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Registration number: 03062174

Cirteq Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2024

Cirteq Limited

Contents

Strategic Report | 1
Directors' Report | 2
Statement of Directors' Responsibilities | 3
Independent Auditor's Report | 4 to 7
Profit and Loss Account | 8
Statement of Comprehensive Income | 9
Balance Sheet | 10
Statement of Changes in Equity | 11
Notes to the Financial Statements | 12 to 28

Cirteq Limited

Strategic Report for the Year Ended 31 December 2024

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

Principal activity

The principal activity of the company is the manufacture and distribution of circlips, retaining rings and spring pressings.

Fair review of the business

The directors report the continuing global uncertainty in raw material and energy prices was still impacting the business. Comparable turnover fallen by 4.2%. The rate of gross profit to turnover was 10.1% in the year under review, compared with 15.2% in the previous period. Operating loss was £552,219 in the 12 months under review, compared with a profit of £1,036,604 in the previous 12 months.
The company continues to experience comfortable levels of headroom in its borrowing facilities.
The directors continue to monitor the company’s performance with care, with particular emphasis on mitigation of adverse exchange rate movements.

Principal risks and uncertainties

The company invoices a significant amount of its turnover in EUR and USD, and therefore there is a risk that prices when converted to GBP are subject to fluctuation.
The directors consider that the company enjoys a satisfactory credit rating with the major credit reference agencies and the company operates a strict policy of always paying its suppliers within agreed credit terms.
At 31 December 2024 the company’s gearing (external borrowings less cash at bank and in hand versus shareholders’ funds) was (15.0%) (31 December 2023: (2.0%)).
The company has an invoice discounting facility with HSBC, advancing funds (if required) within 24 hours of shipment and invoicing. At the date of this report, the headroom (unutilised borrowing capability) on this facility was in excess of £2.0 million.
The global rise in raw material and energy prices continues to affect the business, posing ongoing challenges for Cirteq. This impact has been further compounded by the downturn in the German automotive industry, a key market for the company. In response, the management team remains committed to mitigating these pressures by strategically passing a portion of the cost increases onto customers while implementing energy-saving initiatives to enhance operational efficiency. Despite these challenges, Cirteq is focused on maintaining competitiveness and ensuring long-term sustainability in a rapidly evolving economic landscape.

Approved and authorised by the Board on 12 May 2025 and signed on its behalf by:

......................................... P Watkins-Burke Director

Cirteq Limited

Directors' Report for the Year Ended 31 December 2024

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

Directors of the company

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

P Watkins-Burke

D Leifert (appointed 28 October 2024)

Information included in the Strategic Report

All items required under Sch. 7 of Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the directors’ report are set out in the strategic report in accordance with s.414C(11) CA 2006.

Employment of disabled persons

Applications for employment made by disabled persons are given full and fair consideration for all vacancies in accordance with their particular aptitudes and abilities. In the event of employees becoming disabled, every effort is made to retrain them in order that their employment with the company may continue. It is the policy of the company that training, career development and employment opportunities should be available to all employees.

Employee involvement

The company has continued its practice of keeping employees informed of matters affecting them as employees and of the financial and economic factors affecting the performance of the company. This has been achieved through regular meetings of the employee-elected works council with the managing director and other members of the senior management team, the minutes of which are made available to all employees.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 12 May 2025 and signed on its behalf by:

......................................... P Watkins-Burke Director

Cirteq Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | 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.

Cirteq Limited

Independent Auditor's Report to the Members of Cirteq Limited

Opinion

We have audited the financial statements of Cirteq Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Cirteq Limited

Independent Auditor's Report to the Members of Cirteq Limited

Opinion on other matter 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.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of 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 Statement of Directors' Responsibilities [set out on page 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.

