REGISTERED NUMBER: 01114577 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

GUHRING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTORS:

C Weston

O A Guhring

B Schwanz

SECRETARY:

C Weston

REGISTERED OFFICE:

Estone Drive

Aston Hall Road

Aston

Birmingham

B6 6BQ

REGISTERED NUMBER:

01114577 (England and Wales)

AUDITORS:

Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

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

REVIEW OF BUSINESS

Guhring Limited is a wholly owned subsidiary of Guehring KG and their primary objective is to support and supply the engineering companies located in the British Isles. Standard cutting tools are manufactured in Europe, warehoused, and distributed from a purpose-built factory in Aston, Birmingham where Guhring Limited also design, manufacture and service standard and special engineering cutting tools.

Guhring Limited has been established in the UK for over 50 years and offers a large range of quality products from a large, purpose built, modern centrally located facility.

PRINCIPAL RISKS AND UNCERTAINTIES

The reduction in the Automotive supply chain due to the increase of imported EV's will be seen in the next 1-3 years reducing the number of large automotive suppliers and the reduction in the requirement for Guhring's automotive tooling.

The lack of confidence and the cost increases still being felt across the country has seen industry growth stagnate with the possibility it may even decline during 2025.

The cost/tariff increases and instability throughout the world look like they will remain volatile in 2025 and beyond.

DEVELOPMENT AND PERFORMANCE

Costs have been closely controlled, and new products have been designed and produced by Guehring KG increasing the range and diversity of cutting tools available.

New customer projects realised in 2024 have contributed to the increase of sales turnover in a reducing market.

The Directors confirm that they are happy that the Company is still well placed to grow increasing sales and market share in 2025. The continually expanding variety of cutting tools, retention of the highly skilled workforce and continuous training will assist in reaching this target.

FINANCIAL KEY PERFORMANCE INDICATORS

The Company has performed well in the current climate recording double digit growth in 2024 with overall sales increasing by 13.4% year on year with gross profit increasing to 33.3% due to the increased sales and cost controls, returning an increased net profit of £1.55M.

ON BEHALF OF THE BOARD:

O A Guhring - Director

16 May 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacture and distribution of engineering cutting tools and allied products.

DIVIDENDS

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

C Weston

O A Guhring

B Schwanz

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Prime, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

O A Guhring - Director

16 May 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 three, 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 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.

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;

- 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 and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and other relevant parties.

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.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Morgan Davies FCA (Senior Statutory Auditor)

for and on behalf of Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

18 September 2025

TURNOVER

4

22,438,049

19,787,816

Cost of sales

14,964,989

13,916,230

GROSS PROFIT

7,473,060

5,871,586

Distribution costs

532,206

441,641

Administrative expenses

4,679,481

4,513,697

5,211,687

4,955,338

OPERATING PROFIT

6

2,261,373

916,248

Interest receivable and similar income

10,433

23,078

2,271,806

939,326

Interest payable and similar expenses

7

121,943

223,061

PROFIT BEFORE TAXATION

2,149,863

716,265

Tax on profit

8

592,323

157,431

PROFIT FOR THE FINANCIAL YEAR

1,557,540

558,834

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,557,540

558,834

FIXED ASSETS

Intangible assets

9

84,371

117,029

Tangible assets

10

5,986,084

6,412,240

6,070,455

6,529,269

CURRENT ASSETS

Stocks

11

4,555,448

4,361,951

Debtors

12

4,338,441

5,037,242

Cash at bank and in hand

994,240

331,428

9,888,129

9,730,621

CREDITORS

Amounts falling due within one year

13

2,002,561

3,304,266

NET CURRENT ASSETS

7,885,568

6,426,355

TOTAL ASSETS LESS CURRENT LIABILITIES

13,956,023

12,955,624

CREDITORS

Amounts falling due after more than one year

14

1,918,700

2,475,841

NET ASSETS

12,037,323

10,479,783

CAPITAL AND RESERVES

Called up share capital

20

100,000

100,000

Retained earnings

21

11,937,323

10,379,783

SHAREHOLDERS' FUNDS

12,037,323

10,479,783

The financial statements were approved by the Board of Directors and authorised for issue on 16 May 2025 and were signed on its behalf by:

O A Guhring - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100,000

9,820,949

9,920,949

Changes in equity

Total comprehensive income

-

558,834

558,834

Balance at 31 December 2023

100,000

10,379,783

10,479,783

Changes in equity

Total comprehensive income

-

1,557,540

1,557,540

Balance at 31 December 2024

100,000

11,937,323

12,037,323

Cash flows from operating activities

Cash generated from operations

1

3,240,382

338,959

Interest paid

(121,943

)

(223,061

)

Tax paid

(33,236

)

36,764

Net cash from operating activities

3,085,203

152,662

Cash flows from investing activities

Purchase of tangible fixed assets

(159,148

)

(498,382

)

Interest received

10,433

23,078

Net cash from investing activities

(148,715

)

(475,304

)

Cash flows from financing activities

Loan repayments in year

(573,623

)

(253,052

)

Net cash from financing activities

(573,623

)

(253,052

)

Increase/(decrease) in cash and cash equivalents

2,362,865

(575,694

)

Cash and cash equivalents at beginning of year

2

(1,368,625

)

(792,931

)

Cash and cash equivalents at end of year

2

994,240

(1,368,625

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

2,149,863

716,265

Depreciation charges

617,962

675,527

Finance costs

121,943

223,061

Finance income

(10,433

)

(23,078

)

2,879,335

1,591,775

Increase in stocks

(193,497

)

(594,328

)

Decrease/(increase) in trade and other debtors

682,515

(721,925

)

(Decrease)/increase in trade and other creditors

(127,971

)

63,437

Cash generated from operations

3,240,382

338,959

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

994,240

331,428

Bank overdrafts

-

(1,700,053

)

994,240

(1,368,625

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

331,428

429,426

Bank overdrafts

(1,700,053

)

(1,222,357

)

(1,368,625

)

(792,931

)

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

331,428

662,812

994,240

Bank overdrafts

(1,700,053

)

1,700,053

-

(1,368,625

)

2,362,865

994,240

Debt

Debts falling due

within 1 year

(271,853

)

271,853

(255,371

)

(255,371

)

Debts falling due

after 1 year

(2,475,841

)

301,770

255,371

(1,918,700

)

(2,747,694

)

573,623

-

(2,174,071

)

Total

(4,116,319

)

2,936,488

-

(1,179,831

)

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

The company continues to be profitable and the directors have a reasonable expectation that the company will continue in operational existence for at least 12 months from the date of approval of the financial statements. Therefore the directors continue to adopt the going concern basis of accounts in reporting the financial statements.

Turnover

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

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.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Depreciation is provided, after taking account of any grants receivable, at the following annual rates, in order to write off each asset over its estimated useful life:

Freehold Property

4% straight line on freehold buildings

Equipment

4% to 20% straight line basis

Motor Vehicles

25% per annum straight line basis

Freehold property consists of land and buildings. Of this amount, £803,030 relates to land and has not been depreciated.

Stocks

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 items.

Cost is calculated using the average cost method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The company makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believe to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements, the directors have made the following judgements:

Impairment of fixed assets

The company assess the impairment of fixed assets subject to depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Factors considered important that could trigger an impairment review include the following:

- Significant underperformance relative to historical or projected future operating results;

- Significant changes in the manner of the use of the acquired assets or the strategy for the overall

business; and

- Significant negative industry or economic trends.

Depreciation and residual values

The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and project disposal values.

Carrying value of stock

The company follows a group policy to make a provision against its stock. This takes into account slow moving; damaged and obsolete stock, current market conditions and historical sales performance. Various rates are applied depending on the type and age of the stock.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

18,790,457

16,107,127

Other European markets

3,412,400

3,547,826

Non-European markets

235,192

132,863

22,438,049

19,787,816

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,780,103

3,388,356

Social security costs

408,174

375,298

Other pension costs

142,184

126,680

4,330,461

3,890,334

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

2024

2023

Production

49

53

Sales and administration

37

37

86

90

2024

2023

£

£

Directors' remuneration

148,004

103,442

Directors' pension contributions to money purchase schemes

10,500

9,250

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

Money purchase schemes

1

1

6.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

51,349

59,585

Depreciation - owned assets

585,303

642,869

Computer software amortisation

32,658

32,658

Auditors' remuneration

37,950

34,350

Foreign exchange differences

24,004

16,181

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Short-term interest

22,549

94,628

Bank loan interest

99,394

128,433

121,943

223,061

8.

TAXATION

Analysis of the tax charge

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

2024

2023

£

£

Current tax:

UK corporation tax

576,037

125,865

Deferred tax

16,286

31,566

Tax on profit

592,323

157,431

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

£

Profit before tax

2,149,863

716,265

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.894%)

537,466

171,144

Effects of:

Expenses not deductible for tax purposes

8,622

11,581

Capital allowances in excess of depreciation

-

(56,860

)

Depreciation in excess of capital allowances

29,949

-

Deferred tax

16,286

31,566

Total tax charge

592,323

157,431

9.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 January 2024

and 31 December 2024

163,294

AMORTISATION

At 1 January 2024

46,265

Amortisation for year

32,658

At 31 December 2024

78,923

NET BOOK VALUE

At 31 December 2024

84,371

At 31 December 2023

117,029