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Registered number: 01827228 (England & Wales)
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STRATEGIC AND DIRECTORS' REPORTS AND AUDITED FINANCIAL STATEMENTS
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FOR THE YEAR ENDED
31 DECEMBER 2024
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CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income (including the Profit and Loss Account)
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Statement of Changes in Equity
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Notes to the Financial Statements
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COMPANY INFORMATION
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M. Hofsteenge
M. A. Ruizeveld
M. J. Thomas
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- 1 -
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of the company continued to be the assembly and supply of all-plastic conveyor belts and parts.
Intralox Limited acts as a global dedicated assembly centre, facilitating the shortest lead times and supplying the global group.
The key KPI's for the company are costs per square metre assembled, overall efficiency and delivery service level which are reviewed globally on a monthly basis. The directors consider that disclosing the actual cost per square metre is commercially sensitive. However, the cost per square metre has increased by 13.0% in comparison to 2023, due to the increase in material and labour costs. The efficiency of production is demonstrated in the warehouse accuracy of 98.0% (2023 – 98.1%). Delivery service achieved overall on time delivery of 99.9% (2023 - 99.8%) and customer quality conformance of 99.6% (2023 - 99.6%).
Turnover for the year increased to £52.1m (2023 - £49.9m), £0.9m of this increase was from sales to trade customers in the UK and £1.3m from sales to the global group. The increase in sales to UK trade customers was a result of cyclical trends in orders from customers in certain industries. The gross profit has decreased to £11.2m (2023 - £12.1m). As the company makes bespoke products the complexity and manpower required can fluctuate and have an impact on the cost of production year on year. Although inflation has not increased at the same rate as the previous year, we still experienced increases in cost of sales due to higher material prices and higher labour costs. The directors are satisfied with the gross profit percentage change from last year, as although it has fallen, it is still within their expected range. Profit for the year after taxation amounted to £4.9m (2023 - £5.1m).
The company had net assets of £22.1m (2023 - £30.4m) including stock of £18.0m (2023 - £16.7m). The company paid a dividend of £13.1m (2023 - £nil).
Principal risks and uncertainties
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Intralox Limited continues to play a critical role in supporting the global group while maintaining its commitment to delivering value to customers, fostering business resilience, and supporting employees. We remain vigilant in monitoring geopolitical developments and will adapt our operations as needed to safeguard the interests of all stakeholders.
The company has treasury and liquidity management procedures in place appropriate to the size and complexity of the business.
Management is of the opinion that the company is not exposed to significant financial instrument, price, credit, liquidity or cash flow risk due to the transactions with and support from other group companies.
Future developments
Despite the ongoing challenges posed by global economic uncertainties and persistent inflationary pressures in the European Union and the UK, Intralox Limited's operations have remained resilient throughout 2024. Inflationary trends have been shaped by a combination of factors, including energy market volatility exacerbated by the war in Ukraine, lingering supply chain disruptions, and evolving consumer demand patterns.
In response to both current needs and anticipated growth, we continue to be invested in our operations in the UK. This strategic investment underscores our commitment to enhancing operational capacity and positioning ourselves for long-term growth. By proactively addressing these challenges, we aim to strengthen our ability to serve customers effectively and support sustainable business development amidst a dynamic economic environment.
- 2 -
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Directors' statement of compliance with duty to promote the success of the company
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As directors of Intralox Limited, we acknowledge our duty under Section 172 of the Companies Act 2006 to promote the success of the company for the benefit of its stakeholders. Our business philosophy addresses and fulfils our duties to our stakeholders:
∙Shareholders: we prioritise the long-term interests of our shareholders, aiming for sustainable growth driven by innovating and providing value for our customers.
∙Employees: we create an environment where self-managed employees thrive and reach their personal and professional potential while engaged in fulfilling, safe and satisfying work. Intralox Limited proactively manages leading and lagging employee safety indicators and reports on progress to its Board of Managers twice per year.
∙Customers: we provide our customers the most competitive prices while generating the profits needed to continuously improve our products and services.
∙Suppliers: we maintain ethical relationships with suppliers, assessing their financial stability and sustainability. Intralox Limited’s Supplier Code of Conduct reinforces our own practices, prohibiting forced, abusive, or child labour. As directors we understand that as Intralox Limited continues to be classed as a “large” UK company so there is now e a prominent statement on our website concerning the Modern Slavery Act 2015.
∙Environment: while our operations in the UK are limited to light assembly, primarily using components produced in the US and shipped via ocean, we recognise the importance of minimising our environmental impact. Initiatives include reducing waste, conserving resources, and promoting sustainability. Intralox Limited’s commitment to responsible environmental management strengthens our resolve.
∙Community: we actively engage with local communities, supporting social initiatives and contributing positively. Intralox Limited’s compliance with applicable laws and regulations aligns with our community relations goals.
