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REGISTERED NUMBER: 06329180 (England and Wales)




































STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

HEXATRONIC UK LTD

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


HEXATRONIC UK LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2024







DIRECTORS: M Angermund
K R Stone
Ms L Lundstedt


REGISTERED OFFICE: Unit B
Quay West Business Centre
Quay Lane
Gosport
Hampshire
PO12 4LJ


REGISTERED NUMBER: 06329180 (England and Wales)


SENIOR STATUTORY AUDITOR: Kerry Lawrance FCA


AUDITORS: Compass Accountants Limited
Chartered Accountants and Statutory Auditors
Venture House
The Tanneries
East Street
Titchfield
Hampshire
PO14 4AR


BANKERS: Danske Bank
75 King William St.
London
EC4N 7DT

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2024


The directors present their strategic report for the year ended 31st December 2024.

REVIEW OF BUSINESS
The directors believe that the financial statements present a fair and accurate summary of the company's position and provides the necessary information to assess the company's performance and profitability.

Hexatronic UK's primary focus is on the FTTH market in the UK, which is stable. Substantial investment from private and Government institutions has been seen in previous years. However, this investment is expected to slow in 2025 due to borrowing costs, with network operators shifting to an operational model as the build stabilizes.

Forecasts predict more stable market conditions for several years, with 50% of UK homes accessing full fibre connections. Rural areas remain challenging and costly for deployment. Government financial incentives such as BDUK support infrastructure investment. Network operators plan extensions until 2030.

This year, we aimed for modest sales growth by leveraging our strong relationships with key customers and concentrating our efforts on attracting new business from various product areas. The number of new customers entering the market declined, while existing network customers began to focus on their build and adding customer connections. Turnover in 2024 was £45.6m, a 41% decrease compared to £77.2m in 2023.

With the reduction in sales we have reduced our permanent employee numbers to 98 at the end of the year (2023: 103).

PRINCIPAL RISKS AND UNCERTAINTIES
The ongoing conflict in Ukraine continues to have a negative impact on supply of some raw materials although the effects have lessened. This will be an ongoing cost risk for some of our products with increased raw material costs.

There remains uncertainty surrounding Global Finance, primarily around the increased costs of borrowing, investors are now more controlled in their funding of infrastructure projects.


HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2024

SECTION 172(1) STATEMENT
Section 172 of the companies act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing this section 172 requires directors to have regard to, among other matters, the:

- Likely consequences of any decisions in the long term;
- Interests of the company's employees;
- Need to foster the company's business relationships with suppliers, customers, and others;
- Impact of the company's operations on the community and environment;
- Desirability of the company maintaining a reputation for high standards of business conduct; and
- Need to act fairly as between members of the company.

In discharging our section 172 duties we have regard to the matters set out above. In addition we also have regard to other factors which we consider relevant to the decision being made. Those factors for example include our relationship with our other group companies, the group shareholders, our quality and environmental policy certification boards and our health and safety obligations.

By considering the company's purpose, vision and values together with its strategic priorities and having a process in place for decision making, we aim to make sure that our decisions are consistent and predictable.

We delegate authority for day to day management of the company to the senior directors and then engage management in setting, approving and overseeing the execution of the business strategy and related policies. Board meetings and senior management meetings are held periodically where the directors consider the company's activities and make decisions. As part of those meetings the directors receive information in a range of different formats to ensure that they have regard to section 172 matters when making relevant decisions.

The company's key stakeholders are its workforce, customers, suppliers, the Hexatronic Group and the Hexatronic Group shareholders. The views of and the impact of the company's activities on those stakeholders are an important consideration for the directors when making relevant decisions. The size and spread of both the Company's stakeholders and the Hexatronic Group means that generally our stakeholder engagement takes place at an operational and group level. We find that as well as being a more efficient and effective approach, this also helps us achieve a greater positive impact on environmental, social and other issues than by working alone as an individual company.

For examples of this please refer to the Hexatronic Group reports:

https://www.hexatronic.com/en/investors/corporate-governance-report
and
https://www.hexatronic.com/en/sustainability

DEVELOPMENT AND PERFORMANCE
At the end of this financial year, the directors are confident that the business will continue to support the market with the current product portfolio, however the level of market activity could decline due to the reduced investments in FTTH. The focus in 2025 will be cost reduction operational efficiency.

