Company Registration No. 00167205 (England and Wales)
BRITISH ELECTRIC LAMPS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
BRITISH ELECTRIC LAMPS LIMITED
COMPANY INFORMATION
Directors
M E Grote
T M Grote
R E Grote
A D Tearne
(Appointed 5 May 2023)
B J Hirst
(Appointed 28 April 2023)
S M Horsfield
(Appointed 26 June 2023)
P Holt
(Appointed 26 June 2023)
I J Simons
(Appointed 26 June 2023)
Company number
00167205
Registered office
Bell House
Foxbridge Way
Normanton Industrial Estate
Normanton
WF6 1TN
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
BRITISH ELECTRIC LAMPS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 28
BRITISH ELECTRIC LAMPS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Fair review of the business

As shown in the consolidated profit and loss account on page 9, turnover for the year ended 31 March 2023 was £33.3 million compared to £30.7 million for the year ended 31 March 2022. This increase in turnover demonstrates the continued strong demand for our products in the market.

 

Gross profit for the year amounted to £11.0 million, representing 33.1% of turnover, compared to £11.0 million for the comparative year, representing 35.7% of turnover. Gross profit in the year was adversely impacted as a result of foreign exchange losses, due to unique economic conditions and is expected to rebalance.

 

Operating profit was £3.3 million for the year, representing 10.1% of turnover, compared to £4.3 million for the comparative year, representing 14.2% of turnover. Operating profit reduced in the year due to a combination of wage inflation, increased staff numbers and investment in new lease to double capacity for the business.

 

As shown on the consolidated balance sheet on page 10, the Group's net current assets and net assets have increased to £15.8 million and £18.3 million respectively. The Group has no material debt requirements. The company invested over £2.0 million during the year in a new National Distribution Centre and Head Office facilities in Normanton to enable continued growth and expansion. The NDC includes conference and showroom facilities, spacious offices, gym and wellness centre, QC testing facilities and warehouse.

Principal risks and uncertainties

UK economic conditions, Dollar exchange rates and a combination of uncertain freight and raw material prices remain the principal risk factors that could affect financial performance.

 

On behalf of the board

T M Grote
Director
18 October 2023
BRITISH ELECTRIC LAMPS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the Group is the manufacture and sale of electric lamps and luminaires.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

M E Grote
T M Grote
R E Grote
A D Tearne
(Appointed 5 May 2023)
B J Hirst
(Appointed 28 April 2023)
S M Horsfield
(Appointed 26 June 2023)
P Holt
(Appointed 26 June 2023)
I J Simons
(Appointed 26 June 2023)
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
T M Grote
Director
18 October 2023
BRITISH ELECTRIC LAMPS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BRITISH ELECTRIC LAMPS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRITISH ELECTRIC LAMPS LIMITED
- 4 -
Opinion

We have audited the financial statements of British Electric Lamps Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

BRITISH ELECTRIC LAMPS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRITISH ELECTRIC LAMPS LIMITED
- 5 -

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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 strategic report and the directors' report.

 

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:

 

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 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 company or to cease operations, or have no realistic alternative but to do so.

BRITISH ELECTRIC LAMPS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRITISH ELECTRIC LAMPS LIMITED
- 6 -
Auditor's 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 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.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

 

BRITISH ELECTRIC LAMPS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRITISH ELECTRIC LAMPS LIMITED
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Mark Hunter FCA (Senior Statutory Auditor)
For and on behalf of TC Group
18 October 2023
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
BRITISH ELECTRIC LAMPS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
33,267,080
30,681,388
Cost of sales
(22,262,697)
(19,718,004)
Gross profit
11,004,383
10,963,384
Administrative expenses
(7,715,729)
(6,642,560)
Other operating income
-
1,451
Operating profit
4
3,288,654
4,322,275
Interest receivable and similar income
8
70,692
22,344
Interest payable and similar expenses
9
-
0
(1,542)
Profit before taxation
3,359,346
4,343,077
Tax on profit
10
232,197
(244,528)
Profit for the financial year
21
3,591,543
4,098,549
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
BRITISH ELECTRIC LAMPS LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,474,944
505,156
Current assets
Stocks
15
9,379,441
11,083,726
Debtors
16
10,339,629
9,180,265
Cash at bank and in hand
6,911,831
5,005,963
26,630,901
25,269,954
Creditors: amounts falling due within one year
17
(10,600,569)
(10,834,978)
Net current assets
16,030,332
14,434,976
Total assets less current liabilities
18,505,276
14,940,132
Provisions for liabilities
Deferred tax liability
18
6,583
32,982
(6,583)
(32,982)
Net assets
18,498,693
14,907,150
Capital and reserves
Called up share capital
20
6,201
6,201
Share premium account
21
6
6
Capital redemption reserve
21
3,801
3,801
Profit and loss reserves
21
18,488,685
14,897,142
Total equity
18,498,693
14,907,150
The financial statements were approved by the board of directors and authorised for issue on 18 October 2023 and are signed on its behalf by:
18 October 2023
T M Grote
Director
BRITISH ELECTRIC LAMPS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,440,332
467,135
Investments
13
1
1
2,440,333
467,136
Current assets
Stocks
15
9,279,196
11,083,726
Debtors
16
9,810,626
8,734,489
Cash at bank and in hand
6,749,382
4,874,618
25,839,204
24,692,833
Creditors: amounts falling due within one year
17
(10,672,336)
(10,665,039)
Net current assets
15,166,868
14,027,794
Total assets less current liabilities
17,607,201
14,494,930
Provisions for liabilities
Deferred tax liability
18
6,583
32,982
(6,583)
(32,982)
Net assets
17,600,618
14,461,948
Capital and reserves
Called up share capital
20
6,201
6,201
Share premium account
21
6
6
Capital redemption reserve
21
3,801
3,801
Profit and loss reserves
21
17,590,610
14,451,940
Total equity
17,600,618
14,461,948

