REGISTERED NUMBER: 06428547 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2025

for

Stiebel Eltron UK Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

Director:

J B Felgate

Secretary:

M R Corkish

Registered office:

Unit 12 Stadium Court

Stadium Road

Bromborough

Wirral

CH62 3RP

Registered number:

06428547 (England and Wales)

Senior statutory auditor:

Robert Ellis FCA

Auditors:

Ellis & Co (Accountants & Business Advisers) Ltd

Chartered Accountants

and Statutory Auditors

114-120 Northgate Street

Chester

CH1 2HT

The director presents his strategic report for the year ended 31 December 2025.

Founded in 1924 by Dr Theodor Stiebel in Germany, the STIEBEL ELTRON Group has grown into a globally active, leading supplier of heating, ventilation and air conditioning products, specialising in the development and sale of water heaters and renewable energy technologies. With an international sales network comprising foreign subsidiaries and third party partners performing sales and service activities worldwide, the Group supplies its products primarily to installers, wholesalers and online retailers.

STIEBEL ELTRON UK (STE UK) is the British subsidiary of STIEBEL ELTRON International GmbH, based in Bromborough. As a local distribution company, our aim is to strengthen the Group's core business, drive growth in the UK market and build sustainable profitability. Our day to day operations focus on the sale of electric space heating, hot water, ventilation and renewable energy products.

Supported by innovative technologies, high quality and reliability, and a strong commitment to customer service, STIEBEL ELTRON UK differentiates itself within the competitive marketplace in pursuit of market and technological leadership. Despite this, the UK market remains highly competitive.

Review of business

The company continues to provide customers with service levels that exceed industry standards across our "Home Comforts" ranges of electric space heating and hot water products, as well as our "Renewable Energy" ventilation and heat pump technologies. Our customer base includes electrical wholesalers, plumbers' merchants and e commerce retailers for home comfort products and specialist installation companies for renewable energy products. We supply customers throughout the United Kingdom.

2025 has been a year of consolidation. We have focused on enhancing our existing operations, tightening processes, improving efficiency and reducing costs. As a result, turnover has increased and profitability is close to that achieved in the previous year. Operational efficiency in order processing and overall customer service have improved further following the launch of our online B2B shop. We have experienced a growing share of turnover from our renewable energy product lines compared with our traditional home comfort heating products. This is in line with expectations, as government initiatives, financial incentives and legislative changes continue to guide consumers and developers towards renewable energy solutions.

Principal risks and uncertainties

Market uncertainty stemming from delays to building regulations-particularly the Future Homes Standard and the yet to be defined mechanisms for demonstrating compliance-has led to hesitancy among decision makers and extended project timelines.

It is likely the ECO4 scheme - which subsidises the lower end of the market - is going to be extended to December 2026. Whilst we welcome this as a good method of stimulating the heat pump market is does not play into our hands as a premium brand. The risk to the business is that the limited Installer capacity within the UK is fully engaged with ECO4 work.

Strategic objectives

As in 2025, the company aims to expand its customer base further and to train, educate and support additional installer partners as they transition from fossil fuel technologies to heat pump systems. We will place increased emphasis on end consumer marketing and demand generation in the B2C sector, helping our new installer partners win additional business and stimulating pull through demand for our products.

Key Performance Indicators

Progress against the company's strategic objectives is monitored monthly using the following key performance indicators:

2024

2025

Order intake levels

£14,130,000

£14,243,232

Number of new customer accounts

107

105

Turnover

£11,984,339

£12,547,463

Cash at bank

£647,058

£608,648

Operating profit margin

4.1%

3.2%

Gross profit margin

41.1%

35.3%

Future prospects

The UK government remains committed to making the transition away from fossil fuels to heat pump technology. This transition will be enabled by the publishing of the new Future Homes Standard under the overarching Warm Homes Plan which targets 450,000 heat pump installation by 2023.

