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Registered number: 06166936 ESSCO CONTROLS LIMITED FINANCIAL STATEMENTS INFORMATION FOR FILING WITH THE REGISTRAR FOR THE YEAR ENDED 31 DECEMBER 2024
ESSCO CONTROLS LIMITED REGISTERED NUMBER: 06166936 BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Goodwill |  |  | 142,795 |  | 52,795
Other intangible assets | 5 |  | 6 |  | -
Tangible assets | 7 |  | 1,458,414 |  | 1,694,737
Investments | 8 |  | 1 |  | 1
|  |  | 1,601,216 |  | 1,747,533
Current assets |  |  |  |  |
Stocks | 9 | 1,482,324 |  | 1,657,919 |
Debtors | 10 | 1,657,631 |  | 2,077,324 |
Cash at bank and in hand |  | 261,286 |  | 247,341 |
|  | 3,401,241 |  | 3,982,584 |
Creditors: amounts falling due within one year | 11 | (2,019,855) |  | (2,190,158) |
Net current assets |  |  | 1,381,386 |  | 1,792,426
Total assets less current liabilities |  |  | 2,982,602 |  | 3,539,959
Creditors: amounts falling due after more than one year | 12 |  | (1,216,677) |  | (1,466,453)
|  |  | 1,765,925 |  | 2,073,506
Provisions for liabilities |  |  |  |  |
Deferred taxation | 13 | (32,277) |  | (30,141) |
Other provisions | 14 | (58,531) |  | (146,934) |
|  |  | (90,808) |  | (177,075)
Net assets |  |  | 1,675,117 |  | 1,896,431
Capital and reserves |  |  |  |  |
Called up share capital | 15 |  | 93 |  | 93
Capital redemption reserve |  |  | 25 |  | 25
Profit and loss account |  |  | 1,674,999 |  | 1,896,313
|  |  | 1,675,117 |  | 1,896,431
Page 1
ESSCO CONTROLS LIMITED REGISTERED NUMBER: 06166936 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024 The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime. The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
R J Stammers
Director
Date: 30 May 2025
The notes on pages 3 to 21 form part of these financial statements. Page 2
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Essco Controls Limited is a private company, limited by share capital and incorporated in England and Wales. The Company's registered office is Office 2.3 Design Hub, Coventry University Technology Park, Puma Way, Coventry, CV1 2TT. The Company's principal place of business is Unit J1, Adanac North, Adanac Drive, Nursling, Southampton, SO16 0BT. The principal activity of the Company is selling industrial and commercial control valves and actuators. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006. The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The financial statements are presented in pound Sterling, the functional currency of the Company, and rounded to the nearest pound Sterling. The following principal accounting policies have been applied: Page 3
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.2 | Financial Reporting Standard 101 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions under FRS 101: ∙the requirements of IFRS 7 Financial Instruments: Disclosures ∙the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers ∙the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total ∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of: - paragraph 79(a)(iv) of IAS 1; - paragraph 73(e) of IAS 16 Property, Plant and Equipment; - paragraph 118(e) of IAS 38 Intangible Assets; ∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements ∙the requirements of IAS 7 Statement of Cash Flows ∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors ∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures ∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member This information is included in the consolidated financial statements of Flowmax Limited as at 31 December 2024 and these financial statements may be obtained from Companies House. Page 4
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | Exemption from preparing consolidated financial statements
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006. The financial statements contain information about Essco Controls Limited as an individual company and do not contain consolidated financial information as the parent of the Group. The Company and its subsidiary undertaking is included in the consolidation in the consolidated financial statements of its parent, Flowmax Limited, a company registered in England and Wales. Flowmax Limited prepared consolidated financial statements in accordance with UK adopted International Accounting Standards. Copies are available to the public and may be obtained from the Registrar of Companies.
