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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
CONTENTS
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
COMPANY INFORMATION
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their strategic report of Stanley Electric (U.K.) Company Limited ("the Company") for the year ended 31 March 2025.
The company is a sales company whose principal activity is the purchase and sale of bespoke lighting products, primarily automotive vehicle lighting, light emitting diodes, sub miniature lamps and lighting application products for many industries. The company operates as a multiple tiered supplier with the majority of its sales as Tier 1. Our revenue streams can span the globe and are generated from our own efforts and from collaborations with sister companies within the group.
Review of the business
The majority of the company's revenue and the key foundation of our business were generated from its sales of products to the automotive industry which typically delivers significant turnovers over a substantial period of time. The balance of our revenue is related to our product sales to the manufacturers of industrial and consumer electronic products. New and unique UV products with many applications but particularly utilised for sanitation and hygiene, are now being sold and developed.
This fiscal year remained impacted by the unprecedented cancellation in 2023 of 2 major automotive OEM projects very soon before their expected production start. By their very nature, the development of automotive vehicle projects can take up to 3 years from contract award until the start of the new vehicle production and consequently, the start of the revenue generation for our company. Therefore, the gap left in our business portfolio by the cancellation within a year before they were due to begin production, could not be directly and immediately replaced. However, we were successful in securing a major automotive contract, greater in value than the cancelled contracts but which will not begin to deliver revenue until the medium-term future.
The extraordinary and long-lasting effects of the pandemic, the international conflicts and electronics component shortages have increased costs overall. However, the company has maintained its strict focus on its cost management but also took successful actions to receive permanent compensation from its customers.
The company maintains a strong presence in the market and retains a strong cash position. A newly developed and unique product range of now contracted sanitisation applications started to show the green shoots of what we anticipate will be a significant contributor to our sales for the next fiscal year and beyond.
These sales successes complimented with business development efficiency initiatives, affords the company the foundations to progress its sales revenue with new and existing customers and is therefore able to sustain its future as a going concern.
Key Performance Indicators
Sales: €3.2 million (a 49.8% decrease compared to the previous financial year).
Profit for the financial year: €0.671 million.
The position of business remains strong with net assets of €2.91 million (2024: €2.28 million).
Principal risks and uncertainties
Going concern risk
The company's cash position is secure and it can cover its expenses for the foreseeable future. Neither the company nor the group holds assets or liabilities in either Russia or Ukraine and the directors do not anticipate any significant impact on the business in the foreseeable future.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Sales price risk
Price risk is minimised through entering into long term pricing arrangements with major customers. Purchases, are made solely from the group's parent, group undertakings and strategically aligned partners, and are also subject to long term purchasing strategies.
Liquidity and cash flow risk
Liquidity and cash flow risks are managed by the matching of the payment terms between our customers and our suppliers.
Exchange rate risk
The vast majority of the company's sales and purchases are denominated in identical currencies which provide a natural hedge against foreign exchange risk to our income. The exchange rate impact is predominantly against our locally incurred expenses.
Credit risk
The company maintains procedures for checking our customers credit rating using a reputable service company. The credit ratings are refreshed at least on an annual basis but can be done on an ad-hoc basis depending upon flags raised by our monthly transactional monitors. We detected no major risks in the fiscal year.
Interest rate risk
The company has not received any loans from nor provided any loans to any entity. Interest rate on any lease lssets are stable, constant and implicit in the terms of the lease.
Russia/Ukraine War risk
The Russian invasion of Ukraine, on its own, had no discernible impact to our business during the fiscal year. Our company will continue to monitor the situation, but our studies showed that we still do not have any products sourced from either of these two countries.
This report was approved by the board and signed on its behalf.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors who served during the year were:
On 1 April 2025, T Uesugi was appointed as a director of the company.
The company's profit for the financial year ended 31 March 2025 amounted to €671,975 (in respect of the year ended 31 March 2024: profit of €174,247).
The company is committed to a policy of research and development and its investment in such activities in order to maintain and promote its position for its products. The company outsources the activities to its parent company whilst taking the cost of them. Such costs are typically recorded as an expense.
New product developments in our Electronics Division continue to allow us to penetrate new markets with new customers. New major sales revenue projects from the automotive industry were successfully converted into orders with goods to be supplied in the near to medium term. These projects will provide i) replacement of the revenues and income of cancelled projects and ii) incremental revenue and income.
Whilst the reduction of revenues and result in the financial year to 31 March 2025 were disappointing, the company's management took steps to mitigate the negative impact. The re-focussing of our initiatives and efficiencies continued during the financial year to 31 March 2025 and the company aims to deliver a significant improvement in the financial year ending 31 March 2026.
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 the going concern basis. The company still maintains a substantial unrestricted cash on hand balance and are confident the company remain well placed to withstand a protracted period of fluctuating sales activity should this occur. As such the directors are confident that the company will continue to operate as a going concern for at least the next twelve-month period.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The company's operations expose it to a variety of financial risks that include sales price risk, credit risk, exchange rate risk, interest rate risk, liquidity and cash flow risk and impairment risk. The policies set by the board of directors of the parent company are implemented by the company. The company has a policy and procedures manual that set out specific guidelines to manage credit risk, interest rate risk and circumstances where it would be appropriate to use financial instruments to manage these.
