ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: 02422487

BROOKTHERM REFRIGERATION LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

BROOKTHERM REFRIGERATION LIMITED

COMPANY INFORMATION

Directors	Daniel Christopher Keating
	Jamie Christopher Keating
	Torstein Egeland
	Clive Parkman (resigned 31 December 2024)
	Surjit Mahe Singh
	Valerio Micali (appointed 12 September 2024)


Company secretary	J C Keating


Registered number	02422487


Registered office	3 Kelvin Park
	Wallasey
	Birkenhead
	Wirral
	CH41 1LT

BROOKTHERM REFRIGERATION LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 7
Statement of comprehensive income	8
Balance sheet	9
Statement of changes in equity	10
Analysis of net debt	11
Notes to the financial statements	12 - 24

BROOKTHERM REFRIGERATION LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2025

Introduction

The directors present their strategic report for the year ended 31 March 2025.

Business review

The results for the year and financial position of the company are shown in the annexed financial statements.
Annual turnover has increased by £4.79m in 2025 which represents a 27.68% increase on the previous year.
The company achieved a gross profit margin of 11.0% compared to that of 11.5% in 2024.

Principal risks and uncertainties

Principal risks to the company continue to be uncertainty within the industry but despite this uncertainty the company anticipates further growth in turnover and profitability in the future.

Financial key performance indicators

The company produces a range of Key Performance Indicators to aid the effective management of the business.

This report was approved by the board on 7 July 2025 and signed on its behalf.

Valerio Micali

Director

Page 1

BROOKTHERM REFRIGERATION LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 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 of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £759,118 (2024 - £1,020,120).

The directors recommended and paid dividends of £nil (2024: £1,011,216) for the year ended 31 March 2025.

Directors

The directors who served during the year were:

Daniel Christopher Keating

Jamie Christopher Keating

Torstein Egeland

Clive Parkman (resigned 31 December 2024)

Surjit Mahe Singh

Valerio Micali (appointed 12 September 2024)

Future developments

The directors are satisfied with the result for the year and are positive for the future, based on the ongoing improvement initiatives within the business.

Page 2

BROOKTHERM REFRIGERATION LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 7 July 2025 and signed on its behalf.

Valerio Micali

Director

Page 3

BROOKTHERM REFRIGERATION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKTHERM REFRIGERATION LIMITED

Opinion

We have audited the financial statements of Brooktherm Refrigeration Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 March 2025 and of its 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

Page 4

BROOKTHERM REFRIGERATION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKTHERM REFRIGERATION LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the 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 the 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 Directors' responsibilities statement set out on page 2, 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.

Page 5

BROOKTHERM REFRIGERATION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKTHERM REFRIGERATION LIMITED (CONTINUED)

Auditors' 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 Auditors' 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are:
• to identify and assess the risks of material misstatement of the financial statements due to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due
to fraud, through designing and implementing appropriate responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).
We understood how the Company is complying with those frameworks by making enquiries of management.

Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved:
• Enquiries of management; and
• Journal entry testing, with a focus on journals indicating large or unusual transactions based on our
understanding of the business.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud.
We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings.
Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of

Page 6

BROOKTHERM REFRIGERATION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOKTHERM REFRIGERATION LIMITED (CONTINUED)

material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.

Mr Eifion Roberts (Senior statutory auditor)

for and on behalf of

Langtons Professional Services Limited

Chartered Accountants

Statutory Auditors

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ

7 July 2025

Page 7

BROOKTHERM REFRIGERATION LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

	2025	2024
Note	£	£


Turnover	4	22,099,081	17,308,331
Cost of sales		(19,670,615)	(15,322,364)
Gross profit		2,428,466	1,985,967
Administrative expenses		(1,411,017)	(744,434)
Operating profit	5	1,017,449	1,241,533
Interest receivable and similar income	9	80,653	41,537
Interest payable and similar expenses	10	-	(1,094)
Profit before tax		1,098,102	1,281,976
Tax on profit	11	(338,984)	(261,856)
Profit for the financial year		759,118	1,020,120

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 8

BROOKTHERM REFRIGERATION LIMITED

REGISTERED NUMBER: 02422487

BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	13		13,874		14,670
			13,874		14,670
Current assets
Stocks	14	260,392		1,081,543
Debtors	15	4,247,259		2,560,497
Cash at bank and in hand	16	3,778,744		3,676,947
		8,286,395		7,318,987
Creditors: amounts falling due within one year	17	(3,269,463)		(3,060,743)
Net current assets			5,016,932		4,258,244
Total assets less current liabilities			5,030,806		4,272,914
Provisions for liabilities
Deferred tax	19	(374)		(1,600)
			(374)		(1,600)
Net assets			5,030,432		4,271,314

Capital and reserves
Called up share capital	20	100	100
Profit and loss account	21	5,030,332	4,271,214
		5,030,432	4,271,314

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 July 2025.

Valerio Micali

Director

The notes on pages 12 to 24 form part of these financial statements.

Page 9

BROOKTHERM REFRIGERATION LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 April 2024	100	4,271,214	4,271,314

Profit for the year	-	759,118	759,118
At 31 March 2025	100	5,030,332	5,030,432

The notes on pages 12 to 24 form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 April 2023	100	4,262,310	4,262,410

Profit for the year	-	1,020,120	1,020,120
Dividends: Equity capital	-	(1,011,216)	(1,011,216)
At 31 March 2024	100	4,271,214	4,271,314

The notes on pages 12 to 24 form part of these financial statements.

Page 10

BROOKTHERM REFRIGERATION LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MARCH 2025


At 1 April 2024	Cash flows	At 31 March 2025
£	£	£

Cash at bank and in hand	3,676,947	101,797	3,778,744
	3,676,947	101,797	3,778,744

The notes on pages 12 to 24 form part of these financial statements.