Our technical and sales teams will persist in collaborating closely with our customers to develop and maintain essential products that align with market demands and changes. Given the potential slowdown in network construction, the product focus may shift from cables and ducts to customer connection products, as network operators seek to optimize their revenue from existing networks.

KEY PERFORMANCE INDICATORS
The directors regularly review the performance of the company and have chosen several KPIs to compare this year's results against 2023:

1) Turnover: 45.6m (2023 - 77.2m)
2) Permanent Employees: 98 (2023 - 103)
3) Gross Margin: 18.83% (2023 - 21.22%)

ON BEHALF OF THE BOARD:




K R Stone - Director


30th June 2025

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2024


The directors present their report with the financial statements of the company for the year ended 31st December 2024.

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2024.

FUTURE DEVELOPMENTS
In 2024, we secured a supply agreement with a key UK Network operator, creating new income opportunities. This product supply will focus on customer connections, consistently in demand despite the pace of new network builds.

We have improved UK facilities to boost production, warehousing, and R&D efficiency, enhancing our service capacity both locally and internationally.

The Hexatronic UK organisation has been updated to pursue operational improvements for 2025 and future years.

DIRECTORS
M Angermund has held office during the whole of the period from 1st January 2024 to the date of this report.

Other changes in directors holding office are as follows:

K R Stone and Ms L Lundstedt were appointed as directors after 31st December 2024 but prior to the date of this report.

H O L Lyon ceased to be a director after 31st December 2024 but prior to the date of this report.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
We engage with suppliers, customers, and trade/quality bodies through face-to-face meetings at customer premises or our UK sites. We also participate in industry events locally and globally for better engagement.

When face to face meetings are not possible, we reach out through social media and have many meetings via Microsoft teams.

STREAMLINED ENERGY AND CARBON REPORTING
UK annual quantity of emissions in tonnes of CO2 equivalent resulting from activities for which the company is responsible involving consumption of fuel for the purposes of transport - 10 tonnes of CO2

Annual quantity of emissions in tonnes of CO2 equivalent resulting from the purchase of electricity for its own use, including for the purposes of transport - 201,449 KWh

The information above has been taken from the company's energy providers covering the 2 UK sites in Gosport and Aylesbury.

One ratio which expresses the company's annual emissions in relation to a quantifiable factor associated with the company's activities is as follows:

Energy Intensity, MWh/MGBP sales 4.42

The company is always looking at ways of increasing its energy efficiency and have reduced the electric consumption in all UK sites by installing PIR sensor lighting systems and LED lighting. We will also be increasing the proportion of travel free meetings by using a more digital approach.


HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Compass Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





K R Stone - Director


30th June 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HEXATRONIC UK LTD


Opinion
We have audited the financial statements of Hexatronic UK Ltd (the 'company') for the year ended 31st December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 company's affairs as at 31st December 2024 and of its 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.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HEXATRONIC UK LTD


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We gained an understanding of the legal and regulatory framework applicable to the company and the sector in which it operates through discussions with management, sector research, and the application of relevant audit knowledge and experience
- We made enquiries of management around actual and potential litigation and claims
- We made enquiries of management and relevant staff, and designed our audit procedures, including reviewing financial statement disclosures and testing of supporting documentation, to assess compliance with applicable laws and regulations. We focussed on laws and regulations which could give rise to material misstatement in the financial statements including, but not limited to, the Companies Act 2006 and the Financial Reporting Standard 102
- We identified the risk of material misstatement of the financial statements due to fraud and designed audit procedures to respond to the risk. We performed audit procedures designed to address the risk of fraud arising from management override of controls, including, but not limited to, testing of journal entries and other adjustments, reviewing accounting estimates for evidence of bias, and evaluating the business rationale of significant transactions outside the normal course of business

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 accounts 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 accounts, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HEXATRONIC UK LTD


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 a Report of the Auditors 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.




Kerry Lawrance FCA (Senior Statutory Auditor)
for and on behalf of Compass Accountants Limited
Chartered Accountants and Statutory Auditors
Venture House
The Tanneries
East Street
Titchfield
Hampshire
PO14 4AR

1st July 2025

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2024

2024 2023
Notes £    £   

REVENUE 45,540,337 77,242,927

Cost of sales 36,966,978 60,853,723
GROSS PROFIT 8,573,359 16,389,204

Administrative expenses 8,527,866 8,151,699
OPERATING PROFIT 4 45,493 8,237,505

Interest receivable and similar income 235,593 1,858
281,086 8,239,363

Interest payable and similar expenses 5 - 499,339
PROFIT BEFORE TAXATION 281,086 7,740,024

