REGISTERED NUMBER: 06428547 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2024

for

Stiebel Eltron UK Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

Director:

M McManus

Secretary:

J B Felgate

Registered office:

Unit 12 Stadium Court

Stadium Road

Bromborough

Wirral

CH62 3RP

Registered number:

06428547 (England and Wales)

Senior statutory auditor:

Robert Ellis FCA

Auditors:

Ellis & Co (Accountants & Business Advisers) Ltd

Chartered Accountants

and Statutory Auditors

114-120 Northgate Street

Chester

CH1 2HT

The director presents his strategic report for the year ended 31 December 2024.

Founded in 1924 by Dr Theodor Stiebel in Germany, the STIEBEL ELTRON Group established itself as a globally active leading supplier of heating, ventilation, and air-conditioning products, specialised in developing and selling water heaters and renewable energy equipment. By means of an international sales network of foreign subsidiaries and third parties that take over various sales and service activities on a global level, it sells its products mainly to installers as well as wholesale and online retailers. The STIEBEL ELTRON Group operates subsidiaries inter alia in Asia, Europe and the United States. Moreover, it operates production facilities established in Germany, China, Slovakia, and Thailand.

Starting in a backyard workshop in Berlin, over the years, STIEBEL ELTRON expanded its product portfolio by introducing various products including solar collectors, different kinds of heating and hot water pumps and systems for domestic ventilation. The product range of the STIEBEL ELTRON Group can be divided into the following categories: renewables, domestic hot water, room heating and air conditioning.

STIEBEL ELTRON UK at a glance

STE UK, is the British subsidiary of STIEBEL ELTRON International GmbH, located in Bromborough, in our role as a local distribution company, our aim is to strengthen the company's core business, achieve growth in the local market and build profitability. In our daily business, STE UK specialises in the sale of electric space heating, hot water, ventilation and renewable energy products.

Competitive landscape

With innovative technologies supported by high quality, reliability and a customer service focus STIEBEL ELTRON UK sets itself apart from the competition in order to become a market and technology leader. Nevertheless, the market is full of high quality competition. Among STIEBEL ELTRON's main competitors are Vaillant, Daikin, Viessmann, Atlantic, Ariston, Dimplex, Nibe or Bosch Thermotechnik.

Review of business

The company continues to provide customers with levels of service delivery that are above industry standards in the manufacture of electric space heating, hot water products under our "Home Comforts" ranges and ventilation and heat pump technology under our "Renewable Energy" ranges. The customer base comprises of electric wholesalers, plumbers merchants and e-commerce businesses for our home comfort products (with this strategy being known internally as 3 step distribution) and direct to specialist installation companies in the case of our renewable energy products (with this being known as 2 step distribution). Our products are provided to customers across the UK.

The year 2024 proved to be challenging for the sales of our renewable energy products (in particular heat pumps) as increases in energy prices, interest rates and uncertainty over government initiatives and subsidies led end consumers to become nervous and hesitant in committing to placing orders which had an overall impact in the companies net sales performance for the year. Increases in raw material prices and staffing costs had a direct impact on profitability.

As a result of the difficult trading circumstances we took the decision to offer a voluntary redundancy package to members of our team which resulted in 6 people leaving the company in October 2024. The increase in staffing costs was as a direct result of this activity.

The company is seeing huge benefits from our £350K investment in the training school and showroom made in 2022 which has lead to over 450 installers being trained in our products at our Bromborough facility in 2024. These installers who are now brand aware and brand loyal to STIEBEL ELTRON will provide the future order book for the company in renewable energy products.

Excellent growth has been seen in our ecommerce sales channels with home comfort products as more and more customers purchase products online. A focus and improvement in website content and information has lead to a significant increase in sales and a dramatic reduction in return rates due to incorrect selection of products by end consumers.

While sales in 2024 proved disappointing for STIEBEL ELTRON UK, we are at least comforted by the fact that this picture was also seen in the industry as a whole and market share by STE UK has been maintained. We have been delighted with the growth and development of the infrastructure of the business and its people and this investment will clearly help the business grow in the future when market conditions improve.

