Company registration number 01356653 (England and Wales)
KANNEGIESSER UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KANNEGIESSER UK LIMITED
COMPANY INFORMATION
Directors
A D Cartwright
K P Hartley
P N Morley
U K Priester
Secretary
K P Hartley
Company number
01356653
Registered office
Beaumont Road
Banbury
Oxfordshire
United Kingdom
OX16 1QZ
Auditor
Azets Audit Services
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
KANNEGIESSER UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 23
KANNEGIESSER 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.

Business review

As with all businesses there are continued national and international issues. Domestic polices, Brexit red tape and international conflicts still play a part in the many challenges faced. However, Kannegiesser UK Limited has emerged at the end of 2024 with a solid trading result that we are proud of. The expanded factory facilities in the UK have been useful to ensure we have space to store finished products and take advantage of bulk buying to keep supplier prices under control.

Due to our extensive trade with the EU, leaving the EU has still had a significant impact on us but we still have to monitor and comply with EU legislation and regulations and new ones are emerging such as CBAM, the way we trade with NI, however, we remain positive and adaptable to the changes. Our Brexit project team have been tasked to work closely to monitor the changes to legislation and processes and the effects of this and take actions with our internal teams, suppliers, carriers and customers as necessary. We continue to train staff, hold increased stock levels and liaise with customers to ensure project delivery and many other actions associated with this still relatively new way of working.

We have reviewed supply chains to ensure minimal effect from the Ukraine conflict and war in Gaza, but as with all companies we have seen the knock on increased costs associated with this in materials, energy, insurance and shipping costs.

We are fully committed to our sustainability policy and plans which is dovetailed from our Germany parent’s sustainability statement and methodology. We are committed to reducing our carbon footprint and have a team reviewing both internal and external emissions.

The Company continues to maintain a sound financial base and support team with many years of knowledge and experience and now introducing new blood in key positions gives us additional strength to tackle future challenges. We continue to be vigilant and adapt our business plan to suit changes in the environment, still committing to careful investment in the business in particular research and development of existing and new products.

Key business areas

The Company operates in the following key business streams:

1. Importing - Business UK imports the Kannegiesser products from Germany

2. Manufacturing - Supertrack Monorail system which is manufactured in the UK and distributed in the UK and worldwide.

3. Facilities Management - services in the UK

4. Support for Revolutions Towel Processing Machines

All the above offer after-sales service and spares.

KANNEGIESSER UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Performance review

The Company has delivered a profit in the year in the UK in 2024. Profit remains positive despite the challenges of 2024 and we will continue to invest in the business.

There will be different challenges for 2025 due to the opening up new markets and gearing up for a higher turnover that we experienced pre-covid and also the continued challenges of the supply change and possibly the new challenges of a changing world. But due to increased turnover, we have returned to a similar business performance and structure we enjoyed pre-covid.

The ongoing investment in our manufacturing capability continues to yield results in terms of quality and delivery performance.

The retained profit for the Company for the year, was £3.8m before tax, and over £260k was invested in fixed assets during the year.

Company gross assets at the end of the year were £27.5m, and Company net assets were £14.7m an increase of 24% on 2023.

Key performance indicators

We monitor performance of the Company by comparing monthly actual results with the forecast. Each month the forecast performance position for the end of the year is monitored and any differences month on month are analysed. In addition, performance variances that we use as key performance indicators are:

• Monthly sales and orders in hand

• Gross margin, which is the difference between total sales and direct cost of goods sold

• Margin, after direct costs on specific contracts

• Cashflow analysis

• Liquidity ratios

• Departmental performance indicators, based on function

• Daily liquidity reporting.

The performance of the Company is measured by these key performance indicators.

In 202 4 the Company continued to maintain tight control over distribution and administration costs in a tough economic environment.

Principal risks & uncertainties

The following are identified as the principal risks and uncertainties faced by the Company: The fluctuations in the sterling to Euro exchange rates - these are monitored daily from up-to-date information supplied to us by our bank. Raw material prices - these are monitored and reviewed by our inter company procurement team. This is extended to many other components due to the rapid rises in inflation. The impact of the global economy - this is monitored with monthly detailed economic information received from our bank and other sources. The outcome of the EU and other trade deal negotiations present uncertainties, but the Company is actively looking to ensure that we will be ready to adapt to any changes. New EU legislation and regulations is providing some barriers to trade which is of concern and how this might impact our business in terms of rising costs and supply chain.

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

The Company's key objective is to provide products and services that meet its customers' needs in its chosen markets, and to deliver a sustainable future for the Company, its employees and its shareholders.

Section 172 Statement

The directors of the company must act in accordance with a general set of duties. These duties are detailed in the UK Companies Act and include a duty to promote the success of the compan y.

On behalf of the board

K P Hartley
Director
27 March 2025
KANNEGIESSER UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Principal activities

The principal activity of the company continued to be that of the design and manufacture of industrial laundry equipment.

Results and dividends

The results for the year are set out on page 9.

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

Directors

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

A D Cartwright
K P Hartley
P N Morley
U K Priester
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

As the company previously did not meet the criteria requiring it to report user under the regulations, no disclosures are included on its emissions, energy consumption or energy efficiency activities for the current year.

The relevant information is being collected for disclosure going forwards.

Statement of directors' responsibilities

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.

KANNEGIESSER UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
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
K P Hartley
Director
27 March 2025
KANNEGIESSER UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KANNEGIESSER UK LIMITED
- 6 -
Opinion

We have audited the financial statements of Kannegiesser UK Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.

KANNEGIESSER UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KANNEGIESSER UK LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not 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.

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.

KANNEGIESSER UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KANNEGIESSER UK LIMITED
- 8 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

Helen Davies
Senior Statutory Auditor
For and on behalf of Azets Audit Services
27 March 2025
Chartered Accountants
Statutory Auditor
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
KANNEGIESSER UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
47,596,642
40,562,681
Cost of sales
(36,947,828)
(32,200,730)
Gross profit
10,648,814
8,361,951
Administrative expenses
(6,931,641)
(6,967,452)
Operating profit
4
3,717,173
1,394,499
Interest receivable and similar income
8
170,182
104,904
Interest payable and similar expenses
9
(73,480)
12,586
Profit before taxation
3,813,875
1,511,989
Tax on profit
10
(974,969)
(369,863)
Profit for the financial year
2,838,906
1,142,126

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

KANNEGIESSER UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
2,838,906
1,142,126
Other comprehensive income
-
-
Total comprehensive income for the year
2,838,906
1,142,126
KANNEGIESSER UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,371,103
1,367,695
Current assets
Stocks
13
6,160,399
6,493,607
Debtors
14
18,129,658
22,078,894
Cash at bank and in hand
1,829,214
2,305,774
26,119,271
30,878,275
Creditors: amounts falling due within one year
15
(12,497,066)
(20,097,051)
Net current assets
13,622,205
10,781,224
Total assets less current liabilities
14,993,308
12,148,919
Provisions for liabilities
Deferred tax liability
16
297,387
291,904
(297,387)
(291,904)
Net assets
14,695,921
11,857,015
Capital and reserves
Called up share capital
18
800,250
800,250
Share premium account
9,990
9,990
Capital redemption reserve
10
10
Profit and loss reserves
13,885,671
11,046,765
Total equity
14,695,921
11,857,015
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
K P Hartley
Director
Company Registration No. 01356653
KANNEGIESSER UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2023
800,250
9,990
10
9,904,639
10,714,889
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
1,142,126
1,142,126
Balance at 31 December 2023
800,250
9,990
10
11,046,765
11,857,015
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
-
2,838,906
2,838,906
Balance at 31 December 2024
800,250
9,990
10
13,885,671
14,695,921
KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Kannegiesser UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Beaumont Road, Banbury, Oxfordshire, United Kingdom, OX16 1QZ.

1.1
Accounting convention

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

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

- Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash f low and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Herbert Kannegiesser GmbH. These consolidated financial statements are available from Herbert Kannegiesser GmbH, Kannegiesser Ring 7, 32602 Vlotho, Germany.

1.2
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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of maintenance services is recognised over the period of the contract.

KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Long term contracts

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen.

Contract work in progress is stated at costs incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.

1.4
Research and development expenditure

Expenditure on research and development activities is recognised in the profit and loss account as an expense as incurred. Tax credits received in relation to these activities are recognised within administrative expenses.

1.5
Intangible fixed assets - goodwill

Intangible assets acquired as part of an acquisition are capitalised at their fair value where this can be measured reliably. Concessions, patents, licenses and trademarks purchased by the Company are amortised to nil by equal annual instalments over their useful economic lives of 10 years.

1.6
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. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example, land is treated separately from buildings.

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:

Leasehold buildings
Straight line over 6 - 10 years
Plant and machinery
15% reducing balance / 33% straight line
Fixtures, fittings, tools and equipment
15% reducing balance / 20% - 50% straight line
Motor vehicles
25% reducing balance

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

1.7
Impairment of fixed assets

The company assesses at each reporting date whether tangible assets are impaired.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in brining them to their existing location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Financial instruments
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.

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method, less any impairment costs in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

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.

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.

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

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

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.

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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

The Company operates a defined contribution scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.

KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

1.14
Foreign exchange

Transactions in foreign currencies are translated to the company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.

1.15

Related parties

The Company is a wholly-owned subsidiary of Herbert Kannegiesser GmbH. The Company has taken advantage of the exemption included in FRS102 from disclosing transactions with entities which form part of the Herbert Kannegiesser GmbH group.

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 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.

Key sources of estimation uncertainty

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

Long term contract valuations

Determining the valuation of construction contracts requires judgement regarding the stage of completion of jobs at the year end. The judgements are based on the proportion of costs incurred to date, surveys of work performed and confirmations of completion of a physical proportion of the contract work.

There is also judgement involved in the assessment of total expected contract values and costs. Management takes a prudent approach in their assessment.

3
Turnover and other revenue

The Company's turnover and profit in the current and prior years has been generated from customers based in the UK, Europe and the Rest of the World.