As a renewable energy product manufacturer, we are well placed to take full advantage of this in 2026 and we aim to increase our market share by 0.5%. To facilitate this growth we will increase our sales power by adding two further people to our internal sales team in Bromborough.

On behalf of the board:

J B Felgate - Director

18 February 2026

The director presents his report with the financial statements of the company for the year ended 31 December 2025.

Dividends

No dividends will be distributed for the year ended 31 December 2025.

Directors

The directors who have held office during the period from 1 January 2025 to the date of this report are as follows:

M McManus - resigned 18 April 2025

J B Felgate - appointed 16 April 2025

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement as to disclosure of information to auditors

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:

J B Felgate - Director

18 February 2026

Opinion

We have audited the financial statements of Stiebel Eltron UK Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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, 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then design and perform audit procedures in response to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

-

the nature of the industry and sector, control environment and business performance including the design of remuneration policies, key drivers for Director's remuneration, bonus levels and performance targets

-

results of our enquiries of management about their own identification and assessment of the risks of irregularities

-

any matters we identified having obtained and reviewed documentation of policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance

-

detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud

-

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations

-

the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

-

the amount of the provision made for warranty claims and against old / slow moving stock

-

the need for journals to be tested throughout the whole year and post year end

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the completeness of revenue. In common with all audits under ISA (UK), we are also required to perform specific procedures to respond to the risk of management override.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Robert Ellis FCA (Senior Statutory Auditor)

for and on behalf of Ellis & Co (Accountants & Business Advisers) Ltd

Chartered Accountants

and Statutory Auditors

114-120 Northgate Street

Chester

CH1 2HT

19 February 2026

Turnover

4

12,547,463

11,984,339

Cost of sales

8,117,843

7,057,320

Gross profit

4,429,620

4,927,019

Administrative expenses

4,209,937

4,474,476

219,683

452,543

Other operating income

182,517

37,264

Operating profit

6

402,200

489,807

Interest payable and similar expenses

7

18,963

70,698

Profit before taxation

383,237

419,109

Tax on profit

8

113,447

123,429

Profit for the financial year

269,790

295,680

Profit for the year

269,790

295,680

Other comprehensive income

-

-

Total comprehensive income for the year

269,790

295,680

Fixed assets

Tangible assets

9

197,081

316,967

Current assets

Stocks

10

2,215,268

2,763,055

Debtors

11

2,906,154

2,390,460

Cash at bank

608,648

647,058

5,730,070

5,800,573

Creditors

Amounts falling due within one year

12

1,386,728

1,837,873

Net current assets

4,343,342

3,962,700

Total assets less current liabilities

4,540,423

4,279,667

Provisions for liabilities

14

317,101

326,135

Net assets

4,223,322

3,953,532

Capital and reserves

Called up share capital

15

250,000

250,000

Other reserves

16

2,151,278

2,151,278

Retained earnings

16

1,822,044

1,552,254

Shareholders' funds

4,223,322

3,953,532

The financial statements were approved by the director and authorised for issue on 18 February 2026 and were signed by:

J B Felgate - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2024

250,000

1,256,574

2,151,278

3,657,852

Changes in equity

Total comprehensive income

-

295,680

-

295,680

Balance at 31 December 2024

250,000

1,552,254

2,151,278

3,953,532

Changes in equity

Total comprehensive income

-

269,790

-

269,790

Balance at 31 December 2025

250,000

1,822,044

2,151,278

4,223,322

Cash flows from operating activities

Cash generated from operations

1

188,119

156,707

Interest paid

(18,963

)

(70,698

)

Tax paid

(197,973

)

(119,452

)

Net cash from operating activities

(28,817

)

(33,443

)

Cash flows from investing activities

Purchase of tangible fixed assets

(9,593

)

(12,541

)

Net cash from investing activities

(9,593

)

(12,541

)

Decrease in cash and cash equivalents

(38,410

)

(45,984

)

