Registered number: 00694799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Surteco UK Limited

 

Annual Report and Financial Statements

 

For the Year Ended 31 December 2025

Surteco UK Limited

 

Company Information

 

Directors

Mr D C Terry

 

Mr P M Mesquita Soares Moutinho

 

 

Company secretary

Mr J W Hartley

 

 

Registered number

00694799

 

 

Registered office

Heasandford Industrial Estate

 

Widow Hill Road

 

Burnley

 

Lancashire

 

BB10 2TB

 

 

Independent auditors

MHA

 

80 Mosely Street

 

Manchester

 

M2 3FX

Surteco UK Limited

 

Contents

 

 

Page

 

 

Strategic Report

4 - 6

 

 

Directors' Report

7 - 9

 

 

Independent Auditor's Report

10 - 13

 

 

Statement of Income and Retained Earnings

14

 

 

Balance Sheet

15

 

 

Notes to the Financial Statements

16 - 30

Surteco UK Limited

 

Strategic Report

For the Year Ended 31 December 2025

 

Principal Activities

 

The directors present their Strategic report on the company for the year ended 31 December 2025

 

The principal activity of the company is the sale and distribution of surfacing and edging materials, together with extruded plastic products. This is expected to continue for the foreseeable future.

 

Review of the business and future developments

 

Profit before taxation for the financial year amounted to £707,294 (2024 - £620,295). The directors authorised dividends in relation to the ordinary shares in the year of £1,041,020 (2024 - £2,010,039).

 

In 2024 the policy on inter-company purchases was changed and a larger proportion of the margin is now held at the manufacturing site with inter-company pricing far higher.

 

At the balance sheet date, the net assets of the company totalled £3,926,035 (2024 - £4,449,783).

 

In the financial year 2026 we expect the turnover and demand to be at similar levels to the year 2025. We expect to gain new business particularly on Edgebanding however several customers have ceased trading and we expect more to follow in 2026. The current economic conditions will also have a great impact both on the availability of materials and the cost.

 

The directors recognise the company's dominant market share in paper-based products will continue to be a limiting factor in future development and the focus, as always, will be to retain existing business. Growth potential remains good in plastic edging banding and plastic finished foils. Competition from overseas suppliers remains strong.

 

Non-financial risks

 

The key business risks affecting the company are set out below:

 

Competition

The company operates in a highly competitive market particularly around price and product availability/quality. This results in downward pressure on existing margins. In order to mitigate this risk, the sales team monitor market prices on an ongoing basis and have been given full responsibility for pricing goods within their local region. Furthermore, routine market research is undertaken by the sales force to understand our customers' expectations and whether their needs are being met.

 

Employees

The company's performance depends largely on its key account managers. To mitigate recruitment issues the group have implemented schemes linked to the company's results that are designed to retain key individuals.

 

Supply Chain

Given the company's focus on a quality product and service, it is important to carry sufficient UK stock levels for all volume lines. Fortunately, lead times on purchasing products from group have reduced and due to this the supply chain is much more stable and product can be delivered to us more quickly than in previous years.

Surteco UK Limited

 

Strategic Report (continued)

For the Year Ended 31 December 2025

 

Non-financial risks (continued)

 

Product obsolescence

The company's focus on quality products also exposes it to potential product obsolescence due to design changes in the market. The company monitors stock turnover as a KPI and given that all manufacturing is operated from one site, management are able to supervise this closely.

 

Financial risk management

 

Principal risks and uncertainties - The management of the business and the execution of the company's strategy are subject to a number of risks, which are considered below.

 

The company uses financial instruments, these include cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

 

The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below:

 

•

Cash pooling - The company holds a centralised treasury account with group whereby transactions in Euros can be made from the bank account to make payments for purchases to other group companies.

 

 

•

Liquidity risk - The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash safely and profitably. Close relations with the parent company, Surteco SE, play a large part in minimising this risk.

 

 

•

Price risk - The company is exposed to price risk (i.e. fluctuations in paper, chemical costs etc) and, as a result, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

 

 

•

Interest rate cash flow risk - The company has both interest-bearing assets and interest-bearing liabilities, including amounts owed to Group undertakings. Interest bearing assets include cash balances and liabilities all earn interest at a variable rate which changes monthly. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

 

 

•

Credit risk - The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is minimal. Given the existence of high credit insurance levels from Allianz on debtors, the directors do not consider there to be any material credit risk given the nature of the business and strong credit control department.

