Company registration number: 00637383
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
The company’s principal activity is the marketing, selling and servicing of commercial catering and laundry equipment to the UK market.
The company’s principal activity is the marketing, selling and servicing of commercial catering and laundry equipment to the UK market.
The company is a supplier of total solutions for professional food service and laundry equipment. Innovations in design and environmentally friendly products are a core value of the brands of Electrolux Professional products.
The business continues with the strategy to deliver profitable growth through product innovation, operational excellence and to be a leading company in offering sustainable products.
The business continues with the strategy to deliver profitable growth through product innovation, operational excellence and to be a leading company in offering sustainable products.
The profit for the financial year amounted to £2,446,000 (2023: £2,512,000).
The results for the company show that turnover has decreased by 3.9% to £28,895,000 (2023: £30,070,000) and operating profit has decreased by 9.5% to £2,717,000 (2023: £3,003,000).
The company’s net assets have decreased by 0.8% to £8,513,000 (2023: £8,579,000) following profit for the year less dividends paid within the year.
The issued share capital of the Company is £3,426,000 divided into 3,426,000 Ordinary share of £1.00.
Please page 2 for management comments on the results for the year.
The results for the company show that turnover has decreased by 3.9% to £28,895,000 (2023: £30,070,000) and operating profit has decreased by 9.5% to £2,717,000 (2023: £3,003,000).
The company’s net assets have decreased by 0.8% to £8,513,000 (2023: £8,579,000) following profit for the year less dividends paid within the year.
The issued share capital of the Company is £3,426,000 divided into 3,426,000 Ordinary share of £1.00.
Please page 2 for management comments on the results for the year.
The company’s management team consider that the most relevant key performance indicators to monitor business performance and their relevant percentage are set out below:
∙Turnover
∙Operating Profit
∙Operating Profit Margin
These KPI’s are selected as most relevant as they are key to the overall company and group performance which focuses on food and laundry as separate management accounting sectors.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Laundry business returned to expected levels of sales for 2024 following the stronger year in 2023 which was driven by high levels of rolled over order stock from the previous year. A (2.16)% reduction in sales is therefore considered a strong performance by the business.
Laundry operating profit reduced due to lower sales year on year and there's been an increase on promotional activity to increase awareness of profitable products.
Food service sales declined year on year by (6.73)%, this is driven by the loss of contract from a single customer due to a strategic decision to cease production of the main product purchased by them. Overall, margins saw a slight decline in 2024 compared to the previous year.
The company is expected to have a sales growth in 2025. New strategies are being implemented into parts of the business, growing the sales teams with a focus on driving new business, this is expected to yield higher growth throughout 2025 and into 2026.
The company has £nil net debt (2023: £nil).
Laundry operating profit reduced due to lower sales year on year and there's been an increase on promotional activity to increase awareness of profitable products.
Food service sales declined year on year by (6.73)%, this is driven by the loss of contract from a single customer due to a strategic decision to cease production of the main product purchased by them. Overall, margins saw a slight decline in 2024 compared to the previous year.
The company is expected to have a sales growth in 2025. New strategies are being implemented into parts of the business, growing the sales teams with a focus on driving new business, this is expected to yield higher growth throughout 2025 and into 2026.
The company has £nil net debt (2023: £nil).
The company operates in competitive markets, most of which are relatively mature. The company’s key business risks and uncertainties affecting the company are as follows:
Variations in demand
The demand for commercial equipment within the laundry business has seen a jump over the last few years, starting during Covid when businesses were looking for quality and fast cleaning solutions, and continuing now with inflation and energy costs fluctuating businesses are looking for more efficiency and long-term cost savings.
Macro events such as the war in Ukraine had some impact on lead times for laundry, but not as much as for food service, and these impacts have now eased. The company saw a drop in sales towards the end of 2023 as a result of these lead time delays however this benefitted 2024 sales as the carry-over of order stock into Q1 2024 was significant, resulting in a strong sales quarter at the start of the year however overall sales for 2024 were weaker than 2023. Laundry demand however remains resilient.
Forecasting demand for food products continues to be a challenge with some food establishments seemingly thriving, while others are seeing lower levels of consumers eating out, driven by a changing landscape of eating options, increases in cost of living, and the general tightening of capital spend from various government entities.
Customer exposure and credit risk
The credit policy of the group ensures that the management process for customer credit includes customer rating, credit limits, decision levels and management of doubtful debts. The company has a high coverage of credit insurance against the trading debt. Insurance remains in place and key risks have been mitigated at various stages of the credit cycle. Very few of our active customers have ceased trading over the last couple of years, and any that have been fully insured and/or had nil payables outstanding.
