Stovax Limited - Limited company accounts 23.1

REGISTERED NUMBER: 01572550 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2022

for

Stovax Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

A Compton

P Swan

C M Carr

I D Kingscott

REGISTERED OFFICE:

Spitfire Avenue

Clyst Honiton

Exeter

Devon

EX5 2FR

REGISTERED NUMBER:

01572550 (England and Wales)

AUDITORS:

Haines Watts

Chartered Accountants &

Statutory Auditors

3rd Floor

56 Wellington Street

Leeds

West Yorkshire

LS1 2EE

BANKERS:

Danske Bank

London branch

75 King William Street

London

EC4N 7DT

SOLICITORS:

Ashfords LLP

Exeter

The directors present their strategic report for the year ended 31 December 2022.

PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS

The principal activities of the company are the manufacture and distribution of solid fuel stoves, fireplaces, chimney systems, surrounds and associated accessories. During the year the company has continued to invest in further product research and development, and several new products for both export and domestic markets will be launched in 2022.

Sales for the year increased by 39.6% on the corresponding year ended 31 December 2021. The directors consider this a strong performance given the overall market conditions and supply constraints that prevailed in 2022.

SUBSEQUENT EVENTS AND FUTURE DEVELOPMENTS

The directors envisage that the next year will be one of further controlled expansion, primarily in export markets. The directors also believe that the economic uncertainties over the next financial period may lead to a small decline in the domestic market. However key developments resulting in new product launches of Eco design models are expected to see a levelling off of the declines seen in recent years.

The company has also completed the construction of a premises at the Skypark development in Exeter. This will have the aim of consolidating all existing premises into one new location with a footprint of nearly 200,000 sq. ft. and is planned to be relocated into the facility in early 2023.

KEY FINANCIAL PERFORMANCE INDICATORS

The directors use a number of KPIs in measuring the performance of the business, examples being the growth in turnover year on year, the profit before tax as a percentage of turnover and the return on capital employed.

The values of the KPI's for the last 3 years were as follows:-

2022

2021

2020

Turnover growth

39.6%

8.4%

-8.2%

Profit before tax as a % of turnover

12.8%

4.6%

11.8%

Return on Capital Employed

14.3%

4.1%

6.0%

NON-FINANCIAL KEY FINANCIAL PERFORMANCE INDICATORS

The group had no health and safety incidents reportable to the Health and Safety Executive, under the RIDDOR regulations in the year (Year ended 31 December 2021: nil). Details of the criteria are given here - http://www.hse.gov.uk/riddor/reportable-incidents.htm

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks affecting the company are considered to be:-

- fire (or other similar sudden unforeseen events) leading to a reduction in production capacity and product availability;

- the impact of significant exchange rate fluctuations on export sales and component purchases;

- overall market and economic conditions; and

- the volatility of commodity-based raw material prices.

The company mitigates these risks in a number of ways, including the use of a disaster recovery plan covering potential disruptions to its businesses, the maintenance of strategic stocks of key components, the specific identification of alternate suppliers and the use of relevant financial instruments.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's operations expose it to a variety of financial risks that include the effects of credit risk and exchange rate risk.

The company monitors and takes action in each of these areas as follows:

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. In addition, credit checks are made annually on those customers who are deemed to be a significant credit risk to the company. The company also monitors all court judgements made against its customers and makes appropriate adjustments in the light of this information.

Exchange rate risk

The company monitors its exposures in the foreign currencies in which it regularly transacts. In order to protect against excessive fluctuations, the company will take out financial instruments or purchase relevant currencies to restrict these risks where considered appropriate by the Board.

Foreign exchange transactions

There were no transactions outstanding at the end of the year or the previous financial year.

ON BEHALF OF THE BOARD:

Director

24 March 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2022 will be £580,409.

RESEARCH AND DEVELOPMENT

The company continues to invest in product innovation.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

A Compton

P Swan

C M Carr

I D Kingscott

MATTERS COVERED IN THE STRATEGIC REPORT

Disclosures with regards to principal activity, review of the business, future developments, principal risks and uncertainties and financial and other key performance indicators are included within the strategic report.

EMPLOYEES

Applications for employment from disabled persons are always fully considered, bearing in mind the respective aptitude and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who is fortunate enough not to suffer from a disability.

Employees are kept informed and consulted on matters of importance to them, including those factors affecting the performance and future of the business, by regular meetings.

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.

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, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P Swan - Director

24 March 2023

Opinion

We have audited the financial statements of Stovax Limited (the 'company') for the year ended 31 December 2022 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 2022 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 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

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.

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.

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 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.

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.

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.

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 four, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management; and from our commercial knowledge and experience of the 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

- use of Audit Data Analytics to review the client data for unusual trends/anomalies

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.

To address the risk of fraud, including any impact of revenue recognition, through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 4 were indicative of potential bias; and

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;

- reviewing correspondence with HMRC and relevant regulators.

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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Matthew Barton BA (Hons) FCA CTA (Senior Statutory Auditor)

for and on behalf of Haines Watts

Chartered Accountants &

Statutory Auditors

3rd Floor

56 Wellington Street

Leeds

West Yorkshire

LS1 2EE

4 April 2023

TURNOVER

5

26,702,375

19,133,468

Cost of sales

17,368,873

13,680,902

GROSS PROFIT

9,333,502

5,452,566

Distribution costs

1,862,718

1,238,898

Administrative expenses

4,264,876

3,356,670

6,127,594

4,595,568

3,205,908

856,998

Other operating income

-

20,310

OPERATING PROFIT

3,205,908

877,308

Interest receivable and similar income

7

207,352

-

3,413,260

877,308

Interest payable and similar expenses

8

-

(50

)

PROFIT BEFORE TAXATION

9

3,413,260

877,358

Tax on profit

10

610,974

123,123

PROFIT FOR THE FINANCIAL YEAR

2,802,286

754,235

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,802,286

754,235

FIXED ASSETS

Tangible assets

12

2,408,612

466,473

CURRENT ASSETS

Stocks

13

1,638,631

2,534,735

Debtors

14

6,246,031

4,409,792

Cash at bank

18,526,173

16,941,581

26,410,835

23,886,108

CREDITORS

Amounts falling due within one year

15

4,213,866

2,037,049

NET CURRENT ASSETS

22,196,969

21,849,059

TOTAL ASSETS LESS CURRENT LIABILITIES

24,605,581

22,315,532

PROVISIONS FOR LIABILITIES

17

785,646

717,474

NET ASSETS

23,819,935

21,598,058

CAPITAL AND RESERVES

Called up share capital

18

190,347

190,347

Share premium

19

21,781

21,781

Retained earnings

19

23,607,807

21,385,930

SHAREHOLDERS' FUNDS

23,819,935

21,598,058

The financial statements were approved by the Board of Directors and authorised for issue on 24 March 2023 and were signed on its behalf by:

P Swan - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2021

190,347

22,056,095

21,781

22,268,223

Changes in equity

Dividends

-

(1,424,400

)

-

(1,424,400

)

Total comprehensive income

-

754,235

-

754,235

Balance at 31 December 2021

190,347

21,385,930

21,781

21,598,058

Changes in equity

Dividends

-

(580,409

)

-

(580,409

)

Total comprehensive income

-

2,802,286

-

2,802,286

Balance at 31 December 2022

190,347

23,607,807

21,781

23,819,935

1.	STATUTORY INFORMATION

Stovax Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared under the historical cost convention.

Going Concern

The financial statements have been prepared on a going concern basis. The Director has reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Director has concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption 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 Company's parent undertaking, NIBE Industrier AB, whose address is Järnvägsgatan 40, 285 37 Markaryd, Sverige, a company registered in Sweden, includes the Company in its consolidated financial statements. The consolidated Financial Statements of NIBE Industrier AB are prepared in accordance with International Financial Reporting Standards as adopted by the EU, are available to the public and may be obtained from the website http://www.nibe.com under the section "Investor Relations".

In these financial statements, the company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:

o Cash Flow Statement and related notes; and

o Key Management Personnel compensation.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually upon despatch of goods from the company's premises.

Tangible fixed assets

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

The cost of tangible fixed assets is their purchase cost, together with any incidental expenses of acquisition. The company assesses at each reporting date whether the tangible assets are impaired. Depreciation is charged to the profit and loss account and calculated so as to write off the cost of fixed assets, on a straight-line basis, over the useful economic lives of the assets concerned. The principal annual rates used for this purposes are:

Plant, fixtures, fittings and equipment

15%

Computer equipment

33% (included with Plant, fixtures, fittings and equipment)

Motor vehicles

25% (included with Plant, fixtures, fittings and equipment)

Production tooling and stove patterns

15% to 25% (included within Plant, fixtures, fittings and

equipment)

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are valued at the lower of cost, on a first in, first out basis, and net realisable value after making due allowance for any obsolete and slow moving items. Cost of stocks comprises the purchase price of stocks and all other directly attributable costs.

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.

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.

Current or deferred taxation assets and liabilities are not discounted.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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.

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.

Foreign currencies

The presentation currency of these Financial Statements is Sterling.

Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency as the foreign exchange rate ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account, except for differences arising on the retranslation of qualifying cash flow hedges and items which are fair valued with changes taken to other comprehensive income, which are recognised in other comprehensive income.

Employee benefits

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.

The company is one of the employers in a group personal pension scheme with an external provider. This is a defined contribution scheme, which is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the years during which services are rendered by employees.

Distributions and administrative costs

Distribution costs and administrative expenses are stated net of any recharges made by the company for such costs.

Research and development expenditure

Expenditure on research and development activities is recognised in the profit and loss account as an expense as incurred.

Expenditure on tangible assets purchased as part of development activities, such as cast iron and production tooling, is capitalised (if the foreseeable life is sufficient to justify capitalisation) over four years to seven years, depending on the type of tooling purchased.

Computer software

Computer software is expensed in the year in which the expenditure is incurred, unless its economic life is greater than three years in which case it is capitalised and included in intangible assets.

Provisions

A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the company treats the guarantee contract as a contingent liability until such time as it becomes probable that the company will be required to make a payment under the guarantee.

Provision is made for the expected cost of maintenance under warranties in respect of products delivered and invoiced.

Interest receivable and interest payable

Interest Receivable and Interest Payable are accounted for on an accruals basis.

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.

Debtors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. At the end of each reporting year the financial assets are assessed for evidence of impairment. If an asset is impaired, the impairment loss is recognised in the profit and loss.

Creditors

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. These estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include provisions for warranties and dilapidations.

5.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2022

2021

£

£

United Kingdom

20,462,986

14,054,368

Europe

5,644,109

4,753,100

Rest of the World

568,443

326,000

Intragroup

26,837

-

26,702,375

19,133,468

6.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

3,302,076

2,745,130

Social security costs,

315,698

297,969

Pension costs

181,431

123,628

3,799,205

3,166,727

The average number of persons employed by the Group (including directors) during the year was as follows:

2022

2021

Distribution

18

23

Administration

92

91

110

114

Remuneration of directors

£

£

Paid directly by the company

71,203

54,518

Paid by UK ultimate holding company - Stovax Heating Group Limited and recharged to the company

296,979

295,818

Recharged to fellow subsidiary

(39,162

)

(54,518

)

Compensation for loss of office paid by company to directorof the company

329,020

295,818

Company contributions to pension scheme

3,351

3,795

332,371

299,613

Number

Number

Number of directors accruing benefits under money purchase group personal pension

1

1

2022

2021

£

£

Highest paid director

128,886

141,807

Company contributions paid to pension scheme

128,886

141,807

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2022

2021

£

£

Deposit account interest

114,283

-

Other interest receivable

93,069

-

207,352

-

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Interest payable

-

(50

)

9.	PROFIT BEFORE TAXATION

The profit is stated after charging:

2022

2021

£

£

Depreciation - owned assets

172,738

195,476

Loss on disposal of fixed assets

-

8,486

Auditors' remuneration

17,000

17,000

10.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

607,652

137,608

Prior year adjustment to the tax charge

(10,588

)

(14,432

)

Total current tax

597,064

123,176

Deferred tax

13,910

(53

)

Tax on profit

610,974

123,123

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge 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:

2022

2021

£

£

Profit before tax

3,413,260

877,358

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

648,519

166,698

Effects of:

Expenses not deductible for tax purposes

1,719

154

Adjustments to tax charge in respect of previous periods

(10,587

)

(14,432

)

RDEC

(43,446

)

(43,472

)

Fixed asset differences

(5,393

)

1,167

R&D expenditure credits

8,255

8,260

Adjustments to tax charge in respect of previous periods - deferred tax

11,568

10,509

Remeasurement of deferred tax for changes in tax rates

562

(5,668

)

Rounding

(223

)

(93

)

Total tax charge

610,974

123,123

11.

DIVIDENDS

2022

2021

£

£

Ordinary shares shares of 1 each

Final

580,409

1,424,400

12.	TANGIBLE FIXED ASSETS

Plant,

Fixtures

and

Assets

Fittings,

under

and

Motor

construction

Equipment

vehicles

Totals

£

£

£

£

COST

At 1 January 2022

-

2,181,552

269,070

2,450,622

Additions

1,994,617

120,261

-

2,114,878

Disposals

-

(49,039

)

(21,300

)

(70,339

)

At 31 December 2022

1,994,617

2,252,774

247,770

4,495,161

DEPRECIATION

At 1 January 2022

-

1,761,462

222,687

1,984,149

Charge for year

-

144,165

28,573

172,738

Eliminated on disposal

-

(49,038

)

(21,300

)

(70,338

)

At 31 December 2022

-

1,856,589

229,960

2,086,549

NET BOOK VALUE

At 31 December 2022

1,994,617

396,185

17,810

2,408,612

At 31 December 2021

-

420,090

46,383

466,473

13.

STOCKS

2022

2021

£

£

Raw materials

152,000

162,000

Finished goods

1,486,631

2,372,735

1,638,631

2,534,735

14.

DEBTORS

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

3,635,534

2,853,043

Amounts owed by group undertakings

837,657

771,074

VAT

37,011

131,856

Deferred tax asset

9,709

23,619

Prepayments and accrued income

1,726,120

580,354

6,246,031

4,359,946

Amounts falling due after more than one year:

Prepayments and accrued income

-

49,846

Aggregate amounts

6,246,031

4,409,792