Cash and cash equivalents at beginning of year

2

647,058

693,042

Cash and cash equivalents at end of year

2

608,648

647,058

1.	Reconciliation of profit before taxation to cash generated from operations

31/12/25

31/12/24

£

£

Profit before taxation

383,237

419,109

Depreciation charges

129,479

130,371

Finance costs

18,963

70,698

531,679

620,178

Decrease in stocks

547,787

733,732

Increase in trade and other debtors

(515,694

)

(150,979

)

Decrease in trade and other creditors

(375,653

)

(1,046,224

)

Cash generated from operations

188,119

156,707

2.	Cash and cash equivalents

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

608,648

647,058

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

647,058

693,042

3.	Analysis of changes in net funds

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

647,058

(38,410

)

608,648

647,058

(38,410

)

608,648

Total

647,058

(38,410

)

608,648

1.	Statutory information

Stiebel Eltron UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements

-

20% on cost

Plant and machinery

-

20% on cost

Fixtures, fittings & equipment

-

20% on cost

Tangible fixed assets are initially recorded at cost, then subsequently at cost net of depreciation and any impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is determined on the weighted average method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing stock to its present location and position.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Operating leases

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

3.	Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In the opinion of the director, there are no critical judgements other than those involving estimates.

The director 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. Warranty costs provision

The director has used his judgement and historical data to estimate the warranty costs provision at 31 December 2025. Sales of new products for which there is little historical data may impact on the accuracy of this estimate.

4.

Turnover

Turnover is derived from the sale of goods to customers.

5.	Employees and directors

31/12/25

31/12/24

£

£

Wages and salaries

1,848,614

2,131,167

Social security costs

233,866

244,759

Other pension costs

127,443

112,914

2,209,923

2,488,840

The average number of employees during the year was as follows:

31/12/25

31/12/24

Directors

1

1

Management

2

2

Sales

15

17

Technical

14

17

Warehouse

2

3

Marketing

2

2

36

42

31/12/25

31/12/24

£

£

Directors' remuneration

119,632

132,604

Directors' pension contributions to money purchase schemes

12,185

13,741

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

1

6.	Operating profit

The operating profit is stated after charging:

31/12/25

31/12/24

£

£

Hire of plant and machinery

11,553

9,714

Other operating leases

253,800

253,842

Depreciation - owned assets

129,479

130,371

Auditors' remuneration

9,430

8,985

Foreign exchange differences

13,351

11,080

7.

Interest payable and similar expenses

31/12/25

31/12/24

£

£

Loans from group undertakings

8,511

70,698

Interest on overdue tax

10,452

-

18,963

70,698

8.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31/12/25

31/12/24

£

£

Current tax:

UK corporation tax

128,156

138,424

Adjustment relating to

previous period

521

-

Total current tax

128,677

138,424

Deferred tax

(15,230

)

(14,995

)

Tax on profit

113,447

123,429

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/12/25

31/12/24

£

£

Profit before tax

383,237

419,109

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

95,809

104,777

Effects of:

Expenses not deductible for tax purposes

17,638

18,652

Total tax charge

113,447

123,429

As the company will continue to invest in fixed assets it is considered unlikely that there will be a significant reversal of the deferred tax provision in the next financial year.

9.	Tangible fixed assets

Fixtures,

Leasehold

Plant and

fittings

improvements

machinery

& equipment

Totals

£

£

£

£

Cost

At 1 January 2025

379,621

16,150

380,758

776,529

Additions

-

-

9,593

9,593

At 31 December 2025

379,621

16,150

390,351

786,122

Depreciation

At 1 January 2025

195,705

16,150

247,707

459,562

Charge for year

74,602

-

54,877

129,479

At 31 December 2025

270,307

16,150

302,584

589,041

Net book value

At 31 December 2025

109,314

-

87,767

197,081

At 31 December 2024

183,916

-

133,051

316,967

10.

Stocks

31/12/25

31/12/24

£

£

Finished goods

2,215,268

2,763,055