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Registered number: 11775391










BREAL CAPITAL (LYTE) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
BREAL CAPITAL (LYTE) LIMITED
 
 
COMPANY INFORMATION


Directors
M D Walton 
M A Welden 




Company secretary
J D Robinson



Registered number
11775391



Registered office
14th Floor

33 Cavendish Square

London

W1G 0PW




Independent auditors
Simmons Gainsford LLP
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
BREAL CAPITAL (LYTE) LIMITED
 

CONTENTS



Page
Group strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 11
Consolidated statement of comprehensive income
12
Consolidated balance sheet
13 - 14
Company balance sheet
15
Consolidated statement of changes in equity
16 - 17
Company statement of changes in equity
18
Consolidated statement of cash flows
19
Consolidated analysis of net debt
20
Notes to the financial statements
21 - 40


 
BREAL CAPITAL (LYTE) LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present their strategic report for the year ended 31 December 2022.
The principal activity of the Company during the year was that of a holding company.
The principal activity of the Company's trading subsidiary undertaking is disclosed in note 12. 
The Company's principal risk relates to the performance of its subsidiary undertaking.

Business review
 
The directors present the strategic report for the year ended 31 December 2022.
The principal activity of the main trading entity is to design, manufacture and distribute ladders, steps, and towers, operating from Swansea and distributing throughout the UK and Ireland. 
The 2022 results show the benefit of the hard work; the turnover in the full year was £11M (2021:£12.2M) and reported gross margin £2.5M (2021:£2.6M) at 21% (2021:17%).
The focus of the management team continues to be exceeded customer expectations across delivery and service and to grow volumes as a trusted partner.
The Group maintains a significant headroom in its fully comitted banking facilities which are due for renewal at the end of 2025.

Page 1

 
BREAL CAPITAL (LYTE) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Principal risks and uncertainties
 
The management of the business and the execution of the Group's strategy are subject to a number of risks.
Price risk
The price of Aluminium fluctuates due to raw material cost and demand. Any tariffs imposed can also impact cost. This is a risk common to all companies operating within the ladder industry. The Group’s strategy on this is to maintain a prudent approach to stock levels, actively managing stock using detailed system information to ensure that excess inventory is not carried, whilst also ensuring the stock range covers all our customer requirements. The Group also has a range of suppliers and so has no concerns regarding continuity of supply.
Credit and liquidity risk
The Group's principal financial assets are trade debtors, the majority of which are fully insured. The Group has no significant concentration of credit risk with a single counterparty as exposure is spread over several counterparties. 
The Group's principal financial liabilities are its bank loans and trade creditors, which are managed through detailed cash forecasting and we maintain significant headroom in our facilities.
 
Page 2

 
BREAL CAPITAL (LYTE) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Interest rate risk
The Group monitors the financial risk of interest rate movements on a regular basis, and the impact rises would have on profitability. Interest rates are expected to rise in the short to medium term, but the Group is well placed to deal with any such increases.
Amounts owed from connected undertakings are monitored and actively managed monthly to ensure these are at a level that is acceptable for all parties involved.

 
Financial key performance indicators
 
We consider that our main Key Performance Indicators are underlying Gross profit, overhead control, and levels of stock. These are set out below for the year:
           
2022   2021
Gross Profit (£ 000’s)        2,488 (23%)  2,563 (21%)
Stock Turn (CoGs / Stock)       8.2   8.6
At an operational level orders, revenue, and gross profit percentage are managed daily. 
The Group also monitors staff turnover, as retention of skilled employees is essential for the prosperity of the Group.


This report was approved by the board on 9 October 2023 and signed on its behalf.



M A Welden
Director

Page 3

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

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

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


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation and minority interests, amounted to £54,820 (2021 - profit £165,934).

