Consolidated Financial Statements
For the year ended 31 December 2024
Registered number: 08079257
Company information
Contents
Group strategic report
For the year ended 31 December 2024
The Strategic report for the year ended 31 December 2024 is set out below.
As shown in the Group's Statement of comprehensive income, sales revenues have increased by 24% over the prior year.
Operating profit for the year (before interest and tax) was £14,765,000 (2023: £7,290,891).
During 2024, the Group continues to experience growth in the aerospace market resulting in increased hardware and communications services revenues and increased gross profit due to higher sales volumes.
The Group’s key measurement of the effectiveness of its operations is return on sales. The Company achieved a return on sales of 21.9% (2023: 13.4%).
Return on sales provides a measure of profitability that shows how efficiently the organization is utilising its resources in its operations.
Another key measure tracked by the Group is the number of safety lost day incidents per year. The Company had 0 lost day incidents during 2024 (2023: 0).
Economic downturn
The principal risk to the business is a fall in demand for goods and services, whether due to a loss of customers, a change in customer preferences or a decline in demand for its products.
Other risks that the board consider important include information security (especially in light of GDPR), customer non-payment, IT security, loss of key staff, pricing fluctuations resulting from market pressures and current global supply chain demands (especially as affected by the ongoing war in Ukraine and Gaza).
Other risks that the board consider important include information security (especially in light of GDPR), customer non-payment, IT security, loss of key staff, pricing fluctuations resulting from market pressures and current global supply chain demands (especially as affected by the ongoing war in Ukraine and Gaza).
In 2025, the United States government introduced additional tariffs on certain categories of imported goods, which could potentially impact global trade conditions and cross-border supply chains. The extent and duration of the measures remain uncertain, and management continues to assess their possible implications on the Company's operations.
Health and safety risks
Responsibility for the delivery of world class safety standards is an integral part of the operational management accountability and the Group's management are therefore expected to embrace a positive safety culture and to demonstrate leadership and commitment in the workplace. ACR Group's stated aim is to achieve zero injuries and to reduce health and safety risks, where they cannot be eliminated altogether, to a level which is "as low as reasonably practicable".
Timing of orders
The majority of the Group's contracts are of a relatively short duration and, with the exception of framework contracts with key customers, do not usually cover multi year requirements. This means that an unmitigated delay in the receipt of key orders could affect earnings. Maximising order intake is therefore a key priority for the Company.
Page 1
Group strategic report (continued)
For the year ended 31 December 2024
Principal risks and uncertainties (continued)
Product development
ACR Group's approach to innovation and continued research and development activity ensures the product range is continually refreshed and updated. The Group undertakes research and development activities. The total expenditure in the year amounted to £5,220,555 (2023: £3,439,465).
Financial risks
The Group's financing arrangements were included within ACR Group's overall facilities. ACR UK Holdings Ltd and its subsidiaries are part of a larger group with its ultimate parent entity in the U.S.A.
The key performance indicators measured by the Group have been noted above in the business review.
The other key performance indicators measured by the Group have been noted above in the business review.
No significant changes to the business are expected in the foreseeable future.
The Board of Directors consider that they have acted in good faith in a way that would be most likely to promote the success of the Company for the benefit of its members as a whole in the decisions taken during the year ended 31 December 2024. The Company is a holding company that owns certain operations of a larger group. Each year, each of the Company’s subsidiaries present an operating plan to management of the larger group, which includes the directors of the Company. The directors consider the long term consequences of the decisions and actions laid out in the annual plan. Additionally, the operating results, progress made against strategic initiatives, employee safety and other matters relating the members as a whole are reviewed monthly during the year.
∙The plan was designed to have a long term beneficial impact on the Company and its members and to contribute to its success by delivering high quality products and services, many of which keep people safe and help save lives. The plan supports initiatives to develop new products and services that are seen by our customers and business partners as a leading source of innovation and problem solving.
∙Our employees are fundamental to the delivery of the Company’s plan. The Company aims to be a responsible employer in its approach to pay and benefits for its employees. The health and safety of our employees is one of the primary considerations in the way the Company does business.
∙The Company also aims to act responsibly and fairly in how it engages with its customers, suppliers and other stakeholders, all of which are integral to the successful delivery of the plan.
∙The plan considers the impact of the Company’s operations on the communities that it operates in, on the environment and its wider social responsibilities.
The Board of Directors intention is to behave responsibly and ensure that management operates the business in a responsible manner with high standards of business conduct and good governance, considering the need to act fairly between all members of the Company.
Page 2
Group strategic report (continued)
For the year ended 31 December 2024
This report was approved by the board and signed on its behalf.
Page 3
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.
