ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

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Registered number: 02305071

VIESSMANN LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

VIESSMANN LIMITED

COMPANY INFORMATION

Directors	Graham Russell
	Thomas Heim


Company secretary	James Sage


Registered number	02305071


Registered office	Hortonwood 30
	Telford
	TF1 7YP


Independent auditors	WR Partners
	Chartered Accountants & Statutory Auditors
	Belmont House
	Shrewsbury Business Park
	Shrewsbury
	Shropshire
	SY2 6LG

VIESSMANN LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 7
Independent auditors' report	8 - 11
Statement of comprehensive income	12
Statement of financial position	13
Statement of changes in equity	14
Statement of cash flows	15
Analysis of net debt	16
Notes to the financial statements	17 - 29

VIESSMANN LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction

The Directors present their report in respect of the financial statements for the year ended 31 December 2021.

Business review

During the year the Company saw stability in residential unit sales.
Continued market pressure in some product areas created challenging trading conditions.
The residential boiler market increased during the year (11.6%).
The sales for the year were at £39.7 million (2020: £42.0 million), a slight decrease of 5.5% mainly due to the separation of Ireland (EU) from the UK operation as a result of BREXIT (£4.3 million 2021- £3.4 Million 2020) meaning that the underlying growth of the UK business was 5%. Despite the turbulent market conditions, share gains were achieved by the Company in residential and light commercial sales volumes.
During the last quarter of 2021 the market started to experience quite severe supply chain bottlenecks.

Principal risks and uncertainties

The nature of the one-off market is that almost 100% of gas boilers in the able to pay sector are replaced as a 'distressed' purchase when the existing boiler is usually beyond economic repair and normally at very short notice. Consumer behaviour is such that the purchasing decision is made based on need rather than want.
This strongly indicates that regardless of any external factors, the demand for gas boilers is very robust and this resulted in the anticipated strong market recovery during 2021.
Despite a strong finish to 2021 and forecasted strong start to 2022, it is perceived that further supply chain bottlenecks will continue into 2022 and in combination with material cost increases will create a moderate risk of impact for 2022 turnover and profitability.

Financial key performance indicators

Currency has been broadly stable. There was an improvement in gross profit driven by a better product mix with more high margin commercial and renewable products sold during the year. The Company achieved a gross profit of 30% (2020 25%).

Other key performance indicators

Which? Best Buy status was regained during 2021 for brand reliability following continued focus and investment in very specific areas of the business to further improve service and fulfilment levels.
Delivery service level rates are still high, achieving 99.95%.
Trustpilot score maintains it’s excellent consumer rating of 4.4

Page 1

VIESSMANN LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

This report was approved by the board and signed on its behalf.

................................................

Graham Russell

Director

Date: 3 November 2022

Page 2

VIESSMANN LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Directors present their report and the financial statements for the year ended 31 December 2021.

Directors' responsibilities statement

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

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

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

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

∙make 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,733,396 (2020 - £1,789,816).

No dividends have been paid or recommended in the current or prior year.

Directors

The Directors who served during the year were:

Graham Russell

Thomas Heim

Future developments

Continued growth in key product areas and implementation of new strategies with new products should see volume growth and further profitability improvements.
The key driver for this will be the Net-zero 2050 legislation. This is accelerating the market growth of non-fossil fuel heat generators.

Page 3

VIESSMANN LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Engagement with suppliers, customers and others