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer. The Company manufactures, prefabricates and sells energy efficient products for the business to the HVAC and processing industries. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer and the customer has legal title to the goods. Delivery occurs when the products have been distributed to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the product in accordance with the sales contract or the Company has objective evidence that all criteria for acceptance have been satisfied. The Company offers discounts on its sales of goods which are agreed on a customer by customer basis at the sales order stage, and the value of up-front payments received in respect of sales of goods are immaterial to the financial statements. Page 5
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.5 | Revenue (continued)
A receivable is recognised when the performance obligation is satisfied as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.
| 2.6 | Leases
The Company as a lessee Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Short term leases or those of low value are recognised as operating leases. The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. Incremental rate used by the Company equals that of its borrowings, the cost of capital to the Company. Lease payments included in the measurement of the lease liability comprise: ∙fixed lease payments (including in-substance fixed payments), less any lease incentives; The lease liability is included in 'Creditors' on the Balance Sheet. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are included in the Tangible Fixed Assets line in the Balance Sheet. The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.11. As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has not used this practical expedient. Page 6
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.7 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.8 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
| 2.9 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 7
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.10 | Goodwill
Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets, liabilities and contingent liabilities acquired. Cost comprises the fair value of assets given, liabilities assumed and equity instruments issued. When a business combination agreement provides for an adjustment to the cost of the combination which is contingent on future events, the company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably. However, if the potential adjustment is not recognised at the acquisition date but subsequently becomes probable and can be measured reliably, the additional consideration shall be treated as an adjustment to the cost of the combination. Changes in the estimated value of contingent consideration arising on business combinations completed as a consequence result in a change in the carrying value of the related goodwill. Goodwill is capitalised as an intangible asset and is not amortised. Instead it is reviewed annually for impairment with any impairment in carrying value being charged to profit or loss. The Companies Act 2006 requires acquired goodwill to be reduced by provisions for depreciation calculated to write off the amount systematically over a period chosen by the directors, not exceeding its useful economic life. It has been deemed, however, the non-amortisation of goodwill is a departure, for the overriding purpose of giving a true and fair view. The effect of this departure has not been quantified because it is impracticable and, in the opinion of the directors, would be misleading.
| 2.11 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Plant and machinery | - | 20% & 33%
|  |  |  | Fixtures and fittings | - | 20%
|  |  |  | Office equipment | - | 20% & 33%
|  |  |  | Right-of-use assets | - | Life of lease
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.12 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Page 8
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.13 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.14 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.15 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
| 2.16 | Creditors
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
| 2.17 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss. Page 9
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.18 | Financial instruments
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below: Financial assets and financial liabilities are initially measured at fair value. Financial assets All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets. Fair value through profit or loss All of the Company's financial assets are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset. Impairment of financial assets The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. Financial liabilities Fair value through profit or loss Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship. At amortised cost Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability. Page 10
