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REGISTERED NUMBER: 01181853 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023

FOR

CHARCROFT ELECTRONICS LIMITED

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


CHARCROFT ELECTRONICS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2023







DIRECTORS: P G Newman
L D Dilloway
Mrs D C Rowland
R Tall
Mrs V J Mellor





REGISTERED OFFICE: Dol-y-Coed
Llanwrtyd Wells
Powys
Wales
LD5 4TH





REGISTERED NUMBER: 01181853 (England and Wales)





AUDITORS: Hackett Griffey LLP
Chartered Certified Accountants
& Statutory Auditors
31 High Street
Haverhill
Suffolk
CB9 8AD

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The directors present their strategic report for the year ended 31 January 2023.

REVIEW OF BUSINESS
The company's principal activity is the supply of electronic components to the aerospace, military, oil & gas, railways, instrumentation and audio industries.

The company saw a 20% increase in revenue during the year and the statement of financial position remained strong with net assets of £6,019,391 (2022: £5,698,261).

The company had a strong order book at the end of the year providing a good foundation for the coming year's trading.

As a consequence of the strong order book and increase in business the company's stocks and debtors have increased causing pressure on the company's cash flow. However this has been managed well and we have arranged bank finance to cover the occasional requirement for overdraft finance.

PRINCIPAL RISKS AND UNCERTAINTIES
The company holds or issues financial instruments to finance its operations. Operations, working capital and fixed assets are all financed out of retained earnings. Various financial instruments such as trade receivables and trade payables arise directly from the company's operations. The company does not enter in to any hedging arrangements.

The company is exposed to credit risk from credit sales which it manages by operating sound credit control policies and monitoring of all major customers. It also has exposure to the risk of stock losses. These are managed by ensuring that customers underwrite large stockholdings and keeping speculative purchases to a minimum.

At the statement of financial position date there were no significant concentrations of credit risk and the risk of obsolete stock had been written off through the profit and loss account as a result of our stock valuation policies.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

The company undertakes transactions in a limited number of foreign currencies and is therefore exposed to foreign exchange risk. To manage this risk the company maintains foreign currency bank accounts and tries to ensure that foreign currency sales are matched to foreign currency purchases.

The directors carefully monitor liquidity and cash flow on a regular basis.

FUTURE DEVELOPMENTS
The directors expect a revenue to grow moderately over the next year as the company consolidates it recent gains.

Our order intake since the year end has been strong but customers appear to be ordering over longer periods to secure products as manufacturing lead times increase. We believe that our stocks will increase slightly but should be financed from profits.

The directors as always, are actively looking at other ways in which to grow the business.


CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

KEY PERFORMANCE INDICATORS (KPI'S)
The company employs several financial KPI's which it uses to monitor and control the business. These are split between the financial performance KPI's of margin and staff costs against gross profit and the financial position KPIs of inventory turnover days and receivables days.

2023 2022
£ £
Revenue 14,667,723 12,213,847
Gross profit 4,764,090 3,955,351
Gross profit (%) 32% 32%
Staff Costs 2,681,584 2,160,180
Staff Costs (% of gross profit) 56% 55%
Inventory Turnover (days) 180 130
Receivables (days) 61 65

ON BEHALF OF THE BOARD:





P G Newman - Director


25 October 2023

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2023

The directors present their report with the financial statements of the company for the year ended 31 January 2023.

DIVIDENDS
Dividends of £638,354 were paid during the year.

The directors recommend that no further dividends be paid in respect of the year.

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

P G Newman
L D Dilloway
Mrs D C Rowland
R Tall
Mrs V J Mellor

Other changes in directors holding office are as follows:

I P Ford - resigned 30 April 2022

PURCHASE OF OWN SHARES
On 30 April 2022 the company purchased and cancelled 80 ordinary shares of 10p each for a consideration of £49,600.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2023


AUDITORS
The auditors Hackett Griffey LLP will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





P G Newman - Director


25 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHARCROFT ELECTRONICS LIMITED

Opinion
We have audited the financial statements of Charcroft Electronics Limited (the 'company') for the year ended 31 January 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHARCROFT ELECTRONICS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHARCROFT ELECTRONICS LIMITED


Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether 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.

As part of an audit in accordance with ISA's (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Irregularities, including fraud, are instances on 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.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHARCROFT ELECTRONICS LIMITED


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

Our audit was designed, after obtaining suitable knowledge and understanding of the company and the industry that it operates within, to include tests of detail together with an assessment of the control environment, to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition and areas where there is a risk of management override of systems and controls, and accounting estimates.

