Registration number:
EMSC (UK) Limited
for the Period from 1 June 2024 to 31 December 2024
EMSC (UK) 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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Statement of Income and Retained Earnings |
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Balance Sheet |
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Notes to the Financial Statements |
EMSC (UK) Limited
Company Information
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Directors |
S S Mardapittas D J Seabridge |
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Registered office |
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Auditors |
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EMSC (UK) Limited
Strategic Report for the Period from 1 June 2024 to 31 December 2024
The directors present their strategic report for the period from 1 June 2024 to 31 December 2024.
Principal activity
The principal activity of the company is the design, manufacture and sale of energy saving products, in particular voltage optimisation systems (Powerstar) and battery storage solutions (Powerstar Virtue).
Fair review of the business
In this shortened accounting period, EMSC has focussed on product development resulting in a cohesive product road map across all product ranges as the EMSC group ("EMSC") continues to develop its range of Battery Energy Storage, Voltage Optimisation and Trasnformer solutions.
Operationally EMSC remains responsive to customer demands, ensuring it has the correct knowledge products and processes to deliver excellent technical solutions to its’ customers. Quality standards ISO 9011 and ISO14001 both continue to operate in the business. Continued digitalisation and modernisation of internal processes continue to deliver improved efficiencies.
The immediate outlook of EMSC is to continue strategic product development in line with its roadmap and to build on customer bases both in the UK and overseas. Focus on energy resilience complements the increase in automation within organisations’ operations and our smart technologies enable customers to combat rising energy costs, providing us confidence that our product and solutions can help customers achieve their sustainability objectives well into the future.
Continued focus from worldwide governments for economic and environmental performance to go hand in hand gives added incentive for EMSC to further develop its range of products globally. Increased electrical automation and a commitment to green energy across the globe provides us confidence in the suitability of our global strategy. Internationally we will focus on developing our key markets in Europe, Asia Pacific and further expansion in the USA.
Continued focus from governments for economic and environmental performance to go hand in hand gives added incentive for us to further develop our range of products globally. Increased automation and a commitment to green energy across the globe provides us confidence in the suitability of our global strategy. Internationally we will focus on developing our key markets of Europe, Asia Pacific and further expansion in the USA.
EMSC (UK) Limited
Strategic Report for the Period from 1 June 2024 to 31 December 2024 (continued)
Principal risks and uncertainties
The principal challenges facing EMSC are:
(a) Working Capital and Investment
There is uncertainty arising from the risk that revenue is not realised or delayed, or costs go up, or both. We continue to utilise the working capital facilities provided by SCF Partners to meet our working capital requirements and to allow the group to expand. That means that we have an appropriate capital structure to deliver our strategic plan. Further details of this and the impact around going concern is set out in note 1 of these financial statements.
(b) Market conditions
The increased return on investment of projects is reliant upon the continued decentralisation of the energy system and the total cost of consuming energy. Both key drivers are subject to government policy however there have been favourable long-term commitments to reducing energy consumption and CO2 which complement our solutions.
The current economic environment in the UK holds a high level of inflation and the volatility of the price of raw materials presents both a risk and an opportunity for the company.
(c) Product development
The further development of our products through continued research and development as well as the design of new products for new markets should enable the company to mitigate the risk. We are focussed on adding further innovation to the existing product range by delivering smart technologies.
(d) International operations
The challenge is to see development in overseas markets approach the success the company enjoys in the UK. This is being tackled as detailed under future developments.
Future developments
Continued focus from governments for economic and environmental performance to go hand in hand gives added incentive for us to further develop our range of products globally. Increased automation and a commitment to Net Zero across the globe provides us with confidence in the suitability of our global strategy. Internationally we will focus on developing our key markets of Europe, Asia Pacific and further expansion in the USA.
Approved and authorised by the
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EMSC (UK) Limited
Directors' Report for the Period from 1 June 2024 to 31 December 2024
The directors present their report and the financial statements for the period from 1 June 2024 to 31 December 2024.
