credit risk arises from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

 

Foreign currency risk

The company is exposed to currency risk on sales and purchases that are dominated in a currency other than the respective functional currency, the GBP. The currencies in which these transactions primarily are dominated are EUR. There is limited risk as purchases in EUR are intercompany and sales in EUR represent a small proportion of revenue.

Capital management

The company's objectives when managing capital are to safeguard the company's ability to continue as going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to provide an adequate return to the shareholder.

The company sets the amount of capital in proportion to risk. The company manages the capital structure and adjusts it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the company may adjust the number of dividends paid to shareholders, return capital, or issue new shares

SHIMANO UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

On behalf of the board

Mr I Latham
Director
15 May 2025
SHIMANO 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.

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 final dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I Latham
Mr W J Bassett
Mr J C M Van Rooij
Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
Mr I Latham
Director
15 May 2025
SHIMANO 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SHIMANO UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SHIMANO UK LIMITED
- 6 -
Opinion

We have audited the financial statements of Shimano UK Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 UK adopted international accounting standards.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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:

SHIMANO UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHIMANO UK LIMITED
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities 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.

SHIMANO UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHIMANO 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:

 

 

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Lee Meredith BFP ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
16 May 2025
Chartered Accountants
Statutory Auditor
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
SHIMANO UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£'000
£'000
Revenue
3
5,151
6,136
Cost of sales
(3,184)
(3,973)
Gross profit
1,967
2,163
Administrative expenses
(1,821)
(1,931)
Operating profit
4
146
232
Investment revenues
7
39
32
Finance costs
8
(8)
(7)
Profit before taxation
177
257
Income tax expense
9
(44)
(61)
Profit and total comprehensive income for the year
133
196
SHIMANO UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£'000
£'000
Non-current assets
Property, plant and equipment
10
203
255
Current assets
Inventories
11
63
64
Trade and other receivables
12
533
492
Cash and cash equivalents
2,347
2,038
2,943
2,594
Current liabilities
Trade and other payables
13
657
436
Current tax liabilities
18
65
Lease liabilities
14
64
53
739
554
Net current assets
2,204
2,040
Non-current liabilities
Lease liabilities
14
164
177
Deferred tax liabilities
15
(1)
7
163
184
Net assets
2,244
2,111
Equity
Called up share capital
17
1,000
1,000
Retained earnings
1,244
1,111
Total equity
2,244
2,111
The financial statements were approved by the board of directors and authorised for issue on 15 May 2025 and are signed on its behalf by:
Mr I Latham
Director
Company registration number 02319033
SHIMANO UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Retained earnings
Total
£'000
£'000
£'000
Balance at 1 January 2023
1,000
915
1,915
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
196
196
Balance at 31 December 2023
1,000
1,111
2,111
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
133
133
Balance at 31 December 2024
1,000
1,244
2,244
SHIMANO UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
432
(196)
Interest paid
(8)
(7)
Income taxes paid
(99)
-
Net cash inflow/(outflow) from operating activities
325
(203)
Investing activities
Purchase of property, plant and equipment
(53)
(61)
Interest received
39
32
Net cash used in investing activities
(14)
(29)
Financing activities
Payment of lease liabilities
(2)
(7)
Net cash used in financing activities
(2)
(7)
Net increase/(decrease) in cash and cash equivalents
309
(239)
Cash and cash equivalents at beginning of year
2,038
2,277
Cash and cash equivalents at end of year
2,347
2,038
SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Shimano UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 Elm Court, Copse Drive, Coventry, United Kingdom, CV5 9RG. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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 £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany 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.

The directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking into account of reasonably plausile downsides, as discussed below, the Company will have sufficient funds to meet its liabilities as they fall due for that period. In particular, the directors have taken into consideration cashflow projections from potenital stress scenarios regarding the timing of recovery from the delayed transition of outsourcing warehouse and logistics operation.

Consequently, the directors believe the Company has more than sufficient liquidity to manage through a range of different cashflow scenarios over the foreseeable future. Therefore, the Board has a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of not less than 12 months from the date of this report. For this reason, the Company continues to adopt the going concern basis of accounting in preparation of these financial statements.

1.3
Revenue

Revenue is recognised to the extent that it is probably that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payent and excluding taxes or duty.

The company acts as principal in revenue transactions as they both control the transactions and bear the overall risks and rewards of the transactions. 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 receipt of the goods by the customer.

 

SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
between 3 and 7 years
Plant and equipment
3 years
Right of Use Asset
over the lease term
1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

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.

1.6
Inventories

Inventories 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 inventories to their present location and condition.

1.7
Cash and cash equivalents

Cash and cash equivalents 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.

SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Financial assets

Trade receivables and debt securities issued are initially recongised when they are originated. All other finanicial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs. A trade receivable withou a significant financing component is initially measured at the transaction price.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

 

When determing whether the credit risk of a financial asset has increased significantly since intial recognition and when estimating expected credit losses, the company considers reasonable and supportable information tat is relevant and aveliable without undue effort and cost. This includes both quantitiave and qualitative information and analysis based on the company's historical experience and informed credit assessment and including forward looking information.

