Year Ended
Registration number:
Electric Mobility Euro Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Electric Mobility Euro Limited
Company Information
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Directors |
M J Flowers A W Hearn N Bunning |
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Company secretary |
A W Hearn |
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Registered office |
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Auditors |
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Electric Mobility Euro Limited
Strategic Report
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 group is the development and wholesale distribution of mobility products for the less-able in the UK, Ireland and Europe.
Fair review of the business
Turnover increased by 4.9% to £15,466,874 (2023: £14,747,863) during the year.
The gross profit margin has increased to 24.8% (2023: 22.8%), reflecting new product and the increased cost of inventory and shipping costs experienced in the previous year, which were not able to be passed onto customers.
During the year, the Group made an operating profit of £351,084 (2023: operating profit of £43,618).
Cash and cash equivalents increased by £29,347 (2023: decreased by £83,255) to a net closing overdrawn position of (£2,573,895) (2023: (£2,603,242)) due to timing of supplier payments, customer receipts and decreased borrowing costs.
Principal risks and uncertainties
As with many companies, along with delays and the cost of shipping the global supply chain remains a risk, specifically around lead time on product manufacture. The company is managing this risk by ensuring that stock levels are kept at appropriate levels to ensure orders are able to be fulfilled.
As described within the Note 22 of the financial statements, the company is currently involved in an ongoing dispute with HM Revenue and Customs.
Whilst many of our products are a required purchase, the cost of living crisis is impacting the ultimate end users. There is a risk that end users of our products look to the second hand market, delay replacement decisions or seek cheaper alternatives. In order to manage this risk we stock a range of products at varying price points.
Approved by the
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Electric Mobility Euro Limited
Directors' Report
Year Ended 31 December 2024
The directors present their report and the for the year ended 31 December 2024.
Directors of the group
The directors who held office during the year were as follows:
The following directors were appointed after the year end:
Financial instruments
Objectives and policies
The company's principal financial instruments comprise bank balances, bank overdrafts, invoice finance facilities, loan facilities, trade debtors and trade creditors. The main purpose of these instruments is to finance the company's day to day operations.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Price risk, credit risk, liquidity risk and cash flow risk
The company’s credit risk is primarily attributable to its trade debtors and that is constantly monitored to ensure the company’s exposure is minimised. The company has a large customer base which minimises the impact should a debtor fail.
During the year, the company had variable rate overdraft, invoice discounting and loan facilities with Clydesdale Bank for which it paid up to 2.5% above base rate.
The management team considers cash flow projections on a monthly basis and ensures the appropriate facilities are available to be drawn on as required.
The group returned to profitability in 2023 and 2024. Since the balance sheet date, all bank borrowings have been successfully refinanced. The refinancing has resulted in a change in the type of facilities available to the group. In order to manage cash flow risk, the group have entered into new facilities that include a mix of fixed and variable interest rates.
Electric Mobility Euro Limited
Directors' Report
Year Ended 31 December 2024
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
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Electric Mobility Euro 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Electric Mobility Euro Limited
Independent Auditor's Report to the Members of Electric Mobility Euro Limited
Opinion
We have audited the financial statements of Electric Mobility Euro Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group and parent 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.
Electric Mobility Euro Limited
Independent Auditor's Report to the Members of Electric Mobility Euro Limited
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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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 |
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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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 5, 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Electric Mobility Euro Limited
Independent Auditor's Report to the Members of Electric Mobility Euro Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and the industry in which it operates, we identified the principal risks of non-compliance with laws and regulations as relating to relevant medical regulations, as well as obligations relating to the import of batteries, and waste disposal. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as The Companies Act 2006, as well relevant tax legislation, including duty. We considered the extent to which non-compliance with these laws and regulations may have a material effect on the financial statements.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates.
Based on this understanding we designed our audit procedures to identify irregularities. Our procedures involved the following:
• Enquiries to members of senior management regarding their knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of material fraud;
• Review of a sample of declarations of conformity, confirming compliance with the class 1 regulations set out for wheeled products;
• Reviewed the submission details of battery imports to the National Packaging and Waste database;
• Challenging assumptions and judgements made by management in its significant accounting estimates;
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; and
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
Electric Mobility Euro Limited
Independent Auditor's Report to the Members of Electric Mobility Euro 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.