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.19 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The Company makes estimates and assumptions concerning the future and judgements in applying the Company's accounting policies. The resulting accounting estimates will, by definition, seldom equal the actual results. The following estimates and assumptions have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year: Provision for doubtful debts Management provides for doubtful debts on the perceived risk profile and payment history of the debtor. Provision for slow moving, damaged and obsolete stock There is a provision to write stock down to the lower of cost and net realisable value. Management have made estimates of the selling price and direct costs to sell on certain stock items. The write down is included in the operating profit note. Provision for dilapidations The Directors have considered work carried out on buildings to date, lease terms, and current conditions of the buildings. The provisions for dilapidations of buildings is annually reviewed for any changes and is updated when new factors affecting the directors' estimate of likely costs are identified. Leases IFRS 16 requires the Company to account for its leases as right-of-use assets over the life of the lease agreement. The present value of the lease liability on inception requires management to assess various factors including the discount rate and the life of the lease and the extent to which any options to extend or break the lease are exercised. These factors have a resulting impact in determining the present value of the lease liability on inception. Page 11
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Employees
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Wages and salaries | 1,183,120 | 1,121,230
| Social security costs | 135,398 | 134,490
| Cost of defined contribution scheme | 45,030 | 34,249
|  | 1,363,548 | 1,289,969
| The average monthly number of employees, including the Directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Sales and administration | 23 | 23
|  | Directors | 5 | 6
|  |  | 28 | 29
5. | Intangible assets
|  | Other intangible assets
|  | £
| Cost |
| Additions | 6
| At 31 December 2024 | 6
| Net book value |
| At 31 December 2024 | 6
| At 31 December 2023 | -
Page 12
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
6. | Goodwill
|  | 2024
|  | £
| Cost |
| At 1 January 2024 | 52,795
| Additions | 90,000
| At 31 December 2024 | 142,795
| Net book value |
| At 31 December 2024 | 142,795
| At 31 December 2023 | 52,795
Page 13
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | Tangible fixed assets
|  | Plant and machinery | Fixtures and fittings | Office equipment | Right-of-use asset machinery | Right-of-use asset - building | RIght-of-use asset - motor vehicles | Total
|  | £ | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |  |
| At 1 January 2024 | 105,843 | 84,755 | 179,911 | 51,799 | 1,543,247 | 342,562 | 2,308,117
| Additions | 58,605 | 19,829 | 8,485 | - | - | 30,476 | 117,395
| Disposals | (2,465) | (15,160) | (4,620) | - | (192,401) | (165,383) | (380,029)
| At 31 December 2024 | 161,983 | 89,424 | 183,776 | 51,799 | 1,350,846 | 207,655 | 2,045,483
| Depreciation |  |  |  |  |  |  |
| At 1 January 2024 | 69,190 | 55,562 | 111,548 | 6,475 | 153,543 | 217,062 | 613,380
| Charge for the year on owned assets | 17,625 | 10,347 | 39,727 | - | - | - | 67,699
| Charge for the year on right-of-use assets | - | - | - | 16,520 | 135,085 | 54,899 | 206,504
| Disposals | (149) | (7,333) | (4,620) | - | (130,196) | (158,216) | (300,514)
| At 31 December 2024 | 86,666 | 58,576 | 146,655 | 22,995 | 158,432 | 113,745 | 587,069
| Net book value |  |  |  |  |  |  |
| At 31 December 2024 | 75,317 | 30,848 | 37,121 | 28,804 | 1,192,414 | 93,910 | 1,458,414
| At 31 December 2023 | 36,653 | 29,193 | 68,363 | 45,324 | 1,389,704 | 125,500 | 1,694,737
Page 14
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Depreciation charge in respect of right-of-use assets is as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Building | 135,085 | 143,692
| Motor vehicles | 54,899 | 39,733
| Plant and machinery | 16,520 | 6,475
|  | 206,504 | 189,900
Page 15
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 January 2024 | 1
| At 31 December 2024 | 1
| Subsidiary undertaking
| The following was a subsidiary undertaking of the Company:
| Name | Registered office | Class of shares | Holding
| The Valve and Actuator Company Limited | Office 2.3 Design Hub, Coventry University Technology , Puma Way, Coventry, CV1 2TT | Ordinary | 100%
| The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking was as follows:
| Name | Aggregate of share capital and reserves
| The Valve and Actuator Company Limited | 1
9. | Stocks
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Finished goods and goods for resale | 1,482,324 | 1,657,919
| At 31 December 2024, a provision of £60,477 is recognised in respect of slow moving stock (2023: £66,513).
Page 16
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Due within one year |  |
| Trade debtors | 1,475,197 | 1,663,942
| Other debtors | 54,668 | -
| Prepayments and accrued income | 127,766 | 413,382
|  | 1,657,631 | 2,077,324
11. | Creditors: Amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Contract liabilities | 145,984 | 121,325
| Trade creditors | 1,072,886 | 1,404,414
| Amounts owed to group undertakings | 568 | -
| Corporation tax | 52,707 | 85,297
| Other taxation and social security | 281,123 | 250,365
| Lease liabilities | 172,517 | 72,948
| Other creditors | 70,443 | 14,670
| Accruals and deferred income | 223,627 | 241,139
|  | 2,019,855 | 2,190,158
All amounts included in amounts owed to group undertakings are unsecured, non-interest bearing and repayable on demand.
12. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Lease liabilities | 1,216,677 | 1,466,453
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ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Deferred taxation
|  | 2024 | 2023
|  | £ | £
| At beginning of year | (30,141) | 4,485
| Charged to the profit or loss | (2,136) | (34,626)
| At end of year | (32,277) | (30,141)
| The deferred tax asset is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Accelerated capital allowances | (32,277) | (30,141)
14. | Provisions
|  | Lease dilapidations provision
|  | £
| At 1 January 2024 | 146,934
| Charged to profit or loss | 30,000
| Other movement | 26,222
| Utilised in year | (144,625)
| At 31 December 2024 | 58,531
| The Company has reviewed its obligation in respect of dilapidations on leased property and recognised a dilapidation provision of £58,531 in respect of the expected future costs to return the premises to the condition stated in the lease. The provision is expected to be released at the end of the lease on 31 October 2033.
15. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1,050 (2023 - 1,050) Ordinary Class A shares of £0.01 each | 10.50 | 10.50
|  | 1,860 (2023 - 1,860) Ordinary Class B shares of £0.01 each | 18.60 | 18.60
|  | 6,385 (2023 - 6,385) Ordinary Class F shares of £0.01 each | 63.85 | 63.85
|  |  | 92.95 | 92.95
Page 18
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 15.Share capital (continued)
| All share classes carry equal voting rights and rights to dividends and distributions.
16. | Business combinations
| Acquisition of Tacotherm Limited
| Recognised amounts of identifiable assets acquired and liabilities assumed
|  |  |  |  | Book value | Fair value adjustments | Fair value
|  |  |  |  | £ | £ | £
| Fixed Assets |  |  |
| Tangible | 9,576 | - | 9,576
| Intangible | 6 | - | 6
|  | 9,582 | - | 9,582
| Current Assets |  |  |
| Stocks | 165,140 | - | 165,140
| Total Assets | 174,722 | - | 174,722
| Creditors |  |  |
| Due within one year | (50,000) | - | (50,000)
| Total Identifiable net assets | 124,722 | - | 124,722
| Goodwill | 90,000
| Total purchase consideration | 214,722
| Consideration
|  |  |  |  | £
| Cash | 214,722
| Total purchase consideration | 214,722
| Cash outflow on acquisition
|  |  |  |  | £
| Purchase consideration settled in cash, as above | 214,722
| Net cash outflow on acquisition | 214,722
Page 19
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 16.Business combinations (continued)
| The results of Tacotherm Limited since acquisition are as follows:
|  |  |  | Current period since acquisition
|  |  |  | £
| Turnover | 240,889
| Profit for the period since acquisition | 9,158
17. | Capital commitments
| At 31 December 2024 the Company had capital commitments as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Plant and machinery | 19,713 | 57,465
18. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £45,030 (2023: £34,249). Contributions totalling £6,472 (2023: £5,778) were payable to the fund at the balance sheet date and are included in creditors.
|  | 2024 | 2023
|  | £ | £
| Purchases from group companies | 1,765 | -
| Sales to group companies | 439 | -
| At 31 December 2024, the Company owed £568 to Flowmax Limited (2023: £Nil). During the year ended 31 December 2024, the Company was recharged costs of £72,829 (2023: £82,589) from its parent company. £568 was due receivable to this company in respect of recharges (2023: £167).
19. | Post balance sheet events
On 31 March 2025, Essco Controls Limited purchased the assets of Helec Limited for £178,668 resulting in an increase in fixed assets and stock of £93,650 and £85,011 respectively, and an increase in amounts owed to group undertakings of £178,668. Page 20
ESSCO CONTROLS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
20. | Controlling party
The Directors regard Flowmax Limited as the smallest group and SA Bias Industries (Pty) Limited, a company registered in South Africa, as the largest group within which the subsidiary belongs and for which group accounts are prepared. Flowmax Limited's registered office is Office 2.3 Design Hub, Coventry University Technology Park, Puma Way, Coventry, CV1 2TTCopies of the Flowmax Limited group accounts are available from the Registrar of Companies.
21. | Auditor's information
The auditor's report on the financial statements for the year ended 31 December 2024 was unqualified. The audit report was signed on 30 May 2025 by James Pitt BA BFP FCA (Senior Statutory Auditor) on behalf of James Cowper Kreston Audit.
Page 21