 

Lifetime expected creditor lossses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

 

12 month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected liste of the instrument is less than 12 months)

 

The maximum period considered when estimating expected credit losses is the maximum contractual period over which the compamny is exposed to credit risk

 

Credit impaired financial assets

At each reporting date, teh company assess whether financial assets carried at amortised cost and debt securitivate at FVOCI are credit impaired. A financial asset is "credit-impaired" when one of more events that have a detrimental impact on tthe estimated future cash flows of the finacnial assets have occured.

 

Write offs

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that ther eis no realistic prospect of recovery

 

Subsequent measurement and gains and losses

Financial assets at FVPL - these assets (other than derivatives designied as hedging instruments) are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are 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 when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.

1.11
Provisions

A provision is reconigsed in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be be reliably measured and it is probably that an outflow of economic benefits will be required to settle the obligation. Provisions are detmined by discounintg the expected future cash flows at a pre-tax rate that reflects risks specific to the liability

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Non-montary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rate ruling at the dates the fair value was determined.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

3
Revenue
2024
2023
£'000
£'000
Revenue analysed by class of business
Sale of goods
5,152
6,136
SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Revenue
(Continued)
- 19 -
2024
2023
£'000
£'000
Revenue analysed by geographical market
United Kingdom
4,996
5,932
Ireland
156
204
5,152
6,136
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange losses
12
24
Depreciation of property, plant and equipment
105
92
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
37
74
For other services
Tax services
3
16
Other services
2
6
Total non-audit fees
5
22
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management
4
1
Administration
6
10
Sales
7
5
Total
17
16
SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
685
695
Social security costs
68
76
Pension costs
29
27
782
798
7
Investment income
2024
2023
£'000
£'000
Interest income
Financial instruments measured at amortised cost:
Bank deposits
39
32
Income above relates to assets held at amortised cost, unless stated otherwise.
8
Finance costs
2024
2023
£'000
£'000
Interest on bank overdrafts and loans
8
7
9
Income tax expense
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
56
61
Deferred tax
Origination and reversal of temporary differences
(12)
-
0
Total tax charge
44
61
SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Income tax expense
(Continued)
- 21 -

The charge for the year can be reconciled to the profit per the income statement as follows:

2024
2023
£'000
£'000
Profit before taxation
177
257
Expected tax charge based on a corporation tax rate of 25.00% (2023: 23.52%)
44
61
Tax charged in the financial statements
44
61
10
Property, plant and equipment
Plant and equipment
Fixtures and fittings
Right of Use Asset
Total
£'000
£'000
£'000
£'000
Cost
At 1 January 2023
156
507
530
1,193
Additions
-
0
14
47
61
At 31 December 2023
156
521
577
1,254
Additions
1
-
0
52
53
At 31 December 2024
157
521
629
1,307
Accumulated depreciation and impairment
At 1 January 2023
136
457
314
907
Charge for the year
7
31
54
92
At 31 December 2023
143
488
368
999
Charge for the year
5
31
69
105
At 31 December 2024
148
519
437
1,104
Carrying amount
At 31 December 2024
9
2
192
203
At 31 December 2023
13
33
209
255
11
Inventories
2024
2023
£'000
£'000
Raw materials
63
64
SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
12
Trade and other receivables
2024
2023
£'000
£'000
Trade receivables
291
111
Amounts owed by fellow group undertakings
205
351
Other receivables
3
1
Prepayments
34
29
533
492

All amounts owed to group undertakings are due on demand and are non-interest bearing

13
Trade and other payables
2024
2023
£'000
£'000
Trade payables
10
10
Amounts owed to fellow group undertakings
205
151
Accruals
232
221
Social security and other taxation
210
54
657
436
14
Lease liabilities
2024
2023
Maturity analysis
£'000
£'000
Within one year
64
53
In two to five years
164
177
Total undiscounted liabilities
228
230

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£'000
£'000
Current liabilities
64
53
Non-current liabilities
164
177
228
230
SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Fixed asset timing differences
£'000
Balance at 1 January 2023
-
0
Deferred tax movements in prior year
Charge/(credit) to profit or loss
7
Liability at 1 January 2024
7
Deferred tax movements in current year
Charge/(credit) to profit or loss
(8)
Liability at 31 December 2024
(1)
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
29
27

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary Shares of £1 each
1,000,000
1,000,000
1,000
1,000
18
Capital risk management

The company is not subject to any externally imposed capital requirements.

19
Controlling party

The Company is a subsidiary undertaking of Shimano Inc which is the ultimate parent company incorporated in Japan. The ultimate controlling pry are the shareholders of Shimano Inc.

The alrgest group in whcih the results of the Company are consoliadted is that headed by Shimano Inc, whose register office is 3-77 Oimatsu-cho, Sakai-ku, Osaka 590-8577, Japan. No other group financial statements include the results of the Company. The consolidated financial statements of this group is avalible to the public and may be obtained from its registered office

SHIMANO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
20
Cash generated from/(absorbed by) operations
2024
2023
£'000
£'000
Profit for the year before income tax
177
257
Adjustments for:
Finance costs
8
7
Investment income
(39)
(32)
Foreign exchange losses
-
24
Depreciation and impairment of property, plant and equipment
107
93
Movements in working capital:
Decrease/(increase) in inventories
1
(3)
Increase in trade and other receivables
(41)
(251)
Increase/(decrease) in trade and other payables
221
(291)
Cash generated from/(absorbed by) operations
434
(196)
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