REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2021 |
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Heatrod Elements Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2021 |
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for |
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Heatrod Elements Limited |
Heatrod Elements Limited (Registered number: 00766637) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 5 |
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Statement of Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Notes to the Financial Statements | 12 |
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Heatrod Elements Limited |
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Company Information |
for the Year Ended 31 December 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants & |
Statutory Auditors |
Sterling House |
1 Sheepscar Court |
Meanwood Road |
Leeds |
West Yorkshire |
LS7 2BB |
Heatrod Elements Limited (Registered number: 00766637) |
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Strategic Report |
for the Year Ended 31 December 2021 |
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The directors present their strategic report for the year ended 31 December 2021. |
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Principal activity |
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Heatrod Elements Ltd is a electrical elements and heating solutions manufacturer. |
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PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
2021 Sales for Heatrod Elements Ltd were up 18.3% on 2020 driven by increased activity in our domestic market. The company has generated a 2021 profit of £373,438 (2020 a loss of £93,074). |
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The COVID-19 pandemic has caused delays in international shipping and staffing shortages, long term forecasting and monitoring staffing levels has been high priority to ensure risk mitigation in these areas. |
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SUBSEQUENT EVENTS AND FUTURE DEVELOPMENTS |
The business’ strategy is to increase production efficiency and grow key market areas, by providing cost effective products and innovative product development. |
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KEY FINANCIAL PERFORMANCE INDICATORS |
Revenue by employee in 2021 was £124,444 (2020, £101,351) |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company’s operations expose it to a variety of financial risks including the effects of changes in foreign currency exchange rates, interest rates on debt, credit risk and liquidity risk. |
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Ongoing supply chain and international pricing issues are actively monitored to ensure adequate stocking levels are available, and best pricing is available to customers by securing forward raw material prices where possible. |
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FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
o Credit risk |
o Exchange rate risk |
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The companies credit risk is largely attributable to its trade receivables. This risk is managed by applying suitable credit limits to customers as recommended by external credit rating agencies. Customers are constantly monitored to limit exposure. The policy is to ensure adequate risk management of customers and prevent significant exposure. |
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Exchange risk is managed by constant review of the market exchange rates and mitigating the effects of adverse currency movements through the timing of buying and selling currencies, the companies main currencies are GBP, EUR, HKD. |
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ON BEHALF OF THE BOARD: |
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Heatrod Elements Limited (Registered number: 00766637) |
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Report of the Directors |
for the Year Ended 31 December 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2021. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
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Other changes in directors holding office are as follows: |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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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 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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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Heatrod Elements Limited (Registered number: 00766637) |
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Report of the Directors |
for the Year Ended 31 December 2021 |
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AUDITORS |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Heatrod Elements Limited |
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Opinion |
We have audited the financial statements of Heatrod Elements Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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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. |
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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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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Heatrod Elements Limited |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
Report of the Independent Auditors to the Members of |
Heatrod Elements Limited |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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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. |
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Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- 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 heating 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 and health and safety legislation; |
- we assessed the extent of compliance with 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 |
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We assessed the susceptibility of the company's financial statements to 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; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- understanding the design of the company's remuneration policies. |
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To address the risk of fraud through management bias and override of controls, including the impact on revenue recognition, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- used data analytics software to test 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. |
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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 disclosure to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
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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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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 |
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Report of the Independent Auditors to the Members of |
Heatrod Elements Limited |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Chartered Accountants & |
Statutory Auditors |
Sterling House |
1 Sheepscar Court |
Meanwood Road |
Leeds |
West Yorkshire |
LS7 2BB |
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Heatrod Elements Limited (Registered number: 00766637) |
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Statement of Comprehensive Income |
for the Year Ended 31 December 2021 |
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31/12/21 | 31/12/20 |
as restated |