Variations in demand
The demand for commercial equipment within the laundry business has seen a jump over the last few years, starting during Covid when businesses were looking for quality and fast cleaning solutions, and continuing now with inflation and energy costs fluctuating businesses are looking for more efficiency and long-term cost savings.
Macro events such as the war in Ukraine had some impact on lead times for laundry, but not as much as for food service, and these impacts have now eased. The company saw a drop in sales towards the end of 2023 as a result of these lead time delays however this benefitted 2024 sales as the carry-over of order stock into Q1 2024 was significant, resulting in a strong sales quarter at the start of the year however overall sales for 2024 were weaker than 2023. Laundry demand however remains resilient.
Forecasting demand for food products continues to be a challenge with some food establishments seemingly thriving, while others are seeing lower levels of consumers eating out, driven by a changing landscape of eating options, increases in cost of living, and the general tightening of capital spend from various government entities.
Customer exposure and credit risk
The credit policy of the group ensures that the management process for customer credit includes customer rating, credit limits, decision levels and management of doubtful debts. The company has a high coverage of credit insurance against the trading debt. Insurance remains in place and key risks have been mitigated at various stages of the credit cycle. Very few of our active customers have ceased trading over the last couple of years, and any that have been fully insured and/or had nil payables outstanding.
Page 2
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Price risk
The company continues to monitor cost fluctuations of materials and components as well as transport and other services, and has a fully integrated margin analysis process which includes all costs in the production and sales cycle throughout the group, allowing us to understand the end-to-end profitability of each product, enabling better strategic sales decisions and drive profitability for the local and wider group. The business will also continue to evaluate mitigation measures as required.
Liquidity risk
The company ensures that sufficient liquidity is available for its ongoing operations and future developments by careful monitoring of its financial obligations. Cashflow and costs have been managed successfully to maintain profitability and a positive cashflow by working closely with customers and dealers for the benefit of all stakeholders. A healthy bank balance and a significant availability of cash via a global cash pool is also available to mitigate any short or medium term liquidity risk.
Foreign exchange risk
Foreign exchange risk refers to the adverse effects of changes in foreign exchange rates on the company's income. The company's currency exposure is managed centrally by the Group Treasury Department. Continuing adverse effects are minimised through higher sales prices, wherever possible.
Stock availability
Despite having inhouse production for most of our products, the business is still exposed to events that impact availability of stock as we rely on a component supply chain to build the machines we sell.
As discussed on page 2, macro events such as the war in Ukraine is an example that have had an impact on product lead times within the business in the last few years.
Following component supply issues over the years where key components were produced, the company has diversified its outsourcing of core components to reduce the risk of complete blockages within the supply chain.
We continue to look to balance diversification of supply with the economies of scale from high volume single production sites, and we continue to monitor global events to mitigate as much as possible any supply issues.
Climate Change
As part of a larger global company, Electrolux Professional Limited shares the targets and values of the parent company Electrolux Professional AB which has detailed information on its climate targets online and within its financial statements.
There are no risks to the business associated with climate change.
The company continues to monitor cost fluctuations of materials and components as well as transport and other services, and has a fully integrated margin analysis process which includes all costs in the production and sales cycle throughout the group, allowing us to understand the end-to-end profitability of each product, enabling better strategic sales decisions and drive profitability for the local and wider group. The business will also continue to evaluate mitigation measures as required.
Liquidity risk
The company ensures that sufficient liquidity is available for its ongoing operations and future developments by careful monitoring of its financial obligations. Cashflow and costs have been managed successfully to maintain profitability and a positive cashflow by working closely with customers and dealers for the benefit of all stakeholders. A healthy bank balance and a significant availability of cash via a global cash pool is also available to mitigate any short or medium term liquidity risk.
Foreign exchange risk
Foreign exchange risk refers to the adverse effects of changes in foreign exchange rates on the company's income. The company's currency exposure is managed centrally by the Group Treasury Department. Continuing adverse effects are minimised through higher sales prices, wherever possible.
Stock availability
Despite having inhouse production for most of our products, the business is still exposed to events that impact availability of stock as we rely on a component supply chain to build the machines we sell.
As discussed on page 2, macro events such as the war in Ukraine is an example that have had an impact on product lead times within the business in the last few years.
Following component supply issues over the years where key components were produced, the company has diversified its outsourcing of core components to reduce the risk of complete blockages within the supply chain.