2024
2023
£
£
Other revenue
Interest income
170,182
104,904
KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments
66,467
(12,859)
Research and development costs
11,521
24,889
Depreciation of owned tangible fixed assets
254,903
245,015
(Profit)/loss on disposal of tangible fixed assets
(277)
377
Operating lease charges
650,222
584,184
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
32,500
30,000
For other services
Taxation compliance services
3,750
3,500
All other non-audit services
1,500
1,500
5,250
5,000
6
Employees

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

2024
2023
Number
Number
Production
80
67
Administration
27
25
Sales
7
15
Design
11
30
Partner support
35
23
Total
160
160

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,474,321
7,819,577
Social security costs
921,304
849,473
Pension costs
360,377
286,252
9,756,002
8,955,302
KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
607,496
444,988
Company pension contributions to defined contribution schemes
19,386
15,000
626,882
459,988

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
312,031
232,863
Company pension contributions to defined contribution schemes
8,511
6,156
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
169,944
104,904
Other interest income
238
-
0
Total income
170,182
104,904
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
140
273
Exchange differences on financing transactions
66,467
(12,859)
Other interest
6,873
-
0
73,480
(12,586)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
966,400
344,025
Adjustments in respect of prior periods
3,086
(3,838)
Total current tax
969,486
340,187
KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
2024
2023
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
5,483
29,676
Total tax charge
974,969
369,863

The actual charge 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
3,813,875
1,511,989
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
953,469
355,620
Tax effect of expenses that are not deductible in determining taxable profit
17,863
14,494
Permanent capital allowances in excess of depreciation
-
0
(15,843)
Depreciation on assets not qualifying for tax allowances
551
-
0
Other non-reversing timing differences
-
0
(10,246)
Under/(over) provided in prior years
3,086
(3,838)
Deferred tax movement
-
0
29,676
Taxation charge for the year
974,969
369,863
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
45,000
Amortisation and impairment
At 1 January 2024 and 31 December 2024
45,000
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Tangible fixed assets
Leasehold buildings
Plant and machinery
Fixtures, fittings, tools and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
1,581,729
866,533
3,260,885
24,397
5,733,544
Additions
14,040
16,292
229,599
-
0
259,931
Disposals
-
0
(6,000)
-
0
(7,122)
(13,122)
At 31 December 2024
1,595,769
876,825
3,490,484
17,275
5,980,353
Depreciation and impairment
At 1 January 2024
1,514,182
567,387
2,263,013
21,267
4,365,849
Depreciation charged in the year
34,008
45,938
174,527
430
254,903
Eliminated in respect of disposals
-
0
(6,000)
-
0
(5,502)
(11,502)
At 31 December 2024
1,548,190
607,325
2,437,540
16,195
4,609,250
Carrying amount
At 31 December 2024
47,579
269,500
1,052,944
1,080
1,371,103
At 31 December 2023
67,547
299,146
997,872
3,130
1,367,695
13
Stocks
2024
2023
£
£
Raw materials and consumables
5,379,955
6,114,148
Work in progress
780,444
379,459
6,160,399
6,493,607

The movement in stock provision amounted to £299,460 (2023: £276,067).

14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
12,002,432
14,434,393
Gross amounts owed by contract customers
1,297,609
2,682,028
Amounts owed by group undertakings
4,178,977
4,499,775
Other debtors
178,889
20,700
Prepayments and accrued income
471,751
441,998
18,129,658
22,078,894
KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
2,308,701
4,968,608
Trade creditors
901,758
1,106,529
Amounts owed to group undertakings
4,996,211
9,809,243
Corporation tax
322,485
186,364
Other taxation and social security
1,073,241
1,420,721
Accruals and deferred income
2,894,670
2,605,586
12,497,066
20,097,051
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
297,387
291,904
2024
Movements in the year:
£
Liability at 1 January 2024
291,904
Charge to profit or loss
5,483
Liability at 31 December 2024
297,387
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
360,377
286,252

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
800,250
800,250
800,250
800,250
KANNEGIESSER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
19
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
1,048,698
571,958
Between two and five years
2,049,156
645,189
In over five years
368,880
-
0
3,466,734
1,217,147
20
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
37,629
-
21
Related party transactions

The Company has taken advantage of the exemption included in FRS102 from disclosing transactions with entities which form part of the Herbert Kannegiesser GmbH group.

Included within debtors are amounts owed by companies within the Herbert Kannegiesser GmbH group amounting to £4,178,977 (2023: £4,499,775)

Included within creditors are amounts owed to companies within the Herbert Kannegiesser GmbH group amounting to £4,996,211 (2023: £9,809,243).

22
Ultimate controlling party

The Company is a wholly-owned subsidiary undertaking of Herbert Kannegiesser GmbH which is the ultimate parent company incorporated in Germany.

The smallest and largest group in which the results of the Company are consolidated is that headed by Herbert Kannegiesser GmbH.

The consolidated financial statements of this group are available to the public and may be obtained from Herbert Kannegiesser GmbH, Kannegiesser Ring 7, 32602 Vlotho, Germany.

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