The Directors consider, both individually and together, that they have acted in the 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 in the decisions taken during the year ended 31st December 2021.
Decision-making at the Board
All matters which are reserved for decision by the Directors are presented at Board meetings. Directors are briefed on any potential impacts and risks for our customers, employees and other stakeholders including our suppliers, the community and environment and how they are to be managed. The Directors take these factors into account before making a final decision which together they believe is in the best interests of the Company.
Stakeholders
Our key stakeholders are our employees, who are the heart of our purposes and work in service of our customers. We are focused on responding to the needs of, and building long-term relationships with, our customers. Other key stakeholders are the producers and suppliers from whom we purchase goods and services, and the communities in which we operate.
Long-term sustainability
We aim to make sufficient profits to sustain the Company’s commercial vitality. This is balanced against the needs of our customers, employees and other stakeholders and the community to ensure we are conducting all our business relationships with integrity. The long-term sustainability of the Company is at the forefront of decision-making, particularly in response to the challenging conditions in retail and the Coronavirus pandemic.
Employees
Our team members are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well-being of our team members is one of our primary considerations in the way we do business.
The Company supports its employees to ensure they understand the Company’s objectives and goals and how they can assist the delivery of this. The Company invests in high levels of employee engagement to enable us to retain, develop and acquire the talent required to continue to grow and remain successful. The Company’s policy is to consult and discuss with employees at meetings those most likely to affect employees’ interests. Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Company’s performance.
Staff training during the year centred on product and technology knowledge, sales & customer service excellence and enhanced IT security awareness, with continuing personal and professional development including departmental specific training.
Customers and suppliers
Engagement with suppliers and customers is key to our success. We work closely with our supply chain and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.
Customer research and feedback measures include Net promoter score measurement, feedback and satisfaction surveys and customer feedback via our sales area business managers and CRM tool.
Financial stakeholders
The Company seeks to make information available to financial stakeholders, including our relationship bank, as part of information provided about and by the Company.
Community and environment
The Company takes all reasonable steps to minimise any detrimental impact that its operations may have on the

Page 4

VIESSMANN LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

environment. Directors routinely assess the impact of the Company’s operations on the community and environment and wider social responsibilities, and in particular how we comply with environmental legislation and pursue waste-saving opportunities and react promptly to local community concerns.
As the Board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours. The intention is to nurture our reputation, through the delivery of our objectives, that reflects our responsible behaviour.
Business conduct
The Company aims to conduct all its business relationships with integrity and courtesy, and scrupulously to honour every business agreement.

Page 5

VIESSMANN LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Page 6

VIESSMANN LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Disclosure of information to auditors

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

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

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

Post balance sheet events

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

Auditors

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

This report was approved by the board and signed on its behalf.

................................................

Graham Russell

Director

Date: 3 November 2022

Page 7

VIESSMANN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIESSMANN LIMITED

Opinion

We have audited the financial statements of Viessmann limited (the 'Company') for the year ended 31 December 2021, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. 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).

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.

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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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.

Page 8

VIESSMANN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIESSMANN LIMITED (CONTINUED)

Other information

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of Directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 9

VIESSMANN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIESSMANN LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the
Company and determined that the most significant are those that relate to the reporting framework (FRS102 and
the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety
Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company is complying with these frameworks by making enquiries of management and
those responsible for legal and compliance procedures. We also reviewed board minutes to identify any
recorded instances of irregularity or non compliance that might have a material impact on the financial
statements.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how
fraud might occur by meeting with key management to understand where they considered there was
susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those
charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the
challenge of significant accounting estimates used in preparing the financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 10

VIESSMANN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF VIESSMANN LIMITED (CONTINUED)

Use of our report

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

Andrew Malpass BA FCA (Senior statutory auditor)

for and on behalf of

WR Partners

Chartered Accountants

Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

Date: 3 November 2022

Page 11

VIESSMANN LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2021

	2021	2020
Note	£	£


Turnover	4	39,693,304	41,977,256
Cost of sales		(27,624,365)	(31,658,279)
Gross profit		12,068,939	10,318,977
Distribution costs		(7,100,812)	(6,461,550)
Administrative expenses		(2,892,731)	(2,267,039)
Other operating income	5	-	193,562
Operating profit	6	2,075,396	1,783,950
Interest receivable and similar income	10	1,125	8,703
Interest payable and similar expenses	11	-	(13,612)
Profit before tax		2,076,521	1,779,041
Tax on profit	12	(343,125)	10,775
Profit for the financial year		1,733,396	1,789,816

There were no recognised gains and losses for 2021 or 2020 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 17 to 29 form part of these financial statements.

Page 12

VIESSMANN LIMITED

REGISTERED NUMBER: 02305071

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

		2021		2020
Note		£		£

Fixed assets
Tangible assets	13		1,657,924		1,613,097
			1,657,924		1,613,097
Current assets
Stocks	14	4,065,510		3,323,234
Debtors: amounts falling due within one year	15	5,356,829		6,544,149
Cash at bank and in hand	16	10,463,934		10,007,044
		19,886,273		19,874,427
Creditors: amounts falling due within one year	17	(10,181,244)		(11,857,967)
Net current assets			9,705,029		8,016,460
Total assets less current liabilities			11,362,953		9,629,557

Net assets			11,362,953		9,629,557

Capital and reserves
Called up share capital	18	236,517	236,517
Capital redemption reserve	19	7,292,281	7,292,281
Profit and loss account	19	3,834,155	2,100,759
		11,362,953	9,629,557

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 November 2022.