Auditor 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:

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the stock.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

Cirteq Limited

Independent Auditor's Report to the Members of Cirteq Limited

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

We then performed audit procedures after consideration of the above risks which included the following:

• | assessing the validity of standard costs applied in the valuation of stock;
• | obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of the variable and fixed overhead applied in the valuation of stock;
• | obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of the stock provision;
• | performing a retrospective review of the previous year’s stock provision to aid the consideration of the suitability of the methodology for the current year;
• | evaluating the consistency of the methodology used to calculate stock provisions and variable and fixed overhead absorption applied to stock against that applied in prior periods;
• | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• | enquiring of management concerning actual and potential litigation and claims;
• | reviewing correspondence with HMRC, and the company’s legal advisors;
• | reading minutes of meetings of those charged with governance; and
• | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Cirteq Limited

Independent Auditor's Report to the Members of Cirteq Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

......................................
Gillian McLoughlin FCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited, Statutory Auditor
York House
Cottingley Business Park
Bradford
West Yorkshire
BD16 1PE

12 May 2025

Cirteq Limited

Profit and Loss Account for the Year Ended 31 December 2024

| Note | 31 December 2024 £ | 31 December 2023 £
Turnover | 3 | 24,447,398 | 25,525,952
Cost of sales |  | (21,975,639) | (21,642,418)
Gross profit |  | 2,471,759 | 3,883,534
Distribution costs |  | (836,494) | (1,066,054)
Administrative expenses |  | (2,216,679) | (2,068,410)
Other operating income | 4 | 29,195 | 287,534
Operating (loss)/profit | 5 | (552,219) | 1,036,604
Interest payable and similar expenses | 6 | (48,932) | (45,062)
(Loss)/profit before tax |  | (601,151) | 991,542
Tax on (loss)/profit | 10 | 150,288 | 210,000
(Loss)/profit for the financial year |  | (450,863) | 1,201,542

Cirteq Limited

Statement of Comprehensive Income for the Year Ended 31 December 2024

| 2024 £ | 2023 £
(Loss)/profit for the year | (450,863) | 1,201,542
Remeasurement loss on defined benefit pension schemes | - | (241,000)
Total comprehensive income for the year | (450,863) | 960,542

Cirteq Limited

(Registration number: 03062174)
Balance Sheet as at 31 December 2024

| Note | 2024 £ | 2023 £
Fixed assets |  |  |  |  |
Tangible assets | 11 |  | 530,398 |  | 637,887
Current assets |  |  |  |  |
Stocks | 13 | 6,495,776 |  | 6,764,957 |
Debtors | 14 | 4,856,374 |  | 3,745,717 |
Cash at bank and in hand |  | 371,628 |  | 326,394 |
|  | 11,723,778 |  | 10,837,068 |
Creditors: Amounts falling due within one year | 15 | (4,295,769) |  | (3,051,571) |
Net current assets |  |  | 7,428,009 |  | 7,785,497
Total assets less current liabilities |  |  | 7,958,407 |  | 8,423,384
Creditors: Amounts falling due after more than one year | 15 |  | (7,126) |  | (21,240)
Net assets |  |  | 7,951,281 |  | 8,402,144
Capital and reserves |  |  |  |  |
Called up share capital |  | 1,907,079 |  | 1,907,079 |
Retained earnings | 19 | 6,044,202 |  | 6,495,065 |
Shareholders' funds |  |  | 7,951,281 |  | 8,402,144

Approved and authorised by the Board on 12 May 2025 and signed on its behalf by:

......................................... P Watkins-Burke Director

Cirteq Limited

Statement of Changes in Equity for the Year Ended 31 December 2024

| Share capital £ | Retained earnings £ | Total £
At 1 January 2024 | 1,907,079 | 6,495,065 | 8,402,144
Loss for the year | - | (450,863) | (450,863)
At 31 December 2024 | 1,907,079 | 6,044,202 | 7,951,281

| Share capital £ | Retained earnings £ | Total £
At 1 January 2023 | 1,907,079 | 5,534,523 | 7,441,602
Profit for the year | - | 1,201,542 | 1,201,542
Other comprehensive income | - | (241,000) | (241,000)
Total comprehensive income | - | 960,542 | 960,542
At 31 December 2023 | 1,907,079 | 6,495,065 | 8,402,144

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Hayfield
Colne Road
Glusburn
Keighley
West Yorkshire
BD20 8QP

These financial statements were authorised for issue by the Board on 12 May 2025.