Directors of the company
The directors who held office during the period were as follows:
Results and dividends
The loss for the period, after taxation, amounted to £5,036,839 (year ended 31 May 2024 - £4,812,135).
The directors do not recommend the payment of a dividend (31 May 2024 - Nil).
Research and development
The Company's research and development activities relate to the introduction of new energy saving products and to the improvement of existing products. Expenditure incurred on research and development during the period, which was charged to the Statement of Comprehensive Income, amounted to £53,680 (31 May 2024 - £104,032).
Matters covered in the strategic report
Disclosures required under S416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the Company.
Directors' liabilities
The company has made qualifying third party indemnity provisions for the benefits of its directors which were made during the year and remain in force at the date of this report.
Disclosure of information to the auditors
Each director of the company who held office at the date of the approval of this Annual Report, as set out above, confirms that:
• so far as they are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and
• they have taken all the steps 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.
Reappointment of auditors
The auditors, Hawsons Chartered Accountants, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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EMSC (UK) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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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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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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
EMSC (UK) Limited
Independent Auditor's Report to the Members of EMSC (UK) Limited
Opinion
We have audited the financial statements of EMSC (UK) Limited (the 'company') for the period from 1 June 2024 to 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
EMSC (UK) Limited
Independent Auditor's Report to the Members of EMSC (UK) Limited (continued)
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 period 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 or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006, Health and Safety regulations and employment laws.
EMSC (UK) Limited
Independent Auditor's Report to the Members of EMSC (UK) Limited (continued)
We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates including stock valuation methods.
Audit procedures performed by the engagement team included:
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Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
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Reviewing minutes of Board meetings; |
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Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations; |
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Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the valuation of stock; |
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Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management. |
There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, 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 concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of
-the-auditor’s-responsibilities-for. 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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For and on behalf of
Pegasus House
463a Glossop Road
South Yorkshire
S10 2QD
EMSC (UK) Limited
Statement of Income and Retained Earnings
for the Period from 1 June 2024 to 31 December 2024
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Note |
7 months ended |
Year ended |
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Turnover |
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Cost of sales |
( |
( |
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Gross (loss)/profit |
( |
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Administrative expenses |
( |
( |
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Other operating income |
- |
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Operating loss |
( |
( |
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Other interest receivable and similar income |
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- |
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Interest payable and similar charges |
( |
( |
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Loss before tax |
( |
( |
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Loss for the financial period |
( |
( |
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Retained earnings brought forward |
(16,454,584) |
(11,642,449) |
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Retained earnings carried forward |
(21,491,423) |
(16,454,584) |
EMSC (UK) Limited
(Registration number: 04209907)
Balance Sheet
as at 31 December 2024
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Note |
31 December |
31 May |
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Fixed assets |
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Intangible 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 liabilities |
( |
( |
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Total assets less current liabilities |
( |
( |
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Provisions for liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
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Retained earnings |
( |
( |
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Shareholders' deficit |
( |
( |
Approved and authorised by the
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EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024
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Accounting policies |
Statutory information
EMSC (UK) Limited is a private company, limited by shares, domiciled in England and Wales, company number 04209907. The registered office is at
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'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. The presentation currency is United Kingdom pounds sterling, which is the functional currency of the company. The financial statements are those of an individual entity.
Summary of disclosure exemptions
The company has taken advantage of the following reduced disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
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the requirements of section 4 Statement of Financial Position paragraph 4.12(a)(iv); |
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the requirements of section 7 Statement of Cash Flows; |
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the requirements of section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.32, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(b) and 11.48(c); |
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the requirements of section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b), and 12.29A; and |
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the requirements of section 33 Related Party Disclosures paragraph 33.7. |
This information is included in the consolidated financial statements of EMSC Global Limited as at 31 December 2024 and these financial statements may be obtained from EMS House Unit 2, 4 Cowley Way, Ecclesfield, Sheffield, South Yorkshire, S35 1QP.
