Registration number:
for the
Year Ended 31 December 2025
Farid UK Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Farid UK Limited
Company Information
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Directors |
M Orecchia C Clinch |
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Registered office |
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Bankers |
NatWest Barclays Bank Intesa SanPaolo London Branch |
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Auditors |
Hazlewoods LLP |
Farid UK Limited
Strategic Report for the Year Ended 31 December 2025
The directors present their strategic report for the year ended 31 December 2025.
Principal activity
The principal activity of the group is the manufacture and service of refuse collection equipment. The purpose of the company is to act as a holding company.
Fair review of the business
The results for the year which are set out in the profit and loss account show turnover of £46,847,486 (2024 - £35,806,481) and an operating profit of £4,409,522 (2024 - £2,237,564). At 31 December 2025, the group had net assets of £8,146,018 (2024 - £5,024,227).
Development and performance of the group
Turnover of manufactured components and services increased by £2.5m from £28.7m in 2024 to £31.2m in 2025.
The turnover from third party products (chassis) has increased by £6.1m from £5.8m in 2024 to £11.9m in 2025. This will fluctuate from year to year due to the customer decision on whether to purchase a chassis from the group or independently.
Sales to overseas markets decreased by 41% from £5.4m in 2024 to £3.2m in 2025.
To meet future demand, the directors approved capital expenditure to expand the facility at Taxi Way on 15 April 2026. This will materially increase the capacity of the factory and is expected to come online by the end of 2027. The total investment will be up to £4 million for which adequate funding is available.
Key performance indicators
The group's key performance measurement is gross margin percentage. The group achieved a gross margin percentage of 18.8% in 2025 compared to 16.3% in 2024.
Principal risks and uncertainties
The directors see the main risks and uncertainties that will or may impact on the business now and in the future are the policy announcements of the US Administration on tariffs, trade, the environment and conflicts in Europe and the Middle East which may lead to continuing global economic issues and exchange rate fluctuations.
Global economic issues
The business continued to be impacted by much higher inflation than had been experienced for a number of years. This and the changes being enacted by the UK Government is having an impact on labour costs, utilities and materials prices which in turn are affecting selling prices. We monitor material prices based on our forecast demand to minimise price rise impacts and forward purchase when appropriate. We continue to actively review energy prices and manage our usage.
We continue to experience pressures on recruitment and retention of staff. Whilst this is proactively managed, it remains a risk to the group’s ability to meet it’s production requirements. We mitigate some of this risk by outsourcing some fabrication.
Farid UK Limited
Strategic Report for the Year Ended 31 December 2025 (continued)
Price risk
In addition to the global economic issues mentioned above, the group operates in a competitive market which is a continuing risk and could result in the loss of sales to key customers. The group seeks to reduce this risk by building strong relationships with customers and offering tailor made options to vehicles at customer request.
In addition to the risks mentioned above, the group is always susceptible to fluctuations in steel prices which are dependent on global demand. Management seeks to reduce the impact of commodity price risk by negotiating fixed prices in supplier contracts over a fixed term where possible or making stock when the purchase price is lower.
Credit risk
The group's core debtors are local authorities, UK Corporates and long lasting relationships with the country dealer in some major EU countries. Due to the size and stability of the debtors, management do not believe that credit risk to the group is significant. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Liquidity risk
The group aims to mitigate liquidity risk by managing cash generation from its operations, applying cash collection targets and by the use of bank facilities and loans.
Appropriate trade terms are negotiated with suppliers and customers. Management review these terms and the relationships with suppliers and customers on a regular basis and manage any exposure on normal trade terms.
Interest rate risk
The group had no long term bank debt at 31 December 2025. The exposure with banks at the end of the year was £Nil (2024: £2,340,387) and comes from the utilisation of the overdraft facility at a fixed rate and short term bank borrowings.
The group monitors cash flow on an ongoing basis to ensure that interest costs on the utilisation of an arranged bank overdraft are kept to a minimum level.
Environmental, Social and Governance report
The group is committed to having a responsible approach to both the environment and people.
