Knott-Avonride Limited

	Page
Strategic Report	1
Directors' Report	2—3
Independent Auditor's Report	4—7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Statement of Cash Flows	11
Notes to the Statement of Cash Flows	12
Notes to the Financial Statements	13—22

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

Principal Activity

The company's principal activity during the year continued to be the manufacture, assembly and sale of brakes, couplings, axles, chassis and accessories.

Review of the Business

Within this report the directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties that we all face.

Principal Risks and Uncertainties

As for a significant number of businesses of our size, the business environment in which we operate continued to present challenges in 2024. We, like many others, are subject to the changing economic climate inherent within the current global economic environment. This is due in no small part to the continued risks of exchange, the increased costs of materials and the uncertainties surrounding the global economic climate.

The company remains focused and committed to managing the factors which affected our business.

Future Developments

The directors are constantly looking at new processes, machinery and materials to improve productivity and the overall profitability of the company.

The directors are confident that their experience within the sector and the expansion of the Company's range of own products manufactured will deliver significant revenue growth over the coming years.

Key Performance Indicators

We consider that our key financial performance indicators are those that communicate the financial performance and position of the company as a whole, these being operating margin and return on capital employed.

Overall operating margin is a profit of £449,954 (2023: loss of £642,806) resulting in a loss before taxation of £64,273 (2023: £1,067,659). The return on capital employed was a return of 20.81% (2023: (27.56%)). Return on capital employed is calculated as profit before tax and interest divided by capital employed, which constitutes total assets less current liabilities.

On behalf of the board

Mr Neil Collins

Director

11 April 2025

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Knott-Avonride Limited

Company No. 01691074

Directors' Report For The Year Ended 31 December 2024

Directors' Report

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

Directors

The directors who held office during the year were as follows:

Mr Valentin Knott

Mr Phillip Birch

Mr Neil Collins

Going concern

Current trading conditions in the market in which the company operates have remained stable over the year.

The company gained additional new business this year and has good prospects of more new projects in the coming years. The company has further improved its efficiency over the last 12 months with·this, the directors are confident the company will seek to continue to trade profitably and will continue to manage its business risks successfully over the forthcoming year.

Current forecasts, extending for a period of at least 12 months from the date of approval of these financial statements, which also take into account a range of possible changes in trading performance.

After making all reasonable enquiries and taking into consideration the ongoing support from the immediate parent, the director has reached the conclusion that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. In doing so, the director has had regard to the latest guidelines from the Financial Reporting Council regarding preparation of financial statements on a going concern basis.

Matters covered in the Strategic Report

Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

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Knott-Avonride Limited

Directors' Report (continued)

For The Year Ended 31 December 2024

Independent Auditors

The auditors, Nuvo Audit Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr Neil Collins

Director

11 April 2025

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Independent Auditor's Report

to the Members of

Knott-Avonride Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of Knott-Avonride Limited for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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/(loss) 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 entity's ability to continue as a going concern for a period of at least 12 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. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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Independent Auditor's Report (continued)

to the Members of

Knott-Avonride Limited

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 Directors' Report.

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 or 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' Responsibilities Statement set out on page 2—3, 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.

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Independent Auditor's Report (continued)

to the Members of

Knott-Avonride Limited

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:

The Company is subject to many laws and regulations within the country it operates, where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur; financial reporting legislation, Companies Act legislation, tax legislation, anti-bribery legislation and employment law;

We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit;

We understood how the Company is complying with those legal and regulatory frameworks by making enquiries of management. We corroborated our enquiries through our review of board minutes;

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with employees from different parts of the business to understand where it is considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage earnings. We considered the programs and controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programs and controls. Where the risk was considered to be higher, we performed audit procedures to addressed identified fraud risk;

Our audit procedures involved: journal entry testing, with a focus on manual credits to revenue and journals indicating large or unusual transactions based on our understanding of the business and enquiries of management. In addition, we completed audit procedures to conclude on the compliance of disclosures in the annual report and accounts with applicable financial reporting requirements;

