Hydrair Limited 06078286 false 2024-01-01 2024-12-31 2024-12-31 The principal activity of the company is manufacture and supply of pumps and equipment for the dispensation of ink and other materials to the graphics and industrial markets. Digita Accounts Production Advanced 6.30.9574.0 true true false 06078286 2024-01-01 2024-12-31 06078286 2024-12-31 06078286 bus:OrdinaryShareClass1 2024-12-31 06078286 core:RetainedEarningsAccumulatedLosses 2024-12-31 06078286 core:ShareCapital 2024-12-31 06078286 core:CurrentFinancialInstruments 2024-12-31 06078286 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 06078286 core:Goodwill 2024-12-31 06078286 core:FurnitureFittingsToolsEquipment 2024-12-31 06078286 core:LandBuildings 2024-12-31 06078286 core:MotorVehicles 2024-12-31 06078286 bus:FRS102 2024-01-01 2024-12-31 06078286 bus:AuditExemptWithAccountantsReport 2024-01-01 2024-12-31 06078286 bus:FullAccounts 2024-01-01 2024-12-31 06078286 bus:RegisteredOffice 2024-01-01 2024-12-31 06078286 bus:CompanySecretaryDirector2 2024-01-01 2024-12-31 06078286 bus:Director1 2024-01-01 2024-12-31 06078286 bus:OrdinaryShareClass1 2024-01-01 2024-12-31 06078286 bus:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 06078286 bus:Agent1 2024-01-01 2024-12-31 06078286 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 06078286 core:ShareCapital 2024-01-01 2024-12-31 06078286 core:Goodwill 2024-01-01 2024-12-31 06078286 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2024-01-01 2024-12-31 06078286 core:ComputerEquipment 2024-01-01 2024-12-31 06078286 core:FurnitureFittingsToolsEquipment 2024-01-01 2024-12-31 06078286 core:LandBuildings 2024-01-01 2024-12-31 06078286 core:LeaseholdImprovements 2024-01-01 2024-12-31 06078286 core:MotorVehicles 2024-01-01 2024-12-31 06078286 core:PlantMachinery 2024-01-01 2024-12-31 06078286 core:UKTax 2024-01-01 2024-12-31 06078286 6 2024-01-01 2024-12-31 06078286 1 2024-01-01 2024-12-31 06078286 countries:England 2024-01-01 2024-12-31 06078286 2023-12-31 06078286 core:RetainedEarningsAccumulatedLosses 2023-12-31 06078286 core:ShareCapital 2023-12-31 06078286 core:Goodwill 2023-12-31 06078286 core:FurnitureFittingsToolsEquipment 2023-12-31 06078286 core:LandBuildings 2023-12-31 06078286 core:MotorVehicles 2023-12-31 06078286 2023-01-01 2023-12-31 06078286 2023-12-31 06078286 bus:OrdinaryShareClass1 2023-12-31 06078286 core:CurrentFinancialInstruments 2023-12-31 06078286 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 06078286 core:CurrentFinancialInstruments core:WithinOneYear core:PreviouslyStatedAmount 2023-12-31 06078286 core:FurnitureFittingsToolsEquipment 2023-12-31 06078286 core:LandBuildings 2023-12-31 06078286 core:MotorVehicles 2023-12-31 06078286 core:PreviouslyStatedAmount 2023-12-31 06078286 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06078286 core:ShareCapital 2023-01-01 2023-12-31 06078286 core:PlantEquipmentOtherAssetsUnderOperatingLeases core:PreviouslyStatedAmount 2023-01-01 2023-12-31 06078286 core:PreviouslyStatedAmount 2023-01-01 2023-12-31 06078286 core:UKTax 2023-01-01 2023-12-31 06078286 2022-12-31 06078286 core:RetainedEarningsAccumulatedLosses 2022-12-31 06078286 core:ShareCapital 2022-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 06078286 (England and Wales)

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

Hydrair Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4
Statement of Directors' Responsibilities | 5
Accountants' Report | 6 to 7
Profit and Loss Account | 8
Statement of Comprehensive Income | 9
Balance Sheet | 10
Statement of Changes in Equity | 11
Statement of Cash Flows | 12
Notes to the Unaudited Financial Statements | 13 to 24

