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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
CONTENTS
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
COMPANY INFORMATION
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their strategic report on the company for the year ended 31 March 2025.
The principal activity of the company is to act as an intermediate holding company in Europe.
The company has four subsidiary undertakings (below referred to collectively as “Group"): Stanley Electric (U.K.) Company Limited (referred as SEU), Stanley Electric GmbH (referred as SED), Stanley Electric Hungary KFT (referred as SEH) and Stanley Idess S.A.S (referred as SID). The principal activities of SED and SEU include the purchase and sale of lighting products primarily automotive lighting, light emitting diodes, liquid crystal displays, sub miniature lamps and applied electronic products. The principal activities of SID include the purchase and sale of light emitting diodes, liquid crystal displays and sub miniature lamps. The principal activity of SEH is the production of lighting products primarily automotive lighting such as headlamps and rear combination lamps. In addition, the company conducts quarterly audits of its subsidiaries and works to enhance internal control within the group. This includes auditing, supervising and advising the directors of each subsidiary on the execution of their duties; auditing and advising on the effectiveness of internal controls over accounting and finance, and; auditing the status of compliance with laws and regulations (compliance) relating to business management.
The company has an ultimate parent in Japan, Stanley Electric Co., Ltd. which heads the global Stanley Group.
Business review
The result for the company shows a profit for the financial year of €1,358,355 (2024: €8,952,597). This profit was attributed to the increase in dividend income due to pooling excess subsidiary funds for future investments.
The company had administrative expenses of €430,032 (2024: €476,371). This decrease is due to the difference in the VAT expenses between the actual and the provisional amount in FY2024.
The loan receivable balance stood at €15,000,000 in 2025 (2024: €7,000,000). This increase of €8,000,000 resulted from a loan made to a group company
Net assets increased to €33,539,281 in 2025 from €32,180,926 in 2024. This growth was driven by the company's profit for the financial year, which amounted to €1,358,355 (2024: €8,952,597). Although the company was profitable, the profit for 2025 was lower than in the prior year. This reduction in profit was primarily due to decreased dividend income, a consequence of a strategic decision to pool excess subsidiary funds for future group investments in FY2024.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Principal risks and uncertainties
The company’s operations expose it to a variety of financial risks that include credit risk, liquidity risk, interest
rate risk and exchange rate risk. The environment surrounding the subsidiaries is subject to various risks,
including rapid fluctuations in automobile production plans due to the shortage of semiconductors, prolonged
high raw material prices and the impact of the Russian invasion of Ukraine. We will conduct our business
operations in full consideration of these risks.
Credit risk: When lending funds to a subsidiary, the company obtains an accurate picture of the state of its
financial health and confirms a repayment schedule. Approval follows full deliberation by the Board of Directors
at the company's parent.
Liquidity risk: The company has an adequate balance of cash and equivalents to cover the business operations.
Interest rate risk: The company has material interest-bearing assets. Its profits and operating cash flow are
materially linked to fluctuations in market interest rates. The interest on loans paid to the company by its
subsidiaries and the interest paid by the company to the parent both are set in according with market rates, and
are therefore hedged.
Exchange rate risk: The company has dealings in foreign currency for foreign exchange payments and keeps its
Capital in Euros. Most transactions are undertaken in Euros and exchange rate risk is minimized.
Impairment risk: The company reviews the performance of subsidiaries on a monthly basis to check for any
signs of impairment. As there were signs of impairment this year, an impairment assessment was carried out.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
When assessing impairment of investments in subsidiary undertakings, management considers factors including
the expected future profitability, their underlying net assets and historical experience. After evaluation, an
impairment loss of €778,911 was recognised for SID.
Section 172(1) statement
The Board of Directors, in line with their duties under Section 172 of the Companies Act 2006, act in a way they
consider, in good faith, would be most likely to promote the success of the company for the benefit of its
members as a whole, and in doing so have regard to a range of matters when making decisions for the long
term.
Stakeholder engagement
The directors have considered the views and interests of a wide range of stakeholders, including our employees,
customers, suppliers and the wider environment and community. Considering and balancing this broad range of
viewpoints is important to the directors' decision-making process, to promote the long-term success of the
business.
The directors consider and discuss information from across the organisation to help them understand the impact
of the company's strategies and operations. They also review strategy, operational and financial performance, as
well as information covering areas such as key risks and legal and regulatory compliance. As a result, the
directors consider the governance, employee satisfaction and customer satisfaction of the company to be well
managed and handled appropriately.
Our key stakeholders, and the ways in which we engage with them are as follows:
Our employees
We respect the character and individuality of all people, and provide a safe, pleasant workplace in which our
employees can fully demonstrate their individuality and abilities.
- Establishment of sound workplace environments
(labor-management relations, safety and disaster prevention, whistle-blowing system, employee health
promotion)
- Human resources development
(HRD plans, skills development system, evaluation system, interaction with educational
institutions)
Customers
We strive to deliver products that are fully conscious of quality, safety, and environmental protection. We also
strive to respond appropriately and in good faith to inquiries, requests, and complaints from our customers.