Notes | £ | £ | £ | £ |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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2,149,481 | 2,250,539 |
301,176 | (264,183 | ) |
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Other operating income |
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OPERATING PROFIT/(LOSS) | 7 |
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Interest payable and similar expenses | 8 |
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PROFIT/(LOSS) BEFORE TAXATION |
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Tax on profit/(loss) | 9 | ( |
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PROFIT/(LOSS) FOR THE FINANCIAL
YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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Heatrod Elements Limited (Registered number: 00766637) |
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Balance Sheet |
31 December 2021 |
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31/12/21 | 31/12/20 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
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Tangible assets | 12 |
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Investments | 13 |
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CURRENT ASSETS |
Stocks | 14 |
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Debtors | 15 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 16 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
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17 |
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PROVISIONS FOR LIABILITIES | 20 | ( |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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Retained earnings | 22 | ( |
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SHAREHOLDERS' FUNDS | ( |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Heatrod Elements Limited (Registered number: 00766637) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2020 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2021 |
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Heatrod Elements Limited (Registered number: 00766637) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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Heatrod Elements Limited is a
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
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the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b)
and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
• | the requirement of paragraph 33.7; |
• | the requirements of paragraph 24(b) of IFRS 6. |
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This information is included in the consolidated statements of NIBE INdustrier AB as at 31 December 2021 and these financial statements may be obtained from Nibe Industrier AB, Hannabadsvagen 5, Markaryd, Sweden (visitors address), Box 14, SE 285 21, Markaryd, Sweden (postal address). |
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Exemption from preparing consolidated financial statements |
The Company is a parent Company that is also a subsidiary included in the consolidated financial statements of its immediate parent undertaking established under the law of an EEA state and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006. |
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Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. Those forecasts are dependent on the continued provision of facilities and support from Backer AB. As with any Company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so and therefore do not consider there is a material uncertainty. |
Heatrod Elements Limited (Registered number: 00766637) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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The whole of the turnover is attributable to the Company's principal activity being sales of electric heating components and finished products. |
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Revenue is recognised to the extent that ist is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
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Sale of goods: |
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Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of ownership to the buyer, |
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, |
- the amount of revenue can be measured reliably, |
- it is probable that the Company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
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Goodwill |
Goodwill represents the excess of the cost of a business combination over the total acquisition date fair value of the identifiable assets, liabilities and contingent liabilities acquired. |
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Cost comprises the fair value of assets given, liabilities assumed and equity instruments issued. |
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When a business combination agreement provides for an adjustment to the cost of the combination which is contingent on future events, the Company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can measured reliably. However, if the potential adjustment is not recognised at the acquisition date but subsequently becomes probable and can be measured reliably, the additional consideration shall be treated as an adjustment to the cost of the combination. Changes in the estimated value of the contingent consideration arising on business combinations completed as a consequence result in a change in the carrying value of the related goodwill. |
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The estimated useful lives range as follows: |
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Goodwill - 10% straight line |
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Intangible assets |
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the assets is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
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Intangible assets are considered to have a finite useful life of 7 years. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
Heatrod Elements Limited (Registered number: 00766637) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Short leasehold | - |
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Plant and machinery | - |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currency translation |
Functional and presentation currency |
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The Company's functional and presentational currency is GBP. |
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Transactions and balances |
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Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
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At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account. |
Heatrod Elements Limited (Registered number: 00766637) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Operating leases |
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense. |
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Finance leases |
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each year during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
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Defined contribution pension plan |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions in a separate entity. Once the contributions have been paid the Company has not further payment obligations. |
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The contribution are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds. |
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Provisions for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
