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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
COMPANY INFORMATION
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HUBER+SUHNER POLATIS LIMITED
CONTENTS
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HUBER+SUHNER POLATIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company’s principal activities continue to be that of design, development, manufacture and sale of All Optic Optical Fibre switches related to the principal markets of Government and Defence, Test and Measurement and Data Centre/Telecommunications.
In a very challenging market environment, HUBER+SUHNER Polatis saw positive development with higher order intake and net sales in the 2024 financial year. At £33.6m, order intake in 2024 was 52.0 % above prior year level (£22.1m) and 48.7% above net sales, resulting in a book-to-bill rate of 1.48. The second half of the year was particularly strong and followed a lower than expected first half performance. The positive results in 2024 were mainly due to the momentum driven by publication of a number of industry papers highlighting the significant savings of moving away from traditional network models and considering the role that Optical Circuit Switching (“OCS”) has to play in meeting the demands of customers. HUBER+SUHNER Polatis achieved solid growth in net sales in 2024, with the H2 in particular benefitting from the strong order intake at the beginning of the year. Net sales totalled £22.7m, representing an increase of 30.5% compared to 2023 (£17.3m). Assisted by the continued increase in OCS, net sales in Americas region increased by 64.6%. In the APAC market, net sales grew by 5.5% whilst Europe saw a decline of 14.5%. Third Party sales increased by 5% to £2.1m in 2024 (2023: £2.0m) and inter-group sales increased by 34% to £20.6m in 2024 (2023: £15.4m). In keeping with previous years, the Company sells in multi-currency and manages the currency impact of these sales using a natural hedging policy, buying in the same currency wherever possible to mitigate some local currency risk. Where exposure can’t be naturally hedged, we assess the balance sheet and hedge the net exposure in foreign currency and cover with forward contracts. The Company continues to invest in production capacity improvements and reducing costs of production (DFX) as it works towards the agreed strategic objectives. We continue to focus on our engineering roadmap to ensure our products meet the challenges of the future in the optical fibre space and to maintain our market leading position. We continue to invest into Research and Development activities, seeking to introduce new innovative products and solutions to improve core technologies, to assist customer acquisition and enable growth in key markets. The Company invested £6.0m in Research and Development activities in 2024, which represents a 18.9% reduction on 2023 (£7.4m). Investment in core Polatis OCS activities increased by £1.5m whilst the overall reduction reflects the decision in 2023 to pause investment in the Roadmap Systems Project (2023: £2.9m). Despite the challenging market environment, gross margin performance improved further in 2024 to 40.9% (2023: 40.0%). Greater focus on manufacturing variances saw a reduction in inefficiencies by almost £1.5m, improvements came from tighter material controls, balanced direct production workforce and reasonable standard costing. Since the Company’s acquisition in June 2016 our parent, HUBER+SUHNER AG, continues to provide investment and resource to help grow our business both in terms of order generation and volume manufacture of our world leading optical fibre switches, borne out by our results for the year.
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HUBER+SUHNER POLATIS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
OUTLOOK The rapid expansion of hyperscale data center infrastructure, driven by cloud computing and AI, has fueled the demand for OCS solutions. AI workloads, hosted on clusters of thousands of GPUs interconnected by optical fibers, require the ability to reconfigure optical-layer connectivity on demand. POLATIS OCS solutions enable this with minimal latency, crucial for AI hyperscale operations. As we head look towards 2025, we look forward to completing the construction of the new facility in Pisary. The new Pisary site, spanning approximately 3'000 m², will complement the existing Krzeszowice facility, which is currently operating at full capacity. The site will enhance the supply of OCS solutions while reflecting our mission for sustainable operations. The site includes a photovoltaic installation with a capacity of 150 kilowatt peak (kWp), mechanical ventilation with heat recovery, and a biological waste treatment plant. A new building management system will also be implemented to support a low carbon footprint. The Pisary facility is considered a key strategic move to harness the expanding opportunities within the AI data center market. As the demand for OCS solutions surges, this advanced manufacturing site will empower HUBER+SUHNER to accelerate the production of POLATIS OCS, ensuring that hyperscale operators have access to the latest technology to boost performance and energy efficiency in data center architectures and AI compute clusters. The Company continues to invest in production capacity improvements and reducing costs of production (DFX) as it works towards the agreed strategic objectives. We continue to focus on our engineering roadmap to ensure our products meet the challenges of the future in the optical fibre space and to maintain our market leading position. As we move towards a so-called smart factory, focus moves towards digitisation, robotisation and automation of, amongst other things, previously manual processes – it is anticipated that the use of robotisation will improve manufacturing efficiency, effectiveness and cost. Further, it is anticipated that introduction of robotisation and the new plant will also improve the safety and ergonomics of the work environment. The Company continues to leverage the strength of the HUBER+SUHNER group world-wide sales and operational presence which will ultimately allow us to engage, sell into and support many more customers and markets around the world by offering a more immediate and timely resource.