As part of the Zoeller Group, the group is part of that group’s initiative to prepare an Environmental, Social and Governance (ESG) report which will be available from 2026 reporting information starting in 2024/25.
As a result, the group is currently adopting a series of policies covering a sustainability code of conduct, supplier code of conduct and whistleblowing procedures as well as supporting that group’s targets for achieving Net Zero carbon emissions with an interim milestone of achieving a reduction of 40% by 2031 and the goal of Net Zero by 2045.
Approved by the
Director
Farid UK Limited
Directors' Report for the Year Ended 31 December 2025
The directors present their report and the for the year ended 31 December 2025.
Directors of the company
The directors who held office during the year were as follows:
Information included in the Strategic Report
The group's business activities, together with the factors likely to affect its future development and position are included in the Strategic Report on pages 2 to 3. The group's financial risk management policies for managing price, credit, liquidity and interest rate risk are set out in the Strategic Report.
Going concern
After reviewing the group's forecast and projections, the directors have reasonable expectation that the group has adequate resources available to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Farid UK Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Farid UK Limited
Independent Auditor's Report to the Members of Farid UK Limited
Opinion
We have audited the financial statements of Farid UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other matter
The consolidated financial statements for the year ended 31 December 2024 were unaudited.
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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Farid UK Limited
Independent Auditor's Report to the Members of Farid UK Limited (continued)
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
We considered the nature of the group’s industry and its control environment and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; and |
Farid UK Limited
Independent Auditor's Report to the Members of Farid UK Limited (continued)
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• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent parent company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent 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
Staverton Court
Staverton
GL51 0UX
Farid UK Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2025
|
Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
- |
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Profit attributable to: |
|||
|
Owners of the company |
|
|
The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
Farid UK Limited
(Registration number: 02673962)
Consolidated Balance Sheet as at 31 December 2025
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Note |
2025 |
2024 |
|
|
Fixed assets |
|||
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Intangible assets |
- |
|
|
|
Tangible assets |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
1,996,453 |
1,996,453 |
|
|
Profit and loss account |
6,149,565 |
3,027,774 |
|
|
Shareholders' funds |
8,146,018 |
5,024,227 |
Approved and authorised by the
Director
Farid UK Limited
(Registration number: 02673962)
Balance Sheet as at 31 December 2025
|
Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Investments |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
1,996,453 |
1,996,453 |
|
|
Profit and loss account |
396,397 |
396,397 |
|
|
Shareholders' funds |
2,392,850 |
2,392,850 |
The company made a profit after tax for the financial year of £Nil (2024 - profit of £Nil).
Approved and authorised by the
Director
Farid UK Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2025
Equity attributable to the parent company
|
Share capital |
Profit and loss account |
Total |
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|
At 1 January 2025 |
|
|
|
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Profit for the year |
- |
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At 31 December 2025 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 January 2024 |
|
|
|
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Profit for the year |
- |
|
|
|
At 31 December 2024 |
1,996,453 |
3,027,774 |
5,024,227 |
Farid UK Limited
Statement of Changes in Equity for the Year Ended 31 December 2025
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 January 2025 |
|
|
|
|
At 31 December 2025 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 January 2024 |
|
|
|
|
At 31 December 2024 |
1,996,453 |
396,397 |
2,392,850 |
Farid UK Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
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Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
|
|
|
|
Finance income |
- |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
Foreign exchange gains/losses |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Increase in stocks |
( |
( |
|
|
Decrease in trade debtors |
|
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Increase/(decrease) in provisions |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
- |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Acquisition of intangible assets |
- |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
- |
( |
|
|
Payments to finance lease creditors |
- |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
( |
( |
|
|
Cash and cash equivalents at 31 December |
3,330,001 |
(1,657,738) |
|
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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General information |
The company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
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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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the group operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
Farid UK Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of disclosure exemptions available to it in respect of its separate financial statements. Exemptions have been taken in relation to financial instruments and presentation of a company statement of cash flows.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2025.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
2 |
Accounting policies (continued) |
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The critical accounting judgements and key sources of estimation uncertainty that have had the most significant effect on amounts recognised in the financial statements are set out below.
Stock provision:
Management have assessed stock lines and have estimated the value of stock that requires provision in order to reflect the true value of stock within the financial statements. The carrying amount is £808,963 (2024 - £895,888).
Warranty provision:
Management have assessed warranty costs and have estimated the value of a warranty provision in order to reflect future expected costs. The carrying amount is £545,483 (2024 - £191,820).
Going concern
After reviewing the group's forecast and projections, the directors have reasonable expectation that the group has adequate resources available to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.
Revenue recognition
Sale of goods
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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when the goods are dispatched to the contracted point of delivery.
Rendering of services
Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. When the outcome of a transaction for the rendering of services can be estimated reliably in terms of revenue, costs and its stage of completion, the group recognises revenue on the sales of services in the reporting period in which the services are rendered by reference to the stage of completion of the specific transaction at the end of the reporting period. The stage of completion is determined on the basis of the actual completion of a proportion of the total services to be rendered. When the outcome of a service contract cannot be estimated reliably the group only recognises revenue to the extent of the recoverable expenses recognised.
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
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2 |
Accounting policies (continued) |
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current 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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold buildings |
Straight line over 50 years |
|
Building improvements |
Straight line over 3 to 10 years |
|
Plant and machinery |
Straight line over 5 to 10 years |
|
Computer equipment |
Straight line over 3 to 5 years |
|
Fixtures, fittings & equipment |
Straight line over 3 years |
Intangible assets
Licences acquired are recognised and carried at historical cost in the balance sheet. Licences are not amortized.
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
2 |
Accounting policies (continued) |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Trade debtors
Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Finished goods are valued at cost of labour and materials plus an addition for factory overheads, or at estimated selling prices less cost to complete and sell, if lower.
Raw materials are valued at the lower of cost and estimated selling price less cost to complete and sell.
Cost is determined on the first in, first out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition. The cost of manufactured finished goods and work in progress includes design costs, raw materials, direct labour and other direct costs and related production overheads (based on normal operating capacity).
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Provisions
The group has a provision in respect of the estimated warranty costs which will be incurred over the standard warranty period. Where extended warranty cover has been purchased by customers the revenue is deferred and recognised over the extended warranty period.
The standard warranty provision is calculated using estimated cost rates that are based on historical trends and by applying judgement that this rate will prevail for the current year. The rate is applied to all vehicle sales using appropriate rates.
The specific warranty is calculated using estimated costs for known issues when they become known and are able to be estimated. The costs are then posted to the provision and over/under provisions are released once the actual costs crystallise.
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.
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
2 |
Accounting policies (continued) |
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
|
|
The analysis of the group's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Operating profit |
Arrived at after charging
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Foreign exchange losses |
|
|
|
Operating lease expense |
|
|
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Other interest receivable |
- |
7,587 |
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
- |
|
|
|
|
|
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
7 |
Staff costs (continued) |
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
Company
The company incurred no staff costs and had no employees.
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of these financial statements |
2,000 |
2,000 |
|
Audit of the financial statements of subsidiaries |
32,000 |
35,000 |
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
|
|
1,209,580 |
599,813 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Tax expense in the consolidated profit and loss account |
|
|
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
10 |
Taxation (continued) |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of revenues exempt from taxation |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Corporation tax adjustment arising from a prior period |
|
|
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2025 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
|
2024 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
Company
The company has no deferred tax asset or liability.
|
Intangible assets |
Group
|
Licenses |
|
|
Cost or valuation |
|
|
At 1 January 2025 |
|
|
Disposals |
( |
|
At 31 December 2025 |
- |
|
Carrying amount |
|
|
At 31 December 2025 |
- |
|
At 31 December 2024 |
|
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
Tangible assets |
Group
|
Freehold land and buildings |
Plant and machinery |
Computer equipment |
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2025 |
|
|
|
|
|
|
Additions |
- |
|
- |
- |
|
|
At 31 December 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2025 |
|
|
|
|
|
|
Charge for the year |
|
|
- |
- |
|
|
At 31 December 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2025 |
|
|
- |
- |
|
|
At 31 December 2024 |
|
|
- |
- |
|
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
Investments |
Company
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2025 and at 31 December 2025 |
|
|
Carrying amount |
|
|
At 31 December 2025 |
|
|
At 31 December 2024 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
Taxi Way, Hillend Industrial Estate, Dunfermline, Fife, KY11 9ES, Scotland |
|
|
|
|
Stocks |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Raw materials and consumables |
|
|
- |
- |
|
Work in progress |
|
|
- |
- |
|
Finished goods and goods for resale |
- |
|
- |
- |
|
Demo vehicles |
|
|
- |
- |
|
|
|
- |
- |
|
A provision for slow-moving and obsolete stock of £808,963 (2024 - £895,888) is included against raw materials and demo vehicles.
|
Debtors |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by group undertakings |
|
|
- |
- |
|
Other debtors |
- |
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
|
|
- |
- |
|
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Cash at bank |
|
|
- |
- |
|
Bank overdrafts |
- |
( |
- |
- |
|
Cash and cash equivalents in statement of cash flows |
3,330,001 |
(1,657,738) |
- |
- |
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
- |
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to group undertakings |
|
|
- |
- |
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Other payables |
|
- |
- |
- |
|
|
Accruals |
|
|
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
Corporation tax liability |
393,450 |
167,186 |
- |
- |
|
|
|
|
- |
- |
||
|
Loans and borrowings |
Current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank overdrafts |
- |
|
- |
- |
|
Provisions for liabilities |
Group
|
Warranty provision |
Deferred tax |
Total |
|
|
At 1 January 2025 |
|
|
|
|
Increase (decrease) in existing provisions |
|
( |
|
|
At 31 December 2025 |
|
|
|
|
|
|||
The warranty provision reflects the group's expected cost for legal warranty.
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
200,000 |
|
200,000 |
|
|
|
1,796,453 |
|
1,796,453 |
|
|
|
|
|
|
The redeemable preference shares are redeemable at par at the option of the company. The company in addition is able to convert the redeemable preference shares into ordinary shares ranking pari passu with the existing ordinary shares in the company. The redeemable preference shares are paid in priority to the ordinary shares on a winding up, contain no voting rights and dividends are at the discretion of the company.
|
Reserves |
Group and Company
Called up share capital
Represents the issued equity share capital of the company.
Profit and loss account
Represents cumulative profits or losses, net of dividends paid and other adjustments.
|
Obligations under leases |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Contingent liabilities |
Group
The group has granted a guarantee to the Commissioners of Customs & Excise for £250,000 (2024: £250,000). This guarantee is for duty deferment in favour of Barclays Bank PLC for import of goods.
Farid UK Limited
Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)
|
Analysis of changes in net debt |
Group
|
At 1 January 2025 |
Cash flows |
At 31 December 2025 |
|
|
Cash and cash equivalents |
|||
|
Cash at bank |
682,649 |
2,647,352 |
3,330,001 |
|
Bank overdrafts |
(2,340,387) |
2,340,387 |
- |
|
(1,657,738) |
4,987,739 |
3,330,001 |
|
|
|
|||
|
Related party transactions |
The group has taken advantage of the exemption available under FRS 102 section 33.1A from disclosure of transactions with entities that are wholly owned within the same group.
Summary of transactions with group undertakings
During the year, the group made purchases of £9,991,494 (2024 - £6,405,581) from group companies. At the balance sheet date, the amount owed to group companies not wholly owned, was £4,176,117 (2024 - £2,156,312).
|
Financial instruments |
Group
Items of income, expense, gains or losses
|
2025 |
Income |
Expense |
Net gains |
Net losses |
|
Financial liabilities measured at amortised cost |
- |
130,442 |
- |
- |
|
2024 |
Income |
Expense |
Net gains |
Net losses |
|
Financial liabilities measured at amortised cost |
- |
168,279 |
- |
- |
|
Parent and ultimate parent undertaking |
The immediate parent undertaking is FEG Brivio Spa, a company incorporated in Italy.
The ultimate parent undertaking and the largest group to consolidate these financial statements is Kirchhoff Ecotec GmbH, incorporated in Germany.