Directors

The directors who served during the year were:

M D Walton 
M A Welden 

Matters covered in the Group strategic report

The directors have chosen to disclose information on the following, required by the Companies Act 2006 to be
included in the Directors' Report, within the Strategic Report, found on pages 1 - 3:
- information on financial risk management and policies; and
- information regarding future developments of the business.

Page 4

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

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

Auditors

The auditorsSimmons Gainsford LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 9 October 2023 and signed on its behalf.
 





M A Welden
Director

Page 5

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BREAL CAPITAL (LYTE) LIMITED
 

Opinion


We have audited the financial statements of Breal Capital (Lyte) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 December 2022 and of the Group's loss 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BREAL CAPITAL (LYTE) LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Page 7

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BREAL CAPITAL (LYTE) LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BREAL CAPITAL (LYTE) LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
 
the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the company, including its management structure and control systems, including the opportunity for management to override such controls;
management’s incentives and opportunities for fraudulent manipulation of the financial statements including the company’s remuneration and bonus policies and performance targets; and 
the industry and environment in which it operates.
 
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
Based on this understanding we identified the following matters as being of significance to the entity:
 
laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, and tax and pension legislation;
the timing of the recognition of commercial income;
compliance with legislation relating to health and safety, environmental legislation and ISO accreditation;
management bias in selecting accounting policies and determining estimates;
valuation of freehold property;
inappropriate journal entries;
recoverability of debtors; and
the requirement to include provisions against stock and the amount of any such provision.

We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
 
Page 9

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BREAL CAPITAL (LYTE) LIMITED (CONTINUED)



Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: 
 
enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
enquiries with the same concerning any actual or potential litigation or claims;
discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; 
assessment of matters reported to management and the result of the subsequent investigation;
obtaining an understanding of the relevant controls and testing their operation during the period;
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
review documentation relating to compliance with the regulations including insurance and quality accreditations;
challenging assumptions made by management in their specific accounting policies and estimates, in particular in relation to carrying value of stock.
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
reviewing the financial statements for compliance with the relevant disclosure requirements; 
performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
reviewing  the minutes of Board meetings and correspondence with HMRC;
evaluating the underlying business reasons for any unusual transactions; and
considered the implementation of controls during the year.
 
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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


Page 10

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BREAL CAPITAL (LYTE) LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Daryush Farshchi-Heidari (FCA) (Senior statutory auditor)
  
for and on behalf of
Simmons Gainsford LLP
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

9 October 2023
Page 11

 
BREAL CAPITAL (LYTE) LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
10,988,356
12,199,376

Cost of sales
  
(8,500,283)
(9,636,006)

Gross profit
  
2,488,073
2,563,370

Administrative expenses
  
(2,266,416)
(2,312,068)

Other operating income
 5 
-
57,472

Operating profit
 6 
221,657
308,774

Interest receivable and similar income
  
24
-

Interest payable and similar expenses
 9 
(351,871)
(283,475)

(Loss)/profit before taxation
  
(130,190)
25,299

Tax on (loss)/profit
 10 
68,462
145,827

(Loss)/profit for the financial year
  
(61,728)
171,126

  

Unrealised surplus on revaluation of tangible fixed assets
  
-
(17,010)

Total comprehensive income for the year
  
(61,728)
154,116

(Loss)/profit for the year attributable to:
  

Non-controlling interests
  
(6,908)
5,192

Owners of the parent Company
  
(54,820)
165,934

  
(61,728)
171,126

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
(6,908)
5,192

Owners of the parent Company
  
(54,820)
148,924

  
(61,728)
154,116

The notes on pages 21 to 40 form part of these financial statements.

