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Registered number: 00521832
Krones UK Limited
Financial statements
For the Year Ended 31 December 2025
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Krones UK Limited
Company Information
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R Hodgkinson (appointed 5 January 2026)
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Hurst Accountants Limited
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Chartered Accountants & Statutory Auditors
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Krones UK Limited
Contents
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Independent Auditors' Report
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Statement of Profit or Loss and Other Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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Krones UK Limited
Strategic Report
For the Year Ended 31 December 2025
The Directors present their Strategic report, Directors' report and financial statements for the year ended 31 December 2025.
Business model, review and results
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Krones UK Limited ("Krones UK") is a subsidiary of Krones AG and is responsible for the sale and servicing of Krones Group machinery and lifecycle services in the UK and Ireland. We have been established for more than 70 years in the UK, we are proud to be a responsible business, that builds strong relationships with our customers and takes care of our employees.
Krones Group is recognised as the global market leader in its sector. Krones AG continue developing innovative products and services and this holds huge opportunities for our aftersales business. This involves substantial investment in the digitalisation of beverage plants. Krones UK seeks to add value by providing customer support to UK and Irish customers, acting as the local face of Krones, effectively responding to customer needs as they arise. Our experienced local team install and commission major contracts for blue chip companies and SMEs. Employing 157 people, we have a highly skilled team of Project Managers, Engineers and support staff who serve our customer base in the UK and Ireland. The Group and Krones UK will continue to invest in employee training and development, because our workforce is the foundation of our business.
The results for the year are set out on page 11. Sales revenue was down on the 2024 result by £25m due to a change in product mix, with fewer machine sales in 2025 whilst service and parts sales have increased. 2025 profit before tax was £0.73m lower than 2024's results, driven by increases in gross profit being offset by higher administration expenses and lower interest received from group companies. The increase in administrative expenses is driven by staff costs increasing by £2.1m, offset by £1.4m favourable foreign exchange movements. The benefit of recruitment in 2025 is expected to be seen in the results for financial year 2026. The 2025 order intake figure was €164m (2024: €181m).
Krones target picture “Solutions beyond tomorrow” provides the basis for the development of future ready, sustainable products and services with a clear strategic focus on sustainability, service quality and digitalisation.
Operating profit totals 7.51% of turnover, an increase of 1.74ppts from the previous year (2024: operating profit of 5.77% of turnover) due to the change in product mix.
Key performance indicators
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Our key financial metrics for the financial year are as follows:
Revenue £70.55m (2024: £95.7m)
Gross profit £23.1m (2024: £21.9m)
Profit before tax £5.8m (2024: £6.5m)
Key non financial indicators include the monitoring of our employees' health and safety and employees' engagement. There have been positive trends in these KPI areas due to increased investment in training and engagement activities during the year.
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Krones UK Limited
Strategic Report (continued)
For the Year Ended 31 December 2025
Principal risks and uncertainties
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There are various unpredictable factors that could affect the company’s business processes and production. These include geopolitical risks in Europe, the Middle East and other parts of the world. Another source of uncertainty is the global tariff policy, which could create a downturn in global trade. Material shortages and problems in global supply chains also remain a source of uncertainty.
Krones is exposed to industry specific risks, primarily through the development of the global packaging market and the actions of competitors. The competitive environment could intensify if competitors of Krones attempt to win orders by offering lower prices. Krones addresses the risk of loss of market share by further extending our technology leadership. Krones' strong focus on service also sets the Company apart from competitors.
All of Krones' material business processes are based on functioning IT systems. The risks here are failure or malfunction of or unauthorised access to critical systems. Such events could result in the loss or mis use of important and confidential data. There are also cybersecurity risks; computer crime is frequently based on professional international structures, which makes averting and combating it a major challenge. Krones uses internationally recognised IT security measures to protect against risks relating to cyber crime and other IT risks.
Financial instruments
The Company uses various financial instruments; historically these include loans to and from Krones AG, cash and items, such as trade receivables and trade payables that arise directly from its operations. In addition, there are assets that have been leased. The main purpose of these financial instruments is to raise finance for the Company's operations and manage its working capital requirements.
The main risks arising from the Company's financial instruments are exchange rate risk, liquidity risk and credit risk. The Directors review and agree policies for managing each of these risks and they are summarised below.
Exchange rate risk
The Company has substantial loans with Krones AG based in EUR currency, and can also contract with customers in EUR. A significant movement in EUR:GBP rate can lead to exchange gains or losses accumulating in the Company's accounts. The Company manages this risk by carefully monitoring exchange rate movements and considering hedging where appropriate.
Liquidity and cash flow risk
The Company is part of a cash pooling arrangement with Krones AG and is therefore dependent upon access to the Group funds to enable it to meet its liabilities as they fall due.
Credit risk
The Company's principal financial assets are trade receivables, which are subject to credit risk, and are concentrated to a limited number of customers at any point in time. Generally, the Company's major customers have excellent credit worthiness, but ongoing monitoring of trade receivables and the use of external credit agency data is used to manage this risk.
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Krones UK Limited
Strategic Report (continued)
For the Year Ended 31 December 2025
Directors' statement of compliance with duty to promote the success of the Company
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The Directors of Krones UK Limited have acted in accordance with their duties codified in law, which include their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the Company, having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006. In doing so, the Directors' have considered (amongst other matters):
i. the likely consequences of any decision in the long term,
ii. the interests of the Company's employees,
iii. the need to foster the Company's business relationships with suppliers, customers and others,
iv. the impact of the Company's operations on the community and the environment,
v. the desirability of the Company maintaining a reputation for high standards of business conduct, and
vi. the need to act fairly as between members of the Company
In accordance with our parent company Krones AG, we share common values that inform and guide our behaviour so we achieve our goals in the right way. The Krones Code of Conduct incorporates our corporate values, laws and ethics, information handling and social responsibility fostering business relationships with suppliers, customers and other stakeholders. Each year the Directors undertake an in depth review of the Company's strategy. Long term business planning and key strategic decisions are undertaken in line with the strategy agreed by the Board. The Company's contracts with its customers can be multi-year agreements which necessitate a long term view over the impact of any commercial and operational decisions. When considering the impact of the Company on its wider stakeholders, the Directors discharge their duty in the following way:
People
The Company is committed to being a responsible employer. All our employees must adhere to Krones Code of Conduct and undertakes mandatory training when joining the Company. Our people are fundamental to the long term success of the Company and the Directors recognise we have loyal and committed employees. To meet our customer demands we need an adaptive and flexible workforce whose skill base continually evolves and the Directors are dedicated to ensuring they are provided with the skills and opportunities to succeed and develop.
Business relationships
The Company has a range of local and international suppliers and over the years we have built strong working relationships. All our suppliers must comply with out supplier code of conduct. The code of conduct ensures our business partners apply principles in the areas of human rights, fair working conditions, environmental protection and the fight against corruption.
Our suppliers are fundamental to the quality of our products and services and they must meet the high standards of conduct we set ourselves. We continue to work with our suppliers to deliver a high-level service to our loyal consumer base.
Krones continues to develop innovative solutions for our customer base and offer a wide range of products to meet their demand.
The community and wider environment
Krones is committed to product development that offers solutions that are continually more efficient and environmentally friendly. The UK subsidiary operates out of an office in Bolton, with no adverse impact on the community and environment. Both our supplier code of conduct and employee code of conduct can be accessed on our website https://www.krones.com /en/company/responsibility /compliance .php
Our sustainability reports can be accessed on our website:
https//www.krones.com/en/company/responsibility/sustainability.php
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Krones UK Limited
Strategic Report (continued)
For the Year Ended 31 December 2025
This report was approved by the board and signed on its behalf.
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Krones 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.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
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 the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
Krones offers machines and systems for bottling and packaging and for beverage production. Digitalisation and Intralogistics solutions complete our product portfolio.
The profit for the year, after taxation, amounted to £4,298,000 (2024 - £4,863,000).
The directors declared and paid a dividend of £5,300,000 for 2025 (2024: £4,300,000). As in the prior year, they do not recommend the payment of an ordinary final dividend.
The directors who served during the year were:
A J Wilson (resigned 30 June 2025)
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Krones UK Limited
Directors' Report (continued)
For the Year Ended 31 December 2025
Krones continues to develop our product portfolio to continually support the ongoing needs of our market. Krones UK have implemented additional support for our customers via a regional structure, with key members of our team residing close to our customers in each region. Our regional support is segmented into Scotland and Northern Ireland, Northern England, Central Region, and Southern England / Ireland. Our customers increasingly look to Krones for long term Service Level agreements, and this is an area that is developing successfully with many of our larger customers. This area is benefiting from further investment to proactively monitor the performance of our customers' plant via digital means, enabling early warning and optimum planning for maintenance interventions.
The use of Financial Instruments by the Company are disclosed in the Strategic Report.
Engagement with suppliers, customers and others
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The Company's engagement with suppliers, customer and other is discussed in the Strategic Report.
Greenhouse gas emissions, energy consumption and energy efficiency action
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The Company's greenhouse gas emissions and energy consumption are as follows:
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Emissions resulting from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)
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Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent)
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Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in kWh
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The SECR disclosures present our carbon footprint within the United Kingdom across scope 1 and 2 emissions. We have followed the 2019 HM Government's Environmental Reporting Guidelines and used the GHD Reporting Protocol - Corporate Standard and also used the 2025 UK Government's Conversion Factors for Company reporting. The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m revenue.
The Company has taken measures to improve energy efficiency and reduce energy consumption through various projects including:
- Installation of Solar Panels
- Installation of energy efficient lighting across the office building
- Improved steam boiler controls, load management and burner optimisation
- Installation of energy efficient motor drives across the factory
- Internal heating system changed to air conditioning controlled by a building management system
- Increase of hybrid vehicles and electric vehicles to the car fleet
The intensity ratio of tonnes CO2e per £m sales revenue is 3.7 (2024: 3.2).
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Krones UK Limited
Directors' Report (continued)
For the Year Ended 31 December 2025
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 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.
There have been no significant events affecting the Company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Krones UK Limited
Independent Auditors' Report to the Members of Krones UK Limited
We have audited the financial statements of Krones UK Limited for the year ended 31 December 2025 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 17 - 24. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
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 IFRSs as adopted by the United Kingdom; 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. 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.
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Krones UK Limited
Independent Auditors' Report to the Members of Krones UK Limited (continued)
The other information comprises the information included in the Annual Report, other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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
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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
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
As explained more fully in the directors' responsibilities statement on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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.
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Krones UK Limited
Independent Auditors' Report to the Members of Krones UK Limited (continued)
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 an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities
In identifying and assessing the 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 in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of management, including whether management was aware of any instances of non- compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
• Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations
- Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
• Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Krones UK Limited
Independent Auditors' Report to the Members of Krones UK Limited (continued)
We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Anthony Woodings (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG
30 March 2026
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Krones UK Limited
Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 31 December 2025
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Other comprehensive income
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Total comprehensive income
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The notes on pages 17 to 42 form part of these financial statements.
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Krones UK Limited
Registered number: 00521832
Statement of Financial Position
As at 31 December 2025
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Property, plant and equipment
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Trade and other receivables
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Cash and cash equivalents
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Total non-current liabilities
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Trade and other liabilities
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Total current liabilities
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Issued capital and reserves
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The financial statements on pages 12 to 42 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 17 to 42 form part of these financial statements.
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Krones UK Limited
Statement of Changes in Equity
For the Year Ended 31 December 2025
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Total contributions by and distributions to owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Total contributions by and distributions to owners
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The notes on pages 17 to 42 form part of these financial statements.
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Krones UK Limited
Statement of Cash Flows (continued)
For the Year Ended 31 December 2025
Cash flows from operating activities
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Depreciation of property, plant and equipment
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Depreciation of Right of Use Assets
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Movements in working capital:
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Decrease/(increase) in trade and other receivables
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(Decrease)/increase in trade and other payables
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Cash generated from operations
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Net cash from operating activities
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Cash flows from investing activities
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Purchases of property, plant and equipment
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Net cash from investing activities
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Cash flows from financing activities
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Interest paid on lease liabilities
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Dividends paid to the holders of the parent
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Payment of lease liabilities
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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 the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 17 to 42 form part of these financial statements.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
Krones UK Limited (the 'Company') is a limited company incorporated in the UK. The Company's registered office is at Westregen House, Great Bank Road, Wingates Industrial Park, Bolton, BL5 3XB. The Company's principal activity is the provision of machinery, systems and services for bottling and packaging and for beverage production, and innovative digitalisation and intralogistics solutions.