................................................

Graham Russell

Director

The notes on pages 17 to 29 form part of these financial statements.

Page 13

VIESSMANN LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2021

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2020	236,517	7,292,281	310,943	7,839,741
Comprehensive income for the year
Profit for the year	-	-	1,789,816	1,789,816

At 1 January 2021	236,517	7,292,281	2,100,759	9,629,557
Comprehensive income for the year
Profit for the year	-	-	1,733,396	1,733,396
At 31 December 2021	236,517	7,292,281	3,834,155	11,362,953

The notes on pages 17 to 29 form part of these financial statements.

Page 14

VIESSMANN LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

			2021	2020
			£	£

Cash flows from operating activities
Profit for the financial year	1,733,396	1,789,816
Adjustments for:
Depreciation of tangible assets	137,908	137,197
Loss on disposal of tangible assets	(15,900)	-
Interest paid	-	13,612
Interest received	(1,125)	(8,703)
Taxation charge	343,125	(10,775)
(Increase)/decrease in stocks	(742,276)	1,232,778
Decrease in debtors	1,176,940	2,683,243
Decrease/(increase) in amounts owed by groups	10,380	(18,576)
Increase in creditors	91,719	350,785
(Decrease)/increase in amounts owed to groups	(2,067,342)	1,881,871
Corporation tax (paid)/received	(44,225)	-
Net cash generated from operating activities	622,600	8,051,248

Cash flows from investing activities
Purchase of tangible fixed assets	(182,735)	(25,693)
Sale of tangible fixed assets	15,900	-
Interest received	1,125	8,703
Net cash from investing activities	(165,710)	(16,990)
Cash flows from financing activities
Interest paid	-	(13,612)
Net cash used in financing activities	-	(13,612)
Net increase in cash and cash equivalents	456,890	8,020,646
Cash and cash equivalents at beginning of year	10,007,044	1,986,398
Cash and cash equivalents at the end of year	10,463,934	10,007,044

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	10,463,934	10,007,044
	10,463,934	10,007,044

The notes on pages 17 to 29 form part of these financial statements.

Page 15

VIESSMANN LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2021


At 1 January 2021	Cash flows	At 31 December 2021
£	£	£

Cash at bank and in hand	10,007,044	456,890	10,463,934
	10,007,044	456,890	10,463,934

The notes on pages 17 to 29 form part of these financial statements.

Page 16

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1.	General information

Viessmann Limited is a private limited Company incorporated in England & Wales. The registered office address is Hortonwood 30, Telford, Shropshire, TF1 7YP.
The principal activity of the Company is the wholesale of hardware, plumbing and heating equipment.

2.Accounting policies

2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

2.2

Going concern

After making enquires, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 17

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.4

Revenue

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

Sale of goods

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

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

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

∙the amount of revenue can be measured reliably;

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

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Operating leases: the Company as lessee

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

2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

2.7

Interest income

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

Page 18

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.9

Pensions

Defined contribution pension plan

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

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

2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

2.11

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	3%	straight line
Plant & Machinery	-	20%	straight line
Motor Vehicles	-	33%	straight line
Fixtures & Fittings	-	20%	- 33.3% straight line

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

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

Page 19

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.12

Stocks

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

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

2.13

Debtors

Short term debtors are measured at 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.

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.15

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.

Page 20

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that 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.

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.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and 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 reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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.

3.	JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the Directors there are are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 21

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Boilers & Parts	38,367,367	41,173,189
Servicing	1,325,937	804,067
	39,693,304	41,977,256

Analysis of turnover by country of destination:

					2021	2020
					£	£

United Kingdom	39,693,304	38,642,333
Rest of Europe	-	3,334,923
	39,693,304	41,977,256

5.	Other operating income
		2021	2020
		£	£

Other operating income	-	193,562
	-	193,562

	Exchange differences	(254,541)	108,054
	Other operating lease rentals	443,989	415,746

Page 22

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

7.	Auditors' remuneration
		2021	2020
		£	£

	Fees payable to the Company's auditor and its associates for the audit of the Company's annual accounts	11,800	11,300

All other services

5,195

7,060

Wages and salaries	5,870,405	4,933,077
Social security costs	599,824	493,616
Cost of defined benefit scheme	37,377	21,768
Cost of defined contribution scheme	369,563	271,730
	6,877,169	5,720,191

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

	2021	2020
	No.	No.