Page 12

 
BREAL CAPITAL (LYTE) LIMITED
REGISTERED NUMBER: 11775391

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 11 
3,716,238
3,878,722

  
3,716,238
3,878,722

Current assets
  

Stocks
 13 
1,039,141
1,120,050

Debtors: amounts falling due within one year
 14 
2,135,394
2,121,225

Cash at bank and in hand
 15 
24,984
53,469

  
3,199,519
3,294,744

Creditors: amounts falling due within one year
 16 
(3,342,615)
(3,232,325)

Net current (liabilities)/assets
  
 
 
(143,096)
 
 
62,419

Total assets less current liabilities
  
3,573,142
3,941,141

Creditors: amounts falling due after more than one year
 17 
(3,064,739)
(3,331,010)

Deferred taxation
 19 
(252,901)
(292,901)

  
 
 
(252,901)
 
 
(292,901)

Net assets
  
255,502
317,230


Capital and reserves
  

Called up share capital 
 20 
100
100

Revaluation reserve
 21 
201,994
201,994

Profit and loss account
 21 
89,111
143,931

Equity attributable to owners of the parent Company
  
291,205
346,025

Non-controlling interests
  
(35,703)
(28,795)

  
255,502
317,230


Page 13

 
BREAL CAPITAL (LYTE) LIMITED
REGISTERED NUMBER: 11775391
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 October 2023.




M A Welden
Director

The notes on pages 21 to 40 form part of these financial statements.

Page 14

 
BREAL CAPITAL (LYTE) LIMITED
REGISTERED NUMBER: 11775391

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Investments
 12 
95
95

  
95
95

Current assets
  

Debtors: amounts falling due after more than one year
 14 
554,633
478,143

Debtors: amounts falling due within one year
 14 
100
100

  
554,733
478,243

Creditors: amounts falling due within one year
 16 
(95)
(95)

Net current assets
  
 
 
554,638
 
 
478,148

Total assets less current liabilities
  
554,733
478,243

  

Creditors: amounts falling due after more than one year
 17 
(300,000)
(300,000)

  

Net assets
  
254,733
178,243


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account carried forward
  
254,633
178,143

  
254,733
178,243


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not prepared its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent company for the period was £76,490 (2021: £66,218).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 October 2023.


M A Welden
Director

The notes on pages 21 to 40 form part of these financial statements.

Page 15

 

 
BREAL CAPITAL (LYTE) LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



Called up share capital
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£


At 1 January 2022
100
201,994
143,931
346,025
(28,795)
317,230



Comprehensive income for the year


Loss for the year
-
-
(54,820)
(54,820)
(6,908)
(61,728)



At 31 December 2022
100
201,994
89,111
291,205
(35,703)
255,502



The notes on pages 21 to 40 form part of these financial statements.

Page 16

 

 
BREAL CAPITAL (LYTE) LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021



Called up share capital
Revaluation reserve (as restated)
Profit and loss account
Equity attributable to owners of parent Company (as restated)
Non-controlling interests (as restated)
Total equity (as restated)


£
£
£
£
£
£


At 1 January 2021
100
218,153
(22,003)
196,250
(33,136)
163,114



Comprehensive income for the year


Profit for the year
-
-
165,934
165,934
5,192
171,126


Deferred tax movement on revalued assets
-
(16,159)
-
(16,159)
(851)
(17,010)



At 31 December 2021
100
201,994
143,931
346,025
(28,795)
317,230



The notes on pages 21 to 40 form part of these financial statements.

Page 17

 
BREAL CAPITAL (LYTE) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
100
111,925
112,025


Comprehensive income for the year

Profit for the year
-
66,218
66,218



At 1 January 2022
100
178,143
178,243


Comprehensive income for the year

Profit for the year
-
76,490
76,490


At 31 December 2022
100
254,633
254,733


The notes on pages 21 to 40 form part of these financial statements.