2 | Principal accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were 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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's functional and presentation currency is pounds sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemptions available under FRS 102, Section 33 Related party disclosures and UK Statutory Instruments, 1 Sch.72 from disclosing transactions and balances with fellow group undertakings that are wholly owned.
The company has taken advantage of the exemption to disclose certain aspects of financial instruments, transactions with key management personnel and the exemption to prepare Statement of Cash Flows in accordance with Financial Reporting Standard 102 Section 1.12.

Group accounts not prepared

Cirteq Limited is exempt from preparing group financial statements as it is included in the financial statements of a larger group.

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock provision
The company makes an estimate of the recoverability of the cost of stock. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.
The carrying amount is £919,780 (2023 - £934,760).

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £530,398 (2023 - £637,887).

Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £2,527,742 (2023 - £2,654,318).

Defined benefit pension scheme
The company has an obligation to pay pension benefits to certain employees and ex-employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

Revenue recognition

Turnover represents the amounts chargeable, net of value added tax, in respect of sale of goods and services to customers.
Revenue from the sale of goods is recognised when significant risks and benefits of ownership of the product have transferred to the buyer, which may be upon shipment, completion of the product or the product being ready for delivery, based on specific contract terms.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.
Non-monetary items are measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Plant and machinery | 10% to 25% straight line / reducing balance basis
Fixtures and fittings | 33.33% straight line basis
Motor vehicles | 25% straight line basis

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension plans

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Defined benefit pension plans

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise.

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Financial instruments

Classification
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Recognition and measurement
Debt instruments are initially measured at transaction price and subsequently at amortised cost using the effective interest method. However if the arrangements of a short-term debt instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Investments in non-puttable ordinary shares 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 investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably which are measured at cost less impairment.
Debt instruments are classified as current unless there is an unconditional right to defer settlement for at least twelve months after the reporting date.
Financial assets and liabilities are offset and 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.
Impairment
Financial assets that are measured at 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.
The impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If there is 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 and is recognised in profit and loss.

3 | Turnover

The analysis of the company's turnover for the year by market is as follows:

| 2024 £ | 2023 £
UK | 2,495,628 | 2,262,563
Europe | 16,705,372 | 17,887,328
Rest of world | 5,246,398 | 5,376,061
| 24,447,398 | 25,525,952

4 | Other operating income

The analysis of the company's other operating income for the year is as follows:

| 2024 £ | 2023 £
Miscellaneous other operating income | 29,195 | 287,534

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

5 | Operating (loss)/profit

Arrived at after charging/(crediting)

| 2024 £ | 2023 £
Depreciation expense | 107,489 | 155,185
Foreign exchange losses | 103,220 | 37,998

6 | Interest payable and similar expenses

| 2024 £ | 2023 £
Interest on bank overdrafts and borrowings | 48,932 | 45,062

7 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2024 £ | 2023 £
Wages and salaries | 8,618,668 | 8,565,093
Social security costs | 783,917 | 775,502
Other short-term employee benefits | 83,192 | 92,670
Pension costs, defined contribution scheme | 383,756 | 358,743
| 9,869,533 | 9,792,008

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2024 No. | 2023 No.
Production | 285 | 297
Sales, marketing and distribution | 17 | 18
| 302 | 315

8 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2024 £ | 2023 £
Remuneration | 158,600 | 139,749
Contributions paid to money purchase schemes | 60,743 | 56,939
| 219,343 | 196,688

During the year the number of directors who were receiving benefits and share incentives was as follows:

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

| 2024 No. | 2023 No.
Accruing benefits under money purchase pension scheme | 1 | 1