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HUBER+SUHNER POLATIS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal risks and uncertainties for the Company are explained below:
Personnel risks We operate in a high-tech environment where we need to recruit and employ high calibre staff for both manufacture and R&D. The Company ensures low staff turnover by offering industry competitive staff benefits at both the Cambridge UK site and the manufacturing site in Poland, a branch of Huber+Suhner Polatis Limited. Health and safety risks The health and safety of our employees is our number one priority, and we recognise that our place of work presents some risks which we endeavor to minimise. We have mitigated these risks by performing risk assessments on key risk areas and reducing risks to the lowest practicable level, consulting with our staff and providing regular health and safety updates to all employees. We utilise external health and safety advisors and hold regular health and safety review meetings (Managing Director, Operations & Quality Manager, HR and Health and Safety Coordinator). This team reviews outstanding issues and the plans for their completion and sets new tasks to reduce health and safety risks further. We maintain a health and safety manual which is available to all. Competition risks In our main revenue generating market the Company experiences competitors who offer a slightly different solution to that of HUBER+SUHNER Polatis. Our products are differentiated from other products by the integral technology, which offers the customer certain advantages including lower loss optical transmission and lower cost of ownership. We continue to develop our product and to monitor our competition to ensure we maintain our competitive advantage. Research and development We continue to invest in our future with a focused programme of research and development which both supports and extends the Company’s business. Research and development expenditure amounted to £6.0m (2023: £7.4m). All this expenditure has been expensed through the profit and loss account as incurred.
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HUBER+SUHNER POLATIS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In the ordinary course of business, the company is exposed to a variety of risks arising from the Company's financial instruments are currency risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. In addition, the company utilises the experience of the centralised treasury function who look to optimise the group position.
Currency risk The Company is exposed to transaction foreign exchange risk. Transaction exposures, including those associated with forecast transactions are hedged, when possible, principally by the matching of liabilities to assets of the same currency with the central treasury function giving guidance on currency cash balances. In addition, the Company utilises forward currency contracts to give certainty over foreign denominated receivables. Credit risk The Company's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from its trade debtors. Risks associated with cash are limited as the Company uses reputable banks. Interest rate risk The Company has a long-term loan with its sister company HUBER+SUHNER (UK) Limited of £7.6m. Interest rates payable are set by our parent company at commercial rates. The Company does not believe its interest rate risk is high given that we have the full financial support of the Parent. The Company has no other loans. Liquidity risk The objective of the group in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The group expects to meet its financial obligations through operating cash flows and the financial support of HUBER+SUHNER AG.
Key Performance Indicators are in place covering several areas from efficiency and productivity to sales, orders, margins and profit. KPI’s are a fundamental part of the corporations’ Global Management System (GMS).
2024 2023 Turnover £22.7m £17.3m Gross Profit Margin 40.9% 40.0% Staff Turnover 9% 23%
This report was approved by the board and signed on its behalf.
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HUBER+SUHNER POLATIS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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.
The directors who served during the year were:
The loss for the year, after taxation, amounted to £799,636 (2023 - loss £5,841,280).
No dividends have been paid during the year (2023 - £Nil).