We continue to look to balance diversification of supply with the economies of scale from high volume single production sites, and we continue to monitor global events to mitigate as much as possible any supply issues.
Climate Change
As part of a larger global company, Electrolux Professional Limited shares the targets and values of the parent company Electrolux Professional AB which has detailed information on its climate targets online and within its financial statements.
There are no risks to the business associated with climate change.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙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 to 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.
∙Energy focuses on drive and ability to deliver results.
∙Openness focuses on needs and opportunities of the customers and on collaborating with others.
∙Agility focuses on the ability to adapt to a constantly changing reality.
∙Growth focuses on curiosity, ability to learn and develop.
Electrolux Professional has a global Ethics Program, encompassing both ethics training and a whistle-blowing system – the Electrolux Professional Ethics Helpline. Through the Ethics Helpline, employees can report anonymously any suspected misconduct.
Employees are provided with information about the group, primarily by use of the group wide intranet site, OnePro. This site is used by senior management to regularly communicate with employees, through CEO letters, video interviews and blogs. OnePro is also a gateway to other common applications within the Group such as financial reporting guidelines and Working Codes of Practice. Other methods used to communicate with employees include memos, newsletters and notice boards.
The bi-annual Electrolux Professional Employee Engagement Survey is a web-based tool, the object of which is for management to get a broader picture of the company climate by looking at the existing levels of employee engagement. The questions in the survey are developed to measure the integration of the core values, the company foundation, how well teams work and team leadership. It also covers how well employees understand and are committed to the Electrolux Professional strategy and how strong the corporate culture is. A summary of outcomes is circulated to all employees through team meetings and significant findings will form agenda items for management meetings. In addition, consultative forums of elected employee representatives are created when necessary to support any change and reorganisation programmes through the involvement of personnel in matters relating to planned and implemented changes.
Employees are provided with information about the group, primarily by use of the group wide intranet site, OnePro. This site is used by senior management to regularly communicate with employees, through CEO letters, video interviews and blogs. OnePro is also a gateway to other common applications within the Group such as financial reporting guidelines and Working Codes of Practice. Other methods used to communicate with employees include memos, newsletters and notice boards.
The bi-annual Electrolux Professional Employee Engagement Survey is a web-based tool, the object of which is for management to get a broader picture of the company climate by looking at the existing levels of employee engagement. The questions in the survey are developed to measure the integration of the core values, the company foundation, how well teams work and team leadership. It also covers how well employees understand and are committed to the Electrolux Professional strategy and how strong the corporate culture is. A summary of outcomes is circulated to all employees through team meetings and significant findings will form agenda items for management meetings. In addition, consultative forums of elected employee representatives are created when necessary to support any change and reorganisation programmes through the involvement of personnel in matters relating to planned and implemented changes.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Employees participate directly in the success of the business through the company’s profit sharing scheme, which provides bonuses based on the achievement of certain measurable performance criteria, including value created to the business and other non financial targets.
Sales for the first half of 2025 have been ahead of 2024, and the company expects to be c.7% up for the full year with a higher increase to operating profit due to mix of products and customers and a continued focus on maintaining an efficient overhead cost base. Management have prepared budgets and forecasts extending at least 12 months from the date of signing the financial statements with growth for FY2026 vs FY2025 expected to reach 7% from strategic initiatives focused on primarily gaining new chains business within the food industry.
The business continues to manage cash effectively, local cash at bank is kept to a minimum however we have immediate (within 24hrs) access to cash funds available through the group cash pool. Cash continues to grow in line with profits and is shared throughout the business via the cash pool.
The preparation of the financial statements of FY24 for EPR UK has been made on a going concern basis. The transfer pricing model applied by the EPR Group is ensuring a positive EBIT on a full year basis for the sale of finished products and spares, and with the reserves available as part of the group cash pool, the strong sales vs budget as at time of writing, and the continued expectation of margin growth and future sales growth, management is confident in the future ability of EPR UK to continue as a going concern.
Management have considered the group position in concluding the ability of the group to meet the requirements of the transfer pricing model, recoverability of intercompany balances group cash pooling facility. As a result, the directors have adopted the going concern basis in preparing the annual report and financial statements.
The business continues to manage cash effectively, local cash at bank is kept to a minimum however we have immediate (within 24hrs) access to cash funds available through the group cash pool. Cash continues to grow in line with profits and is shared throughout the business via the cash pool.