The principal risks and uncertainties section of the Strategic Report outlines how the company manages these financial risks. Sales price risk Price risk is minimised through entering into long term pricing arrangements with major customers. Purchases are made solely from the group's parent, group undertakings and strategically aligned partners, and are also subject to long-term purchasing strategies. Liquidity and cash flow risk Liquidity and cash flow risks are managed by the matching of the payment terms between our customers and our suppliers.
The company’s auditor, Greenback Alan LLP, ceased to operate as a registered auditor on 31 March 2025 and its business was transferred to Blick Rothenberg. Accordingly the company appointed Blick Rothenberg Audit LLP as its auditor 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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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
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 101 ‘Reduced Disclosure Framework’. 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 and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC (U.K.) COMPANY LIMITED
FOR THE YEAR ENDED 31 MARCH 2025
We have audited the financial statements of Stanley Electric (U.K.) Company Limited (the 'company') for the year ended 31 March 2025, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
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's 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.
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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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC (U.K.) COMPANY LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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.
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.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC (U.K.) COMPANY LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested a sample of journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HM Revenue and Customs.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC (U.K.) COMPANY LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 auditor's 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
BALANCE SHEET
AS AT 31 MARCH 2025
The company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 30 form part of these financial statements.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The company is a private company limited by share capital incorporated in the United Kingdom and domiciled in the England and Wales. The address of its registered office is Greenwood House, London Road, Bracknell, Berkshire, RG12 2UB.
The financial statements have been prepared under the historical cost convention and in accordance with the Companies Act 2006. These financial statements are presented in Euro ("€"). The exchange rate at the balance sheet date was £1 = € 1.195 (2024: £1 = € 1.168).
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
- paragraph 118(e) of IAS 38 Intangible Assets;
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of Stanley Electric Co., Ltd as at 31 March 2025 and these financial statements may be obtained from Stanley Electric Co., Ltd., 2-9-13 Nakameguro, Meguro-Ku, Tokyo, 153-8636, Japan.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concem, disclosing as applicable, matters related to the going concern basis. The company still maintains a substantial unrestricted cash on hand balance and are confident the company remain well placed to withstand a protracted period of fluctuating sales activity should this occur.
The financial position and cash requirements of the company concluded that the company was solvent and would remain solvent following the final dividend declared.
As such the directors are confident that the company will continue to operate as a going concern for at least the next twelve month period.
Functional and presentation currency
Transactions and balances
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The company leases various properties, equipment and vehicles. Rental contracts are typically made for fixed periods but may have extension options. Contracts may contain both lease and non-lease components. The company allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
∙fixed payments (including in-substance fixed payments), less any lease incentives receivable;
∙variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date;
∙amounts expected to be payable by the company under residual value guarantees;
∙the exercise price of a purchase option if the company is reasonably certain to exercise that
option; and
∙payments of penalties for terminating the lease, if the lease term reflects the company exercising that option.
Right-of-use assets are measured at cost comprising the following:
∙the amount of the initial measurement of lease liability;
∙any lease payments made at or before the commencement date less any lease incentives received;
∙any initial direct costs; and
∙restoration costs.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
Right-of-use assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. Forthe purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years. 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 arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. 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.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
The company’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of assets. Due to operating losses occurring in the prior periods and the current period, the company estimated the recoverable amount of assets. The recoverable amount was estimated by value in use and estimating the value in use of assets involved the following steps:
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
3.Judgments in applying accounting policies (continued)
Revenue recognised in the profit or loss is analysed as follows :
Analysis of turnover by country of destination:
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
10.Taxation (continued)
In December 2021, the OECD released a framework for Pillar Two Model Rules, which will introduce a
global minimum corporate tax rate of 15% applicable to multinational enterprise groups with global revenue over €750 million. The legislation implementing the rules in the UK was substantively enacted on 20 June 2023 and will apply to the company from this financial year onwards. The company continues to review this legislation and monitor developments. We do not expect that the 15% global minimum tax rate would affect materially the amount of tax the company pays. The company has applied the temporary exception under IAS 12 in relation to the accounting for deferred taxes arising from the implementation of the Pillar Two rules.
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC (U.K.) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The immediate parent undertaking is Stanley Electric Holding Europe Co., Limited, a company incorporated in the United Kingdom. The ultimate parent undertaking and controlling party is Stanley Electric Co., Limited, a company incorporated in Japan.
Stanley Electric Co., Limited is the parent undertaking of the largest and smallest group of undertakings to consolidate these financial statements at 31 March 2024. The consolidated financial statements of Stanley Electric Co., Limited. are available from Stanley Electric Co., Ltd., 2-9-13 Nakameguro, Meguro-Ku, Tokyo, 153-8636, Japan
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