Company registration number 04008853 (England and Wales)
ELECTROIMPACT UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ELECTROIMPACT UK LIMITED
COMPANY INFORMATION
Directors
Mr P Zieve
Mr M Zieve
Secretary
Mr P Zieve
Company number
04008853
Registered office
Electroimpact Technology Park
Manor Lane
Hawarden
Flintshire
Nth Wales
CH5 3ST
Auditor
Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU
ELECTROIMPACT UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
ELECTROIMPACT UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

The company is extensively involved in all aspects of factory automation in both civil and defence settings ranging from preliminary research through to highly evolved production capable systems.

Our strategy is to increase our focus on emerging areas for automation such as flexible manufacturing, collaborative robotics, and additive technologies, whilst continuing to offer our more mainstream products centred around the assembly of large aircraft components. We also hope to generate new markets in low-cost automation directly targeted at lower tier suppliers.

Principal activities
Review of the business

2024 has seen the continuation of projects initiated in 2023, some of which are not expected to be completed until mid-2025. Work on our second high bay facility has been completed, bringing an additional 17,900 sq ft of high-performance assembly space online.

Both the civilian and military aerospace markets are anticipating growth, with several notable developments. Airbus expects strong sales of their Single Aisle and A350 aircraft, while defence customers are expressing similarly optimistic outlooks.

Work on the Airbus Single Aisle program continues, with the delivery of two additional panel assembly machines to the Broughton factory. A particularly notable development is the creation of a machine capable of lower panel assembly. Although this is a more complex process, if successful, it may lead to future orders for this class of machine.

Outlook

We are well-positioned to secure several large-scale programs that will provide added stability through 2025 and beyond. These work packages will support business growth and enable us to recruit new staff in anticipation of upcoming aircraft programs.

A new ERP system, Dynamics 365, was successfully implemented in 2024 and is now fully operational for 2025. This system enhances our ability to analyze business costs and profitability while streamlining many operational processes.

Additionally, we have achieved Cyber Essentials Plus certification, strengthening our value proposition in opportunities that require enhanced data protection.

Conclusion

Electroimpact is confident that now is the right time to expand by acquiring and training new staff. Repeat orders for equipment developed in previous years are yielding stronger returns on R&D investments, as margins are typically harder to protect on first-of-class equipment. We look forward to 2025 and the stability that comes with a healthy order book.

On behalf of the board

.............................................
Mr P Zieve
Director
Date: .............................................
ELECTROIMPACT UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Mr P Zieve
Mr M Zieve
Auditor

The auditor, Mitchell Charlesworth (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr P Zieve
Director
21 August 2025
ELECTROIMPACT UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

ELECTROIMPACT UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELECTROIMPACT UK LIMITED
- 4 -
Opinion

We have audited the financial statements of Electroimpact UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and 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 31 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

ELECTROIMPACT UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELECTROIMPACT UK LIMITED (CONTINUED)
- 5 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, 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.

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- the company's own assessment of the risks that irregularities may occur either as a result of fraud or error;

- the results of our enquiries of management of their own identification of and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

ELECTROIMPACT UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELECTROIMPACT UK LIMITED (CONTINUED)
- 6 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

(i) The presentation of the Statement of Comprehensive Income, (ii) revenue recognition and (iii) valuation of work in progress. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

Use of our report

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

Robert Hall
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
21 August 2025
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
ELECTROIMPACT UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Year
Period
ended
ended
31 December
31 December
2024
2023
Notes
£
£
Turnover
3
24,354,505
44,105,261
Cost of sales
(22,124,212)
(37,547,434)
Gross profit
2,230,293
6,557,827
Administrative expenses
(2,147,093)
(2,186,503)
Other operating expenses
(680,345)
(4,112,614)
Operating (loss)/profit
4
(597,145)
258,710
Interest receivable and similar income
7
3,349,774
2,787,463
Interest payable and similar expenses
8
(2,130,765)
-
0
Profit before taxation
621,864
3,046,173
Tax on profit
9
(194,926)
663,347
Profit for the financial year
426,938
3,709,520

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ELECTROIMPACT UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
7,022,791
5,307,691
Current assets
Stocks
11
3,500
3,500
Debtors
12
18,794,824
21,173,520
Cash at bank and in hand
71,082,150
69,913,074
89,880,474
91,090,094
Creditors: amounts falling due within one year
13
(49,128,852)
(49,272,936)
Net current assets
40,751,622
41,817,158
Total assets less current liabilities
47,774,413
47,124,849
Provisions for liabilities
Provisions
15
853,013
618,214
Deferred tax liability
16
81,021
93,194
(934,034)
(711,408)
Net assets
46,840,379
46,413,441
Capital and reserves
Called up share capital
18
2
2
Profit and loss reserves
46,840,377
46,413,439
Total equity
46,840,379
46,413,441
The financial statements were approved by the board of directors and authorised for issue on 21 August 2025 and are signed on its behalf by:
Mr P Zieve
Director
Company registration number 04008853 (England and Wales)
ELECTROIMPACT UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
2
42,703,919
42,703,921
Period ended 31 December 2023:
Profit and total comprehensive income
-
3,709,520
3,709,520
Balance at 31 December 2023
2
46,413,439
46,413,441
Year ended 31 December 2024:
Profit and total comprehensive income
-
426,938
426,938
Balance at 31 December 2024
2
46,840,377
46,840,379
ELECTROIMPACT UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
2,338,021
(2,039,135)
Interest paid
(2,130,765)
-
0
Income taxes refunded/(paid)
782,551
(1,289,705)
Net cash inflow/(outflow) from operating activities
989,807
(3,328,840)
Investing activities
Purchase of tangible fixed assets
(2,089,027)
(3,221,488)
Loans made to other entities
(1,281,285)
-
0
Repayment of loans
1,281,285
-
0
Interest received
3,349,774
2,787,463
Net cash generated from/(used in) investing activities
1,260,747
(434,025)
Net increase/(decrease) in cash and cash equivalents
2,250,554
(3,762,865)
Cash and cash equivalents at beginning of year
68,545,520
72,308,385
Cash and cash equivalents at end of year
70,796,074
68,545,520
Relating to:
Cash at bank and in hand
71,082,150
69,913,074
Bank overdrafts included in creditors payable within one year
(286,076)
(1,367,554)
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Electroimpact UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Electroimpact Technology Park, Manor Lane, Hawarden, Flintshire, Nth Wales, CH5 3ST.

1.1
Reporting period

These financial statements cover 12 months from 1 January 2024 to 31 December 2024. The prior period covered 15 months from 1 October 2022 to 31 December 2023. The figures are not therefore directly comparable. The 2023 year end was changed to agree to the year end of the parent company.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

1.3
Going concern

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

1.4
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.

Where the value of work done exceeds the amounts invoiced, the excess is accounted for as amounts recoverable on contracts and is included in debtors.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recover ed.

1.5
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.

ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

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 and buildings
5% straight line
Plant and machinery
15% reducing balance
Fixtures and fittings
15% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
20% 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.

1.6
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.

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

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.9
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 balance sheet 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, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

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.

ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts 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. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
Taxation

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

Current tax

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

ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
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.

1.14
Retirement benefits

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

1.15
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. HMRC approved exchange rates at the year end is used when translating foreign currency bank accounts.

ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

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

The key sources of estimation uncertainty in the accounts are the warranty provision and the amounts recoverable on long term contracts.

A warranty provision of £853,013 (2023: £618,214) has been recognised in relation to anticipated costs upon handover and installation of two systems as described in the provisions note.

An amount of £4,553,049 (2023: £4,905,333) has been included in amounts recoverable on long term contracts. Estimation used is based on expected costs and time frame until the handover of the project.

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales
24,354,505
44,105,261
2024
2023
£
£
Other revenue
Interest income
3,349,774
2,787,463
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Exchange losses
704,345
4,417,906
Depreciation of owned tangible fixed assets
373,927
308,366
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,750
15,000
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
6
Employees

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

2024
2023
Number
Number
Production
105
94
Administration
10
10
Total
115
104

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,865,826
7,110,831
Social security costs
927,987
856,651
Pension costs
768,543
640,744
9,562,356
8,608,226
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,349,774
2,787,463
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,349,774
2,787,463
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
2,130,765
-
0
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
238,246
703,953
Adjustments in respect of prior periods
(31,147)
(1,410,567)
Total current tax
207,099
(706,614)
Deferred tax
Origination and reversal of timing differences
(12,173)
43,267
Total tax charge/(credit)
194,926
(663,347)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
621,864
3,046,173
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.61%)
155,466
688,740
Tax effect of expenses that are not deductible in determining taxable profit
651
812
Change in unrecognised deferred tax assets
-
0
5,930
Adjustments in respect of prior years
(31,147)
-
0
Effect of change in corporation tax rate
-
0
3,568
Permanent capital allowances in excess of depreciation
69,957
46,810
Research and development tax credit
-
0
(1,410,567)
Tax credits
-
0
1,360
Rounding
(1)
-
0
Taxation charge/(credit) for the year
194,926
(663,347)
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
10
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
3,503,704
2,979,591
985,776
88,655
420,942
47,511
8,026,179
Additions
-
0
2,043,172
-
0
-
0
45,855
-
0
2,089,027
Transfers
5,022,763
(5,022,763)
-
0
-
0
-
0
-
0
-
0
At 31 December 2024
8,526,467
-
0
985,776
88,655
466,797
47,511
10,115,206
Depreciation and impairment
At 1 January 2024
1,635,255
-
0
686,223
62,950
313,425
20,635
2,718,488
Depreciation charged in the year
279,826
-
0
52,163
3,856
32,707
5,375
373,927
At 31 December 2024
1,915,081
-
0
738,386
66,806
346,132
26,010
3,092,415
Carrying amount
At 31 December 2024
6,611,386
-
0
247,390
21,849
120,665
21,501
7,022,791
At 31 December 2023
1,868,449
2,979,591
299,553
25,705
107,517
26,876
5,307,691
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Stocks
2024
2023
£
£
Raw materials and consumables
3,500
3,500
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,558,736
7,824,204
Gross amounts owed by contract customers
4,553,049
4,905,333
Corporation tax recoverable
-
0
751,404
Amounts owed by group undertakings
6,237,279
7,202,829
Other debtors
3,910
3,260
Prepayments and accrued income
441,850
486,490
18,794,824
21,173,520
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
286,076
1,367,554
Trade creditors
1,048,199
1,839,097
Amounts owed to group undertakings
45,140,189
42,329,472
Corporation tax
238,246
-
0
Other taxation and social security
988,441
848,873
Accruals and deferred income
1,427,701
2,887,940
49,128,852
49,272,936

A warranty provision shown within creditors due within one year under 'gross amounts owed to contract customers' in 2023 has been represented to be shown under provisions in the comparative figures. The detail of this provision is within the provisions note.

14
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
286,076
1,367,554
Payable within one year
286,076
1,367,554
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Loans and overdrafts
(Continued)
- 22 -

HSBC Bank PLC holds a debenture dated 25 May 2011 including a fixed charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking s both present and future.

15
Provisions for liabilities
2024
2023
£
£
Warranty provision
853,013
618,214
Movements on provisions:
Warranty provision
£
At 1 January 2024
618,214
Additional provisions in the year
234,799
At 31 December 2024
853,013

The two major warranty provision requirements arise from the installation and handover of two systems, the Single Aisle 4 R iveting Machine and the LSR.

As the S ingle Aisle 4 is the 2nd of its class, with its predecessor SA3 now exiting its warranty period, many of the anticipated failure modes have already been encountered. Fixes are already implemented on both systems. This means the anticipated liability for warranty activities should amount to no more than 4% of contract value in FY25 and beyond.

LSR is a first of class machine, with 2 distinct process e s that are new to Electroimpact. As such, a warranty provision of 8% of contract value would be more appropriate.

LSR Contract = £5.2m, £416 k w arranty provision.

SA4 Contract = £10.925 m, £437 k warranty provision.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
81,021
93,194
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Deferred taxation
(Continued)
- 23 -
2024
Movements in the year:
£
Liability at 1 January 2024
93,194
Credit to profit or loss
(12,173)
Liability at 31 December 2024
81,021

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
768,543
640,744

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

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
19
Related party transactions

Electroimpact UK Limited (EI UK) is a subsidiary of Electroimpact Inc. (EI USA), a company incorporated in the United States of America. During the year the following transactions took place between these two companies:

- EI UK recharged costs to EI USA of £180,770 (2023 - £610,358)

- EI USA recharged costs to EI UK of £4,024,616 (2023 - £9,295,453)

- EI UK made loan repayments to EI USA of £3,161,805 (2023 - £4,973,063)

- Simple annual interest was charged at 5% on the loan from EI USA of £2,128,676 (2023 - 0%, £nil).

The amount owed to EI USA as at 31 December 2024 was £45,140,189 (2023 - £42,329,472). There are no formal repayment terms.

Electroimpact France (EI France) is a fellow subsidiary company of Electroimpact UK Limited (EI UK). During the year the following transactions took place between these two companies:

- EI UK recharged costs to EI France of £24,000 (2023 - £3,390)

- Loans were made to EI France of £1,281,285 (2023 - £1,808,465)

- A loan balance owed from EI France to EI UK was written off of £nil (2023 - £26,610)

- A repayment was made by EI France to EI UK of £2,270,83 5 (2023 - £nil)

The amount owed from EI France to EI UK as at 31 December 2024 was £6,237,278.97 (2023 - £7,202,829). There are no formal repayment terms.

20
Ultimate controlling party

Electroimpact UK Limited is a wholly owned subsidiary of Electroimpact Incorporation, a company incorporated in the United States of America. Electroimpact Incorporation is controlled by Mr P Zieve.

The ultimate controlling party is Mr P Zieve, a director of the company and president of the ultimate parent company, Electroimpact Incorporated.

21
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
426,938
3,709,520
Adjustments for:
Taxation charged/(credited)
194,926
(663,347)
Finance costs
2,130,765
-
0
Investment income
(3,349,774)
(2,787,463)
Depreciation and impairment of tangible fixed assets
373,927
308,367
Increase in provisions
234,799
618,214
Movements in working capital:
Decrease/(increase) in debtors
1,627,292
(6,605,348)
Increase in creditors
699,148
3,380,922
Cash generated from/(absorbed by) operations
2,338,021
(2,039,135)
ELECTROIMPACT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
69,913,074
1,169,076
71,082,150
Bank overdrafts
(1,367,554)
1,081,478
(286,076)
68,545,520
2,250,554
70,796,074
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