Tax on profit 6 11,629 1,509,170
PROFIT FOR THE FINANCIAL YEAR 269,457 6,230,854

OTHER COMPREHENSIVE INCOME
Share option reserve 62,453 20,100
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

62,453

20,100
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

331,910

6,250,954

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

BALANCE SHEET
31ST DECEMBER 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 339,463 -
Property, plant and equipment 8 1,451,989 1,530,958
1,791,452 1,530,958

CURRENT ASSETS
Inventories 9 14,828,204 17,090,734
Debtors 10 14,823,483 9,395,647
29,651,687 26,486,381
CREDITORS
Amounts falling due within one year 11 8,560,969 5,534,203
NET CURRENT ASSETS 21,090,718 20,952,178
TOTAL ASSETS LESS CURRENT
LIABILITIES

22,882,170

22,483,136

PROVISIONS FOR LIABILITIES 13 435,518 368,394
NET ASSETS 22,446,652 22,114,742

CAPITAL AND RESERVES
Called up share capital 14 2,000 2,000
Other reserves 15 162,597 100,144
Retained earnings 15 22,282,055 22,012,598
SHAREHOLDERS' FUNDS 22,446,652 22,114,742

The financial statements were approved by the Board of Directors and authorised for issue on 30th June 2025 and were signed on its behalf by:





K R Stone - Director


HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

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

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1st January 2023 2,000 15,781,744 80,044 15,863,788

Changes in equity
Total comprehensive income - 6,230,854 20,100 6,250,954
Balance at 31st December 2023 2,000 22,012,598 100,144 22,114,742

Changes in equity
Total comprehensive income - 269,457 62,453 331,910
Balance at 31st December 2024 2,000 22,282,055 162,597 22,446,652

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 364,278 2,826,160
Interest paid - (499,339 )
Tax paid (36,037 ) (1,867,770 )
Net cash from operating activities 328,241 459,051

Cash flows from investing activities
Purchase of intangible fixed assets (355,046 ) -
Purchase of tangible fixed assets (251,588 ) (459,916 )
Sale of tangible fixed assets 42,800 5,906
Interest received 235,593 1,858
Net cash from investing activities (328,241 ) (452,152 )

Cash flows from financing activities
Capital repayments in year - (6,993 )
Net cash from financing activities - (6,993 )

Decrease in cash and cash equivalents - (94 )
Cash and cash equivalents at beginning
of year

2

-

94

Cash and cash equivalents at end of year 2 - -

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 281,086 7,740,024
Depreciation charges 272,771 226,076
Loss on disposal of fixed assets 30,569 3,242
Share option reserve 62,453 20,100
Finance costs - 499,339
Finance income (235,593 ) (1,858 )
411,286 8,486,923
Decrease in inventories 2,262,530 13,252,516
Increase in trade and other debtors (5,336,304 ) (242,700 )
Increase/(decrease) in trade and other creditors 3,026,766 (18,670,579 )
Cash generated from operations 364,278 2,826,160

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2024
31/12/24 1/1/24
£    £   
Year ended 31st December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents - 94

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

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


1. STATUTORY INFORMATION

Hexatronic UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 10% on cost

Stocks
Stocks are measured at the lower of cost and estimated selling price less cost to complete and sell. Cost, being standard cost, and including all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2024


2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Basic 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 when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, where 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.

The company's financial assets and liabilities consist of cash and cash equivalents, short term investments, trade and other debtors, trade and other creditor, and accrued expenses. The fair value of these items approximates their carrying value due to their short term value. Unless otherwise noted, the company is not exposed to significant interest, foreign exchange or credit risks arising from these instruments.

Termination benefits
The company recognises a liability for termination benefits at the point where the company is committed to making the payments in return for employee redundancy. During the year 14 redundancies were identified (2023: Nil) and contractual/redundancy costs of £5,349 (2023: £Nil) were paid in the year with £67,944 (2023: £Nil) being accrued at 31st December 2024.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,121,678 3,679,665
Social security costs 456,832 472,362
Other pension costs 77,736 68,885
4,656,246 4,220,912

