REGISTERED NUMBER: |
| Nordmann U.K. Limited |
| Strategic Report, Directors' Report and |
| Financial Statements for the Year Ended 31 December 2024 |
REGISTERED NUMBER: |
| Nordmann U.K. Limited |
| Strategic Report, Directors' Report and |
| Financial Statements for the Year Ended 31 December 2024 |
Nordmann U.K. Limited (Registered number: 03073634) |
Contents of the Financial Statements |
for the year ended 31 December 2024 |
Page |
Company information | 1 |
Strategic report | 2 |
Directors' report | 5 |
Independent auditors' report | 7 |
Income statement | 11 |
Other comprehensive income | 12 |
Balance sheet | 13 |
Statement of changes in equity | 14 |
Notes to the financial statements | 15 |
Nordmann U.K. Limited |
Company Information |
for the year ended 31 December 2024 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Chartered Accountants |
Global House |
High Street |
Crawley |
West Sussex |
RH10 1DQ |
Nordmann U.K. Limited (Registered number: 03073634) |
Strategic Report |
for the year ended 31 December 2024 |
The Directors present their strategic report for the year ended 31 December 2024. Our review is consistent with the size and nature of our business and is written in the context of the market sector that we operate in and the opportunities, risks and uncertainties we face. |
Nordmann U.K. Limited (Registered number: 03073634) |
Strategic Report |
for the year ended 31 December 2024 |
Business review and results for the period |
Overall trading remained steady during 2024 in the face of a weak UK economy, particularly in the construction sector. This impacted on sales into all industries, though there was good growth in Personal Care and Composites. The business is organised into the following market sectors: |
- Adhesives | - Industrial (incl. Surfactants, Oil & Lubes) |
- Coatings | - Monomers |
- Elastomers & Composites | - Optical |
- Fine Chemicals (incl. Pharmaceuticals) | - Plastics |
- Personal Care |
Despite the difficult market conditions, the business continues to enjoy strong supplier and customer relationships. Our sales teams continue to bring in market focussed technical expertise and adding value to our customer base with our comprehensive product portfolio. The business continues to focus on profitable areas within the speciality chemicals market and this led to the improvement in gross margin |
The performance of the Company was as follows: |
£'000 | 2024 | 2023 |
Turnover | 21,457 | 25,078 |
Gross Profit | 4,980 | 5,463 |
Pre Tax Profit | 330 | 905 |
Our balance sheet continues to remain strong as we drive our working capital management and pay suppliers to terms. We have retained good liquidity, with net current assets of £3.6m whilst continuing to support business growth through lean working capital management. The Board reflects on the positive performance of the company within a challenging environment of global economy, supply chain uncertainties, currency and credit risks and in mitigating these risks. |
The health and safety of employees is paramount and the group monitors both the accident frequency rate and the accident severity rate. The KPIs for the past 12 months are as follows: |
KPI | FY2024 | FY2023 |
Accident Frequency Rate (#RIDDORs) | 0 | 0 |
Accident Severity Rate(# days lost due to injuries/total working hours) | 0 | 0 |
All accidents are reported by local management and reviewed at regular Health and Safety review meetings, ensuring that any lessons are learned, and that there is a continual focus on process improvement. |
The business is committed to the ongoing development and training of employees. During the year the group implemented a global management development programme and a new eLearning platform has been rolled out in UK, Singapore and US. The KPI in this area is the number of training hours per employee: |
KPI | FY2024 | FY2023 |
Training hours per employee | 7.5 | 8.7 |
The business conducts regular quarterly engagement sessions with staff including the implementation of a Social and Wellbeing committee to support the sense of community within the company and also to manage interaction with the wider external community where we are committed to supporting local charity initiatives. |
Nordmann U.K. Limited (Registered number: 03073634) |
Strategic Report |
for the year ended 31 December 2024 |
Principal risks and uncertainties |
The company operates in a wide ranging market with increasing competition and price sensitive environment adding pressure on margins. Ongoing changes and uncertainty from Brexit along with possible tariff changes in the US adds to the challenges within the UK market as we continue to have strong trading relationship with the EU and US. However, the company trades in niche speciality chemical products and covers a wide market sector, such that the overall business is buoyant and no significant risks are anticipated. The impact from Brexit and possible tariff changes is universal to all the businesses in our markets and therefore mitigates the challenges equally faced by competition. |
Going concern |
The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. |
The directors have prepared cash flow forecasts and performed a going concern assessment which indicates that, in both the base and reasonably possible downsides, the company will have sufficient funds to meet its liabilities as they fall due during 12 month period ending 30 April 2026, the going concern assessment period. |
The going concern assessment uses budget 2025, considers the order book and applies best estimates of business growth. The base case assumes gross margin levels will be maintained and staff and overhead costs grow at 20.5%. The plausible downside reflects a reduction of sales scenario of -13.3%. |
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis. |
Financial Instruments |
The company conducts significant trade in EUR and USD, which needs translating into GBP. To mitigate and manage this risk, the company makes use of forward rate contracts and where possible, foreign currency purchase and sales transactions are matched to provide natural hedge. |
The company seeks to manage liquidity risk by ensuring sufficient cash is available to meet foreseeable needs through control and management of working capital and having access to facilities from the bank. Credit risk posed by customers continue to be managed by ensuring all new customers undergo third party credit checks and credit limits are set, based on a combination of credit checks and payment history. |