Page 18

 
BREAL CAPITAL (LYTE) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(61,728)
171,126

Adjustments for:

Depreciation of tangible assets
215,136
212,631

Loss on disposal of tangible assets
-
(18)

Interest paid
351,871
283,475

Interest received
(24)
-

Taxation charge
(68,462)
(145,827)

Decrease in stocks
80,909
146,956

(Increase)/decrease in debtors
(181,008)
100,293

(Decrease) in creditors
(63,277)
(155,563)

Corporation tax received
195,301
-

Net cash generated from operating activities

468,718
613,073


Cash flows from investing activities

Purchase of tangible fixed assets
(52,652)
(144,965)

Sale of tangible fixed assets
-
526

Interest received
24
-

HP interest paid
-
(263)

Net cash used in investing activities

(52,628)
(144,702)

Cash flows from financing activities

Repayment of other loans
(268,972)
(339,772)

Repayment of/new finance leases
(6,318)
(4,606)

Interest paid
(169,285)
(114,958)

Net cash used in financing activities
(444,575)
(459,336)

Net (decrease)/increase in cash and cash equivalents
(28,485)
9,035

Cash and cash equivalents at beginning of year
53,469
44,434

Cash and cash equivalents at the end of year
24,984
53,469


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
24,984
53,469


The notes on pages 21 to 40 form part of these financial statements.

Page 19

 
BREAL CAPITAL (LYTE) LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022





At 1 January 2022
Cash flows
Other non-cash changes
At 31 December 2022
£

£

£

£

Cash at bank and in hand

53,469

(28,485)

-

24,984

Debt due after 1 year

(3,331,010)

268,972

(2,701)

(3,064,739)

Debt due within 1 year

(1,175,849)

-

(179,885)

(1,355,734)

Finance leases

(44,671)

6,318

-

(38,353)


(4,498,061)
246,805
(182,586)
(4,433,842)

The notes on pages 21 to 40 form part of these financial statements.

Page 20

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

The company is a private limited company, incorporated in England and Wales. The registered office address is 14th Floor 33 Cavendish Square, London, England, W1G 0PW. The principal trading address of the group is Siemens Way, Enterprise Park, Beaufort Reach, Swansea SA7 9BB.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

Parent Company disclosure exemptions
In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
• No Statement of Cash Flows has been presented for the parent Company;
• Disclosures in respect of the parent Company's financial instruments have not been presented as    equivalent disclosures have been provided in respect of the Group as a whole; and
• No disclosures have been given for the aggregate remuneration of the key management personnel  of the parent Company as their remuneration is included in the totals for the Group as a whole.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being .

Page 21

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Going concern

The Group had taken measures to ensure that it remained in a position where it could continue to meet its forecast liabilities as they fall due. 
Steps include: -
• Additional CBILS funding - all repayments have been made on time during 2022;
• Enhanced cost reduction measures; and
Based on the steps undertaken and with the continued support of the Group’s bank and shareholders, the financial statements have been prepared on a going concern basis.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 22

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Plant and machinery
-
10 years straight line
Fixtures and fittings
-
8 years straight line
Office equipment
-
4 years straight line
Tooling
-
3 years straight line

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

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

 
2.7

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 23

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.9

Interest income

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

 
2.10

Finance costs

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

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

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

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

Page 24

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.14

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated profit and loss account over its useful economic life.
 

Page 25

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.15

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Stocks

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

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

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

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. 

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

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 26

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.22

Financial instruments

The Group 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 in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 27

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.22
Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 28

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Group makes estimates and assumptions concerning the future. Management are also required to exercise judgment in the process of applying the company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
Carrying value of stock
Management review the market value of and demand for the Group's stocks on a periodic basis to ensure stock is recorded in the financial statements at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Any provision for impairment is recorded against the carrying value of the stocks. Management use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the Group's products and achievable selling prices.
Tangible fixed assets
It is the Group’s policy to measure freehold and leasehold properties at fair value less depreciation. The residual values of the properties are taken into consideration in this calculation. As at 31 December 2022 the directors do not consider the residual value of the properties to be materially different to the revalued amounts, therefore the depreciation charge on buildings is £nil.


4.


Turnover

Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
10,350,847
11,406,668

Rest of Europe
637,509
792,708

10,988,356
12,199,376


All turnover is attributable to the Group's principal activity.


5.