 

Risks are formally reviewed by the board and appropriate processes are put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the company.

Surteco UK Limited

 

Strategic Report (continued)

For the Year Ended 31 December 2025

 

Financial key performance indicators

 

The company uses a number of key financial performance indicators in assessing the performance. The key financial performance indicators used by the company are as follows:

 

 

2025

2024

Definition, method of calculation and analysis

 

 

 

 

Turnover (£)

13,287,419

13,241,537

Turnover was in line with the previous year with a settled customer base

Gross margin (%)

24

23

Gross margin is the ratio of gross profit to sales, expressed as a percentage. Slightly up on the prior year due to some price adjustments.

Operating profit (£)

701,443

558,540

Full Transfer Pricing Policy introduced in 2025. Margin set by group.

Stock turnover (days)

78

79

Stock turnover was in line with the previous year.

Debtor days

36

34

The ratio of year end trade debtors to sales for 2025 has increased as sales in the last 2 months of 2025 were significantly more than in 2024.

Creditor days

10

11

The ratio of year end trade creditors to cost of sales for 2025 was in line with the prior year.

 

Directors' statement of compliance with duty to promote the success of the company

 

The directors of the company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarized as follows:

 

“A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and in doing so, have regard to the likely consequences of any decisions in the long term on; the interests of the company's employees; the need to foster the company's business relationships with suppliers, customers and others; the impact of the company's operations on the community and environment; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly as between shareholders and the company”.

 

Details of how the directors have fulfilled these duties when dealing with strategic decisions are covered in the Strategic and Directors' Reports.

 

This report was approved by the board on August 7, 2026 and signed on its behalf.

 

 

 

 

 

Mr D C Terry

Director

Surteco UK Limited

 

Directors' Report

For the Year Ended 31 December 2025

 

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

 

Results and dividends

 

The profit for the year, after taxation, amounted to £517,272 (2024 - £434,722).

 

During the year dividends of £1,041,020 (2024 - £2,010,039) have been declared. The directors do not propose payment of a final dividend (2024 - £Nil).

 

Directors

 

The directors who served during the year were:

 

Mr D C Terry

Mr P M Mesquita Soares Moutinho

 

Directors' responsibilities statement

 

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 

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

 

•

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

•

make 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;

•

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.

Surteco UK Limited

 

Directors' Report (continued)

For the Year Ended 31 December 2025

 

Going concern

 

Based on their assessment of the company's financial position and resources, the directors believe that the company is well placed to manage its business risks. Actual and forecasted numbers for 2027 show healthy sales and earnings before tax (EBT). Cost control will continue to be monitored closely. There have been no issues with product availability from the group. The immediate parent company, Surteco GmbH, provide ongoing liquidity support should this be required. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approving these financial statements.

 

At present the company operates across three divisional sectors of the Surteco GMBH group, ‘Edgebands', ‘Surfaces' and ‘Profiles'. The Surteco Group are currently exploring opportunities to potentially sell either/and the ‘Profile' and ‘Edgebands' divisions of the business to a third party. Of the turnover in 2025 0.76% was relevant to the ‘Profile' division and 50.3% ‘Edgebands'.

 

Engagement with suppliers, customers and others

 

As a business we forge close relationships with all key customers and suppliers. The sales force is in regular contact with customers both large and small, ensuring a high level of service. We maintain constant dialogue with all key suppliers.

 

Qualifying third party indemnity provisions

 

During the year, the company has made qualifying third party indemnity provisions for the benefit of its directors and these remain in force at the date of this report.

 

Matters covered in the Strategic Report

 

Details of principal risks and uncertainties and future developments are contained within the Strategic Report.

 

Post balance sheet events

 

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

 

Disclosure of information to auditors

 

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

 

•

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

•

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

Surteco UK Limited

 

Directors' Report (continued)

For the Year Ended 31 December 2025

 

Auditors

 

The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

 

This report was approved by the board on August 7, 2026 and signed on its behalf.

 

 

 

 

 

 

Mr D C Terry

Director

Independent Auditor's Report to the Members of Surteco UK Limited

For the Year Ended 31 December 2025

 

Opinion

 

We have audited the financial statements of Surteco UK Limited (the 'company') for the year ended 31 December 2025, which comprise the Statement of Income and Retained Earnings, Balance Sheet and notes to the financial statements, including material accounting policies. The financial reporting framework that has been applied in the preparation of the company's financial statements 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.