Hydrair Limited

Company Information

Directors | Mr John Fletcher Mrs Wendy Fletcher

Company secretary | Mrs Wendy Fletcher

Registered office | C/O Gross Klein 5 St. John's Lane London EC1M 4BH

Accountants | Gross Klein Chartered Accountants5 St John's Lane London EC1M 4BH

Hydrair Limited

Strategic Report for the Year Ended 31 December 2024

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

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
The principal activities of the company are the manufacture and suppply of pumps and equipment for the dispensation of ink and other materials to the graphics and industrial market.
Financial performance indicators have been selected that reflect the strength of the company as a whole including turnover, gross profit margin and operating profit.
Sales have decreased by 38.42% (2023: decreased by 33.99%). Gross profit margin has decreased to 28.40% compared to the previous year of 31.14%. Operating loss amounts to £27,030 compared to an operating loss of £5,800 last year. Loss after tax was £29,190 (2023: loss after tax of £6,526).
At the year end, shareholders funds were £427,564 in debit (2023: £398,474 in debit).
The business environment in which we operate continues to be challenging. We face competition from companies both inside and outside the UK. We are also affected by consumer spending patterns and choices.

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

Future developments

The company is continuing to investigate new products and markets and will be endeavouring to expand its trading activities. It is anticipated that there may be reduction in income as customers are looking to cut back on costs and spending on equipment due to the difficult economic conditions. The company's management team is dedicated to maintaining and extending the improvements in customer services, quality and productivity.

Hydrair Limited

Strategic Report for the Year Ended 31 December 2024 (continued)

Principal risks and uncertainties

All businesses face a range of risks and uncertainties, being subject to hazards from internal and external sources. The company undertakes regular risk assessments and the likelihood and significance of risk factors are considered to ensure risk mitigation.
UK economic performance
The UK economy continues to suffer from reduced consumer spending and rising unemployment. The operational leverage is such that any deterioration in sales performance may have a disproportionate reduction in profitability. The company mitigates this by continuous monitoring of costs. In addition, the company is aggressively pursuing work and orders from new and existing customers.
Brexit risk
Along with many businesses, uncertainty continues about Brexit together with associated risks which aare being monitored by the company. The company has developed change plans to ensure that it is well placed to operate effectively based on a range of potential scenarios.
Availability of credit
The availability of credit for consumers and businesses has fallen considerably. Thus there is possibility of bad debts. However, this risk is mitigated by the maintenance of cash reserves and through agreements with customers regarding payment terms and credit facilities. Extended credit terms are agreed with suppliers where possible.
Exchange rate fluctuations
Exchange rate fluctuations have had, and continue to have a material impact on the company's operating results. The global financial crisis has led to increased volatility in exchange rates which makes it harder to predict exchange rates and thus perform financial planning. Thus the company only monitors closely the foreign exchange market to try and mitigate this risk.

Approved and authorised by the Board on 16 September 2025 and signed on its behalf by:

......................................... Mr John Fletcher Director

Hydrair 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:

Mr John Fletcher

Mrs Wendy Fletcher - Company secretary and director

Review of business, future developments, principal risks and uncertainities
A review of business, future developments, principal risks and uncertainties is detailed on pages 2 to 3 of the Strategic Report.

Employee involvement

The company places considerable value on the involvement of its employees and has continued its practice of keeping them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings.

Employment of disabled persons

Applications for employment for disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort will be made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

Approved and authorised by the Board on 16 September 2025 and signed on its behalf by:

......................................... Mr John Fletcher Director

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Going concern

The company’s review of business, together with the factors likely to affect its future development and the principal risks and uncertainties are described in the Strategic Report on pages 2 to 3. The company has net liabilities of £427,564 as at 31 December 2024. The holding company, Linter Holdings Ltd, has agreed to support the company and not demand full repayment of the amounts due to it until such time that the company can afford to make repayments. On this basis, the directors are of the opinion that the company can meet its day to day working capital requirements They also believe that the company is well placed to manage its business risks despite the current uncertain economic outlook and has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Hydrair Limited

Statement of Directors' Responsibilities

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.

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Hydrair Limited
for the Year Ended 31 December 2024

independent chartered accountants’ review report to the directors of Hydrair Limited

We have reviewed the financial statements of Hydrair Limited for the year ended 31 December 2024, which comprise the profit and loss account, balance sheet, cash flow statement and the related notes including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Directors’ responsibility for the financial statements

As explained more fully in the Directors’ Responsibilities Statement [set out on pages 5), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Accountants’ responsibility

Our responsibility is to express a conclusion based on our review of the financial statements. We conducted our review in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised),Engagements to review historical financial statementsand ICAEW Technical Release TECH 09/13AAF (Revised)Assurance review engagements on historical financial statements (2019). ISRE 2400 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe that the financial statements, taken as a whole, are not prepared, in all material respects, in accordance with the [applicable financial reporting framework]. ISRE 2400 (Revised) also requires us to comply with the ICAEW Code of Ethics [and the FRC’s Ethical Standard, as applicable].