The preparation of the financial statements of FY24 for EPR UK has been made on a going concern basis. The transfer pricing model applied by the EPR Group is ensuring a positive EBIT on a full year basis for the sale of finished products and spares, and with the reserves available as part of the group cash pool, the strong sales vs budget as at time of writing, and the continued expectation of margin growth and future sales growth, management is confident in the future ability of EPR UK to continue as a going concern.
Management have considered the group position in concluding the ability of the group to meet the requirements of the transfer pricing model, recoverability of intercompany balances group cash pooling facility. As a result, the directors have adopted the going concern basis in preparing the annual report and financial statements.
The profit for the year, after taxation, amounted to £2,446,000 (2023 - £2,512,000 ).
The directors have proposed a dividend of £2,446,000 will paid in respect of the year ending 31 December 2024 (2023: £2,512,000). The proposed final dividend is subject to approval by the shareholders and has not been included as a liability in these financial statements. A dividend of £2,512,000 was paid to the shareholders in 2024 (2023: £1,705,000).
The issued share capital of the Company is £3,426,000 divided into 3,426,000 Ordinary share of £1.00.
The issued share capital of the Company is £3,426,000 divided into 3,426,000 Ordinary share of £1.00.
The directors who served during the year were:
The company’s financial risks are managed within the framework of the financial and credit policies determined by the Board of Directors of the ultimate parent undertaking, Electrolux Professional AB. Management of these risk is largely centralised to the Group’s Treasury Department and is based to a great extent on financial instruments, accordingly the company’s financial risks are minimised.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There is a continued focus on gaining market share with a focus on growing the sales teams to drive new business in strategic sectors through 2025 and into 2026.
Following a prolonged period of high inflation during 2023, reaching more than 10% at times, 2024 saw a calmer economy with CPI dropping to less than 4% and slowly dropping over time to as low as 2.3% before starting a slow incline from November 2024 which has continued to the date of signing where it sits currently (June 2025) at 3.6%. The interest rate has impacted cost of materials and transportation over time however this appears to have stabilised over the last year.
The business continues to seek to mitigate any negative impacts of inflationary cost increases in some cases through price increases, however for 2025 the business has been able to avoid price increases for the food business, with only small increases in the laundry business required to maintain healthy margins.
The company has seen a good sales growth versus budget in early 2025 and expects to deliver c.7% year on year, with higher increases in operating profits due to mix of products and customers. This growth is expected to continue into 2026 based on current forecasting methods.
Following a prolonged period of high inflation during 2023, reaching more than 10% at times, 2024 saw a calmer economy with CPI dropping to less than 4% and slowly dropping over time to as low as 2.3% before starting a slow incline from November 2024 which has continued to the date of signing where it sits currently (June 2025) at 3.6%. The interest rate has impacted cost of materials and transportation over time however this appears to have stabilised over the last year.
The business continues to seek to mitigate any negative impacts of inflationary cost increases in some cases through price increases, however for 2025 the business has been able to avoid price increases for the food business, with only small increases in the laundry business required to maintain healthy margins.
The company has seen a good sales growth versus budget in early 2025 and expects to deliver c.7% year on year, with higher increases in operating profits due to mix of products and customers. This growth is expected to continue into 2026 based on current forecasting methods.
Where existing employees become disabled, it is the company’s policy to ensure that every reasonable and practicable consideration is given to ensure continuing employment is provided, wherever practicable, in the same or an alternative position and to provide appropriate training to achieve this aim.
The group is committed to employment policies, which follow best practice, based on equal opportunities for all employees, irrespective of sex, gender identity, race, colour, disability or marital status and offers appropriate training and career development for disabled staff.
There have been no significant events affecting the company since the year end.
The auditors, Menzies LLP, has been appointed on 5th November 2024, and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELECTROLUX PROFESSIONAL LIMITED
We have audited the financial statements of Electrolux Professional Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELECTROLUX PROFESSIONAL LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report 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.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELECTROLUX PROFESSIONAL LIMITED (CONTINUED)
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with legal and regulatory frameworks by making inquiries to
management and those responsible for legal and compliance procedures.
management and those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:
might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect
fraud;
fraud;
°Understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process; and
controls or other inappropriate influence over the financial reporting process; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above 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;
organisation for fraud and identified the greatest potential for fraud in the following areas;
°Posting of unusual journals and complex transactions; and
°Risk over cut off leading to incorrect recognition of revenue.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELECTROLUX PROFESSIONAL LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Magna House
18-32 London Road
TW18 4BP
Page 10
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 11
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 26 form part of these financial statements.
Page 12
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 13
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Electrolux Professional Limited is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office address is the same as the principal place of business and can be found on the company information page.