The average number of employees during the year was as follows:
2024 2023

Operations 82 85
Sales 9 11
Administration 7 7
98 103

2024 2023
£    £   
Directors' remuneration - -

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2024


4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 100,249 106,862
Depreciation - owned assets 257,188 225,221
Depreciation - assets on hire purchase contracts or finance leases - 855
Loss on disposal of fixed assets 30,569 3,242
Computer software amortisation 15,583 -
Auditors' remuneration 16,100 15,725
Auditors' remuneration for non audit work 8,990 9,395
Stock impairment loss movement (1,644,036 ) 312,236

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Loan interest - 499,339

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - 1,490,257
Overprovision of corporation
tax (55,496 ) (32,724 )
Total current tax (55,496 ) 1,457,533

Deferred tax 67,125 51,637
Tax on profit 11,629 1,509,170

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 281,086 7,740,024
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 23.520%)

70,272

1,820,454

Effects of:
Expenses not deductible for tax purposes - 2,439
Capital allowances in excess of depreciation (75,824 ) (49,315 )
Utilisation of tax losses - (283,321 )
Adjustments to tax charge in respect of previous periods (55,496 ) (32,724 )
Deferred tax on accelerated capital allowances 67,125 51,637
Losses carried forward 5,552 -
Total tax charge 11,629 1,509,170

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2024


6. TAXATION - continued

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Share option reserve 62,453 - 62,453

2023
Gross Tax Net
£    £    £   
Share option reserve 20,100 - 20,100

7. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
Additions 355,046
At 31st December 2024 355,046
AMORTISATION
Amortisation for year 15,583
At 31st December 2024 15,583
NET BOOK VALUE
At 31st December 2024 339,463

8. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Short Plant and and
leasehold machinery fittings Totals
£    £    £    £   
COST
At 1st January 2024 80,061 1,318,312 835,461 2,233,834
Additions - 213,543 38,045 251,588
Disposals - (158,670 ) - (158,670 )
At 31st December 2024 80,061 1,373,185 873,506 2,326,752
DEPRECIATION
At 1st January 2024 22,677 510,998 169,201 702,876
Charge for year 8,005 163,191 85,992 257,188
Eliminated on disposal - (85,301 ) - (85,301 )
At 31st December 2024 30,682 588,888 255,193 874,763
NET BOOK VALUE
At 31st December 2024 49,379 784,297 618,313 1,451,989
At 31st December 2023 57,384 807,314 666,260 1,530,958

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2024


9. INVENTORIES
2024 2023
£    £   
Stocks 14,764,114 17,051,442
Work-in-progress 64,090 39,292
14,828,204 17,090,734

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 8,460,344 8,773,551
Amounts owed by group undertakings 5,863,785 205,880
Other debtors 45,950 53,244
Tax 149,286 57,753
Prepayments 304,118 305,219
14,823,483 9,395,647

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 3,901,508 2,360,263
Social security and other taxes - 108,018
VAT 858,431 1,541,107
Other creditors 3,471,576 1,281,099
Accrued expenses 329,454 243,716
8,560,969 5,534,203

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Between one and five years 403,850 855,250
In more than five years 5,065,067 5,823,467
5,468,917 6,678,717

Total future minimum lease payments under non-cancellable leases are due as follows:

£   
Property 6,614,717
Plant and machinery 64,000

13. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 435,518 368,394

Deferred
tax
£   
Balance at 1st January 2024 368,394
Provided during year 67,124
Balance at 31st December 2024 435,518

HEXATRONIC UK LTD (REGISTERED NUMBER: 06329180)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2024


14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
2,000 Ordinary £1 2,000 2,000

15. RESERVES
Retained Other
earnings reserves Totals
£    £    £   

At 1st January 2024 22,012,598 100,144 22,112,742
Profit for the year 269,457 269,457
Share option reserve - 62,453 62,453
At 31st December 2024 22,282,055 162,597 22,444,652

16. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2024 2023
£    £   
Purchases 1,421,036 1,098,388
Amount due from related party 5,863,785 205,880

Other related parties
2024 2023
£    £   
Sales 3,965,386 2,093,850
Purchases 16,908,847 24,162,465
Amount due from related party 456,227 179,161
Amount due to related party 1,217,941 499,773

During the year, a total of key management personnel compensation of £ 835,922 was paid.

17. ULTIMATE CONTROLLING PARTY

The immediate parent company of Hexatronic UK Limited is Hexatronic Group AB (publ), a company incorporated in Sweden. Registered address: Sofierogatan 3A, SE-412 51 Göteborg.

The financial statements of Hexatronic Group AB (publ) are available from www.hexatronicgroup.com/en /investor-relations/financial-reports/.