 

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 the company'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 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 ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Conclusions relating to going concern

 

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

 

Independent Auditor's Report to the Members of Surteco UK Limited (continued)

For the Year Ended 31 December 2025

 

Other information

 

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

Opinion on other matters prescribed by the Companies Act 2006

 

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

 

•

the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•

the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

 

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.

 

Matters on which we are required to report by exception

 

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.

Independent Auditor's Report to the Members of Surteco UK Limited (continued)

For the Year Ended 31 December 2025

 

Responsibilities of directors

 

As explained more fully in the Directors' Responsibilities Statement, 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.

 

Auditor 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.

 

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

•

Enquiry of management around actual and potential litigation and claims and any instances of non-compliance with laws and regulations or fraud;

•

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

•

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

•

Addressed risk of fraud in the occurrence of revenue recognition through testing revenue transactions back to supporting evidence.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

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

Independent Auditor's Report to the Members of Surteco UK Limited (continued)

For the Year Ended 31 December 2025

 

Use of our report

 

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

 

 

 

 

 

Alexander Kelly BA FCA (Senior Statutory Auditor)

 

for and on behalf of

MHA, Statutory Auditor

 

Manchester, United Kingdom

 

Date: August 7, 2026

 

MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)

Surteco UK Limited

 

Statement of Income and Retained Earnings

For the Year Ended 31 December 2025

 

 

 

2025

2024

 

Note

£

£

 

 

 

 

Turnover

4

13,287,41913,241,537

Cost of sales

 

(10,043,189)

(10,224,360)

 

 

 

 

Gross profit

 

3,244,2303,017,177

Administrative expenses

 

(2,542,787)

(2,458,637)

 

 

 

 

Operating profit

5

701,443558,540

Interest receivable and similar income

9

5,85161,755

 

 

 

 

Profit before tax

 

707,294620,295

Tax on profit

10

(190,022)

(185,573)

 

 

 

 

Profit after tax

 

517,272434,722

 

 

 

 

Retained earnings at the beginning of the year

 

2,114,7613,690,078

Profit for the year

 

517,272434,722

Dividends paid during the year

 

(1,041,020)

(2,010,039)

 

 

 

 

Retained earnings at the end of the year

 

1,591,0132,114,761

 

There is no other comprehensive income.

 

Total comprehensive income of £517,272 (2024: £434,722) is wholly attributable to the shareholders of the company.

 

The notes on pages 13 to 27 form part of these financial statements.

Surteco UK Limited

Registered number:00694799

 

Balance Sheet

As at 31 December 2025

 

 

 

 

2025

 

2024

 

Note

 

£

 

£

 

 

 

 

 

 

Fixed assets

 

 

 

 

 

Intangible assets

12

 

-

 

-

Tangible assets

13

 

1,257,154

 

1,342,412

 

 

 

 

 

 

 

 

 

1,257,154

 

1,342,412

 

 

 

 

 

 

Current assets

 

 

 

 

 

Stocks

14

2,133,133

 

2,201,967

 

Debtors

15

1,913,454

 

2,089,246

 

Cash at bank and in hand

16

816,236

 

250,451

 

 

 

 

 

 

 

 

 

4,862,823

 

4,541,664

 

Creditors: amounts falling due within one year

17

(2,103,530)

 

(1,361,440)

 

 

 

 

 

 

 

Net current assets

 

 

2,759,293

 

3,180,224

 

 

 

 

 

 

Total assets less current liabilities

 

 

4,016,447

 

4,522,636

Provisions for liabilities

 

 

 

 

 

Deferred tax

18

 

(90,412)

 

(72,853)

 

 

 

 

 

 

Net assets

 

 

3,926,035

 

4,449,783

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

Called up share capital

19

 

114,054

 

114,054

Share premium account

20

 

2,220,968

 

2,220,968

Profit and loss account

20

 

1,591,013

 

2,114,761

 

 

 

 

 

 

 

 

 

3,926,035

 

4,449,783

 

The financial statements were approved and authorised for issue by the board and were signed on its behalf on August 7, 2026

 

 

 

 

 

Mr D C Terry

Director

 

The notes on pages 13 to 27 form part of these financial statements.

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

1.     General information

 

Surteco UK Limited is a private company limited by shares and is incorporated in England and Wales. The address of its registered office is Heasandford Industrial Estate, Widow Hill Road, Burnley, Lancashire, BB10 2TB. The registered number of the company is 00694799. The principal activity of the company during the year continued to be the sale and distribution of surfacing and edging materials, together with extruded plastic products.