2.Accounting policies
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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the company’s shareholders.
The company has taken advantage of the following exemptions:
The company has taken advantage of the following exemptions:
∙the requirements of Section 7 Statement of (i) from preparing a statement of cash flows required under FRS 102 paragraph 3.17(d), on the basis that it is a qualifying entity and its ultimate parent company, Electrolux Professional AB includes the company’s cash flows in its own consolidated financial statements.
∙from the financial instrument disclosures, required under FRS 102 paragraphs 11.39 and 11.48A and paragraphs 12.26 to 12.29, as the information, to the extent required is provided in the consolidated financial statements of its ultimate parent company Electrolux Professional AB.
∙from disclosing key management personnel compensation required under FRS 102 paragraph 33.7, on the basis that it is a qualifying entity and its ultimate parent company Electrolux Professional AB includes this information in its consolidated financial statements.
∙the requirements of Section 29 Income Tax paragraphs 29.28(b) and 29.29, on the basis that it is a qualifying entity and its ultimate parent company Electrolux Professional AB includes this information in its consolidated financial statements.
∙from disclosing related party transactions, required under FRS 102 paragraph 33.9 on the basis that its ultimate parent company Electrolux Professional AB has control, joint control or significant influence of both the company and the related parties Cash Flows;
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest.
The company recognises turnover when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of turnover can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the goods have been delivered to the customer in accordance with agreed terms of delivery.
Turnover is recognised on the sale of services in the accounting period in which the services are rendered.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition
Page 15
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Page 16
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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:
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.
Cash received in advance under service and maintenance plans is treated as deferred income which is credited to the income statement over the life of the contract on a straight line basis.
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell.
Inventories are recognised as an expense in the period in which the related revenue is recognised.
Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition as follows:
Finished goods – cost of direct materials, direct labour and other attributable overheads based on a normal level of activity.
At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the Income statement as part of cost of sales. Where a reversal of the impairment is recognised the impairment is reversed up to the original impairment loss and recognised as a credit in the Income statement as part of cost of sales.
Inventories are recognised as an expense in the period in which the related revenue is recognised.
Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition as follows:
Finished goods – cost of direct materials, direct labour and other attributable overheads based on a normal level of activity.
At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the Income statement as part of cost of sales. Where a reversal of the impairment is recognised the impairment is reversed up to the original impairment loss and recognised as a credit in the Income statement as part of cost of sales.
Ordinary shares are classed as equity. Dividends to company shareholders are recognised as a liability in the financial statements in the period in which the dividends are approved by the company’s shareholders. These amounts are recognised in the statement of changes in equity.
Provisions are recognised when the company has a present or constructive legal obligation as a result of past events; it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made for the amount of the obligation.
Provisions for products under guarantee are recognised at the date of sale of the products covered by the warranty and at the directors’ best estimate of the expenditure required to settle the Company’s obligation.
Provisions for products under guarantee are recognised at the date of sale of the products covered by the warranty and at the directors’ best estimate of the expenditure required to settle the Company’s obligation.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
a) Critical judgments in applying the entity’s accounting policies
There are no areas within the financial statements, where management has been required to apply a critical judgment
b) Key source of estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
Products under guarantee
All of the products sold by the company are covered by an original one to three year warranty, which is included in the price. Provisions for this original warranty are estimated on a quarterly basis and calculations are based on historical data regarding failure rates, number of machines under warranty, and average cost to repair for both labour and spares. Changes in product and warranty term mix could result in different valuations. See note 16 for disclosures relating to the products under guarantee.
Stock provision
A provision is recognised for slow-moving and obsolete inventory based on an aging analysis and comparison to historical sales trends. This approach identifies stock likely to remain unsold and therefore requiring provision. Additionally, stock transferred from the warehouse to the showroom is fully provided for, with the cost treated as marketing expenditure.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.Taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
15.Deferred taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
The ultimate parent undertaking and controlling party, which is also the smallest and largest group to consolidate these financial statements, is Electrolux Professional AB which is incorporated in Sweden.
Copies of the Electrolux Professional AB’s consolidated financial statements can be obtained from Electrolux Professional AB’s registered office address, which is Electrolux Professional AB, Franzéngatan 6, 112 51 Stockholm, Sweden.
Copies of the Electrolux Professional AB’s consolidated financial statements can be obtained from Electrolux Professional AB’s registered office address, which is Electrolux Professional AB, Franzéngatan 6, 112 51 Stockholm, Sweden.
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