After the year ended 31 December 2024, the Company purchased additional shares in
HUBER+SUHNER Polatis Sp. Z.O.O., a subsidiary undertaking of the Company. The total consideration paid in respect of the additional shares purchased was £6,735,135.
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HUBER+SUHNER POLATIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company is committed to protecting the environment and to contributing to keeping global warming below 1.5 degrees.
The Company has a prototyping and warehouse facility in Cambridge, UK primarily to support R&D activities along with a production and warehouse facility in Krzeszowice, Poland. The facility in Krzeszowice is a branch of the UK Legal Entity and the primary function is to produce assemblies. The workspace process and practice are designed to minimise waste as much as possible and ensure all generated waste is disposed of in the appropriate way. Investment in the facility in Cambridge, UK has been identified and is planned in the coming year
Scope and Methodology
The GHG calculation complies with the WRI/WBCSD Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (re-vised edition). The GHG Protocol categorizes direct and indirect emissions into three scopes: Scope 1, Scope 2 and Scope 3. Scope 1 emissions come from emission sources within the company, such as its heating systems or vehicles. Scope 2 emissions result from the generation of energy that is sourced from outside the company. These are mainly electricity and heat from energy services. Scope 3 emissions are emissions caused by the company’s activities but not under its control. The following GHG emission sources (including extraction, production and transport to the HUBER+SUHNER sites) were accounted for; purchased goods and services: raw, auxiliary, operating and packaging materials, commercial goods (as far as reliable data were available), water; fuel-and-energy-related activities (not included in scope 1 and 2) like heating and transport fuels, and electricity production; waste generated in operations: waste, wastewater; business traffic; downstream transport and distribution: transports between the sites and transports of finished products to customers; commuting traffic. The Company tracks reports on all measured emissions where possible.
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HUBER+SUHNER POLATIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The period of the report is from 01 December 2023 to 30 November 2024.
Gas and Electricity
The Company consumed 42 MWh of natural gas in the Poland plant (2023: 54 MWh) whilst the UK plant does not use gas. The Company used 483 MWh of purchased electricity in the Poland plant (2023: 354 MWh) and 246 MWh of electricity in the UK plant (2023: 291 MWh). The period of the report is from 01 January 2024 to 31 December 2024. Waste In 2023, the Company had 97 kg of Electrical and Electronic Equipment (WEEE) in UK and 1,524 kg in Poland. There was disposal of municipal waste, metal, paper, cardboards and plastics equivalent to 8,116 kg (PL: 7,876kg, UK: 240 kg). The period of the report is from 01 January 2024 to 31 December 2024.
The Company’s business activity, together with the factors likely to affect its future development and position are set out on pages 1 to 4 of the Strategic Report.
The directors have considered the working capital needs of the business for the twelve month period from approval of these financial statement. Those projections incorporate the best estimates of the timing and value of sales revenue, the associated costs of sales and overheads. The Company has been managing supply chain challenges and the opportunity funnel remains healthy. Further what-if scenarios give Management comfort that there are enough mitigating actions to ensure the business remains liquid and continues as a going concern including early receipt of intercompany receivables, delayed payment of intercompany payables, adjustment of the loan repayment profile, parent company loan support and delayed Capex investments. The Company's parent undertaking Huber+Suhner AG has confirmed that it will provide such financial support and other support as necessary to enable the company to meet its liabilities for at least 12 months from the signing of these financial statements. The directors have a reasonable expectation that Huber+Suhner AG has adequate resources and liquidity to continue in operational existence for the foreseeable future. Accordingly, the directors consider it appropriate to adopt the going concern basis in preparing these financial statements.
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HUBER+SUHNER POLATIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to HMA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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HUBER+SUHNER POLATIS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HUBER+SUHNER POLATIS LIMITED
We have audited the financial statements of Huber+Suhner Polatis Limited (the 'Company') for the year ended 31 December 2024, 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).
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.
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.
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HUBER+SUHNER POLATIS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HUBER+SUHNER POLATIS LIMITED (CONTINUED)
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.
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.
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.