Going concern
After due consideration of all relevant factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. These considerations include the significant financial support provided by the company's ultimate controlling party, SCF-IX, LP. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
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Accounting policies (continued) |
Judgements
In preparing these financial statements, the directors have had to make the following judgements:
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Determine whether there are indicators of impairment of the company's tangible and intangible assets, including goodwill and investments. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
Other key sources of estimation uncertainty
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.
Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
The company absorbs labour and overheads into stock cost for manufactured goods. This involves an element of estimation on the rate of labour and overhead cost being absorbed into stock. This level is updated annually to allow for changes in process or cost.
The company has recognised rectification provisions for known issues with units in the field. Management have estimated the costs to be measured to rectify these issues using the experience and knowledge based upon previous rectifications.
Revenue recognition
Revenue represents sales to external customers at invoiced amounts less value added tax or local taxes on sales.
For some sales, the company recognises revenue when the installation of goods is complete. When no installation takes place, revenue is recognised when the goods are delivered to customers.
For other sales, the company recognises revenue proportionally based on factory acceptance and site acceptance.
Amounts invoiced for which the revenue recognition criteria have yet to be satisfied are held within creditors and released to revenue in the period when the above revenue recognition criteria have been met.
Government grants
Grants are accounted under the accruals method as permitted by FRS 102. Grants relating to the expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income 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.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Research and development
Expenditure on research and development is written off in the period in which it is incurred.
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
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Accounting policies (continued) |
Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rate on the date of the transaction.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within ‘finance income or costs’. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within ‘other operating expenses or income’.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the country where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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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 |
25% reducing balance |
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Motor vehicles |
25% reducing balance |
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Fixtures and fittings |
25% reducing balance |
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Computer equipment |
33% straight line |
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
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1 |
Accounting policies (continued) |
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over 10 years to the Statement of Income and Retained Earnings.
Intangible assets
Intangible fixed assets relate to trademarks and patents. The trademark rights are recognised at cost and patents are recognised when applied for.
Trademarks and patents have a finite useful life and are carried at cost less accumulated amortisation.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Trademarks |
10% straight line |
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Patents |
80% reducing balance |
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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probably that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
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1 |
Accounting policies (continued) |
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.
Financial instruments
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Revenue |
The analysis of the company's turnover for the period from continuing operations is as follows:
|
7 months ended |
Year ended |
|
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United Kingdom |
5,087,100 |
18,872,829 |
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Europe |
9,729 |
327,172 |
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Rest of the World |
33,000 |
1,990,422 |
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Turnover is wholly attributable to the principal activity of the company.
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
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Other operating income |
The analysis of the company's other operating income for the period is as follows:
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7 months ended |
Year ended |
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Government grants |
- |
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Operating loss |
Arrived at after charging/(crediting)
|
7 months ended |
Year ended |
|
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Depreciation expense |
( |
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Amortisation expense |
|
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Loss/(profit) on disposal of tangible fixed assets |
643 |
(446,081) |
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Foreign exchange losses |
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Operating lease expenditure |
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Auditor's remuneration - audit |
26,000 |
23,600 |
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Auditor's remuneration - tax |
4,300 |
3,900 |
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Auditor's remuneration - other |
22,800 |
20,750 |
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Interest payable and similar expenses |
|
7 months ended |
Year ended |
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Interest on bank overdrafts and borrowings |
- |
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Interest on obligations under finance leases and hire purchase contracts |
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Interest expense on other finance liabilities |
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EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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7 months ended |
Year ended |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
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7 months ended |
Year ended |
|
|
Production |
|
|
|
Administration |
|
|
|
Sales and distribution |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
7 months ended |
Year ended |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
109,386 |
540,963 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
7 months ended |
Year ended |
|
|
Accruing benefits under money purchase pension scheme |
|
|
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
|
7 |
Directors' remuneration (continued) |
In respect of the highest paid director:
|
7 months ended |
Year ended |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Taxation |
Tax charged/(credited) in the income statement:
|
7 months ended |
Year ended |
|
|
Current taxation |
||
|
- |
- |
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
7 months ended |
Year ended |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Expenses not deductible in determining taxable profit |
|
|
|
Increase from tax losses for which no deferred tax asset was recognised |
|
|
|
Total tax charge/(credit) |
- |
- |
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
|
Intangible assets |
|
Goodwill |
Patents |
Trademarks |
Total |
|
|
Cost or valuation |
||||
|
At 1 June 2024 |
|
|
|
|
|
Additions acquired separately |
- |
- |
|
|
|
At 31 December 2024 |
|
|
|
|
|
Amortisation |
||||
|
At 1 June 2024 |
|
|
|
|
|
Amortisation charge |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 May 2024 |
|
|
|
|
|
Tangible assets |
|
Land and buildings |
Plant and machinery |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 June 2024 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
Disposals |
- |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 June 2024 |
|
|
|
|
|
Charge for the period |
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
|
Reversal of policy change |
( |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 May 2024 |
|
|
|
|
In the previous period the directors changed the accounting policy for depreciation which resulted in an additional £153,910 depreciation to be charged in the year to 31 May 2024. In the current period the directors decided to revert to the previous depreciation policy.
