Company registration number 06456249 (England and Wales)
BAUER EQUIPMENT UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
BAUER EQUIPMENT UK LIMITED
COMPANY INFORMATION
Directors
Mr W Arnold
Mr J Grundmann
Company number
06456249
Registered office
Rotary Drive
Wath Upon Dearne
Rotherham
S63 7FD
Auditor
GBAC Limited
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
Bankers
HSBC UK Bank plc
7 Prospect Crescent
Harrogate
HG1 1RN
BAUER EQUIPMENT UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
BAUER EQUIPMENT UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

The performance in 2024 for the company has again been good. As expected, turnover in the year reduced, as demand from the HS2 project similarly reduced.
The directors consider the profit on ordinary activities before taxation to be satisfactory.

Principal risks and uncertainties

We are very aware of the importance of keeping abreast of the UK and wider political and economic situations and their potential impacts on the infrastructure spending. This has additional importance in a post-election environment.

We are somewhat reliant on UK Government led infrastructure investment. Our products and services are widely used on these types of projects. The new Government has declared its intention to “de-regulate” and streamline the planning and approval processes to reduce needless delays and promote growth.

Further investment in nuclear power is progressing. Final approval is still to be confirmed; however, the expectation is the Sizewell C project is now likely to commence construction in late 2025. This will present opportunities for our products and services, in terms of diaphragm walling and soil mixing ground treatment.

Likewise, the Lower Thames Crossing project is progressing, albeit it slowly. It has a declared intention to be net zero, which will present opportunities for BAUER’s alternative drive equipment. Meaningful progress is not expected until 2026.

The numerous ongoing geo-political situations continue to cause unease in the wider worldwide economy. In addition, the actions of the new US Government may create some supply chain issues, if the mooted trade tariffs are applied.
We are monitoring supply chain issues, in conjunction with our parent company. We are only providing offers with short term fixed pricing and managed delivery schedules. This allows any fluctuations to be passed on, as appropriate and where possible.

Risk Management

The company's financial instruments comprise bank balances, trade creditors, trade debtors and group company loans. The main purpose of these instruments is to raise funds and finance the company operations. In respect of bank balances, the liquidity risk is managed by maintaining a balance to ensure continuity of funding.

The company meets it day to day capital requirements through intra-company loans, as required, and does not have any external debt, borrowing or other facilities.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. An important aspect of managing both is maintaining open and honest dialogue with customers and suppliers alike.

We have a potential significant exposure to euro currency exchange rate, as most of our sales are now in sterling and many of our suppliers are based in Europe. GBP has outperformed in recent times, however, is likely to be under pressure next year from the abovementioned circumstances. The use of FX future contacts are not appropriate for our business. We have developed internal systems and processes to manage our exposure.

BAUER EQUIPMENT UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key Performance Indicators

The key financial highlights are as follows:-

| 2024 | 2023 | 2022 | 2021 | 2020
| £ | £ | £ | £ | £
Turnover | 19,609,940 | 24,207,887 | 18,430,974 | 14,573,912 | 18,834,290
Turnover growth (percent) | (19.0) | 31.3 | 26.5 | (22.6) | 81.5
Gross profit margin (percent) | 24.8 | 21.5 | 20.6 | 22.3 | 18.1
Profit before tax | 2,656,534 | 3,430,161 | 2,251,489 | 2,059,670 | 2,459,069

On behalf of the board

Mr W Arnold
Director
13 February 2025
BAUER EQUIPMENT UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of sales and service of specialist foundation engineering equipment.

Results and dividends

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

Ordinary dividends were paid amounting to £1,305,812. The directors do not recommend payment of a further dividend.

Directors

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

Mr W Arnold
Mr J Grundmann
Auditor

GBAC Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr W Arnold
Director
13 February 2025
BAUER EQUIPMENT UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BAUER EQUIPMENT UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BAUER EQUIPMENT UK LIMITED
- 5 -
Opinion

We have audited the financial statements of Bauer Equipment UK Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

BAUER EQUIPMENT UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BAUER EQUIPMENT UK LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, application of cumulative audit knowledge and experience of the sector.

We determined the principal laws and regulations relevant to the company in this regard to be those arising from the Companies Act 2006, local tax laws and regulations, Anti Money Laundering Legislation and Bribery Act 2010.

We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, including the potential for management bias identified in relation to the provisions and estimates and and we addressed this by challenging the assumptions and judgements made by management when auditing that significant accounting estimate.

As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance-ethics/auditors-responsibilities-for-the-audit. This description forms part of our auditor's report.

BAUER EQUIPMENT UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF BAUER EQUIPMENT UK LIMITED
- 7 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Emma Dawson (Senior Statutory Auditor)
For and on behalf of GBAC Limited
13 February 2025
Statutory Auditor
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
BAUER EQUIPMENT UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
19,609,940
24,207,887
Cost of sales
(14,737,559)
(18,994,072)
Gross profit
4,872,381
5,213,815
Administrative expenses
(2,452,572)
(2,039,072)
Other operating income
69,225
59,075
Operating profit
4
2,489,034
3,233,818
Investment income
7
176,657
211,459
Finance costs
8
(9,157)
(15,116)
Profit before taxation
2,656,534
3,430,161
Tax on profit
9
(688,758)
(818,536)
Profit for the financial year
1,967,776
2,611,625

The income statement has been prepared on the basis that all operations are continuing operations.

BAUER EQUIPMENT UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
1,967,776
2,611,625
Other comprehensive income
-
-
Total comprehensive income for the year
1,967,776
2,611,625
BAUER EQUIPMENT UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
733,530
822,146
Current assets
Inventories
14
4,320,034
6,237,145
Trade and other receivables
15
6,224,413
5,186,110
Cash and cash equivalents
7,095
165,786
10,551,542
11,589,041
Current liabilities
16
(2,419,985)
(4,208,064)
Net current assets
8,131,557
7,380,977
Net assets
8,865,087
8,203,123
Equity
Called up share capital
19
1,000
1,000
Retained earnings
8,864,087
8,202,123
Total equity
8,865,087
8,203,123

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 13 February 2025 and are signed on its behalf by:
Mr W Arnold
Director
Company registration number 06456249 (England and Wales)
BAUER EQUIPMENT UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2023
1,000
6,514,933
6,515,933
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,611,625
2,611,625
Dividends
10
-
(924,435)
(924,435)
Balance at 31 December 2023
1,000
8,202,123
8,203,123
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,967,776
1,967,776
Dividends
10
-
(1,305,812)
(1,305,812)
Balance at 31 December 2024
1,000
8,864,087
8,865,087
BAUER EQUIPMENT UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,874,810
1,562,119
Interest paid
(9,157)
(15,116)
Income taxes paid
(788,865)
(690,709)
Net cash inflow from operating activities
1,076,788
856,294
Investing activities
Purchase of property, plant and equipment
(112,724)
(79,600)
Proceeds on disposal of property, plant and equipment
6,400
2,500
Interest received
176,657
211,459
Net cash generated from investing activities
70,333
134,359
Financing activities
Dividends paid
(1,305,812)
(924,435)
Net cash used in financing activities
(1,305,812)
(924,435)
Net (decrease)/increase in cash and cash equivalents
(158,691)
66,218
Cash and cash equivalents at beginning of year
165,786
99,568
Cash and cash equivalents at end of year
7,095
165,786
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Bauer Equipment UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Rotary Drive, Wath Upon Dearne, Rotherham, S63 7FD.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Revenue

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

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

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

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
15 - 50 years straight line
Plant and equipment
10-25% straight line
Computers and office equipment
33% straight line
Motor vehicles
30% straight line
Warehouse equipment
20% straight line
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

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

1.5
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

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

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.7
Cash and cash equivalents

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

BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

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

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

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

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

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

BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax

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

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

1.11
Employee benefits

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

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

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

1.12
Retirement benefits

Payments to stakeholder pension schemes are charged as an expense as they fall due.

1.13
Leases

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.

BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty

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

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

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Equipment sales, repairs & rental
19,609,940
24,207,887
2024
2023
£
£
Revenue analysed by geographical market
UK
17,115,077
23,967,694
EU
2,494,863
240,193
19,609,940
24,207,887
2024
2023
£
£
Other revenue
Interest income
176,657
211,459
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
409,923
299,271
Fees payable to the company's auditor for the audit of the company's financial statements
8,500
8,000
Depreciation of owned property, plant and equipment
190,768
130,551
Impairment of owned property, plant and equipment
10,572
-
0
Profit on disposal of property, plant and equipment
(6,400)
(2,283)
Operating lease charges
21,521
13,372
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
5
Employees

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

2024
2023
Number
Number
Office and management
11
12
Industrial
9
7
Total
20
19

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,005,167
940,715
Social security costs
12,245
11,869
Pension costs
127,116
62,895
1,144,528
1,015,479
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
98,763
96,075
Company pension contributions to defined contribution schemes
19,832
12,935
118,595
109,010
7
Investment income
2024
2023
£
£
Interest income
Interest receivable from group companies
176,657
211,459
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
176,657
211,459
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
15,116
Other finance costs:
Other interest
9,157
-
0
9,157
15,116
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
684,749
824,856
Adjustments in respect of prior periods
4,009
(6,320)
Total current tax
688,758
818,536

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

2024
2023
£
£
Profit before taxation
2,656,534
3,430,161
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
664,134
857,540
Tax effect of expenses that are not deductible in determining taxable profit
3,297
7,417
Tax effect of income not taxable in determining taxable profit
(1,600)
(571)
Adjustments in respect of prior years
4,009
(6,320)
Permanent capital allowances in excess of depreciation
18,918
12,814
Tax at marginal rate
-
0
(52,344)
Taxation charge for the year
688,758
818,536
10
Dividends
2024
2023
£
£
Final paid
1,305,812
924,435
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
12
10,572
-
0
Recognised in:
Administrative expenses
10,572
-
12
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Computers and office equipment
Motor vehicles
Warehouse equipment
Total
£
£
£
£
£
£
Cost
At 1 January 2024
753,263
143,747
53,081
207,706
83,467
1,241,264
Additions
-
0
-
0
4,376
37,770
70,578
112,724
Disposals
-
0
-
0
(3,783)
(21,750)
-
0
(25,533)
At 31 December 2024
753,263
143,747
53,674
223,726
154,045
1,328,455
Depreciation and impairment
At 1 January 2024
130,244
96,102
37,144
111,815
43,813
419,118
Depreciation charged in the year
93,009
14,660
6,319
54,995
21,785
190,768
Impairment losses
-
0
-
0
-
0
10,572
-
0
10,572
Eliminated in respect of disposals
-
0
-
0
(3,783)
(21,750)
-
0
(25,533)
At 31 December 2024
223,253
110,762
39,680
155,632
65,598
594,925
Carrying amount
At 31 December 2024
530,010
32,985
13,994
68,094
88,447
733,530
At 31 December 2023
623,019
47,645
15,937
95,891
39,654
822,146

More information on impairment movements in the year is given in note 11.

13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
6,224,413
5,186,110
Carrying amount of financial liabilities
Measured at amortised cost
1,969,176
3,576,383
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
14
Inventories
2024
2023
£
£
Finished goods and goods for resale
4,320,034
6,237,145
15
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
2,350,610
1,566,638
Amounts owed by group undertakings
3,873,803
3,619,472
6,224,413
5,186,110
16
Current liabilities
2024
2023
£
£
Trade payables
119,439
154,465
Amounts owed to group undertakings
29
266,042
Corporation tax
79,749
179,856
Other taxation and social security
371,060
451,825
Accruals and deferred income
1,849,708
3,155,876
2,419,985
4,208,064
17
Provisions for liabilities

Included within accruals are the following provisions.

Warranty provision:

The cost expected within the following 12 months for warranty work attached to existing sales at the year end.

Other provisions:

The costs expected within the following 12 months for additional transport, inspections, charges and exchange rate movements attached to existing purchases at the year end.

Movements on provisions:
Warranty provision
Other provisions
Total
£
£
£
At 1 January 2024
517,378
313,701
831,079
Additional provisions in the year
(102,293)
(158,434)
(260,727)
At 31 December 2024
415,085
155,267
570,352
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Stakeholder pension schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
127,116
62,895

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

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,000
1,000
1,000
1,000
20
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
17,117
13,372
Between two and five years
30,834
22,276
47,951
35,648
BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
74,642
262,028
4,344,866
10,450,262
Other related parties
1,273,227
442,824
2,514,724
2,729,754

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
29
-
Other related parties
-
261,990

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
3,867,379
3,600,869
Other related parties
6,424
18,533
22
Ultimate controlling party

Bauer Equipment UK Limited is included within the consolidated accounts of BAUER Aktiengesellschaft, a company incorporated in Germany. The registered office is BAUER-Strasse in Schrobenhausen, and the company is entered in the Register of Companies of Ingolstadt (HRB 101375). BAUER Aktiengesellschaft is considered to be the ultimate holding company.

BAUER EQUIPMENT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,967,776
2,611,625
Adjustments for:
Taxation charged
688,758
818,536
Finance costs
9,157
15,116
Investment income
(176,657)
(211,459)
Gain on disposal of property, plant and equipment
(6,400)
(2,283)
Depreciation and impairment of property, plant and equipment
201,340
130,551
Movements in working capital:
Decrease/(increase) in inventories
1,917,111
(1,981,123)
Increase in trade and other receivables
(1,038,303)
(73,371)
(Decrease)/increase in trade and other payables
(1,687,972)
254,527
Cash generated from operations
1,874,810
1,562,119
24
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
165,786
(158,691)
7,095
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