∙Corporate governance: transparency, accountability, and ethical behaviour guide our governance practices. Intralox Limited’s commitment to maintaining a responsible supply chain reinforces our own principles.
This statement reflects our commitment to balancing stakeholder interests and promoting the long-term success of the Company.
This report was approved by the board and signed on its behalf by:
- 3 -
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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 who served during the year were:
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J. P. W. Neuhof
E. F. Blanks
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E. F. Blanks resigned as a director on 1 January 2026.
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Directors' Responsibilities Statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙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 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.
During the year the company paid dividends of £13.1m (2023 - £nil). The directors do not propose payment of a final dividend (2023 - £nil).
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Greenhouse gas emissions, energy consumption and energy efficiency action
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The company has gathered data regarding scope one and scope two carbon emissions (as defined by the GHG Protocol) for the year ended 31 December 2024 from its UK operations for inclusion in Company Reporting as defined by the requirements of the Streamlined Energy and Carbon Reporting (SECR) legislation.
A summary of the greenhouse gas emissions and energy consumption (GHG Methodology) for the year ended 31 December 2024 is presented below:
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Total consumption and emissions
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Tonnes of CO2e per £100,000 of revenue
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A summary of the greenhouse gas emissions and energy consumption (GHG Methodology) for the year ended 31 December 2023 is presented below:
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Total consumption and emissions
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Tonnes of CO2e per £100,000 of revenue
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*calculated from the UK Government annual conversion factors for greenhouse gas (GHG) reporting.
The 2023 tCO2e* figures are retstated from last year as an error was made in the conversion. The amount of Tonnes of CO2e per £100,000 of revenue was previously reported as 0.42675.
The company and the board recognise the importance of our environmental responsibilities and aim to reduce the company's carbon intensity ratio when it is practical. The company's environmental footprint is minimal as described below:
∙Carbon emissions: given our specific context of light assembly and component sourcing, we remain committed to minimising our carbon emissions impact. Intralox Limited's focus on responsibly managing the environmental impact of operations inspires our own efforts.
∙Water usage: we do not use water for manufacturing processes in our operations. Water use in our facility is limited to potable water and water used for toilet facilities.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Greenhouse gas emissions, energy consumption and energy efficiency action (continued)
∙Waste reduction: we have active initiatives to minimise waste in our operations. All plastic waste is either safely disposed to a waste handler/recycler or shipped to our facility to be reground and used in our products in a closed loop cycle.
Matters covered in the Strategic Report
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Financial instruments, price risk, credit risk, liquidity risk, cash flow risk and post balance sheet events are considered in the Strategic Report on page 2, under principal risk and uncertainties and future developments. The company's relationship with suppliers, customers, and others is detailed in the Section 172 statement of the Strategic Report on page 3.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTRALOX LIMITED
We have audited the financial statements of Intralox Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income (including the Profit and Loss Account), the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and the related Notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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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.
The other information comprises the information included in the Strategic and Directors' Reports. The directors are responsible for the other information contained within the Strategic and Directors' Reports. 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTRALOX LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
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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.
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.
As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, whether due to fraud or error, and then designed and performed audit procedures responsive to those risks. In particular, we looked at where the directors made subjective judgments such as making assumptions on significant accounting estimates.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTRALOX LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements (continued)
To identify risks of material misstatements due to non-compliance with laws and regulations, we considered areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. Our procedures included:
∙at the planning stage, we gained an understanding of the legal and regulatory framework applicable to the company, the industry in which it operates and considered the risk of failing to comply with these legal and regulatory requirements;
∙we discussed the policies and procedures in place regarding compliance with laws and regulations;
∙we discussed amongst the engagement team the identified laws and regulations, and remained alert to any indications of non-compliance;
∙during the audit, we focused on areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussions with the directors (as required by auditing standards) and from inspection of the company's regulatory reports and other correspondence; and
∙we also considered other laws and regulations that have a direct impact on the preparation of financial statements, such as the Companies Act 2006 and UK tax legislation and we assessed the extent of compliance with those laws and regulations as part of our procedures on the related financial statements.
Auditing standards limit the required audit procedures to identify non-compliance with laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
To identify risks of material misstatements due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our procedures included:
∙inquiries of management whether they have knowledge of any actual, suspected or alleged fraud;
∙gaining an understanding of the internal controls established to mitigate risk related to fraud;
∙using analytical procedures to identify any unusual or unexpected relationships;
∙discussion amongst the engagement team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements; and
∙review of unusual transactions and entry into sensitive nominal ledger accounts.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management. As with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
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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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTRALOX 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 Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Moss (Senior Statutory Auditor)
For and on behalf of Lewis Golden LLP
Chartered Accountants and Statutory Auditors
40 Queen Anne Street
London W1G 9EL
13 August 2026
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STATEMENT OF COMPREHENSIVE INCOME (INCLUDING THE PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Total comprehensive income for the year
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There are no items of other comprehensive income for 2024 or 2023 other than those included in the Statement of Comprehensive Income (including the Profit and Loss Account).