Scope of the assurance review

A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. We have performed procedures, primarily consisting of making enquiries of management and others within the entity, as appropriate, applying analytical procedures, and evaluating the evidence obtained.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been prepared:

So as to 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;

in accordance with applicable accounting standards; and

in accordance with the requirements of the Companies Act 2006.

Use of our report

This report is made solely to the company’s directors, as a body, in accordance with the terms of our engagement letter dated 15 July 2024. Our review has been undertaken so that we may state to the company’s directors those matters we have agreed to state to them in a reviewer’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 directors as a body, for our review work, for this report, or for the conclusions we have formed.

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Hydrair Limited
for the Year Ended 31 December 2024 (continued)

Howard Gross

Gross Klein

Chartered Accountants

5 St John’s Lane

London EC1M 4BH

Date

Hydrair Limited

Profit and Loss Account for the Year Ended 31 December 2024

| Note | 2024 £ | 2023 £
Turnover | 3 | 309,777 | 503,100
Cost of sales |  | (216,189) | (346,421)
Gross profit |  | 93,588 | 156,679
Distribution costs |  | (18,943) | (48,793)
Administrative expenses |  | (101,675) | (113,686)
Operating loss | 4 | (27,030) | (5,800)
Interest payable and similar expenses | 5 | (12,689) | (12,765)
Loss before tax |  | (39,719) | (18,565)
Tax on loss | 7 | 10,529 | 12,039
Loss for the financial year |  | (29,190) | (6,526)

Hydrair Limited

Statement of Comprehensive Income for the Year Ended 31 December 2024

| 2024 £ | 2023 £
Loss for the year | (29,190) | (6,526)
Total comprehensive income for the year | (29,190) | (6,526)

Hydrair Limited

(Registration number: 06078286)
Balance Sheet as at 31 December 2024

| Note | 2024 £ | 2023 £
Fixed assets |  |  |
Tangible assets | 9 | 15,038 | 22,245
Current assets |  |  |
Stocks | 10 | 62,346 | 76,938
Debtors | 11 | 92,232 | 85,159
Cash at bank and in hand |  | 113,042 | 104,127
|  | 267,620 | 266,224
Creditors: Amounts falling due within one year | 13 | (710,222) | (686,843)
Net current liabilities |  | (442,602) | (420,619)
Net liabilities |  | (427,564) | (398,374)
Capital and reserves |  |  |
Called up share capital |  | 100 | 100
Retained earnings |  | (427,664) | (398,474)
Shareholders' deficit |  | (427,564) | (398,374)

For the financial year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• | The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
• | The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’.

Approved and authorised by the Board on 16 September 2025 and signed on its behalf by:

......................................... Mr John Fletcher Director

Hydrair Limited

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

| Share capital £ | Retained earnings £ | Total £
At 1 January 2024 | 100 | (398,474) | (398,374)
Loss for the year | - | (29,190) | (29,190)
At 31 December 2024 | 100 | (427,664) | (427,564)

| Share capital £ | Retained earnings £ | Total £
At 1 January 2023 | 100 | (391,948) | (391,848)
Loss for the year | - | (6,526) | (6,526)
At 31 December 2023 | 100 | (398,474) | (398,374)

Hydrair Limited

Statement of Cash Flows for the Year Ended 31 December 2024

| Note | 2024 £ | 2023 £
Cash flows from operating activities
Loss for the year |  | (29,190) | (6,526)
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 4 | 7,207 | 5,541
Finance costs | 5 | 12,724 | 12,724
Income tax expense | 7 | (10,529) | (12,039)
|  | (19,788) | (300)
Working capital adjustments |  |  |
Decrease in stocks | 10 | 14,592 | 6,892
(Increase)/decrease in trade debtors | 11 | (3,460) | 169,523
Increase/(decrease) in trade creditors | 13 | 23,379 | (134,679)
Cash generated from operations |  | 14,723 | 41,436
Income taxes received | 7 | 6,916 | 9,408
Net cash flow from operating activities |  | 21,639 | 50,844
Cash flows from investing activities |  |  |
Acquisitions of tangible assets |  | - | (26,651)
Cash flows from financing activities |  |  |
Interest paid | 5 | (12,724) | (12,724)
Net increase in cash and cash equivalents |  | 8,915 | 11,469
Cash and cash equivalents at 1 January |  | 104,127 | 92,658
Cash and cash equivalents at 31 December |  | 113,042 | 104,127

Hydrair Limited

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

1 | Statement of compliance

Hydrair Limited is a limited liability company incorporated in England. The Registered Office is C/O Gross Klein, 5 St. John's Lane, London EC1M 4BH.
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" (FRS 102) and the Companies Act 2006.