We also obtained an understanding of the legal and regulatory framework that the company operates in, through discussions with the directors and other management, and from our own knowledge and experience of the sector.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with that legal and regulatory framework;
- enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known, actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws or regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the company's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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

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

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




Jonathan M. Griffey (Senior Statutory Auditor)
for and on behalf of Hackett Griffey LLP
Chartered Certified Accountants
& Statutory Auditors
31 High Street
Haverhill
Suffolk
CB9 8AD

27 October 2023

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   

TURNOVER 3 14,667,723 12,213,847

Cost of sales 9,903,633 8,258,496
GROSS PROFIT 4,764,090 3,955,351

Administrative expenses 3,493,709 2,963,592
1,270,381 991,759

Other operating income 4 - 21,675
OPERATING PROFIT 7 1,270,381 1,013,434

Interest receivable and similar income 5,152 331
1,275,533 1,013,765

Interest payable and similar expenses 8 16,520 12,007
PROFIT BEFORE TAXATION 1,259,013 1,001,758

Tax on profit 9 249,929 192,098
PROFIT FOR THE FINANCIAL YEAR 1,009,084 809,660

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,009,084 809,660


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,009,084

809,660

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

BALANCE SHEET
31 JANUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 15,448 36,046
Tangible assets 12 462,041 497,660
477,489 533,706

CURRENT ASSETS
Stocks 13 4,339,620 2,936,657
Debtors 14 3,389,833 2,695,153
Cash at bank 713,133 1,742,194
8,442,586 7,374,004
CREDITORS
Amounts falling due within one year 15 2,577,124 1,690,568
NET CURRENT ASSETS 5,865,462 5,683,436
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,342,951

6,217,142

CREDITORS
Amounts falling due after more than one
year

16

(283,333

)

(483,333

)

PROVISIONS FOR LIABILITIES 20 (40,227 ) (35,548 )
NET ASSETS 6,019,391 5,698,261

CAPITAL AND RESERVES
Called up share capital 21 912 920
Capital redemption reserve 22 88 80
Retained earnings 22 6,018,391 5,697,261
SHAREHOLDERS' FUNDS 6,019,391 5,698,261

The financial statements were approved by the Board of Directors and authorised for issue on 25 October 2023 and were signed on its behalf by:





P G Newman - Director


CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 February 2021 920 5,489,925 80 5,490,925

Changes in equity
Dividends - (602,324 ) - (602,324 )
Total comprehensive income - 809,660 - 809,660
Balance at 31 January 2022 920 5,697,261 80 5,698,261

Changes in equity
Purchase of own shares (8 ) (49,600 ) 8 (49,600 )
Dividends - (638,354 ) - (638,354 )
Total comprehensive income - 1,009,084 - 1,009,084
Balance at 31 January 2023 912 6,018,391 88 6,019,391

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (89,374 ) 952,512
Interest paid (16,520 ) (12,007 )
Tax paid (194,894 ) (124,760 )
Net cash from operating activities (300,788 ) 815,745

Cash flows from investing activities
Purchase of tangible fixed assets (80,328 ) (72,984 )
Sale of tangible fixed assets 5,152 7,250
Interest received 5,152 331
Net cash from investing activities (70,024 ) (65,403 )

Cash flows from financing activities
Loan repayments in year (200,000 ) (200,000 )
Equity dividends paid (638,354 ) (602,324 )
Purchase of own shares (49,600 ) -
Net cash from financing activities (887,954 ) (802,324 )

Decrease in cash and cash equivalents (1,258,766 ) (51,982 )
Cash and cash equivalents at beginning of
year

2

1,742,194

1,794,176

Cash and cash equivalents at end of year 2 483,428 1,742,194

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,259,013 1,001,758
Depreciation charges 131,081 129,315
Loss on disposal of fixed assets 312 1,491
Finance costs 16,520 12,007
Finance income (5,152 ) (331 )
1,401,774 1,144,240
(Increase)/decrease in stocks (1,402,963 ) 221,195
Increase in trade and other debtors (694,680 ) (395,100 )
Increase/(decrease) in trade and other creditors 606,495 (17,823 )
Cash generated from operations (89,374 ) 952,512

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2023
31.1.23 1.2.22
£    £   
Cash and cash equivalents 713,133 1,742,194
Bank overdrafts (229,705 ) -
483,428 1,742,194
Year ended 31 January 2022
31.1.22 1.2.21
£    £   
Cash and cash equivalents 1,742,194 1,794,176


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.2.22 Cash flow At 31.1.23
£    £    £   
Net cash
Cash at bank 1,742,194 (1,029,061 ) 713,133
Bank overdrafts - (229,705 ) (229,705 )
1,742,194 (1,258,766 ) 483,428
Debt
Debts falling due within 1 year (200,000 ) - (200,000 )
Debts falling due after 1 year (483,333 ) 200,000 (283,333 )
(683,333 ) 200,000 (483,333 )
Total 1,058,861 (1,058,766 ) 95

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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

Turnover
Turnover is the amount derived from ordinary activities, stated after trade discounts, other sales taxes and net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of goods.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - in accordance with the property
Short leasehold - 10% on cost
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all cost of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Stock lines that have now moved during the financial year are written down to nil value.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

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

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sale of goods 14,667,723 12,213,847
14,667,723 12,213,847

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 11,709,339 10,220,844
Europe 1,703,864 858,138
Rest of the world 1,254,520 1,134,865
14,667,723 12,213,847

4. OTHER OPERATING INCOME

20232022
£   £   
Government grants- 21,675


5. EMPLOYEES AND DIRECTORS

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

The average number of persons employed by the company during the year, includingthe directors, amounted to:
2023 2022
Sales & purchasing 19 22
Administration & accounts 12 14
Manufacturing & stores 48 35
79 71
The aggregate payroll costs during the year were:
2023 2022
£    £   
Wages & salaries 2,165,390 1,755,640
Social security costs 225,281 163,624
Other pension costs 290,913 240,916
2,681,584 2,160,180

6. DIRECTORS' REMUNERATION

The directors aggregate remuneration in respect of qualifying services was:
2023 2022
£    £   
Remuneration 250,517 261,167
Company contributions in to pension schemes in respect of qualifying
services

54,699


63,352
305,216 324,519

The number of directors who accrued benefits under company pension plans
was as follows:

2023 2022
Number Number
Defined contribution plans 5 5

Remuneration of the highest paid director in respect of qualifying services
2023 2022
£    £   
Aggregate remuneration 134,936 107,338
Company contributions to pension plans in respect of qualifying services 14,787 15,975
149,723 123,313


CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

7. OPERATING PROFIT

Operating profit is stated after charging/crediting:
20232022
£   £   
Amortisation of intangible assets20,598 20,598
Depreciation of tangible fixed assets110,483 108,717
Loss on disposal of tangible assets312 1,491
Cost of stocks recognised as an expense9,903,633 8,258,496
Impairment of trade debtors(31)709
Foreign exchange differences(125,703)25,964
Fees payable for the audit of the financial statements10,250 8,750

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 16,520 12,007

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 245,250 194,894

Deferred tax:
Excess of capital allowances over depreciation 4,679 (2,796 )
Tax on profit 249,929 192,098

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,259,013 1,001,758
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

239,212

190,334

Effects of:
Expenses not deductible for tax purposes 544 559
Amortisation disallowed 3,914 3,914
Depreciation of freehold property 1,105 1,105
Enhanced capital allowances (superdeduction) (4,501 ) (3,814 )
Change in rate of deferred tax in relation to timing differences at year end. 9,655 -
Total tax charge 249,929 192,098

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

10. DIVIDENDS
2023 2022
£    £   
Ordinary Shares shares of 10p each
Interim 638,354 602,324

11. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 February 2022
and 31 January 2023 378,232
AMORTISATION
At 1 February 2022 342,186
Amortisation for year 20,598
At 31 January 2023 362,784
NET BOOK VALUE
At 31 January 2023 15,448
At 31 January 2022 36,046

12. TANGIBLE FIXED ASSETS
Fixtures
Freehold Short and Motor
property leasehold fittings vehicles Totals
£    £    £    £    £   
COST
At 1 February 2022 208,004 441,346 947,708 105,464 1,702,522
Additions - - 80,328 - 80,328
Disposals - - - (23,029 ) (23,029 )
At 31 January 2023 208,004 441,346 1,028,036 82,435 1,759,821
DEPRECIATION
At 1 February 2022 17,885 439,218 672,355 75,404 1,204,862
Charge for year 5,818 1,063 95,402 8,200 110,483
Eliminated on disposal - - - (17,565 ) (17,565 )
At 31 January 2023 23,703 440,281 767,757 66,039 1,297,780
NET BOOK VALUE
At 31 January 2023 184,301 1,065 260,279 16,396 462,041
At 31 January 2022 190,119 2,128 275,353 30,060 497,660

Included in cost of land and buildings is freehold land of £ 70,000 (2022 - £ 70,000 ) which is not depreciated.

13. STOCKS
2023 2022
£    £   
Stocks 4,339,620 2,936,657

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,304,256 2,626,607
Other debtors 100 100
Prepayments 85,477 68,446
3,389,833 2,695,153

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 429,705 200,000
Trade creditors 1,080,513 843,912
Taxation 245,250 194,894
Social security and other taxes 544,995 261,144
Other creditors 276,661 190,618
2,577,124 1,690,568

Comparatives have been restated to reflect the bank loan repayable within one year.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 17) 283,333 483,333

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 229,705 -
Bank loans 200,000 200,000
429,705 200,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 283,333 483,333

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
In more than five years 292,967 326,467

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Invoice financing 229,705 -

Invoice financing is secured by a fixed and floating charge over the assets of the company.

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Excess of capital allowances over
depreciation

40,227

35,548

Deferred
tax
£   
Balance at 1 February 2022 35,548
Provided during year 4,679
Balance at 31 January 2023 40,227

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
9,120 Ordinary Shares 10p 912 920

22. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 February 2022 5,697,261 80 5,697,341
Profit for the year 1,009,084 1,009,084
Dividends (638,354 ) (638,354 )
Purchase of own shares (49,600 ) 8 (49,592 )
At 31 January 2023 6,018,391 88 6,018,479

23. RELATED PARTY DISCLOSURES

During the year, total dividends of £549,283 were paid to the directors .

CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

23. RELATED PARTY DISCLOSURES - continued

P G Newman
Director

The company occupies premises owned by P G Newman and was charged a rent of £38,005 during the year

Dilloways Limited
A company in which L D Dilloway has a material interest

Fees to the value of £98,005 were charged to the company during the year.