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Registration number: 01559267

Motortronics UK Limited
Filleted Financial Statements
for the Year Ended 31 July 2025

Motortronics UK Limited

Contents

Statement of Financial Position | 1
Notes to the Financial Statements | 2 to 12

Motortronics UK Limited

(Registration number: 01559267)
Statement of Financial Position as at 31 July 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 4 | 39,128 | 54,350
Tangible assets | 5 | 133,748 | 177,105
|  | 172,876 | 231,455
Current assets |  |  |
Stocks | 6 | 1,351,075 | 1,889,644
Debtors | 7 | 1,560,647 | 1,297,690
Cash at bank and in hand |  | 46,090 | 25,190
|  | 2,957,812 | 3,212,524
Creditors: Amounts falling due within one year | 8 | (1,069,495) | (1,394,650)
Net current assets |  | 1,888,317 | 1,817,874
Total assets less current liabilities |  | 2,061,193 | 2,049,329
Creditors: Amounts falling due after more than one year | 8 | (25,000) | (175,000)
Net assets |  | 2,036,193 | 1,874,329
Capital and reserves |  |  |
Called up share capital |  | 68,750 | 68,750
Share premium reserve | 10 | 132,613 | 132,613
Capital redemption reserve | 10 | 150,000 | 150,000
Profit and loss account | 10 | 1,684,830 | 1,522,966
Shareholders' funds |  | 2,036,193 | 1,874,329

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Statement of Comprehensive Income.

Approved and authorised by the Board on 7 October 2025 and signed on its behalf by:

K F King Director

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025

1 | General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Bristow House
Gillard Way
Lee Mill Industrial Estate
Ivybridge
Devon
PL21 9GG

Principal activity

The principal activity of the company is the development and manufacture of control devices for industrial electric motors incorporating energy saving features.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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 financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis.

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

2 | Accounting policies (continued)

Audit report

The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 13 October 2025 was Shona Godefroy FCCA, who signed for and on behalf of Westcotts (SW) LLP.

.........................................

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position 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:

Asset class | Depreciation method and rate
Short leasehold land and buildings | over the lease term
Plant and machinery | 20-33% straight line
Fixtures and fittings | 20-33% straight line
Motor vehicles | 25% straight line

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

2 | Accounting policies (continued)

Office equipment | 20-33% straight line

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

2 | Accounting policies (continued)

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

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:

Asset class | Amortisation method and rate
Patents | 10% straight line
Product approvals | 20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, 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. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities.

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

2 | Accounting policies (continued)

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
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 statement of comprehensive income 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.

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.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

3 | Staff numbers

The average number of persons employed by the company (including directors) during the year, was 31 (2024 - 32).

4 | Intangible assets

| Other intangible assets £ | Total £
Cost or valuation
At 1 August 2024 | 234,454 | 234,454
Additions internally developed | 4,149 | 4,149
At 31 July 2025 | 238,603 | 238,603
Amortisation
At 1 August 2024 | 180,104 | 180,104
Amortisation charge | 19,371 | 19,371
At 31 July 2025 | 199,475 | 199,475
Carrying amount
At 31 July 2025 | 39,128 | 39,128
At 31 July 2024 | 54,350 | 54,350

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

5 | Tangible assets

| Short leasehold land and buildings £ | Fixtures and fittings £ | Plant and machinery £ | Office equipment £ | Motor vehicles £ | Total £
Cost or valuation
At 1 August 2024 | 559,685 | 47,126 | 406,291 | 125,487 | 396 | 1,138,985
Additions | 2,880 | - | 15,689 | 9,848 | - | 28,417
Disposals | - | - | (1,942) | (2,400) | - | (4,342)
At 31 July 2025 | 562,565 | 47,126 | 420,038 | 132,935 | 396 | 1,163,060
Depreciation
At 1 August 2024 | 430,038 | 38,971 | 376,838 | 115,637 | 396 | 961,880
Charge for the year | 42,138 | 3,438 | 19,338 | 6,860 | - | 71,774
Eliminated on disposal | - | - | (1,942) | (2,400) | - | (4,342)
At 31 July 2025 | 472,176 | 42,409 | 394,234 | 120,097 | 396 | 1,029,312
Carrying amount
At 31 July 2025 | 90,389 | 4,717 | 25,804 | 12,838 | - | 133,748
At 31 July 2024 | 129,647 | 8,155 | 29,453 | 9,850 | - | 177,105

Included within the net book value of land and buildings above is £90,389 (2024 - £129,647) in respect of short leasehold land and buildings.

6 | Stocks

| 2025 £ | 2024 £
Stock | 1,351,075 | 1,889,644

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

7 | Debtors

| 2025 £ | 2024 £
Trade debtors | 1,320,841 | 983,417
Amounts owed by group undertakings | 31,579 | 182,411
Other debtors | 22,474 | 41,822
Prepayments | 185,753 | 90,040
| 1,560,647 | 1,297,690

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

8 | Creditors

Creditors: amounts falling due within one year

| Note | 2025 £ | 2024 £
Loans and borrowings | 9 | 675,762 | 820,102
Trade creditors |  | 330,453 | 376,581
Amounts owed to group undertakings |  | 3,878 | 141,270
Accruals |  | 20,209 | 13,473
Other creditors |  | 39,193 | 43,224
|  | 1,069,495 | 1,394,650

The bank overdraft is secured by a fixed and floating charge over the assets of the company. The shareholders have provided the bank with a guarantee on behalf of the company, limited to £200,000.
Included within other creditors is income received from a government grant as part of the company's move to the new premises at Gillard Way. The government grant was intended to help fund job creation and retention.

Creditors: amounts falling due after more than one year

| Note | 2025 £ | 2024 £
Loans and borrowings | 9 | 25,000 | 175,000

9 | Loans and borrowings

Non-current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 25,000 | 175,000

Current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 150,000 | 150,000
Bank overdrafts | 525,762 | 670,102
| 675,762 | 820,102

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

10 | Reserves

The share premium account represents the accumulation of funds received in excess of par value for shares issued.
The capital redemption reserve represents the accumulation of funds used to redeem capital instruments previously issued by the company. This reserve is not distributable.
The profit and loss account records retained earnings and accumulated losses.

11 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 59,750 | 74,000
Later than one year and not later than five years | 220,000 | 224,750
Later than five years | 9,167 | 64,167
| 288,917 | 362,917

The amount of non-cancellable operating lease payments recognised as an expense during the year was £Nil (2024 - £Nil).

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2025 (continued)

12 | Related party transactions

Net transaction value

| 2025 £ | 2024 £ | 2023 £
Phasetronics Inc | 21,702 | (31,651) | 222,529
Motortronics International Korea | 70,160 | 69,636 | 223,550
| 91,862 | 37,985 | 446,079

Balance owed by/(owed to)

| 2025 £ | 2024 £ | 2023 £
Phasetronics Inc | 27,702 | 34,751 | 47,733
Motortronics International Korea | - | 6,389 | (77)
Fairford Electronics Holdings Limited | 1,480 | 1,410 | 1,250
| 29,182 | 42,550 | 48,906

During the period there were arms length transactions of sales amounting to £294,476 (2024: £486,796) and purchases amounting to £246,018 (2024: £448,812) between Motortronics UK Ltd and the shareholder companies (Phasetronics Inc/Motortronics US and Motortronics International Korea).

13 | Parent undertaking

The company is jointly owned by Fairford Electronics Holdings Ltd and Motortronics International Korea, companies which are respectively under the ultimate control of Mr James Mitchell, Mrs Joyce Mitchell and Mr Brian Hong.