Distribution Staff	68	65
Administrative Staff	52	51

	120	116

Page 23

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

9.	Directors' remuneration
		2021	2020
		£	£

Directors' emoluments	236,268	181,652
Company contributions to defined contribution pension schemes	39,703	18,902
	275,971	200,554

During the year retirement benefits were accruing to 1 Director (2020 - 1) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £275,971 (2020 - 203,160).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £39,703 (2020 - 18,902).
The Director's constitute the key management personnel.

10.	Interest receivable
		2021	2020
		£	£

	Other interest receivable	1,125	8,703
		1,125	8,703

11.	Interest payable and similar expenses
		2021	2020
		£	£

	Other loan interest payable	-	13,612
		-	13,612

Page 24

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Corporation tax
Current tax on profits for the year	343,125	44,225
Adjustments in respect of previous periods	-	(55,000)
	343,125	(10,775)

Total current tax	343,125	(10,775)

	Factors affecting tax charge for the year
	The tax assessed for the year is lower than (2020 - lower than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:

Profit on ordinary activities before tax

2,076,521

1,779,041

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	394,539	338,018
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	13,691	20,300
Capital allowances for year in excess of depreciation	(22,171)	17,360
Adjustments to tax charge in respect of prior periods	-	(55,000)
Group relief	(42,934)	(331,453)
Total tax charge for the year	343,125	(10,775)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

13.	Tangible fixed assets

	Freehold property	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2021	2,816,895	104,108	7,229	2,004,202	4,932,434
Additions	-	-	-	182,735	182,735
Disposals	-	-	-	(67,195)	(67,195)
At 31 December 2021	2,816,895	104,108	7,229	2,119,742	5,047,974
Depreciation
At 1 January 2021	1,246,133	78,798	7,229	1,987,177	3,319,337
Charge for the year on owned assets	67,953	563	-	69,392	137,908
Disposals	-	-	-	(67,195)	(67,195)
At 31 December 2021	1,314,086	79,361	7,229	1,989,374	3,390,050
Net book value
At 31 December 2021	1,502,809	24,747	-	130,368	1,657,924
At 31 December 2020	1,570,762	25,310	-	17,025	1,613,097

14.	Stocks
		2021	2020
		£	£

Finished goods and goods for resale	4,065,510	3,323,234
	4,065,510	3,323,234

An impairment loss of £165,187 (2020: £271,390) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

Page 26

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

15.

Debtors

					2021	2020
					£	£


Trade debtors	5,057,572	6,320,983
Amounts owed by group undertakings	8,196	18,576
Other debtors	1,362	479
Prepayments and accrued income	289,699	204,111
	5,356,829	6,544,149

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

16.	Cash and cash equivalents
		2021	2020
		£	£

Cash at bank and in hand	10,463,934	10,007,044
	10,463,934	10,007,044

17.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Trade creditors	496,902	540,014
Amounts owed to group undertakings	2,171,564	4,238,906
Corporation tax	343,125	44,225
Other taxation and social security	1,225,857	1,847,419
Accruals and deferred income	5,943,796	5,187,403
	10,181,244	11,857,967

The bank have secured a charge for all monies due or to become due from the Company.
Amounts due to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

Page 27

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

18.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

236,517 (2020 - 236,517) Ordinary shares of £1.00 each	236,517	236,517

19.

Reserves

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve and represents paid up share capital.

Profit & loss account

The profit and loss account comprises the retained loss brought forward from the prior period and the retained profit for the current year.

20.	Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £369,563 (2020: £271,730).

Not later than 1 year	325,718	325,741
Later than 1 year and not later than 5 years	426,412	315,338
	752,130	641,079

22.	Related party transactions
	The Company has taken advantage of the exemption available under FRS102 "Related Party Disclosures" whereby it has not disclosed transactions with the ultimate parent Company or any wholly owned subsidary undertaking in the Group.

Page 28

VIESSMANN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

23.	Controlling party

The ultimate parent Company is Viessmann Holdings International GmbH, a Company incorporated in Germany. The ultimate controlling party is Prof. Dr. M. Viessmann.

Page 29