Page 11

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Brooktherm Refrigeration Limited is a private limited company, limited by shares, incorporated in England and Wales. The registered office is 3 Kelvin Park, Birkenhead, Wirral, CH41 1LT. The company number is 02422487. These financial statements present the results of the company as an individual entity.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 13

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as below.

Depreciation is provided on the following basis:

				Plant and machinery	-	25% on cost
				Fixtures and fittings	-	33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Page 15

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.14

Financial instruments (continued)

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The directors have made judgements with regards to the depreciation of assets, provisions for bad debts and provisions for obsolete stock.

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BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Industrial and marine refrigeration	22,099,081	17,308,331
	22,099,081	17,308,331

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	20,904,628	16,267,277
Europe	1,180,692	1,001,750
Rest of the world	13,761	39,304
	22,099,081	17,308,331

Other operating lease rentals

57,235

14,500

	Fees payable to the Company's auditors for the audit of the Company's financial statements	16,250	16,250
	Fees payable for non-audit services	3,160	6,650

Page 17

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Wages and salaries	5,010,700	4,012,417
Cost of defined contribution scheme	129,343	97,766
	5,140,043	4,110,183

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Employees	91	79

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	220,000	83,435
	220,000	83,435

9.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	80,653	41,537
		80,653	41,537

10.	Interest payable and similar expenses
		2025	2024
		£	£

	Bank interest payable	-	1,094
		-	1,094

Page 18

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Corporation tax
Current tax on profits for the year	292,526	264,156
Adjustments in respect of previous periods	47,685	-
	340,211	264,156

	Deferred tax
	Origination and reversal of timing differences	(1,227)	(2,300)


		338,984	261,856

Profit on ordinary activities before tax

1,098,102

1,281,976

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	274,526	320,494
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	17,801	14,320
Adjustments to tax charge in respect of prior periods	47,685	-
Non-taxable income	-	(72,571)
Effect of a change in tax rate leading to an increase (decrease) in taxation	(1,028)	(387)
Total tax charge for the year	338,984	261,856

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

12.	Dividends
		2025	2024
		£	£

	Ordinary shares	-	1,011,216
		-	1,011,216

13.	Tangible fixed assets

	Plant and machinery	Fixtures and fittings	Total
	£	£	£
Cost or valuation
At 1 April 2024	10,300	59,069	69,369
Additions	-	4,044	4,044
At 31 March 2025	10,300	63,113	73,413
Depreciation
At 1 April 2024	10,300	44,398	54,698
Charge for the year on owned assets	-	4,841	4,841
At 31 March 2025	10,300	49,239	59,539
Net book value
At 31 March 2025	-	13,874	13,874
At 31 March 2024	-	14,670	14,670

14.	Stocks
		2025	2024
		£	£

Raw materials and consumables	260,392	347,353
Work in progress	-	734,190
	260,392	1,081,543

Page 20

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

15.

Debtors

					2025	2024
					£	£



Trade debtors	3,992,074	2,482,731
Other debtors	219,880	44,579
Prepayments and accrued income	35,305	33,187
	4,247,259	2,560,497

16.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	3,778,744	3,676,947
	3,778,744	3,676,947

17.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Trade creditors	1,089,407	2,296,260
Corporation tax	292,526	264,156
Other taxation and social security	563,653	435,493
Other creditors	260,457	25,364
Accruals and deferred income	1,063,420	39,470
	3,269,463	3,060,743

Page 21

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

18.	Financial instruments
		2025	2024
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	3,778,744	3,676,947
Financial assets that are debt instruments measured at amortised cost	4,211,954	2,527,309
	7,990,698	6,204,256

	Financial liabilities
	Financial liabilities measured at amortised cost	(1,449,882)	(2,361,094)

Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.
Financial assets that are debt instruments measured at amortised cost comprise of trade debtors and other debtors.
Financial liabilities measured at amortised cost comprise of trade creditors and other creditors.

19.	Deferred taxation

		2025
		£

	At beginning of year	(1,600)
	Charged to profit or loss	1,226
	At end of year	(374)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

	Accelerated capital allowances	(374)	(1,600)
		(374)	(1,600)

Page 22

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

20.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

100 (2024 - 100) Ordinary shares of £1.00 each	100	100

21.

Reserves

Profit and loss account

Includes all current and prior period retained profit & losses.

22.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £129,343 (2024: £97,766).
Contributions totalling £24,594 (2024: £16,470) were payable to the fund at the balance sheet date and are included in creditors.

Not later than 1 year	229,500	160,900
Later than 1 year and not later than 5 years	151,295	242,405
	380,795	403,305

Page 23

BROOKTHERM REFRIGERATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

24.	Related party transactions
	Dividends of £nil (2024: £1,011,216) have been paid to Brooktherm Holdings Limited, the intermediate parent company, during the year. Management fees of £252,000 (2024: £65,000) have been paid to Daikin Applied UK Limited, a fellow subsidiary. Rent of £43,500 (2024: £14,500) have been paid to Keating Propco Limited, a company controlled by D C Keating and J C Keating. During the year, the company charged rent of nil (2024: £1,750) and was provided with consultancy services of £66,887 (2024: £100,502) by associated companies. Included within debtors/(creditors) are the following balances:

		2025	2024
		£	£

Daikin Applied UK Limited	(140,939)	(78,259)
Daikin Air Conditioning UK Limited	(9,622)	(10,075)
Daikin Europe NV	-	(559)
Daikin Applied Service	(12,118)	-
Keating Propco Limited	(4,350)	(14,500)
Companies associated due to family relations	(7,973)	(6,850)
	(175,002)	(110,243)

25.	Controlling party

The parent company is Daikin Applied Europe S.p.A., a company registered in Italy.

Page 24