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,138,670 (2022 - £3,733,214 profit).

The financial statements were approved by the board of directors and authorised for issue on 18 October 2023 and are signed on its behalf by:
18 October 2023
T M Grote
Director
Company Registration No. 00167205
BRITISH ELECTRIC LAMPS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
6,201
6
3,801
13,298,593
13,308,601
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
4,098,549
4,098,549
Dividends
11
-
-
-
(2,500,000)
(2,500,000)
Balance at 31 March 2022
6,201
6
3,801
14,897,142
14,907,150
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
3,591,543
3,591,543
Balance at 31 March 2023
6,201
6
3,801
18,488,685
18,498,693
BRITISH ELECTRIC LAMPS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
6,201
6
3,801
13,218,726
13,228,734
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
3,733,214
3,733,214
Dividends
11
-
-
-
(2,500,000)
(2,500,000)
Balance at 31 March 2022
6,201
6
3,801
14,451,940
14,461,948
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
3,138,670
3,138,670
Balance at 31 March 2023
6,201
6
3,801
17,590,610
17,600,618
BRITISH ELECTRIC LAMPS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
4,532,735
1,426,573
Interest paid
-
0
(1,542)
Income taxes paid
(479,082)
(382,769)
Net cash inflow from operating activities
4,053,653
1,042,262
Investing activities
Purchase of tangible fixed assets
(2,278,159)
(320,942)
Proceeds on disposal of tangible fixed assets
59,682
61,286
Interest received
70,692
22,344
Net cash used in investing activities
(2,147,785)
(237,312)
Financing activities
Payment of finance leases obligations
-
(15,572)
Dividends paid to equity shareholders
-
(2,500,000)
Net cash used in financing activities
-
(2,515,572)
Net increase/(decrease) in cash and cash equivalents
1,905,868
(1,710,622)
Cash and cash equivalents at beginning of year
5,005,963
6,716,585
Cash and cash equivalents at end of year
6,911,831
5,005,963
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information

British Electric Lamps Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Bell House, Foxbridge Way, Normanton Industrial Estate, Normanton, WF6 1TN.

 

The group consists of British Electric Lamps Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company British Electric Lamps Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

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

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

Leasehold land and buildings
Over the period of the lease
Leasehold improvements
Over the period of the lease
Plant and equipment
3-10 years
Motor vehicles
3 years

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

1.6
Fixed asset investments

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Stocks

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

 

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

BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -

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

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
Equity instruments

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

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Employee benefits

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

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of trade and other debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment trade and other debtors, management considers factors including the ageing profile and historical experience. The carrying value of trade debtors is set out in note 16.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
33,267,080
30,681,388
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 19 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
30,867,880
29,364,953
Rest of Europe
2,399,200
1,316,435
33,267,080
30,681,388
2023
2022
£
£
Other significant revenue
Interest income
70,692
22,344
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences
719,542
11,610
Depreciation of owned tangible fixed assets
296,954
257,282
Profit on disposal of tangible fixed assets
(48,265)
(50,974)
Operating lease charges
551,006
459,620
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
17,600
16,000
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration and support
16
12
16
12
Operations
22
18
22
18
Sales, marketing and distribution
55
53
55
53
Total
93
83
93
83

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,600,854
3,018,458
3,516,300
2,964,160
Social security costs
406,694
307,669
396,874
301,376
Pension costs
75,159
137,012
75,159
137,012
4,082,707
3,463,139
3,988,333
3,402,548
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
562,085
517,587
Company pension contributions to defined contribution schemes
8,000
74,720
570,085
592,307
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
172,845
176,420
Company pension contributions to defined contribution schemes
4,000
8,415
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
70,692
22,344
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
1,542
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
61,394
253,685
Deferred tax
Origination and reversal of timing differences
(26,399)
(9,157)
Adjustment in respect of prior periods
(267,192)
-
0
Total deferred tax
(293,591)
(9,157)
Total tax (credit)/charge
(232,197)
244,528
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 22 -