The principal activity of its subsidiaries is the design and manufacture of maritime and land terrestrial/satellite communications products used in the Search and Rescue ecosystem, plastic moulding and assembly of compenents for the sea safety market, provide aviation services and products to commercial and military customers, provide flight data and communication techonology and the design and manufacture of flight data monitoring, flight following, satellite data link and voice communication equipment and services.
The profit for the year, after taxation, amounted to £8,511,037 (2023: £2,725,053).
Dividends of £6,884,416 were declared during the year (2023: £12,064,593).
The directors who served during the year were:
The Group has a culture of continuous improvement through investment in people at all levels within the Group.
The Group is committed to pursuing equality and diversity in all its employment activities including recruitment, training, career development and promotion and ensuring there is no bias or discrimination in the treatment of people. In particular, applications for employment are welcomed from persons with disabilities, and special arrangements and adjustments as necessary are made to ensure that applicants are treated fairly when attending for interview or for pre employment aptitude tests.
Wherever possible the opportunity is taken to retrain people who become disabled during their employment in order to maintain their employment within the Group.
In assessing whether the financial statements for the Group should be prepared on the going concern basis, the directors have considered the future outlook of the Group, including future operating profits, cash flows and facilities available to the Group, including the impact wider macro-economic factors are expected to have on the cashflows and operations.
The principal risk to the business is a fall in demand for services, whether due to loss of customers or a decline in demand.
Other risks that the board consider important include information security (especially in light of GDPR), customer non payment, IT security, loss of key staff and pricing fluctuations resulting from market pressures.
Page 4
Directors' report (continued)
For the year ended 31 December 2024
Going concern (continued)
Having considered the Group’s funding position and financial projections, the directors have concluded these conditions do not indicate a significant doubt over the Group's ability to continue as a going concern. Additionally, the Group has also obtained confirmation from its ultimate parent undertaking on the non-recall of the intra-group loans due to group undertakings accordingly.
The directors are satisfied that the Company and Group will have sufficient funds to repay its liabilities as they fall due and adequate resources to continue in operational existence for the foreseeable future. Consequently, the financial statements of the Group are prepared on the going concern basis.
The following SECR disclosures presents our carbon footprint within the United Kingdom across Scope 1 and 2 emissions. We have followed the 2019 HM Government Environmental Reporting Guidelines and used the GHG Reporting Protocol – Corporate Standard, as well as the 2024 GHG UK Reporting Conversion Factors.
The directors have chosen the metric gross global scope 1 and 2 emissions in tonnes of CO2e per £1,000,000 turnover as this is a common business metric for their industry sector. The intensity measurement has fallen this year due to various UK projects implemented to improve energy efficiency and reduce energy consumption.
The Group has taken the following measures to improve energy efficiency and reduce energy consumption through various UK projects including:
∙The Group also added an automatic lighting facility at its premises to improve energy efficiency.
∙Relocation of the Flight Data Systems Limited subsidiary to a smaller facility in 2023, which included changing the heating supply from natural gas to electric and installation of hot and cold-water dispenser to replace individual kettle usage by employees.
∙Ocean Signal Limited subsidiary relocated in 2020 to a new modern facility outfitted with LED light fittings and the latest heating and cooling systems.
Page 5
Directors' report (continued)
For the year ended 31 December 2024
There have been no significant events affecting the Group since the year end.
The auditor, Grant Thornton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 6
Directors reposibilities statement
For the year ended 31 December 2024
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's and the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company and the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
On behalf of the board
................................................
D J Grierson
Director
Date: 18 September 2025
Page 7
Independent auditor's report to the members of ACR UK Holdings LTD
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 'Responsibilities of the auditor for the audit of the financial statements' section of our report. We are independent of the Group and Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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.
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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from the date 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.
Page 8
Independent auditor's report to the members of ACR UK Holdings LTD (continued)
Other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the 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 in the financial statements, 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.
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 Directors' report and the Strategic Report for the year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' report and the Strategic Report have been prepared in accordance with applicable legal requirements.
Page 9
Independent auditor's report to the members of ACR UK Holdings LTD (continued)
Page 10
Independent auditor's report to the members of ACR UK Holdings LTD (continued)
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.
for and on behalf of
Chartered Accountants &
Statutory Auditors
13-18 City Quay
Dublin 2
Republic of Ireland
Date:19 September 2025
Dublin 2
Republic of Ireland
Date:
Page 11
Consolidated statement of comprehensive income
For the year ended 31 December 2024
Page 12
Consolidated statement of financial position
As at 31 December 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 September 2025 .
The notes on pages 20 to 40 form part of these financial statements.
Page 13
Company statement of financial postition
As at 31 December 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 September 2025 .
The notes on pages 20 to 40 form part of these financial statements.
Page 14