 

2.     Accounting policies

 

2.1     Basis of preparation of financial statements

 

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

 

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

 

The following principal accounting policies have been applied:

 

2.2     Financial Reporting Standard 102 - reduced disclosure exemptions

 

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

 

•

the requirements of Section 7 Statement of Cash Flows;

true

•

the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of Section 29 Income tax paragraphs 29.28(b) and 29.29. This is an exemption from certain disclosures in relation to Pillar Two model rules where an entity is, or expects to be, within the scope of the Pillar Two legislation. The exemption is dependent on equivalent disclosures being made in the consolidated financial statements. It is not an exemption from all Pillar Two model rules and disclosures. Qualifying entities are still required to provide disclosures in accordance with paragraph 29.26 (g) and 29.28(a) if Pillar two model rules are applicable;

•

the requirements of Section 33 Related Party Disclosures paragraph 33.7.

 

This information is included in the consolidated financial statements of Surteco Group SE as at 31 December 2025 and these financial statements may be obtained from Johan-Viktor-Bausch-Str. 2, D-86647, Buttenwiesen-Pfaffenhofen, Germany.

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

2.     Accounting policies (continued)

 

2.3     Going concern

 

Based on their assessment of the company's financial position and resources, the directors believe that the company is well placed to manage its business risks. Actual and forecasted numbers for 2027 show healthy sales and earnings before tax (EBT). Cost control will continue to be monitored closely. There have been no issues with product availability from the group. The immediate parent company, Surteco GmbH, provide ongoing liquidity support should this be required. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of approving these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

2.4     Revenue

 

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

 

Sale of goods

 

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

 

•

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

•

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

•

the amount of revenue can be measured reliably;

•

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

•

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

 

2.5     Interest income

 

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

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

2.     Accounting policies (continued)

 

2.6     Current and deferred taxation

 

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

 

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

 

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

 

•

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

•

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

 

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

 

2.7     Intangible assets

 

Goodwill

 

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its expected useful life, which is determined based on the pattern in which the asset's future economic benefits are expected to be consumed.

 

Customer relationships

 

This represents customer relationships/contracts acquired. These still exist by providing them with a quality product and good service. Costs are amortised over the estimated length of the customer relationship.

 

The estimated useful lives range as follows:

 

Goodwill

-

20 years

Customer relationships

-

3 years

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

2.     Accounting policies (continued)

 

2.8     Tangible fixed assets

 

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

 

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

 

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 bases:

 

Freehold property

- 2.5% straight line

Plant and machinery

- 5-20% straight line

 

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

 

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

 

2.9     Stocks

 

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

 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 

2.10     Debtors

 

Short-term debtors are measured at transaction price, less any impairment.

 

2.11     Cash and cash equivalents

 

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 

2.12     Creditors

 

Short-term creditors are measured at the transaction price.

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

2.     Accounting policies (continued)

 

2.13     Financial instruments

 

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtor and creditors, and loans to group undertakings.

 

2.14     Operating leases: the company as lessee

 

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

 

2.15     Pensions

 

Defined contribution pension plan

 

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

 

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

 

2.16     Foreign currency translation

 

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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

2.     Accounting policies (continued)

 

2.17     Dividends

 

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

 

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

 

In the application of the company's accounting policies, which are described in note 2, 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.

 

Judgements

 

There are no key judgements made by management regarding the application of accounting policies that have a significant effect on the company's reported performance and financial position.

 

Estimates

 

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.

 

Useful economic lives of intangible and tangible fixed assets

The annual amortisation or depreciation charge for intangible and tangible fixed assets is sensitive to changes in the estimated useful economic life and residual values of assets. The useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of the assets. See notes 12 and 13 for the carrying amount of intangible and tangible fixed assets respectively and accounting policies 2.7 and 2.8 for the useful economic lives of intangible and tangible fixed assets respectively.

 

Slow moving provision for finished goods stock

The valuation of finished goods stock is assessed annually. Goods that have been held for a period of 12 months have a 25% stock provision recognised against them. Goods held for a period of 2 years have a 50% stock provision. Goods held for a period of 3 years have a 75% stock provision. Goods held for a period of 4 years have a 100% stock provision. The higher valued items are amended where applicable based on customer forecasting and known market trends.

 

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 revision and future periods if the revision affects both current and future periods.

