Company Registration No. 02738074 (England and Wales)
Hydrotec (UK) Limited
Financial statements
for the year ended 31 December 2024
Pages for filing with the registrar
Hydrotec (UK) Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
Hydrotec (UK) Limited
Statement of financial position
As at 31 December 2024
1
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
431,441
444,482
Current assets
Stocks
1,234,406
1,310,245
Debtors
4
1,060,399
1,219,582
Cash at bank and in hand
38,720
71,165
2,333,525
2,600,992
Creditors: amounts falling due within one year
5
(1,946,315)
(2,067,662)
Net current assets
387,210
533,330
Total assets less current liabilities
818,651
977,812
Creditors: amounts falling due after more than one year
6
(78,434)
(234,607)
Net assets
740,217
743,205
Capital and reserves
Called up share capital
105,000
105,000
Share premium account
550
550
Revaluation reserve
237,473
239,135
Other reserves
16,665
16,665
Profit and loss reserves
380,529
381,855
Total equity
740,217
743,205

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 5 August 2025 and are signed on its behalf by:
Mayuri Lakhani
Director
Company Registration No. 02738074
Hydrotec (UK) Limited
Notes to the financial statements
For the year ended 31 December 2024
2
1
Accounting policies
Company information

Hydrotec (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hydrotec House, 5 Manor Courtyard, Hughenden Avenue, High Wycombe, HP13 5RE.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors have reviewed cashflow forecasts covering a period of 12 months from the approval of these accounts, taking into consideration the company's operational requirements and the wider economic environment. trueThe directors have also obtained a letter from a related party creditor confirming their commitment that the company is under no obligation to repay the amount due of £1.5m at any time except to the extent that the company has funds available to do so in excess of those it requires to repay all of the other creditors for a period of at least 12 months from the date of approval of the financial statements.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

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.

Income from management charges levied on group companies for the provision of administrative services and staff are recognised in line with provision of the services.

1.4
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.

Hydrotec (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
3

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

Freehold land
No depreciation applied as residual value considered to be in excess of cost
Freehold buildings
2% straight line
Improvements to property
5% straight line
Fixtures and fittings
33.33% straight line
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

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

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

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.

1.7
Cash at bank and in hand

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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors, 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.

Hydrotec (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
4
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

 

Where trade receivables are covered by credit protection arrangements with the company's invoice financing provider, it is the view of the director that the risks and rewards of ownership are transferred and so the associated financial asset is derecognised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

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.

Hydrotec (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
5
1.11
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.

1.12
Retirement benefits

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

1.13
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 statement of financial position 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 leases asset are consumed.

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.

2
Employees

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

2024
2023
Number
Number
Total
44
42
Hydrotec (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
6
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2024
490,122
272,614
762,736
Additions
-
0
9,760
9,760
At 31 December 2024
490,122
282,374
772,496
Depreciation and impairment
At 1 January 2024
79,699
238,555
318,254
Depreciation charged in the year
6,602
16,199
22,801
At 31 December 2024
86,301
254,754
341,055
Carrying amount
At 31 December 2024
403,821
27,620
431,441
At 31 December 2023
410,423
34,059
444,482

Included within the total carrying amount above is £7,383 (2023 - £9,844) relating to motor vehicles secured under a finance lease arrangement.

Included in land and buildings above is the company's premises at 4 Manor Courtyard, High Wycombe. The company uses the revaluation method of accounting for freehold property. In February 2025 the property was professionally valued at £410,000, and it is the judgment of the directors that the fair value of the property at the year end does not materially differ from this figure.

 

As at 31 December 2024, based on historical cost, the carrying value of land and buildings would be £166,413 (2023 - £171,288).

4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
254,630
585,258
Amounts owed by group undertakings
776,320
583,620
Other debtors
29,449
50,704
1,060,399
1,219,582
Hydrotec (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
7
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
152,000
152,000
Trade creditors
40,876
82,168
Amounts owed to group undertakings
1,467,123
1,467,851
Corporation tax
4,608
7,824
Other taxation and social security
184,674
217,156
Other creditors
97,034
140,663
1,946,315
2,067,662
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
76,000
228,000
Other creditors
2,434
6,607
78,434
234,607
7
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Sheryl Davis
Statutory Auditors:
Saffery LLP
Date of audit report:
5 August 2025
8
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
269,293
313,884
Hydrotec (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
8
9
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
35,587
89,220
-
0
-
0
Fellow subsidiaries
1,188,384
1,528,168
2,887,524
3,485,018

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Fellow subsidiaries
1,467,123
1,467,851

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
320,927
281,019
Fellow subsidiaries
455,393
302,600
Other information

A director has provided a personal guarantee over a bank loan to Hydrotec (UK) Limited which is limited to not more than £76,000 (2023 - £76,000).

 

At the year end, the company was party to an unlimited multilateral cross company bank guarantee with Hydrotec Contracts Limited, Hydrotec Overseas Limited and Hydrotec International Water Treatment Limited guaranteeing the obligations of each other to the bank. At the year end amounts owed related to this guarantee not included in the balance sheet of Hydrotec (UK) Limited to HSBC Bank Plc is £47,539 (2023 - £129,673). This amount is secured by a fixed and floating charge over all assets of the company.

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