Assessment and appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:

Knowledge of the industry in which the client operates
Understanding the legal and regulatory requirements specific to the entity including:
The provisions of the applicable legislation
The regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules
The provisions of the applicable legislation

The regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules
The applicable statutory provisionsIn assessing the potential risks of material misstatement, we obtained an understanding of:

The entity’s operations, including the nature of its revenue sources, products and services and of its objectives and strategies to understand classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement.
The entity’s control environment, including policies and procedures implemented to comply with the entity’s relevant regulatory requirements, including the adequacy of procedures for authorisation of transactions, internal review procedures over the entity’s compliance with regulatory requirements and procedures to ensure that possible breaches of requirements are appropriately investigated and reported.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 that 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.

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Independent Auditor's Report (continued)

to the Members of

Knott-Avonride Limited

Mr Daniel Johnson FCCA (Senior Statutory Auditor)

for and on behalf of Nuvo Audit Limited , Statutory Auditor

11 April 2025

Nuvo Audit Limited

7 Faraday Court

First Avenue

Burton Upon Trent

Staffordshire

DE14 2WX

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Knott-Avonride Limited

Statement of Comprehensive Income

For The Year Ended 31 December 2024

Statement of Comprehensive Income

		2024	2023
	Notes	£	£
TURNOVER	4	27,775,541	26,851,327
Cost of sales		(20,348,667 )	(20,209,424 )

GROSS PROFIT		7,426,874	6,641,903

Distribution costs		(1,192,330 )	(1,168,424 )
Administrative expenses		(5,789,274 )	(6,120,969 )
Other operating income		4,684	4,684

OPERATING PROFIT/(LOSS)	6	449,954	(642,806 )
Profit on disposal of fixed assets		1,000	32,470
Other interest receivable and similar income		320	-
Interest payable and similar charges	11	(515,547 )	(457,649 )

LOSS BEFORE TAXATION		(64,273 )	(1,067,985 )
Tax on Loss	12	(100,799 )	311,668

LOSS AFTER TAXATION BEING LOSS FOR THE FINANCIAL YEAR		(165,072 )	(756,317 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR		-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR		(165,072 )	(756,317 )

The notes on pages 12 to 22 form part of these financial statements.

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Knott-Avonride Limited

Balance Sheet

As At 31 December 2024

Balance Sheet

Registered number: 01691074

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	13		3,391,168		3,522,437
Investments	14		50,419		50,419

			3,441,587		3,572,856
CURRENT ASSETS
Stocks	15	7,792,401		7,846,417
Debtors	16	3,718,621		4,095,865
Cash at bank and in hand		184,876		203,436

		11,695,898		12,145,718
Creditors: Amounts Falling Due Within One Year	17	(12,975,120 )		(13,386,453 )

NET CURRENT ASSETS (LIABILITIES)			(1,279,222 )		(1,240,735 )

TOTAL ASSETS LESS CURRENT LIABILITIES			2,162,365		2,332,121

Creditors: Amounts Falling Due After More Than One Year	18		(168,246 )		(172,930 )

NET ASSETS			1,994,119		2,159,191

CAPITAL AND RESERVES
Called up share capital	21		750		750
Capital redemption reserve			250		250
Profit and Loss Account			1,993,119		2,158,191

SHAREHOLDERS' FUNDS			1,994,119		2,159,191

On behalf of the board

Mr Neil Collins

Director

11 April 2025

The notes on pages 12 to 22 form part of these financial statements.