Other operating income

2022
2021
£
£

Government grants receivable
-
57,472


Page 29

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation
215,316
212,631

Exchange differences
(10,765)
(24,170)

Other operating lease rentals
8,496
16,114


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements

22,500
21,000

Page 30

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
2,743,139
2,916,113
-
-

Social security costs
225,816
232,600
-
-

Cost of defined contribution scheme
57,333
50,210
-
-

3,026,288
3,198,923
-
-


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



Group
Group
Company
Company
        2022
        2021
        2022
        2021
            No.
            No.
            No.
            No.









Directors
2
2
2
2



Sales and administration
28
31
-
-



Production and warehouse
97
109
-
-

127
142
2
2

The total compensation paid to key management personnel during the year was £163,205 (2021: £120,835).


9.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
161,050
114,958

Other loan interest payable
187,901
168,254

Finance leases and hire purchase contracts
2,920
263

351,871
283,475

Page 31

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
(28,462)
(68,493)

Adjustments in respect of previous periods
-
(299,360)


Total current tax

(28,462)
(367,853)

Deferred tax


Origination and reversal of timing differences
(40,000)
222,026


Taxation on loss on ordinary activities
(68,462)
(145,827)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


(Loss)/profit on ordinary activities before tax
(130,190)
25,299


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(24,736)
4,807

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,844
7,793

Capital allowances for year in excess of depreciation
-
74

Utilisation of tax losses
(14,523)
(12,581)

Permanent difference in capital allowances in excess of depreciation
(3,001)
-

Adjustments to tax charge in respect of prior periods
-
(299,360)

Short-term timing difference leading to an decrease in taxation
416
222,026

Adjustment in research and development tax credit leading to an decrease in the tax charge
(28,462)
(68,493)

Changes in provisions leading to an increase (decrease) in the tax charge
-
(93)

Total tax charge for the year
(68,462)
(145,827)

Page 32

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
10.Taxation (continued)


Factors that may affect future tax charges

The Group has estimated losses of £0.3m (2021: £0.4m) to carry forward against future profits.
On 3 March 2021, the Goverment announced an increase in the rate of corporation tax to 25% from 1 April 2023 on all profits when they exceed £250,000 and this change in rate was enacted on 10 June 2021. Where profits fall between £50,000 and £250,000, a marginal rate will be applied to taper the increase in the corporation tax rate. A small profits rate will be introduced for companies with profits of £50,000 or less so that corporation tax will continue to be paid at 19%.

Page 33

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2022
2,700,000
1,374,832
252,380
121,022
4,448,234


Additions
-
15,555
13,807
23,290
52,652



At 31 December 2022

2,700,000
1,390,387
266,187
144,312
4,500,886



Depreciation


At 1 January 2022
-
429,710
75,904
63,898
569,512


Charge for the year on owned assets
-
150,801
31,413
32,922
215,136



At 31 December 2022

-
580,511
107,317
96,820
784,648



Net book value



At 31 December 2022
2,700,000
809,876
158,870
47,492
3,716,238



At 31 December 2021
2,700,000
945,122
176,476
57,124
3,878,722

The most recent professional valuation of freehold land and buildings was in January 2022. the valuation was done on a  Market Value basis by Landwood Group. In the opinion of the Directors, they do not consider these valuations to be materially different to the values at the year end date.
The residual value of the land and buildings are considered to be the same as the carrying value.



If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2022
2021
£
£

Group


Cost
2,416,500
2,416,500

Net book value
2,416,500
2,416,500

Page 34

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2022
95



At 31 December 2022
95





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Lyte Ladders and Towers Limited
Manufacture and sale of ladders and step ladders.
Ordinary
95%
Lyte Ladders and Towers Ireland Limited (i)
Distribution of ladders, steps and towers
Ordinary
95%

(i) Shares held via Lyte Ladders and Towers Limited. Lyte Ladders and Towers Limited holds 100% of the share capital.