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 30 March 2026.
Details of the Company's accounting policies, including changes during the year, are included in note 4.
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 5.
The financial statements have been prepared on the historical cost basis.
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2.2 Changes in accounting policies
i) New standards, interpretations and amendments effective from 1 January 2025
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The Directors have considered all new and amended Standards and Interpretations issued by the International Accounting Standards Board (IASB) and the International Reporting Interpretations Committee (IFRIC). There are no material adjustments required to be made to the Company's financial statements as a result.
Management has concluded that there are no material adjustments to be made to the Company's financial statements as a result of the following changes to International Financial Reporting Standards:
- Amendments to IAS 21 – Lack of Exchangeability
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
2.Basis of preparation (continued)
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New standards, interpretations and amendments not yet effective
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The following standards, interpretations and amendments have been endorsed in the UK and were not yet effective at the year-end date:
Amended standard applicable for annual periods beginning on 1 January 2026 and beyond
- Amendments to IFRS 7 - Financial Instruments: Disclosures
- Amendments to IFRS 9 - Financial Instruments
- Amendments to IAS 7 - Statement of Cash Flows
Management does not expect any material adjustments to be made to Company's financial statements going forward, as a result of these changes.
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Functional and presentation currency
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These financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated.
4.Accounting policies
Revenue represents the amounts (excluding value added tax) derived from the provision of capital goods and services to the bottling, canning and packaging industries. Revenue and profit on ordinary activities before taxation is wholly attributable to the company's principal activity and arises mainly within the UK and Republic of Ireland and is recognised when the goods are delivered to the customer. Revenue is measured based on the consideration specified in a contract with a customer. The Company deems a contract to be in place under IFRS15 where the following cumulative requirements are met:
- The contracting parties have legally concluded and agreed to a contract.
- The rights of each party to the transferable goods and services and the terms of payment can be identified.
- The contract has economic substance.
- The receipt of contract monies is probable and enforceable.
To determine whether to recognise revenue, the Company follows a 5-step process:
1 Identifying the contract with a customer
2 Identifying the performance obligations
3 Determining the transaction price
4 Allocating the transaction price to the performance obligations
5 Recognising revenue when/as performance obligations are satisfied
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
4.Accounting policies (continued)
Machinery - delivery and installation
The Company has two types of machinery contract; a short-form contract and non short-form contracts.
For non short-form contracts and short-form contracts, machinery revenue is recognised on delivery following guidance in respect of uninstalled materials in IFRS 15 and the associated installation services included in the contract are recognised over time as the installation is completed.
The transaction price at any point in the contract's lifetime reflects the total contract value as amended for any variations agreed with the customer post-contract signature and any deductions for failing to meet contractual specifications.
The Company recognises contract liabilities for consideration received in respect of unsatisfied performance obligations. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the company recognises a contract asset or a receivable in its statement of financial position, depending on whether something other than the passage of time is required before the consideration is due.
Sale of goods and parts
Revenue is recognised at a point in time, on delivery of the goods and parts.
Service and maintenance revenue
Krones provides a comprehensive range of products and services for customers under the heading of lifecycle service (LCS). Revenue for services that come under LCS is mostly recognised over time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs. Accordingly, revenue is mostly recognised over time using an input method on the basis of the costs incurred.
Revenue is only recognised on a straight-line basis in the case of longer-term maintenance services.
Other - adhesive goods
Revenue is recognised on the delivery of adhesive goods.
In all revenue categories, where the Company is aware that a return or refund is likely, then revenue is reduced and an appropriate provision is made in the Statement of Financial Position.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
4.Accounting policies (continued)
The Company as a lessee
The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The incremental borrowing rate is the estimated rate that the company would have to pay to borrow the same amount over a similar term, and with similar security to obtain an asset of equivalent value.
Lease payments included in the measurement of the lease liability comprise:
∙fixed lease payments (including in-substance fixed payments), less any lease incentives;
The lease liability is included in the 'Loans and borrowings' line in the Statement of Financial Position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are included in the 'Property, Plant and Equipment' line in the Statement of Financial Position.
The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 4.6.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
4.Accounting policies (continued)
Functional and presentational currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency translations 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.
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 Profit and loss account.
Foreign exchange gains and losses are presented in the Profit and loss account within 'administrative expenses'.
(i) Retirement benefit costs and termination benefits
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.
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(ii) Short-term and other long-term employee benefits
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A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
4.Accounting policies (continued)
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
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(iii) Current and deferred tax for the year
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Current and deferred tax are recognised in profit or loss.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
4.Accounting policies (continued)
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Land is not depreciated. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following range:
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Building structural improvements
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Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a weighted average basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
4.Accounting policies (continued)
Recognition and derecognition
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognised when the contractual rights to the cash flow from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and initial measurement of financial assets
Trade receivables do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15. Financial assets are classified into one of the following categories:
- amortised cost
- fair value through profit or loss (FVTPL), or
- fair value through other comprehensive income (FVOCI).
In the periods presented the company does not have any assets categorised as FVTPL or FVOCI.
The classification is determined by both:
- the entity's business model for managing the financial asset, and
- the contractual cash flow characteristics of the financial asset.
Impairment of trade receivables is presented within revenue.
Subsequent measurement of financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions:
- they are held within a business model whose objective is to hold the financial assets and collects its contractual cash flows, and
- the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Trade and other receivables and contract assets
The company makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. The company assesses impairment of trade receivables on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due.
Classification and measurement of financial liabilities
The company's financial liabilities include intercompany borrowings and trade and other payables. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the company designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for financial liabilities designated at FVTPL, which are carried subsequently at fair value, with gains or losses recognised in profit or loss. All interest-related charges, and if applicable, changes in an instrument's fair value that are reported in profit or loss are included within finance costs or finance income.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
4.Accounting policies (continued)
Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors.
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Accounting estimates and judgments
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The preparation of the financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and underlying assumptions are reviewed on an ongoing basis.
The estimates associated with the assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods.
Estimate and assumption
i) Stage of completion of projects
One of the most significant estimates is the stage of completion of projects, where revenue is recognised over time rather than at a point in time, which impacts the amount of contract assets and liabilities to be recognised (where payment in advance has been received). Management bases its expectation on detailed project budgets prepared; these reflect their knowledge and experience from previous projects and forecasts prepared in terms of revenue and expenditure. The carrying value of contract assets and contract liabilities at 31 December 2025 is £5,529k (2024: £9,781k) and £18,256k (2024: £11,664k) respectively.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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The following is an analysis of the Company's revenue for the year from continuing operations:
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Analysis of revenue by country of destination:
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Timing of revenue recognition:
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Goods and services transferred at a point in time
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Goods and services transferred over time
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Remaining performance obligations - The vast majority of the Company's contracts are for the delivery of goods and provision of services within the next 12 months for which the practical expedient in paragraph 121(a) of IFRS 15 applies. However, certain contracts for goods and services have been entered into for which the original contractual period was greater than 12 months.
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Revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the year end is summarised as follows:
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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Changes in inventories of finished goods and work in progress
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Depreciation of property, plant and equipment
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Depreciation of right of use assets
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Employee benefit expense (See note 9)
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During the year, the Company obtained the following services from the Company's auditors and their associates:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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Fees payable to the auditors and their associates in respect of:
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All non-audit services not included above
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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Employee benefit expenses
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Employee benefit expenses (including directors) comprise:
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Defined contribution pension cost
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Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including the directors of the Company.
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Defined contribution scheme costs
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The monthly average number of persons, including the directors, employed by the Company during the year was as follows:
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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Company contributions to pension schemes
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During the year, retirement benefits were accruing to the following number of directors in respect of qualifying services:
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Defined contribution schemes
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The highest paid director's emoluments were as follows:
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Total emoluments and amounts receivable under long-term incentive schemes (excluding shares)
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Company contributions to pension schemes
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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Finance income and expense
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Recognised in profit or loss
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Interest receivable from group companies
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Interest on lease liabilities
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Net finance income recognised in profit or loss
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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12.1 Income tax recognised in profit or loss
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Current tax on profits for the year
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Adjustments in respect of prior years
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Origination and reversal of timing differences
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The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:
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Profit before income taxes
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Tax using the Company's domestic tax rate of 25% (2024:25%)
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Expenses not deductible for tax purposes, other than goodwill, amortisation and impairment
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Capital allowances for the year in excess of depreciation
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Adjustments to tax charge in respect of prior periods
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Other differences leading to an increase in the tax charge
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
12.Tax expense (continued)
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12.2 Current tax assets and liabilities
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12.3 Deferred tax balances
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The following is the analysis of deferred tax assets/(liabilities) presented in the statement of financial position:
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Recognised in profit or loss
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Property, plant and equipment
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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Property, plant and equipment
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Accumulated depreciation and impairment
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Charge for the year on owned assets
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Charge for the year on financed assets
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Charge for the year on owned assets
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Charge for the year on financed assets
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Included in the net book value of freehold property is land of £5,000 (2024: £5,000).
Freehold property also includes Building structural improvements with a total net book value of £1,911,000, which are being depreciated over periods ranging between 8 and 70 years.
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
13.Property, plant and equipment (continued)
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13.1. Assets held under leases
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The net book value of owned and leased assets included as "Property, plant and equipment" in the Statement of Financial Position is as follows:
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Property, plant and equipment owned
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Information about right-of-use assets is summarised below:
Net book value
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Depreciation charge for the year ended
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Additions to right-of-use assets
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Additions to right-of-use assets
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
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Finished goods and goods for resale
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In 2025, inventories of £47,452,000 (2024: £73,842,000) were recognised as an expense during the year and included in ‘cost of sales’.
Inventories have been reduced by £65,000 at 31 December 2025 (2024: £57,000) as a result of cumulative write-downs to net realisable value over time.
Inventory write-downs and reversals are included in ‘cost of sales’.
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Trade and other receivables
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Less: provision for impairment of trade receivables
|
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|
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Receivables from contracts with customers
|
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|
|
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Receivables from contracts with customers - net
|
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|
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Receivables from related parties
|
|
|
|
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Total financial assets other than cash and cash equivalents classified as loans and receivables
|
|
|
|
|
Prepayments and accrued income
|
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|
|
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|
|
|
|
Total trade and other receivables
|
|
|
|
|
|
|
|
The carrying value of trade and other receivables classified as loans and receivables approximates fair value.
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
15.Trade and other receivables (continued)
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|
The Company applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables and contract assets. The expected loss rates are based on the Company's historical credit losses. The ageing of the current past due and not impaired financial assets is as follows:
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|
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Movements in the impairment allowance for trade receivables are as follows:
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|
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Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
|
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|
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Payables to related parties
|
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|
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|
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|
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
|
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|
|
|
Other payables - tax and social security payments
|
|
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|
|
|
|
|
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|
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|
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Total trade and other payables
|
|
|
|
|
Less: current portion - trade payables
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|
|
|
Less: current portion - payables to related parties
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Less: current portion - other payables
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|
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Less: current portion - accruals
|
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Less: current portion - deferred income
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|
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Payments received on account
|
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|
|
|
|
|
|
Total non-current position
|
|
|
|
|
The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.
|
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
|
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|
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The book value and fair value of lease liabilities are as follows:
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|
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|
|
|
|
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|
|
|
Total loans and borrowings
|
|
|
|
|
|
|
The carrying value of lease liabilities classified as financial liabilities measured at amortised cost approximates fair value.
The lease liabilities are secured against the assets to which they relate. Further information regarding lease liabilities is disclosed in note 20.
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|
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Ordinary shares of £1.00 each
|
|
|
|
|
|
|
Deferred shares of £1.00 each
|
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|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares of £1.00 each
|
|
|
|
|
|
|
At 1 January and 31 December
|
|
|
|
|
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
18.Share capital (continued)
|
|
Deferred shares of £1.00 each
|
|
|
|
|
|
|
At 1 January and 31 December
|
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|
|
|
|
|
All Ordinary shares have equal voting rights.
|
Retained earnings
The retained earnings account includes all accumulated retained profits, net of dividends.
|
|
|
|
|
The Company leases a number of vehicles, these leases comprise only fixed payments over the lease term.
|
|
|
Lease liabilities are due as follows:
|
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|
|
|
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|
|
|
Contractual undiscounted cash flows due
|
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|
Between one year and five years
|
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|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities included in the Statement of Financial Position at 31 December
|
|
|
|
|
The following amounts in respect of leases have been recognised in profit or loss:
|
|
|
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|
|
|
|
|
|
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|
|
|
|
|
|
Interest expense on lease liabilities
|
|
|
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
|
|
|
Financial instruments - fair values and risk management
|
|
|
|
21.1 Accounting classifications and fair values
|
|
|
|
The Company holds no derivative financial instruments to either hedge, trade or speculate.
Fair value of financial assets and liabilities
There are no significant differences between the fair values and book values of financial assets and liabilities.
The principal methods and assumptions used in estimating the fair values of financial instruments are as follows:
(a) Interest-bearing loans and borrowings
Fair value is calculated based on discounted expected future principal and interest cash flows.
(b) Trade and other receivables/payables
For receivables/payables with a remaining life of less than one year, the notional amount is deemed to reflect the fair value. All other receivables/payables are discounted to determine the fair value.
|
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|
|
The following table shows the carrying amounts and fair values of financial assets and financial liabilities. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
|
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|
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Financial assets measured at fair value
|
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|
|
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Trade and other receivables
|
|
|
|
|
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Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
21.Financial instruments - fair values and risk management (continued)
|
|
21.1 Accounting classifications and fair values (continued)
|
|
|
Financial assets measured at fair value
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
21.2 Financial risk management objectives
|
The board's policy is to maintain a strong capital base so as to maintain shareholder, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors the return of capital, which the Company defines as total shareholders' equity and the level of dividends to ordinary shareholders.
There were no changes in the Company's approach to capital management during the year.
The Company is not subject to externally imposed capital requirements.
Market risk is the risk that changes in the market prices such as foreign exchange rates and interest rates will affect the Company's income. Management considers foreign exchange rate fluctuations to be the primary risk, management of which is discussed below.
|
|
21.4 Foreign currency risk management
|
|
|
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
|
|
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
21.Financial instruments - fair values and risk management (continued)
|
|
21.4 Foreign currency risk management (continued)
|
|
|
Foreign currency sensitivity analysis
|
|
|
The Company is mainly exposed to the Euro.
The following table details the Company's sensitivity to a 10% increase and decrease in the pound sterling against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Company where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in profit or equity where the pound sterling strengthens 10% against the relevant currency. For a 10% weakening of the pound sterling against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.5 Credit risk management
|
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations and arises principally from the Company's receivables from customers.
The exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain limit. The Company does not require collateral in respect of financial assets.
At the reporting date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.
The contractual maturity of financial liabilities has not been disclosed as it is not material.
|
|
21.6 Liquidity risk management
|
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company is part of a cash pooling arrangement with Krones AG, and cash resources are largely and normally generated through operations.
At 31 December 2025, the Company had cash and cash equivalents of £3,340,000 (2024: £3,428,000).
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
|
|
Related party transactions
|
Details of transactions between the Company and its related parties are disclosed below.
|
|
22.1 Other related party transactions
|
|
|
Other related party transactions are as follows:
|
|
|
Related party relationship
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with Krones AG, the parent company, and other members of the Krones AG group, are detailed above.
|
Krones AG is the immediate parent undertaking and the ultimate controlling party. The largest and smallest group in which the results of the company are consolidated is that headed by Krones AG. The consolidated financial statements of this company are available to the public and may be obtained from Krones AG, Bohmerwaldstrasse 5, 93703 Neutraubling, Germany.
|
|
Notes supporting statement of cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at bank available on demand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents in the statement of financial position
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents in the statement of cash flows
|
|
|
|
|
Krones UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2025
|
|
|
|
|
|
|
Capital comprises share capital and retained earnings. The Company's objective when maintaining capital is to safeguard the Company's ability to continue as a going concern and so that it can provide returns to the shareholder and benefits for other stakeholders.
The Company sets the amount of capital it requires in proportion to risk. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain the capital structure, the Company may adjust the amount of dividends paid to the shareholder, return capital to the shareholder or issue new shares.
Net debt is calculated as total debt less cash and cash equivalents.
|
|
|
The Company is not subject to any externally imposed capital requirements.
|
|
|
The gearing ratios at 31 December 2025 and 31 December 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to total equity ratio
|
|
|
|