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Knott-Avonride Limited

Statement of Changes in Equity

For The Year Ended 31 December 2024

Statement of Changes in Equity

	Share Capital	Capital Redemption	Profit and Loss Account	Total
	£	£	£	£
As at 1 January 2023	750	250	2,914,508	2,915,508
Loss for the year and total comprehensive income	-	-	(756,317 )	(756,317)

Dividends paid	-	-	-	-

As at 31 December 2023 and 1 January 2024	750	250	2,158,191	2,159,191


Loss for the year and total comprehensive income	-	-	(165,072 )	(165,072)

Dividends paid	-	-	-	-

As at 31 December 2024	750	250	1,993,119	1,994,119

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Knott-Avonride Limited

Statement of Cash Flows

For The Year Ended 31 December 2024

Statement of Cash Flows

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	1,122,564	20,954
Interest paid		(515,547 )	(457,649 )
Tax refunded		147,116	-

Net cash generated from/(used in) operating activities		754,133	(436,695 )

Cash flows from investing activities
Purchase of tangible assets		(196,841 )	(412,277 )
Proceeds from disposal of tangible assets		1,000	32,470
Grants received		4,684	4,684
Interest received		320	-

Net cash used in investing activities		(190,837 )	(375,123 )



Increase/(decrease) in cash and cash equivalents		563,296	(811,818 )
Cash and cash equivalents at beginning of year	2	(1,949,616 )	(1,137,798 )

Cash and cash equivalents at end of year	2	(1,386,320 )	(1,949,616 )

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Knott-Avonride Limited

Notes to the Statement of Cash Flows

For The Year Ended 31 December 2024

Notes to the Statement of Cash Flows

1. Reconciliation of loss for the financial year to cash generated from operations

	2024	2023
	£	£
Loss for the financial year	(165,072 )	(756,317 )
Adjustments for:
Tax on loss	100,799	(311,668 )
Interest expense	515,547	457,649
Interest income	(320 )	-
Depreciation of tangible assets	328,110	301,780
Profit on disposal of tangible assets	(1,000)	(32,470)
Grant income	(4,684)	(4,684)
Movements in working capital:
Decrease in stocks	54,016	1,074,029
Decrease in trade and other debtors	129,329	692,043
Increase/(decrease) in trade and other creditors	165,839	(1,399,408 )

Net cash generated from operations	1,122,564	20,954

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	184,876	203,436
Overdraft facilities repayable on demand	(1,571,196 )	(2,153,052 )

Cash and cash equivalents as stated in the Statement of Cash Flows	(1,386,320)	(1,949,616)

3. Analysis of changes in net debt

	As at 1 January 2024	Cash flows	As at 31 December 2024
	£	£	£
Cash at bank and in hand	203,436	(18,560)	184,876
Overdraft facilities repayable on demand	(2,153,052)	581,856	(1,571,196)

Cash and cash equivalents	(1,949,616 )	563,296	(1,386,320 )

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Knott-Avonride Limited

Notes to the Financial Statements

For The Year Ended 31 December 2024

Notes to the Financial Statements

1. General Information

Knott-Avonride Limited is a private company, limited by shares, incorporated in England & Wales, registered number 01691074 . The registered office is Europa House, Second Avenue, Burton Upon Trent, DE14 2WF.

2. Statement of Compliance

The 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.

3. Accounting Policies

3.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention.

3.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

3.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

3.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	2% straight line
Leasehold	2% straight line
Plant & Machinery	10-25% straight line
Motor Vehicles	10-25% straight line
Fixtures & Fittings	10-25% straight line
Computer Equipment	10-25% straight line

3.5. Investments

Investments in unquoted equity instruments are measured at fair value. Changes in fair value are recognised in profit or loss. Fair value is estimated by using a valuation technique.

3.6. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

3.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

3.8. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

3.9. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

3.10. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3.11. Provisions and Contingencies

Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

Contingencies

...CONTINUED

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Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

3.11. Provisions and Contingencies - continued

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.

3.12. 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 of fixed assets.

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

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

3.13. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

4. Turnover

Analysis of turnover by class of business is as follows:

	2024	2023
	£	£
Sale of Goods	27,775,541	26,851,327

In accordance with UKSI 2008/410, schedule 1, paragraph 68, the company has not disclosed an analysis of turnover by geographical market as the directors are of the opinion it would be seriously prejudicial to the interests of the company.

5. Other Operating Income

	2024	2023
	£	£
Grant income	4,684	4,684

	4,684	4,684

6. Operating Profit/(loss)

The operating profit/(loss) is stated after charging:

	2024	2023
	£	£
Bad debts	(6,624)	3,962
Depreciation of tangible fixed assets	328,110	301,780

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Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

7. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the company's financial statements	12,000	12,000


Other Services
Other non-audit services	8,100	8,100

8. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2024	2023
	£	£
Wages and salaries	3,258,935	3,498,534
Social security costs	314,113	332,360
Other pension costs	178,733	182,298

	3,751,781	4,013,192

9. Average Number of Employees

Average number of employees, including directors, during the year was as follows:

	2024	2023
Office and administration	35	38
Manufacturing	66	65
Directors	3	3

	104	106

10. Directors' remuneration

	2024	2023
	£	£
Emoluments	239,799	326,391
Company contributions to money purchase pension schemes	20,969	27,180

	260,768	353,571

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

	2024		2023
Money purchase pension schemes	3		3

Information regarding the highest paid director was as follows:

	2024	2023
	£	£
Emoluments	137,795	138,728
Company contributions to money purchase pension schemes	14,895	14,567

	152,690	153,295

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Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

11. Interest Payable and Similar Charges

	2024	2023
	£	£
Bank loans and overdrafts	589,552	417,510
Foreign exchange (gains)/losses	(74,005 )	40,139

	515,547	457,649

12. Tax on Profit

	Tax Rate		2024	2023
The tax charge/(credit) on the loss for the year was as follows:
	2024	2023	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	-	-
Deferred Tax
Deferred taxation			100,799	(311,668 )


Total tax charge for the period			100,799	(311,668 )


The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the loss and the standard rate of corporation tax as follows:
			2024	2023
			£	£
Profit before tax			(64,273)	(1,067,985)

Tax on profit at 25% (UK standard rate)			-	-
Short term timing differences			100,799	(311,668 )

Total tax charge for the period			100,799	(311,668)

13. Tangible Assets

	Land & Property
	Freehold	Leasehold	Plant & Machinery	Motor Vehicles
	£	£	£	£
Cost
As at 1 January 2024	1,213,519	2,554,654	1,753,210	712,560
Additions	-	-	2,750	82,790
Disposals	-	-	-	(18,564 )

As at 31 December 2024	1,213,519	2,554,654	1,755,960	776,786

Depreciation
As at 1 January 2024	372,714	609,920	1,434,896	441,844
Provided during the period	26,380	40,670	91,276	100,292
Disposals	-	-	-	(18,564 )

As at 31 December 2024	399,094	650,590	1,526,172	523,572

...CONTINUED

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Page 18

Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

Net Book Value
As at 31 December 2024	814,425	1,904,064	229,788	253,214

As at 1 January 2024	840,805	1,944,734	318,314	270,716


	Fixtures & Fittings	Computer Equipment	Total
	£	£	£
Cost
As at 1 January 2024	563,032	227,389	7,024,364
Additions	99,362	11,939	196,841
Disposals	-	-	(18,564 )

As at 31 December 2024	662,394	239,328	7,202,641

Depreciation
As at 1 January 2024	455,721	186,832	3,501,927
Provided during the period	50,622	18,870	328,110
Disposals	-	-	(18,564 )

As at 31 December 2024	506,343	205,702	3,811,473

Net Book Value
As at 31 December 2024	156,051	33,626	3,391,168

As at 1 January 2024	107,311	40,557	3,522,437

14. Investments

	Unlisted
	£
Cost
As at 1 January 2024	50,419

As at 31 December 2024	50,419

Provision
As at 1 January 2024	-

As at 31 December 2024	-

Net Book Value
As at 31 December 2024	50,419

As at 1 January 2024	50,419

Subsidiaries

Details of the company's subsidiaries as at 31 December 2024 are as follows:

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Avonride Limited	Europa House, Second Avenue, Centrum 100, Burton Upon Trent, DE14 2WF	Ordinary	100.00%	-
Knott Limited	Europa House, Second Avenue, Centrum 100, Burton Upon Trent, DE14 2WF	Ordinary	100.00%	-

The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:

Page 18

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Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

	Capital and Reserves	Profit/(loss)
	£	£
Avonride Limited	50,418	-
Knott Limited	1	-

15. Stocks

	2024	2023
	£	£
Materials	3,615,522	3,561,837
Finished goods	4,083,250	4,252,302
Work in progress	93,629	32,278

	7,792,401	7,846,417

16. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	3,061,584	3,161,349
Prepayments and accrued income	134,812	128,756
Other debtors	21,690	28,959
Corporation tax recoverable assets	-	147,116
Amounts owed by group undertakings	201,704	230,055

	3,419,790	3,696,235
Due after more than one year
Deferred tax current asset	298,831	399,630

	3,718,621	4,095,865

17. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	946,915	1,418,071
Bank loans and overdrafts	1,571,196	2,153,052
Amounts owed to group undertakings	9,651,691	8,669,066
Other creditors	1,681	681
Taxation and social security	439,679	705,538
Accruals and deferred income	363,958	440,045

	12,975,120	13,386,453

Included within bank loans and overdrafts is an invoice discounting facility of £1,571,196 (2023: £2,153,052) which is secured against trade debtors.

Included within accruals and deferred income is deferred income of £4,684 (2023: £4,684) relating to grant income received as contribution toward capital expenditure. The income is being released to the profit and loss account in line with the assets' depreciation policies.

Page 19

Page 20

Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

18. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Accruals and deferred income	168,246	172,930

Included within accruals and deferred income is deferred income of £168,246 (2023: £172,930) relating to grant income received as contribution toward capital expenditure. The income is being released to the profit and loss account in line with the assets' depreciation policies.

20. Capital Grants

	2024	2023
	£	£
Balance at 1 January 2024	177,614	182,298
Increase / (Decrease) in the year	(4,684)	(4,684)

Balance at 31 December 2024	172,930	177,614

Included within accruals and deferred income is deferred income relating to grant income received as contribution toward capital expenditure. The income is being released to the profit and loss account in line with the assets' depreciation policies.

21. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
750 Ordinary Shares of £ 1.00 each	750	750

22. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2024	2023
	£	£
Not later than one year	335,000	335,000
Later than one year and not later than five years	696,325	921,250

	1,031,325	1,256,250

23. Pension Commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the charge to profit or loss in respect of defined contribution schemes was £178,733 (2023: £182,298).

At the balance sheet date contributions of £NIL were due to the fund.

24. Related Party Disclosures

As at 31 December 2024, there is an amount of £1,354 (2023: £353) due to Mr N Collins, a director of the company, from the company. The amount is unsecured, interest free and has no fixed repayment date.

As at 31 December 2024, there is an amount of £328 (2023: £328) due to Mr V Knott, a director of the company, from the company. The amount is unsecured, interest free and has no fixed repayment date.

During the year there were the following transactions with parent company:

Knott Holding GmbH (KHG)

Sales £Nil (€Nil (2023: £1,110, €1,276))

Purchases £26,832 (€32,360 (2023: £25,955, €29,840))

Interest Charged £Nil (€Nil)

At the balance sheet date included within

...CONTINUED

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Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

24. Related Party Disclosures - continued

Debtors is £Nil (€Nil (2023: £Nil, €Nil))

Creditors is £26,832 (€32,360 (2023: £Nil, €Nil)).

During the year there were the following transactions with related parties. All parties are fellow subsidiaries of Knott Holding GmbH and occurred at arm’s length under normal commercial terms.

Autoflex-Knott Kft (AKK)

Sales £49,075 (€57,966 (2023: £39,315, €45,201))

Purchases £613,512 (€724,662 (2023: £444,484, €511,023))

At the balance sheet date included within

Debtors is £Nil (€Nil (2023: £8,605 €9,902))

Creditors is £-37.04 (€-44.67 (2023: £Nil, €Nil)).

