Registered Number
05426030
Schweizer Electronic Limited
Filleted Accounts
31 December 2022
Schweizer Electronic Limited
Independent Auditor's Report
To The Members of Schweizer Electronic Limited
Opinion
We have audited the financial statements of Schweizer Electronic Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.
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 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, 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.
Auditor’s responsibilities for the audit of the accounts
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 auditor's 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context relating to the reporting framework (The Companies Act 2006) and relevant taxation compliance regulations.
In addition, we also concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, being those laws relating to general health and safety, data protection and GDPR guidelines.
We understood how the company is complying with these frameworks and regulations by making enquiries of management and those responsible for compliance and corroborated these enquiries with reviews of board minutes and any available correspondence with legal advisors.
We assessed that there were risks of material impact on the financial statements from irregularities, including fraud from the overide of controls by management, timing and recognising of income and in the manipulation of the company's key performance indicators to meet targets.
Audit response to risks identified
We carried out procedures to respond to these risks, including enquiries of management about their systems and controls to identify these risks of irregularities, testwork to review a sample of journal entries made during the year, reviewing and testing assumptions made on accounting estimates for management biases and testing the timing and recognition of revenue.
Our audit procedures were designed to respond to risks of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve more sophisticated acts, including concealment, collusion or deliberately failing to record transactions through intentional misrepresentation.
There are inherent limitations within an audit, even though it has been properly planned and carried out in accordance with auditing standards and we cannot be responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 auditor's 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.
Christopher Holder BA BFP FCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Ltd
Accountants & Statutory Auditor
29/09/2023
Riverside House
Kings Reach Business Park
Yew Street
Stockport
SK4 2HD
Schweizer Electronic Limited
Registered Number: 05426030
Statement of Financial Position
As At 31 December 2022
Notes 2022 2021
£ £
Fixed assets
Tangible assets 6 33,063 17,168
Current assets
Stocks 229,747 298,886
Debtors 7 728,155 1,079,665
Cash at bank and in hand 441,747 424,059
1,399,649 1,802,610
Creditors: amounts falling due within one year 8 (713,925) (1,220,324)
Net current assets 685,724 582,286
Total assets less current liabilities 718,787 599,454
Creditors: amounts falling due after more than one year 9 (1,800,000) (1,800,000)
Net liabilities (1,081,213) (1,200,546)
Capital and reserves
Called up share capital 100 100
Profit and loss account (1,081,313) (1,200,646)
Shareholders' funds (1,081,213) (1,200,546)
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102' 'The Financial Reporting Standard applicable in the UK and Republic of Ireland
P Schweizer
Director
Approved by the board on 29 September 2023
Schweizer Electronic Limited
Notes to the Accounts
For The Year Ended 31 December 2022
1 General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 3 Falcon Park, Claymore, Wilnecote, Tamworth. B77 5DQ. England
2 Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland
3 Accounting policies
(a) Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss
(b) Going concern
The company is dependent upon the continuing financial support of its parent company who have indicated that they will continue with this support. The director of the company is also a director of the parent company and is confident of its ability to continue to provide the necessary financial support to the company and on this basis the financial statements have been prepared on a going concern basis
(c) Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(d) Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and value added tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on dispatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
(e) Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date
(f) Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
(g)Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Fixtures, fittings, tools and equipment 20% and 25% and 33 1/3% straight line
(h) Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
(i)Defined contribution plans
Contributions to the company's defined contribution pension scheme and employees' personal pension schemes are charged to the profit and loss account in the period in which they become payable.
4 Employees 2022 2021
Number Number
Average number of persons employed by the company 5 4
5 Profit before taxation 2022 2021
£ £
Profit before tax is stated after charging:
Auditors Remuneration 4,350 -
Depreciation of tangible fixed assets 11,279 7,211
6 Tangible fixed assets
Fixtures, Fittings & Equipment
£
Cost
At 1 January 2022 36,548
Additions 27,174
At 31 December 2022 63,722
Depreciation
At 1 January 2022 19,380
Charge for the year 11,279
At 31 December 2022 30,659
Net book value
At 31 December 2022 33,063
At 31 December 2021 17,168
7 Debtors 2022 2021
£ £
Trade debtors 663,999 1,037,936
Prepayments and accrued income 56,506 34,079
Other debtors 7,650 7,650
728,155 1,079,665
8 Creditors: amounts falling due within one year 2022 2021
£ £
Bank loans and overdrafts 5,346 -
Trade creditors 80,361 19,042
Amounts owed to group undertakings and undertakings in which the company has a participating interest 547,334 1,081,107
Accruals and deferred income 5,350 5,200
Taxation and social security costs 74,616 113,886
Other creditors 918 1,089
713,925 1,220,324
9 Creditors: amounts falling due after one year 2022 2021
£ £
Amounts owed to group undertakings and undertakings in which the company has a participating interest 1,800,000 1,800,000
Included within creditors: amounts falling due after more than one year is an amount of £1,800,000 (2021: £1,800,000) in respect of liabilities payable or repayable by instalments which fall due after more than five years from the reporting date.
The amounts owed to group undertakings has no fixed term for repayment under the terms of the loan agreement and interest is charged at a rate of 1.5% (2021: 1.5%) per annum. An amount of £1,800,000 is subject to a subordination agreement whereby repayment is permitted to the extent that the company remains able to pay off all its other debts as they fall due.
10 Commitments under operating leases 2022 2021
£ £
Total future minimum payments under non-cancellable operating leases are as follows:
Not later than 1 year 48,055 25,987
Later than one year but less than five years 100,100 71,878
148,155 97,865
12 Controlling party
The company's ultimate parent company is Schweizer Unternehmungen AG, a company incorporated in Switzerland. The immediate parent company is Schweizer Electronic AG, a company incorporated in Switzerland.
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