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

4.     Turnover

 

The whole of the turnover is attributable to the principal activity of the company, which is in relation to the sale of goods.

 

 

2025

£

2024

£

 

 

 

United Kingdom

13,181,52313,142,864

Europe

105,89698,673

 

 

 

 

13,287,41913,241,537

 

5.     Operating profit

 

The operating profit is stated after charging/(crediting):

 

 

2025

£

2024

£

 

 

 

Amortisation of intangible assets, including goodwill

-

70,531

Depreciation of tangible fixed assets

108,739111,947

Operating lease rentals

31,47427,663

Defined contribution pension costs

91,06795,165

Impairment loss charge/(release) on stock

131,890

(81,305)

Impairment loss charge on trade debtors

10,5982,276

 

6.     Auditor's remuneration

 

During the year, the company obtained the following services from the company's auditors:

 

 

2025

£

2024

£

 

 

 

Fees payable to the company's auditor for the audit of the company's financial statements

21,11423,500

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

7.     Employees

 

Staff costs, including directors' remuneration, were as follows:

 

 

2025

£

2024

£

 

 

 

Wages and salaries

1,162,6721,111,789

Social security costs

137,002116,918

Cost of defined contribution scheme

91,06795,165

 

 

 

 

1,390,7411,323,872

 

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

 

 

2025

No.

2024

No.

 

 

 

Administration and support

1011

Marketing and distribution

1515

Sales

77

 

 

 

 

3233

 

8.     Directors' remuneration

 

 

2025

£

2024

£

 

 

 

Directors' emoluments

143,104163,898

Company contributions to defined contribution pension schemes

14,00814,021

 

 

 

 

157,112177,919

 

During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.

 

9.     Interest receivable

 

 

2025

£

2024

£

 

 

 

Interest on balances due from group undertakings

5,85161,755

 

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

10.     Taxation

 

 

2025

£

2024

£

 

 

 

Corporation tax

 

 

 

 

 

Current tax on profits for the year

172,463173,597

 

 

 

 

172,463173,597

Deferred tax

 

 

 

 

 

Origination and reversal of timing differences

17,55911,976

 

 

 

Total deferred tax

17,55911,976

 

 

 

Tax on profit

190,022185,573

 

Factors affecting tax charge for the year

 

The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

 

 

2025

£

2024

£

 

 

 

Profit on ordinary activities before tax

707,294620,295

 

 

 

Corporation tax at standard rate of 25% (2024: 25%)

176,824155,074

Effects of:

 

 

 

 

 

Deferred tax remeasurement

12,93930,499

Expenses not deductible for tax purposes

744

-

Other differences leading to a decrease in the tax charge

(485)

-

 

 

 

Total tax charge for the year

190,022185,573

 

Factors that may affect future tax charges

 

There are no factors affecting future tax charges.

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

11.     Dividends

 

 

2025

2024

 

£

£

 

 

 

Interim dividend - 873.25p (2024 - 1,777.677p) per $0.10 ordinary share

935,6201,904,639

Interim dividend - 98.374p (2024 - 98.374p) per £1.00 deferred share

105,400105,400

 

 

 

 

1,041,0202,010,039

 

12.     Intangible assets

 

 

Customer

relationships

£

Goodwill

£

Total

£

 

 

 

 

Cost

 

 

 

At 1 January 2025

160,9001,410,6381,571,538

 

 

 

 

At 31 December 2025

160,9001,410,6381,571,538

 

 

 

 

Amortisation

 

 

 

At 1 January 2025

160,9001,410,6381,571,538

 

 

 

 

At 31 December 2025

160,9001,410,6381,571,538

 

 

 

 

Net book value

 

 

 

 

 

 

 

At 31 December 2025

-

-

-

 

 

 

 

At 31 December 2024

-

-

-

 

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

13.     Tangible fixed assets

 

 

Freehold land and buildings

£

Plant and

machinery

£

Total

£

 

 

 

 

Cost or valuation

 

 

 

At 1 January 2025

2,653,4931,548,0084,201,501

Additions

-

23,48123,481

Disposals

-

(30,674)

(30,674)

 

 

 

 

At 31 December 2025

2,653,4931,540,8154,194,308

 

 

 

 

Depreciation

 

 

 

At 1 January 2025

1,833,7981,025,2912,859,089

Charge for the year

51,75556,984108,739

Disposals

-

(30,674)

(30,674)

 

 

 

 

At 31 December 2025

1,885,5531,051,6012,937,154

 

 

 

 

Net book value

 

 

 

 

 

 

 

At 31 December 2025

767,940489,2141,257,154

 

 

 

 

At 31 December 2024

819,695522,7171,342,412

 

Included in land and buildings is freehold land at valuation of £175,608 (2024: £175,608), which is not depreciated.

 

Movement in the value of land and buildings

The Company's freehold land & buildings were professionally revalued in 1989 at £1,741,481 (including land of £175,608) and this has been included in the financial statements. At 31 December 2025 this class of assets has a net book value of £767,940 (2024: £819,695). As permitted by section 35 of FRS 102 the Company has elected not to adopt a policy of ongoing revaluation of tangible fixed assets. The Company will retain the book value of land and buildings, previously revalued on 11 August 1989 and will not update that valuation.

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

14.     Stocks

 

 

2025

£

2024

£

 

 

 

Raw materials

27,96722,007

Finished goods

2,105,1662,179,960

 

 

 

 

2,133,1332,201,967

 

Inventories are stated after provisions for impairment of £386,325 (2024: £254,435).

 

There is no material difference between the carrying amount of inventory and the replacement cost.

 

15.     Debtors

 

 

2025

£

2024

£

 

 

 

Trade debtors

1,285,0381,237,833

Prepayments and accrued income

65,77251,624

Tax recoverable

562,644799,789

 

 

 

 

1,913,4542,089,246

 

Trade debtors are stated after impairment provision of £12,874 (2024 - £2,276).

 

16.     Cash and cash equivalents

 

 

2025

£

2024

£

 

 

 

Cash at bank and in hand

816,236250,451

 

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

17.     Creditors: Amounts falling due within one year

 

 

2025

£

2024

£

 

 

 

Trade creditors

278,508299,303

Amounts owed to group undertakings

933,407627,229

Other taxation and social security

642,188106,963

Accruals and deferred income

249,427327,945

 

 

 

 

2,103,5301,361,440

 

All amounts owed to group undertakings are unsecured and repayable on demand. Interest has been paid on this amount through the year of £5,851 (2024: £61,755).

 

18.     Deferred taxation

 

 

2025

£

2024

£

 

 

 

At 1 January 2025

(72,853)

(60,877)

Charged to profit or loss

(17,559)

(11,976)

 

 

 

At 31 December 2025

(90,412)

(72,853)

 

 

 

The provision for deferred taxation is made up as follows:

 

 

 

 

 

 

2025

£

2024

£

 

 

 

Capital allowances in excess of depreciation

(94,219)

(96,896)

Short term temporary timing differences

3,80724,043

 

 

 

 

(90,412)

(72,853)

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

19.     Share capital

 

 

2025

£

2024

£

 

 

 

Allotted, called up and fully paid

 

 

107,142 (2024 - 107,142) Ordinary Shares shares of $0.10 each

6,9126,912

107,142 (2024 - 107,142) Deferred Shares shares of £1.00 each

107,142107,142

 

 

 

 

114,054114,054

 

The ordinary shares and deferred shares rank pari passu for dividend distribution.

 

20.     Reserves

 

Share premium account

 

The share premium account is an equity account that represents the additional amount shareholders paid for the issued shares that were more than the par value.

 

Profit and loss account

 

The profit and loss account reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

 

21.     Commitments under operating leases

 

At 31 December 2025 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

 

 

2025

£

2024

£

 

 

 

Other

 

 

 

 

 

Not later than 1 year

32,96910,610

Later than 1 year and not later than 5 years

47,653

-

 

 

 

 

80,62210,610

 

Surteco UK Limited

 

Notes to the Financial Statements

For the Year Ended 31 December 2025

 

22.     Pension commitments

 

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered scheme. The pension cost represents contributions payable by the company to the funds and amounted to £91,067 (2024: £95,165). Contributions totaling £15,243 (2024: £65,220) were payable to the fund on the balance sheet date and are included within creditors.

 

23.     Controlling party

 

At 31 December 2025, the immediate parent undertaking is Surteco GmbH, a company incorporated in Germany.

 

At 31 December 2025, the ultimate parent undertaking and controlling party is Surteco Group SE, a company incorporated in Germany.

 

The parent undertaking of the smallest and largest group to consolidate their financial statements is Surteco Group SE, a company incorporated and registered in Germany. Copies of these financial statements can be obtained from Johan-Viktor-Bausch-Str. 2, D-86647, Buttenwiesen-Pfaffenhofen, Germany.