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
|
10 |
Tangible assets (continued) |
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:
|
31 December |
31 May |
|
|
Motor vehicles |
- |
8,070 |
Depreciation charged on assets held under finance lease and hire purchase contracts amounted to £nil (31 May 2024 - £2,320) during the period.
|
Stocks |
|
31 December |
31 May |
|
|
Raw materials and components |
|
|
|
Work in progress |
|
|
|
|
|
The cost of stocks recognised as an expense in the year amounted to £1,460,137 (31 May 2024 - £14,262,881).
The amount of impairment loss released as a credit to profit or loss is £876,386 (31 May 2024 - recognised as an expense £4,026,353).
|
Debtors |
|
31 December |
31 May |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
- |
|
Corporation tax recoverable |
|
|
|
|
|
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
|
Creditors |
|
31 December |
31 May |
|
|
Due within one year |
||
|
Trade creditors |
|
|
|
Amounts owed to group undertakings |
1,865,772 |
1,838,946 |
|
Amounts owed to related parties |
22,639,882 |
15,687,411 |
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accruals and deferred income |
|
|
|
HP and finance lease liabilities |
- |
1,737 |
|
|
|
Securities and guarantees
Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.
Amounts owed to related parties are repayable on demand and have an interest rate of 10% per annum. There is a fixed and floating charge over the assets of the company held by HSBC Corporate Trustee Company (UK) Limited as security agent.
|
Provisions for liabilities |
|
Rectification provisions |
|
|
At 1 June 2024 |
|
|
Increase (decrease) in existing provisions |
( |
|
At 31 December 2024 |
|
|
|
|
The rectification provisions are amounts expected to be incurred by the company in order to rectify exisiting units in the field.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £24,311 (31 May 2024 - £26,035) were payable to the scheme at the end of the period and are included in other creditors.
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
|
Share capital |
Allotted, called up and fully paid shares
|
31 December |
31 May |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
31 December |
31 May |
|
|
Not later than one year |
- |
|
Operating leases
The total of future minimum lease payments is as follows:
|
31 December |
31 May |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Related party transactions |
Transactions with related parties
The company has taken advantage of the exemptions under FRS 102 Section 33.1A not to disclose transactions with EMSC Global Limited or any other wholly owned subsidiaries within the group as consolidated accounts are publicly available.
During the prior year the company received a loan of £500,000 from Buchan 1 Limited, a company which owns 100% of the share capital in the immediate parent company, EMSC Global Limited. The loan is interest free and repayable on demand.
EMSC (UK) Limited
Notes to the Financial Statements for the Period from 1 June 2024 to 31 December 2024 (continued)
|
Parent and ultimate parent undertaking |
The company's immediate parent undertaking is
The most senior parent entity producing publicly available financial statements is
The ultimate parent undertaking records no active persons with significant control of the company.