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HUBER+SUHNER POLATIS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HUBER+SUHNER POLATIS LIMITED (CONTINUED)
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:
• Enquiry of management and those charged with governance around actual and potential litigation and claims; • Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluation of the business rationale of significant transactions outside of the normal course of business and reviewing estimates for bias; • Reviewing minutes of meetings of those charged with governance and • Reviewing financial statement disclosures and testing to support the documentation to access compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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HUBER+SUHNER POLATIS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HUBER+SUHNER POLATIS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
For and on behalf of MHA, Statutory Auditor
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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HUBER+SUHNER POLATIS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
REGISTERED NUMBER: 04021002
BALANCE SHEET
AS AT 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
REGISTERED NUMBER: 04021002
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 17 to 39 form part of these financial statements.
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HUBER+SUHNER POLATIS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Huber+Suhner Polatis Limited ("the Company") is a private company limited by shares, incorporated in England and Wales under the Companies Act.
The registered number and address of the registered office are given in the Company information. The nature of the Company's operations and its principal activities are set out in the Strategic Report on page 1. The functional and presentational currency of the Company is pounds sterling (£) and rounded to the nearest whole pound.
2.Accounting policies
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).
Where required, equivalent disclosues are given in the group financial statements of Huber+Suhner AG. The group financial statements of Huber+Suhner AG are available to the public and can be obtained as set out in Note 25.
The following principal accounting policies have been applied:
The Company has taken advantage of the following 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":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
This information is included in the consolidated financial statements of Huber + Suhner AG as at 31 December 2024 and these financial statements may be obtained from the Groups's website.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
The Company’s business activity, together with the factors likely to affect its future development and position are set out on pages 1 and 2 of the Strategic Report.
The directors have considered the working capital needs of the business for the twelve month period from approval of these financial statement. Those projections incorporate the best estimates of the timing and value of sales revenue, the associated costs of sales and overheads, The Company has been managing supply chain challenges and the opportunity funnel remains healthy. Further what-if scenarios give Management comfort that there are enough mitigating actions to ensure the business remains liquid and continues as a going concern including early receipt of intercompany receivables, delayed payment of intercompany payables, adjustment of the loan repayment profile, parent company loan support and delayed Capex investments. The Company's parent undertaking Huber+Suhner AG has confirmed that it will provide such financial support and other support as necessary to enable the company to meet its liabilities for at least 12 months from the signing of these financial statements. The directors have a reasonable expectation that Huber+Suhner AG has adequate resources and liquidity to continue in operational existence for the foreseeable future. Accordingly, the directors consider it appropriate to adopt the going concern basis in preparing these financial statements.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Patents are amortised on a straight line basis of their estimated useful life of 5 years.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
Assets under construction are not depreciated until they are brought into use.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Basic financial liabilities
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.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Warranty provision A provision is made for possible future warranty costs. This is based on historical warranty expenses as a percentage of sales, applied to the forecast sales for the coming period and specific provisions against known issues. Depreciation rates The Company depreciates its assets over their estimated useful lives. the estimation of the useful lives of assets is based on historic performance as well as expectations about future use. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Stock provision A provision is made where necessary to reduce the value of stocks to their net realisable value, taking into account obsolete, slow-moving or defective items.
Analysis of turnover by country of destination:
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
On 17 April 2024, the Company issued 10,000,000 Ordinary shares at a nominal value of £0.20 each.
On 29 May 2024, the Company further issued 5,000,000 Ordinary shares at a nominal value of £0.20 each. On 2 July 2024, the Company further issued 5,000,000 Ordinary shares at a nominal value of £0.20 each. Total consideration received in respect of the shares issued was £4,000,000.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share premium account
Profit and loss account
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 £509,000 (2023: £524,000) . Contributions totaling £74,000 (2023: £136,000) were payable to the fund at the balance sheet date and are included in creditors.
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HUBER+SUHNER POLATIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Huber+Suhner AG, incorporated in Switzerland, owns 100% of the share capital and is the immediate parent and the ultimate controlling party of Huber+Suhner Polatis Limited. Huber+Suhner AG is parent of the smallest and largest group which draws up consolidated group accounts; available on the group's website.
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