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The notes on pages pages 15 to 25 form part of these financial statements.
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Registered number: 01827228 (England & Wales)
INTRALOX LIMITED
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BALANCE SHEET
AS AT 31 DECEMBER 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages pages 15 to 25 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Comprehensive income for the year
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Comprehensive income for the year
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The notes on pages 15 to 25 form part of these financial statements.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Increase/(decrease) in creditors
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Net cash generated from/(used in) operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash (used in)/generated from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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- 14 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Intralox Limited is a private company limited by share capital, incorporated in England and Wales, registered number 01827228. The address of the registered office is Building 90 Third Avenue, Pensnett Estate, Kingswinford, West Midlands, DY6 7FW.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the 'Financial Reporting Standard applicable in the UK and the Republic of Ireland' ('FRS 102') and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The directors have prepared these financial statements on a going concern basis, as the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements.
The company earns its revenue from the assembly and supply of all-plastic conveyor belts and parts to companies within the Intralox Group. It meets its day to day working capital requirements from its own profits and reserves. The company also has access to an interest earning current account with its intermediate parent company Laitram LLC, which gives the company easy access to funds, if required.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
∙the company has transferred the significant risks and rewards of ownership to the buyer;
∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Rentals paid under operating leases are charged to the Statement of Comprehensive Income (including the Profit and Loss Account) on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in the Statement of Comprehensive Income (including the Profit and Loss Account) using the effective interest method.
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income (including the Profit and Loss Account) when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income (including the Profit and Loss Account).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income (including the Profit and Loss Account).
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets are held under the cost model and are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, 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 Statement of Comprehensive Income (including the Profit and Loss Account).
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income (including the Profit and Loss Account).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price.
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income (including the Profit and Loss Account) in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of expenditure required to settle the obligation, taking into account the related risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans to and from related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income (including the Profit and Loss Account).
Financial assets and liabilities are offset, and the net amount reported in the Balance Sheet when there is an 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.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the tangible fixed assets and note 2.10 for the useful economic lives for each class of assets.
(ii) Stock valuation
An assessment of the value of the company's stock against current market conditions is made to ensure stock is correctly measured at the lower of cost and net realisable value. Stock value is re-assessed annually with reference to actual and forecast usage and sales for each component and, if necessary, a provision is made to reflect the market. Post year end sales give an indication of current market conditions. See note 12 for the carrying value of stock, and note 2.11 for the accounting policy.
Analysis of turnover by country of destination:
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All turnover represents the sale of conveyor belts or parts.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The operating profit is stated after charging / (crediting):
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Foreign exchange differences
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Stock provision (release)/charge
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Fees payable to the company's auditor for the audit of the company's financial statements
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Remuneration of auditors for non-audit work:
- Taxation compliance services
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- Other taxation services
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Staff costs were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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All of the directors of the company are remunerated elsewhere in the group.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest receivable from group companies
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Other interest receivable
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Current tax on profits for the year
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Deferred tax - current year
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
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Profit before tax multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
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Expenses not deductible for tax purposes
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Total tax charge for the year
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- 21 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Raw materials and consumables
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- 22 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Charged to Statement of Comprehensive Income (including the Profit and Loss Account)
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Bonus and pension timing differences
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Timing differences on dilapidation provision
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- 23 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charge to Statement of Comprehensive Income (including the Profit and Loss Account)
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Provisions are made for dilapidation works on leased premises where there is an obligation under the lease to restore the building to enable it to be re-let. The provision will be used on termination of the lease. The current lease contract was extended at the beginning of 2022 for a minimum lease period of five years.
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Allotted, called up and fully paid
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2 (2023 - 2) shares of £1 each
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The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.
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Distributable reserves
The distributable reserves include all current and prior year retained profits at £22,106,051 (2023 - £30,360,276).
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Commitments under operating leases
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At 31 December 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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- 24 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
20.Other financial commitments
The company has a bond in favour of HM Customs & Excise of £150,000 (2023 - £150,000).
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Related party transactions
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The company has taken advantage of the exemptions provided in FRS 102 from disclosing transactions with members of the same group that are wholly owned.
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The company is a wholly owned subsidiary of Intralox LLC, 200 Laitram Lane, Harahan, 70123, Louisiana, United States of America. The ultimate holding company is Laitram Group Inc., incorporated in the United States of America. Both companies are privately owned.
The financial statements of the company are consolidated in the group financial statements of Intralox LLC and Laitram LLC. The consolidated financial statements of these groups are not available to the public.
The ultimate controlling party is the Lapeyre family.
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