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,359,346
4,343,077
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
638,276
825,185
Tax effect of expenses that are not deductible in determining taxable profit
-
0
11,555
Change in unrecognised deferred tax assets
-
0
10,665
Adjustments in respect of prior years
(403,215)
(179,329)
Effect of change in corporation tax rate
-
(5,682)
Permanent capital allowances in excess of depreciation
14,766
-
0
Research and development tax credit
(416,913)
(390,414)
Other differences leading to an increase (decrease) in the tax charge
-
0
(26,803)
Fixed asset differences
(65,111)
(649)
Taxation (credit)/charge
(232,197)
244,528
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
-
2,500,000
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
76,307
-
0
1,319,200
609,371
2,004,878
Additions
-
0
1,969,305
101,188
207,666
2,278,159
Disposals
(76,307)
-
0
(23,105)
(104,502)
(203,914)
At 31 March 2023
-
0
1,969,305
1,397,283
712,535
4,079,123
Depreciation and impairment
At 1 April 2022
76,307
-
0
1,095,596
327,819
1,499,722
Depreciation charged in the year
-
0
-
0
131,488
165,466
296,954
Eliminated in respect of disposals
(76,307)
-
0
(15,919)
(100,271)
(192,497)
At 31 March 2023
-
0
-
0
1,211,165
393,014
1,604,179
Carrying amount
At 31 March 2023
-
0
1,969,305
186,118
319,521
2,474,944
At 31 March 2022
-
0
-
0
223,604
281,552
505,156
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 24 -
Company
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
76,307
-
0
1,319,200
571,350
1,966,857
Additions
-
0
1,969,305
101,188
207,666
2,278,159
Disposals
(76,307)
-
0
(23,105)
(104,502)
(203,914)
At 31 March 2023
-
0
1,969,305
1,397,283
674,514
4,041,102
Depreciation and impairment
At 1 April 2022
76,307
-
0
1,095,596
327,819
1,499,722
Depreciation charged in the year
-
0
-
0
131,488
162,057
293,545
Eliminated in respect of disposals
(76,307)
-
0
(15,919)
(100,271)
(192,497)
At 31 March 2023
-
0
-
0
1,211,165
389,605
1,600,770
Carrying amount
At 31 March 2023
-
0
1,969,305
186,118
284,909
2,440,332
At 31 March 2022
-
0
-
0
223,604
243,531
467,135
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1
Carrying amount
At 31 March 2023
1
At 31 March 2022
1
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Bell Lighting (Ireland) Limited
Marina House, Clarence Street, Dun Laoghaire, Co. Dublin, Ireland
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
9,379,441
11,083,726
9,279,196
11,083,726
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,231,767
8,357,285
8,702,946
7,911,510
Corporation tax recoverable
447,191
-
0
447,191
-
0
Other debtors
6,628
1,871
6,910
1,870
Prepayments and accrued income
654,043
821,109
653,579
821,109
10,339,629
9,180,265
9,810,626
8,734,489
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,986,722
1,463,746
1,991,818
1,421,356
Amounts owed to group undertakings
-
0
-
0
238,079
28,609
Corporation tax payable
-
0
237,689
-
0
185,428
Other taxation and social security
893,904
1,429,055
733,316
1,328,538
Other creditors
-
0
9,734
-
0
9,734
Accruals and deferred income
7,719,943
7,694,754
7,709,123
7,691,374
10,600,569
10,834,978
10,672,336
10,665,039
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
6,583
32,982
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
6,583
32,982
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
32,982
32,982
Credit to profit or loss
(26,399)
(26,399)
Liability at 31 March 2023
6,583
6,583

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
75,159
137,012

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
1,861
1,861
1,861
1,861
Ordinary B shares of £1 each
2,170
2,170
2,170
2,170
Ordinary C shares of £1 each
2,170
2,170
2,170
2,170
6,201
6,201
6,201
6,201
21
Reserves
Profit and loss reserves

Profit and loss account

The profit and loss account represents accumulated comprehensive income for the year and prior periods, after deduction of dividends.

22
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
565,501
292,157
565,501
292,157
Between two and five years
1,487,913
-
1,487,913
-
2,053,414
292,157
2,053,414
292,157
BRITISH ELECTRIC LAMPS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
23
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,591,543
4,098,549
Adjustments for:
Taxation (credited)/charged
(232,197)
244,528
Finance costs
-
0
1,542
Investment income
(70,692)
(22,344)
Gain on disposal of tangible fixed assets
(48,265)
(50,974)
Depreciation and impairment of tangible fixed assets
296,954
257,282
Movements in working capital:
Decrease/(increase) in stocks
1,704,285
(3,605,792)
Increase in debtors
(712,173)
(1,882,354)
Increase in creditors
3,280
2,386,135
Cash generated from operations
4,532,735
1,426,572
24
Analysis of changes in net funds - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
5,005,963
1,905,868
6,911,831
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