The Board expects the company will build upon current year trading and continue to expand, trade profitably and retain good liquidity whilst continuing to achieve high standards on health and safety, quality and responsible care with ethical trading. |
On behalf of the board: |
Nordmann U.K. Limited (Registered number: 03073634) |
Directors' Report |
for the year ended 31 December 2024 |
The directors present their report with the financial statements of the Company for the year ended 31 December 2024. |
Dividends |
The directors do not recommend the payment of a dividend. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
K Fairbrass |
R E Straughan |
Statement of directors' responsibilities |
| The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 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 estimates that are reasonable and prudent; |
| - state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and |
| - use the going concern basis of accounting unless they either intend to liquidate the Company or to cease |
| operations, or have no realistic alternative but to do so. |
| 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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. |
Nordmann U.K. Limited (Registered number: 03073634) |
Directors' Report |
for the year ended 31 December 2024 |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
On behalf of the board: |
Independent Auditors' Report to the Member of |
Nordmann U.K. Limited |
Opinion |
We have audited the financial statements of Nordmann U.K. Limited ("the Company") for the year ended 31 December 2024 which comprise the Income Statement, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and related notes, including the accounting policies in note 2. |
In our opinion the financial statements: |
- give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended; |
- have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; 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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. |
Going concern |
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements ("the going concern period"). |
In our evaluation of the directors' conclusions, we considered the inherent risks to the Company's business model and analysed how those risks might affect the Company's financial resources or ability to continue operations over the going concern period. |
Our conclusions based on this work: |
- we consider that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate; |
- we have not identified, and concur with the directors' assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period. |
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation. |
Fraud and breaches of laws and regulations - ability to detect |
Identifying and responding to risks of material misstatement due to fraud |
To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures include |
- Enquiring of directors and management as to the Company's high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud. |
- Reading Board minutes. |
- Considering remuneration incentive schemes and performance targets for management. |
- Using analytical procedures to identify any unusual or unexpected relationships. |
We communicated identified fraud risks throughout the audit team and remained alert to any indications of |
fraud throughout the audit. |
Independent Auditors' Report to the Member of |
Nordmann U.K. Limited |
As required by auditing standards and taking into account possible pressures to meet profit targets, we perform procedures to address the risk of management override of controls and risk of fraudulent revenue recognition, in particular: |
- the risk that management may be in a position to make inappropriate accounting entries; and |
- the risk that revenue is overstated through recording revenues in the wrong period. |
We did not identify any additional fraud risks. |
We performed procedures including: |
- Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted with unusual accounts pairings and material post close journals. |
- Assessing whether revenue transactions recorded in the period leading up to year end are accounted for in the correct period by vouching a sample of transactions to supporting documentation to ensure the revenue recognition criteria was met. |
- Assessing whether the judgements made in making accounting estimates are indicative of a potential bias. |
Identifying and responding to risks of material misstatement related to compliance with laws and regulations |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors and other management (as required by auditing standards) and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. |
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
The potential effect of these laws and regulations on the financial statements varies considerably. |
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, anti-bribery and employment law recognising the nature of the Company's activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. |
Context of the ability of the audit to detect fraud or breaches of law or regulation |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. |
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
Independent Auditors' Report to the Member of |
Nordmann U.K. Limited |
Strategic report and directors' report |
The directors are responsible for the strategic report and the directors’ report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon. |
Our responsibility is to read the strategic report and the directors' report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: |
- we have not identified material misstatements in the strategic report and the directors' report; |
- in our opinion the information given in those reports for the financial year is consistent with the financial statements; and |
- in our opinion those reports have been prepared in accordance with the Companies Act 2006. |
Matters on which we are required to report by exception |
Under the Companies Act 2006 we are required 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. |
We have nothing to report in these respects |
Responsibilities of directors |
As explained more fully in their statement set out on page 4, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities |
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 our opinion in an auditor's report. 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 the financial statements. |
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. |
The purpose of our audit work and to whom we owe our responsibilities |
This report is made solely to the Company's member 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 member those matters we are required to state to them in an Auditors' 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 member for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Global House |
Independent Auditors' Report to the Member of |
Nordmann U.K. Limited |
High Street |
Crawley |
West Sussex |
RH10 1DQ |
Nordmann U.K. Limited (Registered number: 03073634) |
Income Statement |
for the year ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( | ) | ( | ) |
Gross profit |
Administrative expenses | ( | ) | ( | ) |
(538,551 | ) | (209,940 | ) |
Other operating income | 4 |
Operating profit |
Interest receivable and similar income |
Interest payable and similar expenses | 7 | ( | ) | ( | ) |
Profit before taxation | 8 |
Tax on profit | 9 | ( | ) | ( | ) |
Profit for the financial year |
Nordmann U.K. Limited (Registered number: 03073634) |
Other Comprehensive Income |
for the year ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ |
Profit for the year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
Nordmann U.K. Limited (Registered number: 03073634) |
Balance Sheet |
31 December 2024 |
2024 | 2023 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Current assets |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 14 | ( | ) | ( | ) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 15 | ( | ) |
Provisions for liabilities | 17 | ( | ) | ( | ) |
Net assets |
Capital and reserves |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Nordmann U.K. Limited (Registered number: 03073634) |
Statement of Changes in Equity |
for the year ended 31 December 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2024 |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements |
for the year ended 31 December 2024 |
1. | Statutory information |
Nordmann U.K. Limited is a |
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. |
Measurement convention |
The financial statements are prepared on the historical cost basis except that the following assets are stated at their fair value: Financial Instrument Derivatives. |
Going concern |
The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. |
The directors have prepared cash flow forecasts and performed a going concern assessment which indicates that, in both the base and reasonably possible downsides, the company will have sufficient funds to meet its liabilities as they fall due during 12 month period ending 30 April 2026, the going concern assessment period. |
The going concern assessment uses budget 2025, considers the order book and applies best estimates of business growth. The base case assumes gross margin levels will be maintained and staff and overhead costs grow at 20.5%. The plausible downside reflects a reduction of sales scenario of -13.3%. |
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Certain disclosures required by FRS 102. 11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1. |
Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Revenue is recognised on fulfilment of the relevant performance obligation. |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
2. | Accounting policies - continued |
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. |
Tangible fixed assets |
| Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis: |
| Freehold property - 2% straight line |
| L/Term leasehold property - over the period of the lease |
| Fixtures & fittings - 10% - 33% straight line |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. |
Financial instruments |
| Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
| Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
| Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management. |
| Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
| Financial instruments not considered to be basic financial instruments - Other financial instruments |
| Other financial instruments not meeting the definition of Basic Financial Instruments are recognised initially at fair value. Subsequent to initial recognition, other financial instruments are measured at fair value with changes recognised in profit or loss. |
| Derivative financial instruments and hedging |
| Derivative financial instruments are recognised at fair value. The gain or loss on remeasurement to fair value is recognised immediately in profit or loss. |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
2. | Accounting policies - continued |
Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Foreign currencies |
| Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the profit and loss account. |
Pension costs and other post-retirement benefits |
| Short term employee benefits including holiday pay and annual bonuses are accrued as services are rendered. |
| The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. |
| Contributions to defined contribution pension schemes are charged to profit or loss as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the balance sheet. |
Expenses |
Operating lease |
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation, in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense. |
Interest receivable and Interest payable |
Interest payable and similar expenses include interest payable, finance expenses on shares classified as liabilities and finance leases recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the profit and loss account (see foreign currency accounting policy). |
Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Foreign currency gains and losses are reported on a net basis. |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
2. | Accounting policies - continued |
Key sources of estimation uncertainty and judgements |
Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the |
effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgement in respect of measuring financial instruments. Management consider the key accounting estimates to be: |
Bad debt provision |