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.
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Centenary House
Peninsula Park
Rydon Lane
Devon
EX2 7XE
Electric Mobility Euro Limited
Consolidated Profit and Loss Account
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Distribution costs |
( |
( |
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Administrative expenses |
( |
( |
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Operating profit |
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Exceptional income |
- |
616,203 |
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Interest payable and similar expenses |
( |
( |
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Profit before tax |
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|
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Tax on profit |
- |
- |
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Profit for the financial year |
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Profit/(loss) attributable to: |
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Owners of the company |
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Electric Mobility Euro Limited
Consolidated Statement of Comprehensive Income
Year Ended 31 December 2024
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2024 |
2023 |
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Profit for the year |
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Foreign currency translation losses |
( |
( |
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Total comprehensive income for the year |
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Total comprehensive income attributable to: |
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Owners of the company |
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Electric Mobility Euro Limited
Consolidated Balance Sheet
31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
392,751 |
392,751 |
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Capital redemption reserve |
57,249 |
57,249 |
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Profit and loss account |
3,029,723 |
2,995,920 |
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Equity attributable to owners of the company |
3,479,723 |
3,445,920 |
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Shareholders' funds |
3,479,723 |
3,445,920 |
Approved and authorised by the
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Company Registration Number: 02419231
Electric Mobility Euro Limited
Balance Sheet
31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
392,751 |
392,751 |
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Capital redemption reserve |
57,249 |
57,249 |
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Profit and loss account |
3,040,961 |
2,940,011 |
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Shareholders' funds |
3,490,961 |
3,390,011 |
The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £100,950 (2023 - profit of £187,209).
Approved and authorised by the
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Company Registration Number: 02419231
Electric Mobility Euro Limited
Consolidated Statement of Changes in Equity
Year Ended 31 December 2024
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
Total equity |
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At 1 January 2024 |
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Profit for the year |
- |
- |
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Other comprehensive income |
- |
- |
( |
( |
( |
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Total comprehensive income |
- |
- |
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At 31 December 2024 |
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
Total equity |
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At 1 January 2023 |
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Profit for the year |
- |
- |
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Other comprehensive income |
- |
- |
( |
( |
( |
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Total comprehensive income |
- |
- |
|
|
|
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Share based payment transactions |
- |
- |
(161,872) |
(161,872) |
(161,872) |
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At 31 December 2023 |
392,751 |
57,249 |
2,995,920 |
3,445,920 |
3,445,920 |
Electric Mobility Euro Limited
Statement of Changes in Equity
Year Ended 31 December 2024
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
- |
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At 31 December 2024 |
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2023 |
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|
|
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Profit for the year |
- |
- |
|
|
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Share based payment transactions |
- |
- |
(161,872) |
(161,872) |
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At 31 December 2023 |
392,751 |
57,249 |
2,940,011 |
3,390,011 |
Electric Mobility Euro Limited
Consolidated Statement of Cash Flows
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Profit on disposal of tangible assets |
( |
- |
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Finance costs |
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Share based payment transactions |
- |
( |
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Foreign exchange gains/losses on translation of subsidiary |
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( |
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Working capital adjustments |
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(Increase)/decrease in stocks |
( |
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Decrease in trade debtors |
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Increase/(decrease) in trade creditors |
|
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
|||
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Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
- |
|
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Net cash flows from investing activities |
( |
( |
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|
Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
(2,603,242) |
(2,519,987) |
|
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Cash and cash equivalents at 31 December |
(2,573,895) |
(2,603,242) |
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Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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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'. There are no material departures from FRS 102.
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.
Disclosure exemptions
Electric Mobility Euro Limited meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its individual financial statements. Exemptions have been taken in relation tot presentation of a cash flow statement and financial instruments.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Going concern
The financial statements have been prepared on a going concern basis.
The group has reported an operating profit for two consecutive years, noting that the 2023 result was heavily impacted by the recognition of exceptional income documented in note 4. These periods followed a number of years of losses, caused by various macro-economic reasons such as the COVID-19 pandemic, global supply chain issues, global shipping costs and the cost of living crisis.
The group continued to breach covenants throughout the loss making period as well as 2023 and 2024. Following these covenant breaches and notifications from the loan providers of their intention to call in the facilities, the directors have successfully re-financed all bank borrowings, overdrafts and debt factoring facilities in August 2025. A new term loan, repayable over 10 years, has replaced the bank loans and overdrafts reported at the balance sheet date. A new debt factoring facility has also been negotiated with a higher level of draw down available. The repayment profile of the new term loan, from a cashflow point of view, is more favourable to the group than those loans previously in place. The new facilities negotiated were higher than the redemption value of the previous outstanding debt, which has assisted working capital requirements.
In preparing their going concern assessment the directors have prepared detailed cashflow forecasts, which include the newly agreed facilities and their associated prepayment profiles.
Key assumptions for the forecasts include a year of consolidation for financial year 2025 with limited growth forecast and margins remaining unchanged compared to 2024. A modest growth in revenue has then been forecasted for the 2026 financial year, with margins remaining consistent. The directors believe the modest growth rates forecasted are prudent and reasonable given the relative return to normality of the supply chain and product demand. Based on these assumptions, the cashflow forecasts show no breaches in the new facility limits.
As described in note 22, the group remains in a legal dispute with HMRC surrounding the treatment of duty on certain products. The directors consider, following legal advice received, it is not probable that an outflow of cash will be required to settle this legal case. An outcome of the case is not expected in the the foreseeable future, being at least 12 months from the approval of these financial statements.
Whilst the trading environment remains competitive, the directors are optimistic about the group’s opportunities in the future, especially since the re-financing.
For the reasons above, the directors believe it is appropriate to adopt the going concern basis in preparing the financial statements.
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Revenue recognition
Turnover is recognised at the fair value of the consideration received or receivable for sale of goods and services to external customers in the ordinary nature of the business. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Turnover is shown net of Value Added Tax.
Turnover is generally recognised on delivery of goods or services to customers. Turnover is recognised in respect of consignment stock when the risks and rewards of ownership have transferred to a third party.
Foreign currency transactions and balances
Tax
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. 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.
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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:
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Asset class |
Depreciation method and rate |
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Freehold property |
2% straight line |
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Plant and machinery |
15 - 33% straight line |
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Motor vehicles |
25 - 33% straight line |
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Fixtures and fittings |
15% straight line |
Investments
Investments in subsidiaries are measured at cost less impairment.
Stocks
Stocks are held at the lower of cost (including, where relevant, freight and duty costs) and net realisable value, being estimated selling price less cost to complete and sell. At each reporting sate, stocks are assessed for impairment. Any impairment loss is recognised immediately in the profit or loss.
Leases
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.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Share based payments
The company grants share options ("equity-settled share based payments") to certain employees.
Equity settled share-based payments are measured at the fair value of at the date of the grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment it made to equity.
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
The group generated 3% of turnover from sales made to customers in Europe (2023: 3%)
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Exceptional Income |
The analysis of the group's other gains and losses for the year is as follows:
|
2024 |
2023 |
|
|
Exceptional income |
- |
812,628 |
|
Other exceptional item |
- |
(196,425) |
|
- |
616,203 |
The group, along with others in the sector, are involved in a case against H M Revenue & Customs regarding the classification of Customs Duties on imported products for the periods between 2004 and 2018. As a result of a final judgement in the Supreme Court, the company received £812,628 (exceptional income) on 27 November 2023, in relation to the refund by HMRC of duties paid for the initial period under review (2004 to 2007). The group incurred legal fees of £196,425 in relation to defending this and a further related legal case.
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Foreign exchange losses/(gains) |
|
( |
|
Profit on disposal of property, plant and equipment |
( |
- |
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Share-based payment (credit)/expense |
- |
( |
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
160,000 |
158,800 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Received or were entitled to receive shares under long term incentive schemes |
|
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditor's remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
30,700 |
29,775 |
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
- |
- |
|
|
Deferred taxation |
||
|
Total deferred taxation |
- |
- |
|
Tax expense/(receipt) in the income statement |
- |
- |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of revenues exempt from taxation |
- |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Decrease from tax losses for which no deferred tax asset was recognised |
( |
( |
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
(27,071) |
|
Total tax charge/(credit) |
- |
- |
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
The Company has unrecognised deferred tax assets of £345,782 (2023: £396,914) generated from unutilised deferred tax losses. No deferred tax asset has been recognised as the timing of the reversal of these losses is uncertain.
|
Tangible assets |
Group and Company
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other property, plant and equipment |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
Disposals |
- |
- |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Included within the net book value of land and buildings above is £1,633,691 (2023 - £1,642,247) in respect of freehold land and buildings.
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 |
13,213 |
52,637 |
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Investments |
Company
|
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 |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
Century House
Republic of Ireland |
|
|
|
|
|
Barbara Strozzilaan 201,
Netherlands |
|
|
|
EME Disability Aids Limited is Dormant.
The principle activity of Electric Mobility Euro B.V. is the wholesale distribution of mobility products for the less-able in Europe.
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Raw materials and consumables |
|
|
|
|
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Debtors |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Trade debtors |
|
|
|
|
|
Amounts due from group undertakings |
- |
- |
|
|
|
Other debtors |
|
- |
- |
- |
|
Prepayments |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash on hand |
745 |
914 |
745 |
914 |
|
Cash at bank |
12,785 |
406 |
10,809 |
331 |
|
13,530 |
1,320 |
11,554 |
1,245 |
|
|
Debt factoring account and bank overdraft |
(2,587,425) |
(2,604,562) |
(2,587,425) |
(2,604,562) |
|
Cash and cash equivalents in statement of cash flows |
(2,573,895) |
(2,603,242) |
(2,575,871) |
(2,603,317) |
|
At 1 January 2024 |
Cash flow |
At 31 December 2024 |
||
|
£ |
£ |
£ |
||
|
Cash at bank and on hand |
1,320 |
12,210 |
13,530 |
|
|
Debt factoring account and overdraft |
(2,604,562) |
17,137 |
(2,587,425) |
|
|
Cash and cash equivalents |
(2,603,242) |
29,347 |
(2,573,895) |
|
|
Finance Lease Obligations |
(19,835) |
13,891 |
(5,944) |
|
|
Bank loans |
(1,302,665) |
558,161 |
(744,504) |
|
|
Net debt |
(3,925,742) |
601,399 |
(3,324,343) |
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to group undertakings |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other creditors |
- |
|
- |
|
|
|
Accrued expenses |
|
|
|
|
|
|
|
|
|
|
||
|
Loans and borrowings |
|
Group |
Company |
|||
|
Current loans and borrowings |
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
|
Bank overdraft and debt factoring account |
|
|
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
|
|
|
Included within overdrafts are debt factoring accounts of £1,935,323 (2023: £1,947,229) which are secured on the related trade debtors.
Bank loans and overdrafts are secured by way of a first legal charge over the company's freehold property and a debenture creating a fixed and floating charge over the assets of the company.
Interest rates of loans and borrowings are disclosed within the Directors' Report.
Bank borrowings were disclosed as due within one year due to a breach in covenant. The loans have been refinanced post year end and to manage cash flow risk, the group have entered into new facilities that include a mix of fixed and variable interest rates.
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Obligations under leases and hire purchase contracts |
Group and Company
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
- |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share-based payments |
Scheme details and movements
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
392,751 |
|
392,751 |
|
Contingent liabilities |
Company
The company, along with others in the sector are involved in legal cases with HMRC relating to the classification for Customs Duties purposes of certain imported products in periods between 2004 and 2018. The first case relates to duty suffered in the initial period, being between 2004 and 2007.
In November 2016, the First Tier Tribunal found in favour of the taxpayer, as a result the company stopped paying duty in respect of these imported products. During 2018, HMRC were successful in an appeal against this ruling, meaning that the company was liable again for duty between 2016 and 2018, which had not been paid.
In December 2020, the Supreme Court found in favour of the company on appeal. This only related to the initial period under review between 2004 and 2007. As such the directors consider assessments raised by HMRC in relation to the period between 2016 and 2018 to meet the definition of a contingent liability and will continue to defend its case.
Electric Mobility Euro Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Related party transactions |
Company
Summary of transactions with all entities with joint control or significant interest
The company made purchases of £nil (2023: £nil) during the year to such a company. At the balance sheet date this company owed £nil (2023: £624) to Electric Mobility Euro Limited.
During the year the company paid £73,273 (2023: £186,333) for management services to another company under common control. No amount was outstanding at the year end (2023: £nil).