REGISTERED NUMBER: 12167631 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

INDUSTRIAL POWER UNITS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

I Cleary

F J Wingfield-Digby

H M O'Lone

REGISTERED OFFICE:

2 Cygnus Way

West Bromwich

B70 0XB

REGISTERED NUMBER:

12167631 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2 Charnwood Edge Business Park

Syston Road, Leicester

LE7 4UZ

Magma Audit LLP is part

Of the Dains Group

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

135,121

178,288

Investments

6

-

-

135,121

178,288

CURRENT ASSETS

Stocks

471,007

834,135

Debtors

7

736,939

1,331,722

Cash at bank and in hand

147,755

42,214

1,355,701

2,208,071

CREDITORS

Amounts falling due within one year

8

(399,483

)

(1,123,018

)

NET CURRENT ASSETS

956,218

1,085,053

TOTAL ASSETS LESS CURRENT LIABILITIES

1,091,339

1,263,341

CREDITORS

Amounts falling due after more than one year

9

(21,690

)

(106,695

)

NET ASSETS

1,069,649

1,156,646

CAPITAL AND RESERVES

Called up share capital

10,000

1,590,990

Retained earnings

1,059,649

(434,344

)

1,069,649

1,156,646

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2025 and were signed on its behalf by:

I Cleary - Director

1.	STATUTORY INFORMATION

Industrial Power Units Limited is a limited company, registered in England and Wales. Its registered office address is 2 Cygnus Way, West Bromwich, B70 0XB and the registered number is 12167631.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

Going concern

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

Turnover

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.

Goodwill

Acquired goodwill is written off in equal annual instalments overs its estimated useful economic life of 5 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets 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:

Plant and machinery

15% straight line

Fixtures, fittings & computer equipment

15% - 100% straight line

Motor vehicles

25% straight line

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.

Investments in subsidiaries

Investment in the subsidiary company is held at cost less accumulated impairment losses.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating leases

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

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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 payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 40 (2023 - 53 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2024

and 31 December 2024

947,522

AMORTISATION

At 1 January 2024

and 31 December 2024

947,522

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-

5.	TANGIBLE FIXED ASSETS

Fixtures,

fittings

Plant and

& computer

Motor

machinery

equipment

vehicles

Totals

£

£

£

£

COST

At 1 January 2024

417,859

156,259

159,534

733,652

Additions

2,345

9,759

38,800

50,904

Disposals

(21,426

)

(8,809

)

(132,449

)

(162,684

)

At 31 December 2024

398,778

157,209

65,885

621,872

DEPRECIATION

At 1 January 2024

293,856

154,729

106,779

555,364

Charge for year

25,238

1,814

26,942

53,994

Eliminated on disposal

(10,667

)

(2,421

)

(109,519

)

(122,607

)

At 31 December 2024

308,427

154,122

24,202

486,751

NET BOOK VALUE

At 31 December 2024

90,351

3,087

41,683

135,121

At 31 December 2023

124,003

1,530

52,755

178,288

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

392,664

Disposals

(392,745

)

Reversal of impairments

81

At 31 December 2024

-

NET BOOK VALUE

At 31 December 2024

-

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

610,915

1,059,685

Amounts owed by group undertakings

-

13,457

Other debtors

35,326

167,832

VAT

-

28,759

Prepayments and accrued income

90,698

61,989

736,939

1,331,722

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

-

60,141

Hire purchase contracts

15,085

28,365

Trade creditors

336,997

636,516

Social security and other taxes

19,361

40,083

Invoice discount facility

-

175,113

VAT

8,246

-

Other creditors

1,342

37,136

Directors' current accounts

-

84,945

Accruals and deferred income

18,452

60,719

399,483

1,123,018

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans above 1 year

-

90,000

Hire purchase contracts

21,690

16,695

21,690

106,695

10.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Bank loans

-

150,000

Hire purchase contracts

36,775

45,060

Invoice discount facility

-

175,113

36,775

370,173

The bank loan and invoice discount facility were previously secured by a fixed and floating charge over the company's assets. This security has since been released following the full repayment and closure of these facilities.

The assets held under hire purchase contracts are secured on the assets concerned.