9 | Auditors' remuneration

| 2024 £ | 2023 £
Audit of the financial statements | 27,000 | 25,950

10 | Taxation

Tax charged/(credited) in the profit and loss account

| 2024 £ | 2023 £
Deferred taxation |  |
Arising from origination and reversal of timing differences | (150,288) | (210,000)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).
The differences are reconciled below:

| 2024 £ | 2023 £
(Loss)/profit before tax | (601,151) | 991,542
Corporation tax at standard rate | (150,288) | 247,886
Effect of expense not deductible in determining taxable profit (tax loss) | 5,661 | (88,061)
Increase/(decrease) from tax losses for which no deferred tax asset was recognised | 111,305 | (369,825)
Tax decrease arising from group relief | (116,966) | -
Total tax credit | (150,288) | (210,000)

Deferred tax

Deferred tax assets and liabilities

2024 | Asset £ | Liability £
Accelerated timing differences | (121,029) | -
Other short term timing differences | 22,680 | -
Accumulated losses recognised | 910,637 | -
| 812,288 | -

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

2023 | Asset £ | Liability £
Accelerated timing differences | (145,000) | -
Other short term timing differences | 39,000 | -
Accumulated losses recognised | 768,000 | -
| 662,000 | -

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £122,228 (2023 - £28,746).

The company has £3,113,208 (2023: £3,113,208) of unutilised trading losses carried forward.
£3,113,208 (2023: £3,113,208) of these unrelieved losses have been allocated to the calculation of a recognised deferred tax asset.
An additional deferred tax asset of £Nil (2023: £Nil) arising from unutilised trading losses and other timing differences has not been recognised in the financial statements as its recoverability is considered to be uncertain.

11 | Tangible assets

| Fixtures and fittings £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost or valuation
At 1 January 2024 | 205,439 | 23,700 | 2,751,659 | 2,980,798
At 31 December 2024 | 205,439 | 23,700 | 2,751,659 | 2,980,798
Depreciation
At 1 January 2024 | 170,077 | 9,381 | 2,163,453 | 2,342,911
Charge for the year | 8,129 | 5,925 | 93,435 | 107,489
At 31 December 2024 | 178,206 | 15,306 | 2,256,888 | 2,450,400
Carrying amount
At 31 December 2024 | 27,233 | 8,394 | 494,771 | 530,398
At 31 December 2023 | 35,362 | 14,319 | 588,206 | 637,887

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2024 £ | 2023 £
Motor vehicles | 8,394 | 14,319

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

12 | Investments in subsidiaries, joint ventures and associates

| 2024 £ | 2023 £
Investments in subsidiaries | - | -

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking |  | Holding | Proportion of voting rights and shares held
|  |  | 2024 | 2023

Subsidiary undertakings
Ellison Circlips Limited Hayfield Colne Road Glusburn Keighley West Yorkshire BD20 8QP |  | Ordinary | 100% | 100%
Anderton Circlips Limited Hayfield Colne Road Glusburn Keighley West Yorkshire BD20 8QP |  | Ordinary | 100% | 100%

13 | Stocks

| 2024 £ | 2023 £
Raw materials and consumables | 2,500,725 | 2,341,655
Work in progress | 1,115,557 | 1,062,737
Finished goods and goods for resale | 2,879,494 | 3,360,565
| 6,495,776 | 6,764,957

Impairment of stocks

The movement in the impairment profit/( loss) included in profit and loss is £14,980 (2023 : £11,358).

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

14 | Debtors

Current | Note | 2024 £ | 2023 £
Trade debtors |  | 2,527,742 | 2,654,318
Amounts owed by related parties |  | 1,087,407 | -
Other debtors |  | 59,896 | 172,124
Prepayments |  | 369,041 | 257,275
Deferred tax assets | 10 | 812,288 | 662,000
|  | 4,856,374 | 3,745,717

Details of non-current trade and other debtors

£812,288 (2023 - £447,600) of deferred tax is classified as non current.

15 | Creditors

| Note | 2024 £ | 2023 £
Due within one year |  |  |
Loans and borrowings | 16 | 1,152,651 | 145,786
Trade creditors |  | 1,513,914 | 1,705,401
Amounts due to related parties |  | 656,269 | 661,651
Social security and other taxes |  | 217,372 | 214,216
Outstanding defined contribution pension costs |  | 52,341 | 64,121
Other payables |  | 299,050 | 105,691
Accruals |  | 404,172 | 154,705
|  | 4,295,769 | 3,051,571
Due after one year |  |  |
Loans and borrowings | 16 | 7,126 | 21,240

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

16 | Loans and borrowings

Current loans and borrowings

| 2024 £ | 2023 £
Bank borrowings | 1,139,598 | 132,733
Hire purchase contracts | 13,053 | 13,053
| 1,152,651 | 145,786

Non-current loans and borrowings

| 2024 £ | 2023 £
Hire purchase contracts | 7,126 | 21,240

Bank borrowings

Bank borrowings and overdrafts is denominated in £ with a nominal interest rate of 4.95%. The carrying amount at year end is £1,139,598 (2023 - £132,733). The bank loans and overdrafts are secured by way of fixed and floating charges over the assets of the company.

Other borrowings

Hire purchase is denominated in £ with a nominal interest rate of 3.56%. The carrying amount at year end is £20,179 (2023 - £34,293).

Hire purchase liabilities are secured against the assets in which they relate.

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

17 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £383,756 (2023 - £358,743).
Contributions totalling £52,341 (2023 - £64,121) were payable to the scheme at the end of the year and are included in creditors.

Defined benefit pension schemes

The company operates two defined benefit schemes for the benefit of past and present employees. The assets of the schemes are administered by trustees in funds independent of the assets of the company. Both these schemes are paid up.

Anderton Pension Plan

The most recent formal funding valuation performed by an independent actuary for the trustees of the schemes was carried out on 1 April 2024. FRS 102 allows those results to be approximately updated to estimate the Scheme liabilities, therefore the valuation has been updated to 31 December 2024 to produce the following disclosure.

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

| 2024 £ | 2023 £
Fair value of scheme assets | 3,364,000 | 3,276,000
Present value of defined benefit obligation | (2,046,000) | (2,042,000)
| 1,318,000 | 1,234,000
Effect of the asset ceiling | (1,318,000) | (1,234,000)
Defined benefit pension scheme surplus/(deficit) | - | -

The surplus of the fair value of scheme assets over the present value of defined benefit obligation cannot be recovered through reduced contributions in future or through refunds and has therefore not been recognised in the financial statements in the current period.

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

| 2024 £
Present value at start of year | 2,042,000
Interest cost | 92,000
Actuarial gains and losses | 60,000
Benefits paid | (148,000)
Present value at end of year | 2,046,000

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

| 2024 £
Fair value at start of year | 3,276,000
Interest income | 150,000
Return on plan assets, excluding amounts included in interest income/(expense) | 86,000
Benefits paid | (148,000)
Fair value at end of year | 3,364,000

Analysis of assets

The major categories of scheme assets are as follows:

| 2024 £ | 2023 £
Cash and cash equivalents | 4 | 4
Equity instruments | 64 | 64
Corporate bonds | 32 | 32
| 100 | 100

Return on scheme assets

| 2024 £ | 2023 £
Return on scheme assets | 236,000 | 285,000

The Scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions used to update the valuation at the balance sheet date are as follows:

CPI assumption used for increases to pensions in payment which are due to increase in line with CPI.

| 2024 % | 2023 %
Discount rate | 5.50 | 4.70
Retail price inflation | 3.20 | 3.10
Inflation | 2.70 | 2.50

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Post retirement mortality assumptions

| 2024 Years | 2023 Years
Current UK pensioners at retirement age - male | 20.80 | 20.50
Current UK pensioners at retirement age - female | 23.90 | 22.70
Future UK pensioners at retirement age - male | 22.10 | 21.70
Future UK pensioners at retirement age - female | 25.30 | 24.10

Anderton Retirement and Life Assurance Plan

The most recent formal funding valuation performed by an independent actuary for the trustees of the schemes was carried out on 1 April 2024. FRS 102 allows those results to be approximately updated to estimate the Scheme liabilities, therefore the valuation has been updated to 31 December 2024 to produce the following disclosure.

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

| 2024 £ | 2023 £
Fair value of scheme assets | 5,533,000 | 5,398,000
Present value of defined benefit obligation | (3,257,000) | (3,667,000)
| 2,276,000 | 1,731,000
Effect of the asset ceiling | (2,276,000) | (1,731,000)
Defined benefit pension scheme surplus/(deficit) | - | -

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

| 2024 £
Present value at start of year | 3,667,000
Interest cost | 167,000
Actuarial gains and losses | (369,000)
Benefits paid | (208,000)
Present value at end of year | 3,257,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

| 2024 £
Fair value at start of year | 5,398,000
Interest income | 248,000
Return on plan assets, excluding amounts included in interest income/(expense) | 95,000
Benefits paid | (208,000)
Fair value at end of year | 5,533,000

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Analysis of assets

The major categories of scheme assets are as follows:

| 2024 £ | 2023 £
Equity instruments | 59 | 57
Property | 9 | 8
Corporate bonds | 29 | 28
Cash and cash equivalents | 3 | 7
| 100 | 100

Return on scheme assets

| 2024 £ | 2023 £
Return on scheme assets | 343,000 | 409,000

The Scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

Principal actuarial assumptions

The principal actuarial assumptions used to update the valuation at the balance sheet date are as follows:

| 2024 % | 2023 %
Discount rate | 5.60 | 4.70
Retail price inflation | 3.20 | 3.10
Inflation | 2.70 | 2.50

CPI assumption was used for increases to pensions in payment which are due to increase in line with CPI.

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Post retirement mortality assumptions

| 2024 Years | 2023 Years
Current UK pensioners at retirement age - male | 19.50 | 18.80
Current UK pensioners at retirement age - female | 23.30 | 20.90
Future UK pensioners at retirement age - male | 20.70 | 20.00
Future UK pensioners at retirement age - female | 24.70 | 22.30

18 | Share capital

Allotted, called up and fully paid shares

| 2024 | 2023
| No. | £ | No. | £
Ordinary shares of £1 each | 1,907,079 | 1,907,079 | 1,907,079 | 1,907,079

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: All shares rank pari passu for income, capital and voting rights.

19 | Reserves

Share capital

Represents the nominal value of issued shares.

Profit and loss account
Includes all current and prior periods distributable profits and losses.

Cirteq Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

20 | Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

| 2024 £ | 2023 £
Not later than one year | 13,053 | 13,053
Later than one year and not later than five years | 7,126 | 21,240
| 20,179 | 34,293

Operating leases

The total of future minimum lease payments is as follows:

| 2024 £ | 2023 £
Not later than one year | 65,461 | 108,320
Later than one year and not later than five years | 52,864 | 62,716
| 118,325 | 171,036

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,538,601 (2023 - £1,445,363).

21 | Related party transactions

Summary of transactions with other related parties

Directors, their close family members and companies under common control.

Expenditure with and payables to related parties

31 December 2024 | Other related parties £
Purchase of goods | 31,688

31 December 2023 | Other related parties £
Purchase of goods | 61,282
Settlement of liabilities | 241,000
| 302,282

22 | Parent and ultimate parent undertaking

The company's immediate parent is Glusburn Holdings Limited, incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is Titgemeyer Holding GmbH & Co. KG. These financial statements are available upon request from Hannoversche Strasse 97, 49084 Osanbrück, DE.
The ultimate controlling parties are Gerd-Christian Titgemeyer & Manfred Titgemeyer.