A full line by line review of trade debtors is carried out at the end of each month in order to identify any potential bad debts. Whilst every attempt is made to ensure the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable. |
Stock provision |
A full line by line review of stocks is carried out at the end of each month in order to identify any slow moving or obsolete stock. Whilst every attempt is made to ensure the finished goods stock provisions are as accurate as possible, there remains a risk that the provisions do not match the level of stock which ultimately proves to be unsaleable. |
Impairment |
Financial assets |
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. |
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the Company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
United States of America |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
4. | Other operating income |
2024 | 2023 |
£ | £ |
Intercompany recharges |
Management fees |
903,287 | 1,179,283 |
5. | Employees and directors |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Sales | 30 | 31 |
Finance and Administration | 14 | 13 |
IT and Quality | 8 | 7 |
6. | Directors' emoluments |
2024 | 2023 |
Director's remuneration | 495,432 | 514,618 |
Director's pension | 32,981 | 31,082 |
The highest paid director received remuneration of £270,667 (2023: £298,726). The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,232 (2023: £16,995). |
During the year retirement benefits were accruing to 2 of the directors (2023 - 2) in respect of defined contribution pension schemes. |
7. | Interest payable and similar expenses |
2024 | 2023 |
£ | £ |
Bank interest |
Intergroup interest |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
8. | Profit before taxation |
The profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Patents and licences amortisation |
Auditors' remuneration |
Foreign exchange differences | ( | ) |
Operating lease rentals |
9. | 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 | 91,241 | 251,073 |
| Adjustment in relation to prior period | - | 305,811 |
| Total current tax | 91,241 | 556,884 |
| Deferred tax | 1,542 | - |
| Tax on profit | 92,783 | 556,884 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax | 330,486 | 904,928 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.5%) | 82,622 | 212,658 |
| Effects of: |
| Expenses not deductible for tax purposes | 10,161 | 23,309 |
| Adjustments to tax charge in respect of previous periods | - | 305,811 |
| Difference in tax rates | - | 15,106 |
| Total tax charge | 92,783 | 556,884 |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
10. | Intangible fixed assets |
Patents |
and |
licences |
£ |
Cost |
At 1 January 2024 |
and 31 December 2024 |
Amortisation |
At 1 January 2024 |
Amortisation for year |
At 31 December 2024 |
Net book value |
At 31 December 2024 |
At 31 December 2023 |
| Amortisation and impairment charge |
| The amortisation, impairment charge and impairment reversals are recognised in the following line items in the profit and loss account: |
| 2024 | 2023 |
| Administrative expenses | 1,238 | 1,185 |
11. | Tangible fixed assets |
Fixtures |
Freehold | Long | and |
property | leasehold | fittings | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2024 |
Additions |
Disposals | ( | ) | ( | ) |
At 31 December 2024 |
Depreciation |
At 1 January 2024 |
Charge for year |
Eliminated on disposal | ( | ) | ( | ) |
At 31 December 2024 |
Net book value |
At 31 December 2024 |
At 31 December 2023 |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
12. | Stocks |
2024 | 2023 |
£ | £ |
Goods for resale |
| Included in the carrying value of stock is a stock provision for impairment of £142,634 (2023: £81,277) |
13. | Debtors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Other financial assets | - | 92,961 |
VAT |
Prepayments and accrued income |
14. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Taxation and Social security |
Other creditors |
Accruals and deferred income | 638,471 | 918,205 |
Other financial liabilities | - | 359,813 |
15. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Amounts owed to group undertakings |
16. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
17. | Provisions for liabilities |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 January 2024 |
Provided during year |
Balance at 31 December 2024 |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. 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. Deferred tax is provided at a rate of 25%. |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1p | 492 | 492 |
19. | Reserves |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2024 | 4,214,177 |
Profit for the year | - |
At 31 December 2024 | 4,451,880 |
20. | Pension commitments |
| The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £154,393 (2023: £158,543). Contributions totalling £25,799 (2023: £12,079) were payable to the fund at the balance sheet date and are included in creditors. |
Nordmann U.K. Limited (Registered number: 03073634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2024 |
21. | Other financial commitments |
| The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency transactions. At 31 December 2024, the outstanding contracts all mature within twelve months of the year end. At the year end the company is committed to buy $74,800 and €33,595 (2023: $455,877 and, €106,992) and pay a fixed sterling, euro or US dollar amount. |
| The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates for GBP:USD and GBP:EUR. |
22. | Related party transactions |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
The company considers that the only key management personnel in the year were the directors. Details of remuneration paid to directors is given in note 6 to the accounts. No compensation was paid to any other key management personnel during the year. |
23. | Ultimate parent undertaking and controlling party |
The immediate parent company is Nordmann UK Group Holdings Limited, a company incorporated in the UK. This company has been consolidated to the accounts of Nordmann UK Group Holdings Limited. |
The ultimate parent undertaking is Georg Nordmann Holding Aktiengesellschaft, a company incorporated in Germany. The Georg Nordmann Holding Aktiengesellschaft prepares group financial statements and copies can be obtained from: Georg Nordmann Holding Aktiengesellschaft, Kajen 2, 20459 Hamburg, Germany. |