Principal risks and uncertainties

The uncertainty created by delays in changes to building regulations and government initiatives is causing uncertainty in the industry and confusion for end consumers. However, the promise of future business opportunity with heat pumps in particular means that we see an ever growing list of competitors entering the market place as the clamour for market share becomes ever more competitive. Prices in the market will decrease and margins will become reduced as more and more volume is available from a wider base of manufacturers.

Service is key in such a market and our direct activity with installation companies, developing a package of support to make the transition from fossil fuels to heat pumps as seamless as possible will stand us in good stead for the future.

The company plans to further expand its customer base and train, educate and support more installer partners on their transition to heat pumps from fossil fuel technologies. The company will also introduce ventilation products aimed at the residential new build and refurbishment markets to reduce any exposure to risk from a continuation of uncertainty in the market for renewable heat.

The introduction of new WiFi enabled electric heating products will provide growth opportunities in the ecommerce and DIY sectors and a continued focus on multi-occupancy residential schemes in city centre locations with an electric heating and hot water package aimed at developers will provide additional sales opportunities for our home comfort products.

A greater focus on end consumer marketing and generating demand in the B2C sector will help generate opportunity for our new installer partners to themselves win business and create pull through for our products.

2024

2023

Order intake levels

£13,266,000

£14,130,000

Number of new customer accounts

107

112

Turnover

£11,984,339

£11,812,369

Cash at bank

£647,058

£693,042

Operating profit margin

4.1%

4.4%

Gross profit margin

41.1%

39.5%

On behalf of the board:

M McManus - Director

17 February 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

Dividends

No dividends will be distributed for the year ended 31 December 2024.

Director

M McManus held office during the whole of the period from 1 January 2024 to the date of this report.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement as to disclosure of information to auditors

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:

M McManus - Director

17 February 2025

Opinion

We have audited the financial statements of Stiebel Eltron UK Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, 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).

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 Auditors' 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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

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

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

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

-

the nature of the industry and sector, control environment and business performance including the design of remuneration policies, key drivers for Director's remuneration, bonus levels and performance targets

-

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

-

any matters we identified having obtained and reviewed documentation of policies and procedures relating to:

-

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

-

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

-

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

-

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

-

the amount of the provision made for warranty claims and against old / slow moving stock

-

the need for journals to be tested throughout the whole year and post year end

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the completeness of revenue. In common with all audits under ISA (UK), we are also required to perform specific procedures to respond to the risk of management override.

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 Report of the Auditors.

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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Ellis FCA (Senior Statutory Auditor)

for and on behalf of Ellis & Co (Accountants & Business Advisers) Ltd

Chartered Accountants

and Statutory Auditors

114-120 Northgate Street

Chester

CH1 2HT

17 February 2025

Turnover

3

11,984,339

11,812,369

Cost of sales

7,057,320

7,142,425

Gross profit

4,927,019

4,669,944

Administrative expenses

4,474,476

4,177,355

452,543

492,589

Other operating income

37,264

23,736

Operating profit

5

489,807

516,325

Interest payable and similar expenses

6

70,698

40,618

Profit before taxation

419,109

475,707

Tax on profit

7

123,429

130,091

Profit for the financial year

295,680

345,616

Profit for the year

295,680

345,616

Other comprehensive income

-

-

Total comprehensive income for the year

295,680

345,616

Fixed assets

Tangible assets

9

316,967

434,797

Current assets

Stocks

10

2,763,055

3,496,787

Debtors

11

2,390,460

2,239,481

Cash at bank

647,058

693,042

5,800,573

6,429,310

Creditors

Amounts falling due within one year

12

1,837,873

2,858,753

Net current assets

3,962,700

3,570,557

Total assets less current liabilities

4,279,667

4,005,354

Provisions for liabilities

14

326,135

347,502

Net assets

3,953,532

3,657,852

Capital and reserves

Called up share capital

15

250,000

250,000

Other reserves

16

2,151,278

2,151,278

Retained earnings

16

1,552,254

1,256,574

Shareholders' funds

3,953,532

3,657,852

The financial statements were approved by the director and authorised for issue on 17 February 2025 and were signed by:

M McManus - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

250,000

910,958

2,151,278

3,312,236

Changes in equity

Total comprehensive income

-

345,616

-

345,616

Balance at 31 December 2023

250,000

1,256,574

2,151,278

3,657,852

Changes in equity

Total comprehensive income

-

295,680

-

295,680

Balance at 31 December 2024

250,000

1,552,254

2,151,278

3,953,532

Cash flows from operating activities

Cash generated from operations

1

156,707

378,884

Interest paid

(70,698

)

(40,618

)

Tax paid

(119,452

)

(90,108

)

Net cash from operating activities

(33,443

)

248,158

Cash flows from investing activities

Purchase of tangible fixed assets

(12,541

)

(120,763

)

Net cash from investing activities

(12,541

)

(120,763

)

(Decrease)/increase in cash and cash equivalents

(45,984

)

127,395

Cash and cash equivalents at beginning of year

2

693,042

565,647

Cash and cash equivalents at end of year

2

647,058

693,042

1.	Reconciliation of profit before taxation to cash generated from operations

31/12/24

31/12/23

as

restated

£

£

Profit before taxation

419,109

475,707

Depreciation charges

130,371

118,967

Finance costs

70,698

40,618

620,178

635,292

Decrease/(increase) in stocks

733,732

(1,202,179

)

(Increase)/decrease in trade and other debtors

(150,979

)

1,028,049

Decrease in trade and other creditors

(1,046,224

)

(82,278

)

Cash generated from operations

156,707

378,884

2.	Cash and cash equivalents

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

647,058

693,042

Year ended 31 December 2023

31/12/23

1/1/23

as restated

£

£

Cash and cash equivalents

693,042

565,647

3.	Analysis of changes in net funds

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

693,042

(45,984

)

647,058

693,042

(45,984

)

647,058

Total

693,042

(45,984

)

647,058

1.	Statutory information

Stiebel Eltron UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

In the opinion of the director, there are no critical judgements other than those involving estimates.

The director makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The 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:

i. Warranty costs provision

The director has used his judgement and historical data to estimate the warranty costs provision at 31 December 2024. Sales of new products for which there is little historical data may impact on the accuracy of this estimate.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

20% on cost

Plant and machinery

-

20% on cost

Fixtures, fittings & equipment

-

20% on cost

Tangible fixed assets are initially recorded at cost, then subsequently at cost net of depreciation and any impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is determined on the weighted average method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing stock to its present location and position.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

3.

Turnover

Turnover is derived from the sale of goods to customers.

4.	Employees and directors

31/12/24

31/12/23

as

restated

£

£

Wages and salaries

2,131,167

1,919,181

Social security costs

244,759

219,362

Other pension costs

112,914

61,916

2,488,840

2,200,459

The average number of employees during the year was as follows:

31/12/24

31/12/23

as

restated

Directors

1

1

Management

2

2

Sales

17

17

Technical

17

17

Warehouse

3

3

Marketing

2

2

42

42

31/12/24

31/12/23

as

restated

£

£

Director's remuneration

132,604

152,376

Director's pension contributions to money purchase schemes

13,741

6,552

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	Operating profit

The operating profit is stated after charging:

31/12/24

31/12/23

as

restated

£

£

Hire of plant and machinery

9,714

7,775

Other operating leases

253,842

220,494

Depreciation - owned assets

130,371

118,967

Auditors' remuneration

8,985

8,225

Foreign exchange differences

11,080

5,516

6.

Interest payable and similar expenses

31/12/24

31/12/23

as

restated

£

£

Loans from group undertakings

70,698

40,618

7.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31/12/24

31/12/23

as

restated

£

£

Current tax:

UK corporation tax

138,424

119,452

Deferred tax

(14,995

)

10,639

Tax on profit

123,429

130,091

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/12/24

31/12/23

as

restated

£

£

Profit before tax

419,109

475,707

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%)

104,777

111,791

Effects of:

Expenses not deductible for tax purposes

18,652

18,426

Enhanced deductions

-

(126

)

rates

Total tax charge

123,429

130,091

As the company will continue to invest in fixed assets it is considered unlikely that there will be a significant reversal of the deferred tax provision in the next financial year.

8.	Prior year adjustment

The comparative figures for the year ended 31 December 2023 have been restated. The provision for warranty costs of £288,626 at 31 December 2023 (previously treated as an accrual under creditors falling due within one year) has been restated as a provision.