Industrial Power Units Holdings Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11676361 (England and Wales)

STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1 NOVEMBER 2019 TO 31 DECEMBER 2020

FOR

INDUSTRIAL POWER UNITS HOLDINGS LIMITED

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

S J Beebee

R T Beebee

REGISTERED OFFICE:

2 Cygnus Way

West Bromwich

West Midlands

United Kingdom

B70 0XB

REGISTERED NUMBER:

11676361 (England and Wales)

AUDITORS:

Magma Audit LLP

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

The directors present their strategic report for the period 1 November 2019 to 31 December 2020.

REVIEW OF BUSINESS

Further detail of the group's performance is included within the Annual Report of Industrial Power Units Holdings Limited consolidated accounts.

ON BEHALF OF THE BOARD:

R T Beebee - Director

18 August 2021

The directors present their report with the financial statements of the company for the period 1 November 2019 to 31 December 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of a holding company.

DIVIDENDS

Interim dividends in specie were paid amounting to £1,985,440 in addition to dividends paid to shareholders of £37,099. The directors recommend that no final dividends will be paid.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2019 to the date of this report.

S J Beebee

R T Beebee

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 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:

-	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.

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.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Magma Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R T Beebee - Director

18 August 2021

Opinion

We have audited the financial statements of Industrial Power Units Holdings Limited (the 'company') for the period ended 31 December 2020 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit for the period 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 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon.

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.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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 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 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.

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.

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.

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.

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.

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.

Paul Orton ACA FCCA (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

19 August 2021

TURNOVER

-

-

OPERATING PROFIT

-

-

Income from shares in group undertakings

2,022,539

47,168

PROFIT BEFORE TAXATION

2,022,539

47,168

Tax on profit

4

-

-

PROFIT FOR THE FINANCIAL PERIOD

2,022,539

47,168

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

2,022,539

47,168

FIXED ASSETS

Intangible assets

6

-

-

Tangible assets

7

-

-

Investments

8

34,004

34,004

34,004

34,004

TOTAL ASSETS LESS CURRENT LIABILITIES

34,004

34,004

CAPITAL AND RESERVES

Called up share capital

9

34,004

34,004

SHAREHOLDERS' FUNDS

34,004

34,004

The financial statements were approved by the Board of Directors and authorised for issue on 18 August 2021 and were signed on its behalf by:

R T Beebee - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

2,984,004

-

2,984,004

Capital reduction

(2,950,000

)

-

(2,950,000

)

Dividends

-

(47,168

)

(47,168

)

Total comprehensive income

-

47,168

47,168

Balance at 31 October 2019

34,004

-

34,004

Changes in equity

Dividends

-

(2,022,539

)

(2,022,539

)

Total comprehensive income

-

2,022,539

2,022,539

Balance at 31 December 2020

34,004

-

34,004

1.	STATUTORY INFORMATION

Industrial Power Units Holdings Limited is a private company and group, limited by shares, limited companyregistered in England and Wales. Its registered office address is 2 Cygnus Way, West Bromwich, West Midlands, United Kingdom, B70 0XB and the registered number is 11676361.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future despite the global pandemic which occurred after the year end. The directors have prepared financial forecasts which incorporate the impact of COVID 19 as far as possible, including cashflow forecasts. These demonstrate that the company has sufficient resources to meet its liabilities for at least twelve months from signing these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business has been fully amortised in the current year.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Investments in subsidiaries

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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 non-puttable ordinary shares.

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 profit or loss.

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.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future despite the ensuing global pandemic. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the period ended 31 December 2020 nor for the period ended 31 October 2019.

The average number of employees during the period was as follows:

Period

Period

1/11/19

14/11/18

to

to

31/12/20

31/10/19

Directors

2

2

Period

Period

1/11/19

14/11/18

to

to

31/12/20

31/10/19

£

£

Directors' remuneration

-

-

4.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the period ended 31 December 2020 nor for the period ended 31 October 2019.

5.

DIVIDENDS

Period

Period

1/11/19

14/11/18

to

to

31/12/20

31/10/19

£

£

Ordinary shares of £1 each

Interim

2,022,539

47,168

6.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

Disposals

(947,522

)

On acquisition

947,522

At 31 December 2020

-

AMORTISATION

Eliminated on disposal

(735,772

)

On acquisition

735,772

At 31 December 2020

-

NET BOOK VALUE

At 31 December 2020

-

7.	TANGIBLE FIXED ASSETS

Plant and machiner y

Fixture and fittings

Motor vehicles

Totals

£

£

£

£

COST

Disposals

(619,929

)

(1,349,387

)

(414,740

)

(2,384,056

)

On acquisition

619,929

1,349,387

414,740

2,384,056

At 31 December 2020

-

-

-

-

DEPRECIATION

Eliminated on disposal

(487,011

)

(1,284,822

)

(228,361

)

(2,000,194

)

On acquisition

487,011

1,284,822

228,361

(2,000,194

)

At 31 December 2020

-

-

-

-

NET BOOK VALUE

At 31 December 2020

-

-

-

-

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 November 2019

and 31 December 2020

34,004

NET BOOK VALUE

At 31 December 2020

34,004

At 31 October 2019

34,004

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Industrial Power Units Property Limited

Registered office: 2 Cygnus Way, West Bromwich, West Midlands, United Kingdom, B70 0XB

Nature of business: Suppliers of hydraulic and air starting systems

%

Class of shares:

holding

Ordinary £1

100.00

2020

2019

£

£

Aggregate capital and reserves

1,287,393

2,693,291

Profit/(loss) for the period

616,641

(11,523

)

9.	CALLED UP SHARE CAPITAL

There are 34,004 £1 shares in issue, these are split as follows; 34,000 Ordinary, 1 Ordinary A, 1 Ordinary B, 1 Ordinary C and 1 Ordinary D.

All shares have full rights attached to them, in respect of voting, dividends and distributions. The Ordinary shares have priority to any capital distribution on a winding up.

10.	ULTIMATE PARENT COMPANY

The company is controlled by Mr R T Beebee who controls 79.99% of the issued share capital of the ultimate parent company.

Copies of Industrial Power Units Property Holdings Limited consolidated accounts are available from Companies House, Crown Way, Cardiff. This is the largest and the smallest group into which the results are consolidated.

The ultimate parent company is Industrial Power Units Property Holdings Limited whish is incorporated in Great Britain and registered in England and Wales for which consolidated group accounts are prepared.