Suppliers We open our doors widely to offer equality of trading opportunities. We select our partners according to fair and
reasonable criteria based on factors such as quality, price, delivery times, safety, and environment.
We also aim for mutual prosperity through our trading relationships with our suppliers, we strive to maintain and
strengthen long-term growth and competitiveness based on trust and cooperation.
International and local communities
As a member of a global company, we comply with the rules of the international community and have a code for
making contributions to the growth and development of various countries while striving for harmony with their
cultures and customs. We are engaged in active social responsibility initiatives under this code.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board and signed on its behalf.
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STANLEY ELECTRIC HOLDING EUROPE CO 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:
In order to expand the functions as the European Holding Company, we will enhance compliance and governance functions within Europe. The company staff are knowledgeable about the legal and taxation systems of each country and provide appropriate advice to each company in Europe, and put in place business risk prevention measures.
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 has net assets of €33,539,280 as at 31 March 2025. The company has considerable net assets including cash and equivalents significantly in excess of liabilities. The Directors have continued to ensure that the company has sufficient liquid assets to cover expenses for at least the coming 12 months, even if no dividend income is received from the subsidiaries.
The profit for the year, after taxation, amounted to €1,358,355 (2024 - €8,952,597).
No dividend has been proposed by the directors for the financial year ending 31st March 2025 (2024: Nil).
The Principal Risks and Uncertainties section of the Strategic Report outlines how the company manages financial risk and which risks it is exposed to.
Details of how the company engages with suppliers, customers, employees and others are set out in the Strategic Report within Section 172(1) Statement and form part of this report by cross reference.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The company follows the Environmental Policies detailed by its ultimate parent company in Japan.
There are detailed as follows with respect to the Stanley Group:
In our corporate activities, which primarily consist of our businesses for automotive devices, components, and applied electronics products, Stanley Group will follow our Basic Environmental Philosophy, with each member of our company aware of his or her roles and responsibilities regarding our efforts for environmental protection.
∙Throughout the lifecycle of our business operations, products and services, we set environmental targets and promote environmental protection that includes preventing contamination, mitigating climate change, and making use of sustainable resources globally.
∙In addition to observing the environmental laws and regulations of each country and region, as well as other environmental agreements we conclude with other parties, when necessary we undertake management by setting voluntary standards of our own on the basis of those regulations and agreements.
∙We make continuous improvements to our environmental management systems in order to improve our environmental performance.
∙We communicate our Basic Environmental Philosophy and Environmental Policies to all the persons working for Stanley Group, and we also gain the understanding and cooperation of our suppliers through informational efforts.
∙We make our Basic Environmental Philosophy and Environmental Policies accessible to the general public, and we report the progress of our environmental activities in order to increase communication with the local community, when requested.
∙We actively participate in the environmental conservation activities of the local communities in collaboration with governmental agencies or other local or affiliated organizations.
The Streamlined Energy and Carbon Reporting (SECR) scheme was implemented in April 2019, replacing the Carbon Reduction Commitment (CRC) scheme. SECR requires qualifying organizations to disclose energy usage and carbon emissions in their financial accounts annually. Although our company does not currently meet the 40,000 kWh threshold, we carefully monitor our energy consumption and carbon emissions as part of our commitment to environmental responsibility. We will continue to assess any changes in regulations or thresholds that may impact our reporting requirements in the future, maintaining our dedication to sustainable practices.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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 HOLDING EUROPE CO 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.
The directors are 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 HOLDING EUROPE CO LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
FOR THE YEAR ENDED 31 MARCH 2025
We have audited the financial statements of Stanley Electric Holding Europe Co 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 HOLDING EUROPE CO LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC HOLDING EUROPE CO 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 HOLDING EUROPE CO LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC HOLDING EUROPE CO 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 of the computer component manufacturing and supply sector;
∙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, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety 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, relevant regulators including the Health and Safety Executive, and the company’s legal advisors
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.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STANLEY ELECTRIC HOLDING EUROPE CO LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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.
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.
Chartered Accountants
16 Great Queen Street
Covent Garden
WC2B 5AH
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
BALANCE SHEET
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 30 form part of these financial statements.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The company is a private company limited by share capital and is incorporated in England and Wales and domiciled in the UK. The address of its registered office is Greenwood House, London Road, Bracknell, Berkshire, England, RG12 2UB.
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
There are no amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 31 March 2025 that have a material impact on the company’s financial statements.
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 has net assets of €33,539,280 as at 31 March 2025. The company has considerable net assets including cash and equivalents significantly in excess of liabilities. The Directors have continued to ensure that the company has sufficient liquid assets to cover expenses for at least the coming 12 months, even if no dividend income is received from the subsidiaries.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Investments in subsidiary undertakings are held at cost less accumulated impairment losses.
Functional and presentation currency
Transactions and balances
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
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.
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STANLEY ELECTRIC HOLDING EUROPE CO 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.
Called up share capital represents the nominal value of shares that have been issued. All transactions with owners of the parent are recorded separately within equity.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The company leases various offices, houses, 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.
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.
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.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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.
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.
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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 HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
11.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 HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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STANLEY ELECTRIC HOLDING EUROPE CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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