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Provisions are charged as an expense of the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
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When payments are eventually made, they are charged to the provision carried in the Balance sheet. |
Heatrod Elements Limited (Registered number: 00766637) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
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Financial assets are 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 Statement of comprehensive income. |
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For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a 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. |
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For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. |
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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. |
|
Debtors |
Short term debtors are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
|
Cash and cash equivalents |
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice or not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from he date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
|
Creditors |
|
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
|
Employee benefits |
|
Short-term employee benefits and contributions to defined contribution plans are recognised as an |
expense in the period in which they are incurred. |
|
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the |
balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date. |
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
4. | TURNOVER |
|
The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
|
|
|
|
|
|
An analysis of turnover by geographical market is given below: |
|
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
Rest of World | 246,797 | 145,694 |
|
|
|
5. | EMPLOYEES AND DIRECTORS |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31/12/21 | 31/12/20 |
as | restated |
|
Administration | 21 | 22 |
Production | 24 | 25 |
Selling and distribution | 8 | 8 |
|
|
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
6. | DIRECTORS' REMUNERATION |
|
2021 | 2020 |
£ | £ |
Directors' emoluments | 116,960 | 119,000 |
Company contributions to defined contribution pension scheme | 30,457 | 11,900 |
147,417 | 130,900 |
|
7. | OPERATING PROFIT/(LOSS) |
|
The operating profit (2020 - operating loss) is stated after charging: |
|
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Goodwill amortisation |
|
|
Patents and licences amortisation |
|
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
|
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Bank interest |
|
|
|
9. | TAXATION |
|
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
|
Tax on profit/(loss) | ( |
) |
|
|
UK corporation tax has been charged at 19% (2020 - 19%). |
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
9. | TAXATION - continued |
|
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Profit/(loss) before tax |
|
( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of |
|
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
|
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Total tax credit | (5,033 | ) | - |
|
Factors that may affect future tax charges |
|
Deferred tax |
|
The Company has unused tax losses of approximately £7,121,419 (2020: £7,575,934) available to carry forward against future trading profits. A potential deferred tax asset of £1,355,897, relating to tax losses, has not been recognised in these financial statements due to uncertainty as to its recoverability. |
|
10. | PRIOR YEAR ADJUSTMENT |
|
The 2021 figures have been restated due to costs being categorised as distribution which were actually cost of sales. There was no impact on reported profit for the prior year or the closing reserves. |
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
11. | INTANGIBLE FIXED ASSETS |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
|
|
|
Reclassification/transfer |
|
|
|
At 31 December 2021 |
|
|
|
AMORTISATION |
At 1 January 2021 |
|
|
|
Amortisation for year |
|
|
|
At 31 December 2021 |
|
|
|
NET BOOK VALUE |
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
|
12. | TANGIBLE FIXED ASSETS |
Short | Plant and |
leasehold | machinery | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
|
|
|
Additions |
|
|
|
Reclassification/transfer | ( |
) |
|
|
At 31 December 2021 |
|
|
|
DEPRECIATION |
At 1 January 2021 |
|
|
|
Charge for year |
|
|
|
Reclassification/transfer | ( |
) |
|
|
At 31 December 2021 |
|
|
|
NET BOOK VALUE |
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
13. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2021 |
|
Additions |
|
Reclassification/transfer | ( |
) |
At 31 December 2021 |
|
NET BOOK VALUE |
At 31 December 2021 |
|
At 31 December 2020 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: Royds Withy King, 69, Carter Lane, London, England, EC4V 5EQ |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
100% of Graybar Limited was acquired on 26th January 2021 for total consideration of £1,650,326 |
|
|
Registered office: Royds Withy King 69, Carter Lane, London, England, EC4V 5EQ |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
14. | STOCKS |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Raw materials |
|
|
Work-in-progress |
|
|
Finished goods |
|
|
|
|
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
|
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Bank loans and overdrafts (see note 18) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
VAT | 183,496 | 175,035 |
Accruals and deferred income |
|
|
|
|
|
17. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Bank loans (see note 18) |
|
|
Other loans (see note 18) |
|
|
|
|
|
18. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
Other loans - 2-5 years |
|
|
|
|
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
18. | LOANS - continued |
|
The loans are secured against the assets of the company. |
|
19. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
20. | PROVISIONS FOR LIABILITIES |
31/12/21 | 31/12/20 |
as | restated |
£ | £ |
Other provisions |
Warranty provision | 10,000 | - |
|
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2021 | ( |
) |
|
Provided during year |
|
|
Balance at 31 December 2021 | ( |
) |
|
|
21. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/21 | 31/12/20 |
value: |
as
restated |
£ | £ |
|
Ordinary | 1 | 50,000 | 50,000 |
|
22. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2021 | ( |
) |
Profit for the year |
|
At 31 December 2021 | ( |
) |
Heatrod Elements Limited (Registered number: 00766637) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
23. | RELATED PARTY DISCLOSURES |
|
The key management personnel compensation for the period is £188,247 (2020: £157,591). |
|
24. | PENSION COMMITMENTS |
|
The Company operates a defined contribution pension plan. |
|
The total expense relating to this plan in the current year was £82,290 (2020: £21,668) |
|
25. | CONTROLLING PARTY |
|
The Company is a subsidiary undertaking of Backer AB. The ultimate controlling party is Nibe Industrier AB. |
|
The largest an smallest group in which the results of the Company are consolidated is that headed by Nibe Industrier AB. No other group financial statements include the results of the Company. The consolidated financial statements of these groups are available to the public and may be obtained from Nibe Industrier AB, Hannabadsvägen 5, Markaryd, Sweden (visitors address), Box 14, SE 285 21, Markaryd, Sweden (postal address). |
|
26. | RELATED PARTY TRANSACTIONS |
|
No transactions with related parties were undertaken such as are required to be disclosed under FRS 102. |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |