Celerity Systems Europe Ltd. Zweigniederlassung Recklinghausen

Recklinghausen

Befreiender Jahresabschluss zum Geschäftsjahr vom 01.02.2021 bis zum 31.01.2022

E- CELERITY SYSTEMS EUROPE LIMITED

Brompton On Swale, Richmond/UK

Company Registration No. 09915746 (England and Wales)

REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

COMPANY INFORMATION

Director	B R Hall
Company number	09915746
Registered office	Bremsen Technik House Station Road Brompton on Swale Richmond DL10 7SN
Accountants	RSM UK Tax and Accounting Limited Chartered Accountants 1 St. James' Gate Newcastle upon Tyne United Kingdom NE1 4AD

DIRECTOR'S REPORT FOR THE YEAR ENDED 31 JANUARY 2022

The director presents his annual report and financial statements for the year ended 31 January 2022.

Principal activities

The principal activity of the company continued to be that of the wholesale trade of motor vehicle parts and accessories.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

B R Hall
A Preston	(Resigned 31 May 2021)

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board

30/01/23

Brian Hall, Director

ACCOUNTANT'S REPORT TO THE BOARD OF DIRECTORS OF CELERITY SYSTEMS EUROPE LIMITED ON THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

In order to assist you to fulfil your duties under the Companies Act 2006 ("the Act"), we prepared for your approval the financial statements of Celerity Systems Europe Limited which comprise the statement of comprehensive income, the statement of financial position and the related notes in accordance with the financial reporting framework set out therein from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/ regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Celerity Systems Europe Limited, as a body, in accordance with the terms of our engagement letter dated 23 July 2020. Our work has been undertaken solely to prepare for your approval the financial statements of Celerity Systems Europe Limited and state those matters that we have agreed to state to them in accordance with ICAEW Technical Release 07/16 AAF. This report should not therefore be regarded as suitable to be used or relied on by any other party wishing to acquire any rights against RSM UK Tax and Accounting Limited for any purpose or in any context. Any party other than the Board of Directors which obtains access to this report or a copy and chooses to rely on this report (or any part of it) will do so at its own risk. To the fullest extent permitted by law, RSM UK Tax and Accounting Limited will accept no responsibility or liability in respect of this report to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by any person's reliance on representations in this report.

It is your duty to ensure that Celerity Systems Europe Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Celerity Systems Europe Limited under the Act. You consider that Celerity Systems Europe Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Celerity Systems Europe Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

United Kingdom, 30/01/23

RSM UK Tax and Amounting Limited

Chartered Accountants

1 St. James' Gate

Newcastle upon Tyne

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JANUARY 2022

	2022	2021
	$	$
Turnover	5,673,538	5,585,353
Cost of sales	(4,400,272)	(4,825,468)
Gross profit	1,273,266	759,885
Administrative expenses	(849,243)	(697,189)
Operating profit	424,023	62,695
Interest payable and similar expenses	(12,320)	(19,480)
Profit before taxation	411,703	43,216
Tax on profit	-	-
Profit for the financial year	411,703	43,216

STATEMENT OF FINANCIAL POSITION AS AT 31 JANUARY 2022

		2022		2021
	Notes	$	$	$	$
Fixed assets
Tangible assets	4		654		1,613
Current assets
Stocks		210,262		122,308
Debtors	5	1,916,550		2,134,092
Cash at bank and in hand		20,839		429,402
		2,147,651		2,685,802
Creditors: amounts falling due within one year	6	(2,655,112)		(3,605,925)
Net current liabilities			(507,461)		(920,123)
Total assets less current liabilities			(506,807)		(918,510)
Capital and reserves
Called up share capital	7		2		2
Profit and loss reserves			(506,809)		(918,512)
Total equity			(506,807)		(918,510)

For the financial year ended 31 January 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the board of directors and authorised for issue on 30/01/23 and are signed on its behalf by:

Brian Hall, Director

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022

1 Accounting policies

Company information

Celerity Systems Europe Limited (the 'company') is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Bremsen Technik House, Station Road, Brompton on Swale, Richmond, DL10 7SN.

Accounting 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 US dollars, 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 balance sheet date, the company had net current liabilities of $507,461 (2021 - $920,123). At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company relies on the support of its directors, who will continue to provide support as required for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

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 on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment	33% straight line
Computers	33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other debtors, amounts owed by group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Retirement benefits

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

2 Employees

The average monthly number of persons (including directors) employed by the company during the year was:

	2022 Number	2021 Number
Total	3	4

3 Director's remuneration

	2022	2021
	$	$
Remuneration paid to directors	-	13,772

4 Tangible fixed assets

	Plant and machinery etc
	$
Cost
At 1 February 2021	12,570
Additions	79
At 31 January 2022	12,649
Depreciation and impairment
At 1 February 2021	10,957
Depreciation charged in the year	1,038
At 31 January 2022	11,995
Carrying amount
At 31 January 2022	654
At 31 January 2021	1,613

5 Debtors

Amounts falling due within one year:	2022	2021
	$	$
Trade debtors	717,572	1,205,497
Amounts owed by group undertakings	307,978	423,083
Other debtors	891,000	505,512
	1,916,550	2,134,092

6 Creditors: amounts falling due within one year

	2022	2021
	$	$
Bank loans and overdrafts	61,644	62,704
Trade creditors	2,173,702	2,486,638
Amounts owed to group undertakings	-	115,105
Taxation and social security	7,163	-
Other creditors	412,603	941,478
	2,655,112	3,605,925

Included within other creditors at the year end date is $242,839 (2021: $539,993) which relates to an invoice discounting facility. The facility is secured over the trade debtors of the company.

7 Called up share capital

	2022	2021
	$	$
Ordinary share capital
Issued and fully paid
2 Ordinary shares of $1 each	2	2
	2	2

8 Financial commitments, guarantees and contingent liabilities

Banking facilities are secured by fixed and floating charges over the assets of the company.

9 Related party transactions

Transactions with related parties

During the year the company entered into the following transactions with related parties:

	Income		Expenses
	2022	2021	2022	2021
	$	$	$	$
Other related parties	150,203	-	341,141	-

	2022	2021
Amounts due to related parties	$	$
Subsidiary undertakings	-	115,105
Other related parties	26,599	277,406

The following amounts were outstanding at the reporting end date:

	2022	2021
Amounts due from related parties	$	$
Other related parties	1,159,445	336,810