Knott Brake Company (KBC)

Sales £6,093 (€7,196 (2023: £66,622, €76,595))

Purchases £Nil (€Nil (2023: £Nil, €Nil))

At the balance sheet date included within

Debtors is £Nil (€Nil (2023: £Nil, €Nil))

Creditors is £Nil (€Nil (2023: £Nil, €Nil)).

Knott S.p.A (KIT)

Sales £45,026 (€57,966 (2023: £66,278 €76,200))

Purchases £1,781,332 (€2,104,056 (2023: £1,558,514, €1,791,824))

At the balance sheet date included within

Debtors is £Nil (€Nil (2023: £Nil, €Nil))

Creditors is £Nil (€Nil (2023: £28,475, €32,766)).

Knott GmbH (KGE)

Sales £1,633,863 (€1,929,870 (2023: £2,398,336, €2,757,366))

Purchases £5,299,566 (€6,259,689 (2023: £4,850,139, €5,576,205))

At the balance sheet date included within

Debtors is £641 (€773 (2023: £1,121, €1,290))

Creditors is £11,014 (€13,283(2023: £330,497, €380,296)).

Knott spol s.r.o (KSK)

Sales £26,355 (€31,130 (2023: £104,757, €120,439))

Purchases £2,347,568 (€2,772,877 (2023: £2,433,274, €2,797,535))

At the balance sheet date included within

Debtors is £Nil (€Nil(2023: £-157, €-181))

Creditors is £Nil (€Nil (2023: £-157, €-181)).

Knott sp.z.o.o (KPL)

Sales £Nil (€Nil (2023: £37,937, €43,617))

Purchases £150,355 (€177,595 (2023: £132,230, €152,024))

At the balance sheet date included within

Debtors is £Nil (€Nil (2023: £Nil, €Nil))

Creditors is £Nil (€Nil (2023: £Nil, €Nil)).

Knott-Technik-Flex Kft (TEC)

Sales £Nil (€Nil (2023: £Nil, €Nil))

Purchases £1,292,139 (€1,526,236 (2023: £1,557,358, €1,790,495))

At the balance sheet date included within

Debtors is £Nil (€Nil (2023: £Nil, €Nil))

Creditors is £Nil (€Nil (2023: £56,244, €64,719)).

Knott FS Management Services (KFS)

Sales £ Nil (€Nil (2023: £ Nil, €Nil))

Purchases £Nil (€Nil (2023: £ Nil, € Nil))

Interest Charged £573,994 (€677,985) (2023: £417,581 (€480,093)

At the balance sheet date included within

Debtors is £Nil (€Nil (2022: £Nil, €Nil))

Creditors is £9,605,389 (€11,584,195 (2022: £8,620,660, €9,919,621)).

Autoflex-Knott Iberica (AKI)

Sales £690,643 (€815,767 (2023: £717,478, €824,885))

...CONTINUED

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Page 22

Knott-Avonride Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

24. Related Party Disclosures - continued

Purchases £Nil (€Nil (2023: £Nil, €Nil))

At the balance sheet date included within

Debtors is £147,009 (€177,294 (2023: £158,574, €182,468))

Creditors is £Nil (€Nil (2023: £Nil, €Nil)).

FRIction MAterial Reibbelg (KFM)

Sales £27,529 (€33,200 (2023: £Nil, €Nil))

Purchases £Nil (€Nil (2023: £Nil, €Nil))

At the balance sheet date included within debtors is £Nil (€Nil (2023: £Nil, €Nil)) and included within creditors is £Nil (€Nil (2023: £Nil, €Nil)).

25. Controlling Parties

The ultimate parent undertaking is Knott Holding GmbH (incorporated in Germany). Its registered office is Obinger Stasse 17, Eggstátt 83125, Germany.

Copies of the group accounts may be obtained from the company's registered office.

The company's ultimate controlling party is Mr V Knott by virtue of their interest in the share capital of the company.

Page 22