13.


Stocks

Group
Group
2022
2021
£
£

Raw materials and consumables
440,120
724,961

Work in progress
104,887
91,388

Finished goods and goods for resale
494,134
303,701

1,039,141
1,120,050


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 35

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Amounts owed by group undertakings
-
-
554,633
478,143


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
1,717,473
1,546,729
-
-

Other debtors
208,554
367,953
100
100

Prepayments and accrued income
209,367
206,543
-
-

2,135,394
2,121,225
100
100



15.


Cash and cash equivalents

Group
Group
2022
2021
£
£

Cash at bank and in hand
24,984
53,469



16.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Bank loans
1,355,734
1,150,896
-
-

Other loans
-
24,953
-
-

Trade creditors
1,244,862
1,246,591
-
-

Other taxation and social security
322,381
194,999
-
-

Obligations under finance lease and hire purchase contracts
38,353
44,671
-
-

Other creditors
10,159
90,644
95
95

Accruals and deferred income
371,126
479,571
-
-

3,342,615
3,232,325
95
95


Included within bank loans is an amount of £1,355,734 (2021: £1,150,896) in relation to a working capital facility, term loans and CBILS, secured by way of fixed and floating charges over all assets of the company.

Page 36

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Bank loans
1,179,919
1,635,842
-
-

Other loans
1,584,820
1,395,168
-
-

Other creditors
300,000
300,000
300,000
300,000

3,064,739
3,331,010
300,000
300,000


Included within bank loans is an amount of £1,179,919 (2021: £1,635,842) in relation to term loans and CBILS, secured by way of fixed and floating charges over all assets of the company.
Included within other loans is an amount of £1,584,820 (2021: £1,395,168) secured by way of a debenture over all assets of the company. This security is subordinated to the bank debt.

Page 37

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

18.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2022
2021
£
£

Amounts falling due within one year

Bank loans
1,355,734
1,150,896

Other loans
-
24,953


1,355,734
1,175,849

Amounts falling due 1-2 years

Bank loans
388,898
362,359


388,898
362,359

Amounts falling due 2-5 years

Bank loans
791,021
1,273,483

Other loans
1,584,820
1,395,168

4,120,473
4,206,859


See notes 16 and 17 for details of security. 

Page 38

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

19.


Deferred taxation


Group



2022


£






At beginning of year
(292,901)


Charged to profit or loss
40,000



At end of year
(252,901)

Group
Group
2022
2021
£
£

Accelerated capital allowances
(259,712)
(294,681)

Tax losses carried forward
77,686
72,655

Property revaluations
(70,875)
(70,875)

(252,901)
(292,901)


20.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



100 (2021 - 100) Ordinary shares shares of £1.00 each
100
100

There is a single class of ordinary shares. There are no restrictions on distribution of dividends and the repayment of capital.



21.


Reserves

Revaluation reserve

The reserve represents the revaluation of the Group's freehold properties net of associated deferred tax.

Profit and loss account

Being cumulative profits and losses from activities, together with any capital contributions. 

Page 39

 
BREAL CAPITAL (LYTE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

22.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £57,333 (2021 - £50,210). Contributions totalling £9,753 (2021 - £10,661) were payable to the fund at the balance sheet date and are included in creditors.


23.


Commitments under operating leases

At 31 December 2022 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2022
2021
£
£

Not later than 1 year
27,684
36,386

Later than 1 year and not later than 5 years
8,556
37,122

36,240
73,508

24.Contingent liabilities

The company has provided security in respect to any bank debts of its subsidiary undertaking.


25.


Related party transactions

At the balance sheet date, included in creditors due after more than one year was an amount of £1,584,820 (2021: £1,395,168) due to shareholders of the group and entities in which the directors of the company have a material interest.
Interest on the loans was charged at 10-15% per annum and the charge for the year was £187,363 (2021: £164,479) and remains unpaid at the balance sheet date.

 
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