2 | 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.

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

Revenue recognition

Revenue from the sales of goods and services is recognised when the company has transferred the signicicant risks and rewards of ownership to the buyer, and it is probable that the company will receive the previously agreed upon payment.These criteria are met when the goods and services are delivered to the buyer.
Long term contracts
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

Government grants

Grants of a revenue nature are recognised in "other icome" within the profit and loss in the same period as the related expenditure. This includes the Government Coronavius Job Retention Scheme ("Furlough"). The company has not directly beneified from any other forms of government assistance.

Other grants

Grants are accounted for under accruals model as permitted by FR102. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2 | Accounting policies (continued)

Foreign currency transactions and balances

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised in the income statement.

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 income 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.

Deferred tax is recognised in respect of all timing differences which are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements, except that unrelieved tax losses and other deferred tax assets are recognised only to the extent that the directors consider that it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Asset class | Depreciation method and rate
Short leasehold | 33.33% on a straight line basis
Plant and machinery | 20% on a straight line basis
Fixtures, fittings and equipment | 20% on a straight line basis
Motor vehicles | 25% on a straight line basis
Computer equipment | 33% on a straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed annually, and adjusted if appropriate, at each balance sheet date. The effect of any change is accounted for prospectively.
On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or loss.
Property, plant and equipment are reviewed for impairment whenever there are events that indicate that an impairment may have occurred. An impairment loss is recognised if an asset’s carrying amount exceeds the greater of its value in use and fair value less costs to sell. Impairment losses are recognised in profit or loss.

Goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 3 years.

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2 | Accounting policies (continued)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. These and all other debtors receivable within one year are recorded at transaction price. A provision for the impairment of these debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses.

Stocks

Stocks and work in progress are stated at the lower of cost and net realisable value. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and sale. Where necessary, provision is made for obsolete, slow moving and defective stocks.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors and all other creditors payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors and all other creditors due within one year are recorded at the transaction price.

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.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the income statement in the year they are payable. The assets of the scheme are administered by trustees in a fund independent from the company.

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2 | Accounting policies (continued)

Financial instruments - classification
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. The company only enters into basic financial instrument transactions. Financial assets and liabilities are offset, with the net amount presented in the financial statement, when there is a legally enforceable right to set off the recognised amounts and there is an intenetion to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial instruments - recognition and measurement
Basic financial assets, which include trade debtors, amounts owed by related parties, other debtors, gross amount due from customers for contract work and cash at bank and in hand, are intially measured at transaction price including transaction costs and are subsequently carried at amortised cost using effective interest method unless the arrangement constitues a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownsership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including trade creditors, amounts due to related parties, other payables, accruals and gross amount due to customers for contract work that are classified as debt, are intially recognised at transaction price unless the arrangement consitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classsified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2 | Accounting policies (continued)

Financial instruments - impairment
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

3 | Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

| 2024 £ | 2023 £
Sales | 309,777 | 503,100

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

| 2024 £ | 2023 £
UK | 273,630 | 472,347
European Union | 30,227 | 19,132
Rest of world | 5,920 | 11,621
| 309,777 | 503,100

4 | Operating loss

Arrived at after charging/(crediting)

| 2024 £ | 2023 £
Depreciation expense | 7,207 | 5,541
Operating lease expense - plant and machinery | 6,422 | 17,539
Loss/(profit) on disposal of property, plant and equipment | - | -

5 | Interest payable and similar expenses

| 2024 £ | 2023 £
Interest expense on other finance liabilities | 12,724 | 12,724
Foreign exchange (losses)/gains | (35) | 41
| 12,689 | 12,765

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

6 | Staff costs

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

| 2024 £ | 2023 £
Wages and salaries | 119,065 | 185,062
Social security costs | 10,857 | 26,736
Pension costs, defined contribution scheme | 5,923 | 8,114
Other employee expense | 3,807 | 3,643
| 139,652 | 223,555

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

| 2024 |  | 2023
Administration | 1 |  | 3
Engineers | 3 |  | 3
| 4 |  | 6

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

| 2024 No. | 2023 No.
Administration and support | 4 | 6
| 4 | 6

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

7 | Taxation

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

| 2024 £ | 2023 £
Current taxation |  |
UK corporation tax | (6,916) | (9,408)
Deferred taxation |  |
Arising from origination and reversal of timing differences | (3,613) | (2,631)
Tax receipt in the income statement | (10,529) | (12,039)

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

8 | Intangible assets

| Goodwill £ | Total £
Cost or valuation
At 1 January 2024 | 175,000 | 175,000
At 31 December 2024 | 175,000 | 175,000
Amortisation
At 1 January 2024 | 175,000 | 175,000
At 31 December 2024 | 175,000 | 175,000
Carrying amount
At 31 December 2024 | - | -

9 | Tangible assets

| Land and buildings £ | Furniture, fittings and equipment £ | Motor vehicles £ | Total £
Cost or valuation
At 1 January 2024 | 31,206 | 18,224 | 26,651 | 76,081
At 31 December 2024 | 31,206 | 18,224 | 26,651 | 76,081
Depreciation
At 1 January 2024 | 31,206 | 17,633 | 4,997 | 53,836
Charge for the year | - | 544 | 6,663 | 7,207
At 31 December 2024 | 31,206 | 18,177 | 11,660 | 61,043
Carrying amount
At 31 December 2024 | - | 47 | 14,991 | 15,038
At 31 December 2023 | - | 591 | 21,654 | 22,245

Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of short leasehold land and buildings.

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

10 | Stocks

| 2024 £ | 2023 £
Finished goods and goods for resale | 62,346 | 76,938

11 | Debtors

Current | Note | 2024 £ | 2023 £
Trade debtors |  | 37,011 | 14,736
Amounts owed by related parties | 17 | 17,957 | 47,633
Other debtors |  | 174 | 112
Prepayments |  | 19,789 | 8,990
Deferred tax assets | 7 | 17,301 | 13,688
|  | 92,232 | 85,159

12 | Cash and cash equivalents

| 2024 £ | 2023 £
Cash on hand | 92 | 116
Cash at bank | 112,950 | 104,011
| 113,042 | 104,127

13 | Creditors

| Note | 2024 £ | 2023 £
Due within one year |  |  |
Trade creditors |  | 16,964 | 4,180
Amounts due to related parties | 17 | 670,561 | 657,114
Social security and other taxes |  | 10,849 | 10,507
Other payables |  | 933 | 925
Accrued expenses |  | 10,915 | 14,117
|  | 710,222 | 686,843

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

14 | Deferred tax

| 2024 |  | 2023
| £ |  | £
Deferred tax: |  |  |
Deferred tax asset recognised on losses carried forward | (17,301) |  | (13,688)
|  |  | Deferred tax
|  |  | £
Balance at 1 January 2024 |  |  | (13,688)
Credit to Income Statement during year |  |  | (3,613)
Balance at 31 December 2024 |  |  | (17,301)

15 | 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 £5,923 (2023 - £8,114).

16 | Share capital

Allotted, called up and fully paid shares

| 2024 | 2023
| No. | £ | No. | £
Ordinary shares of £1 each | 100 | 100 | 100 | 100

17 | Related party transactions

Samoa Industrial SA
This is a related party by virtue of common control. During the year, the sales to Samoa Industrial SA were £4,414 (2023: £4,135). Purchases from Samoa Industrial SA were £824 (2023: £1,376).
At the Balance Sheet date, the balances with Samoa Industrial SA were as follows:
Amount receivable of £88 (2023: £2,438). Amount payable was £nil (2023: £1,376).

Hydrair Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

17 | Related party transactions (continued)

Samoa Flowtech (formelyBetz Flow GmbH)
This is a related party by virtue of common control. During the year, the sales to Samoa Flowtech were £nil (2023: £30,846). Purchases from Samoa Flowtech were £2,282 (2023: £1.659)
At the Balance Sheet date, the balances with Samoa Flowtech were as follows:
Amount receivable of £nil (2023: £16,276).
Amount payable of £nil (2023: £nil).

The transactions with the related parties of the company are as follows:
Linter Holdings Limited
This is the immediate parent company. Interest payable to Linter Holdings Limited during the year was £12,724 (2023: £12,724). The amount payable, as at the Balance Sheet date, was £661,639 (2024: £648,915).

Alentec Orion Limited
This is a related party by virtue of common control. During the year, the sales to Alentec Orion Limited were £50,508 (2023: £142,501).
Amount receivable of £15,337 (2023: £26,613);
Amount payable of £3,670 (2023: £4,800).

Samoa Limited
This is a related party by virtue of common control. During the year, sales to Samoa Limited were £9,169 (2023: £5,845). Purchases of £3,970 (2023 £nil) were made from Samoa Limited. Accountancy services charged by Samoa Limited were £7,200 (2023: £7,200).
Amount receivable of £2,532 (2023: £4,744)
Amount payable of £5,253 (2023: £2,023).

18 | Parent and ultimate parent undertaking

The company's immediate parent is Linter Holdings Limited, incorporated in England and Wales.
The ultimate controlling party is Gonzalez-Moratiel Family.