REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
PHASE ELECTRICAL DISTRIBUTORS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
PHASE ELECTRICAL DISTRIBUTORS LIMITED |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
PHASE ELECTRICAL DISTRIBUTORS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
SOLICITORS: |
33 The Avenue |
Eastbourne |
East Sussex |
BN21 3YD |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The Directors are pleased to report continued Growth in Turnover and only a small drop in Pre-Tax Profits. We are pleased considering the ever increasing costs in all areas associated to the running of our business ie. Fuel, Gas, Electricity, Raw Materials in the manufacture of the products we sell to name just a few. The decision to move our Hastings branch in 2021 reaped rewards last year with 16.46% increase in revenue and 1.87% increase in margin. Our new Meeting and Training Centre has been received with much enthusiasm and is used regularly by our Customers and Suppliers. This helps strengthen our relationships with them and shows our commitment to improve the knowledge and service we offer by continued staff training. We have put more emphasis on how we market our business and have increased the number of people working in that department. This helps us remain relevant and keep up with all the current trends that are available to showcase our company and maintain its continued growth |
Key Performance Indicators |
Turnover | Gross margin | Pre tax profit |
2023 | £25,712,542 | £6,310,950 | £1,250,638 |
2022 | £22,584,890 | £5,766,243 | £1,306,607 |
2021 | £17,880,035 | £4,180,464 | £1,210,891 |
2020 | £17,519,064 | £4,229,128 | £451,855 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Phase Electrical Distributors Limited is a long-established company having first opened its doors in 2002. We are well known for offering quality goods and service levels that match our customers' expectations. The company sells products with specific margins associated to them to reach the required profits. The company's ability to maintain these margins ensures both stability and ultimately, growth and helps to build a firm platform from which the company can compete with and nullify future competition. As a company we ensure we sell on all platforms to keep current with all purchasing changes. The Ukraine/Russia war is still very much affecting the financial stability of all global economies and will continue to do so for the foreseeable future. Closer to home the cost of living crisis continues to dominate everyone's thoughts, so we are ensuring our workforce are at the forefront of our minds when making short term decisions that impact us immediately. Wages continue to grow to reflect these difficult times. |
FUTURE DEVELOPMENTS |
The Directors believe that the business is in a strong and healthy position going forward and it continues to maintain its profitability despite the continued challenging environment. The company showed its strength again by increasing its balance sheet at its financial year end. The company will continue to operate the same business model as it has done in the past with continuity an essential ingredient for success. Towards the end of 2022 we agreed the lease on a brand new commercial unit covering 7000 ft² which will be home to our new Phase Renewables department. This is a big investment which will help maintain our ability to cover all aspects of our customer's needs. Renewable energy is extremely important as it reduces global warming, improves public health and is an inexhaustible energy supply. There are many more benefits and we will focus on what is demanded commercially and domestically to reduce our carbon footprint. |
ON BEHALF OF THE BOARD: |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of being an electrical wholesaler to trade and retail customers. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2023 will be £654,492 (2022: £484,512). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, operating lease agreements and directors' loans. The main purpose of these instruments is to finance the company's operations. |
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. |
The loans from the directors do not have interest charged but are repayable on demand. The directors are aware of the company's required finance and have determined that these will only be repaid, in whole or in part, when finance is available. |
The company's operating lease commitments are in respect of the property from which the company operates as well as motor vehicles. The liquidity risk in respect of these is managed in the same way as loans above. |
The company's trade debtors are factored thorough the bank although the company retains all significant benefits and risks in respect of these. These are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
DONATIONS AND EXPENDITURE |
Donations were made by the company during the period to the value of £1,350 (2022:£0). These donations were made to various non political charities. |
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), 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 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. |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Ashdown Hurrey Auditors Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHASE ELECTRICAL DISTRIBUTORS LIMITED |
Opinion |
We have audited the financial statements of Phase Electrical Distributors Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of 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 March 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 |
PHASE ELECTRICAL DISTRIBUTORS 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 Statement of Directors' Responsibilities set out on pages three and four, 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 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. |
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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
During the planning stage of this audit we considered the likelihood of irregularities around laws and regulations relevant to the company, including enquiry of management and those charged with governance. These were also discussed during the audit planning meeting held by the team. We reviewed the company's systems and controls in place, and formed an assessment as to their operational effectiveness. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to: |
- The financial reporting standard; FRS102 |
- Employment law |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. |
During the course of this audit the team discussed this area with senior members of the company's staff, including directors, and also carried out a review of legal expenses for evidence of any issues. |
We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. |
We are therefore of the opinion that given the risk level identified, our procedures planned and undertaken, are adequate for detecting irregularities. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHASE ELECTRICAL DISTRIBUTORS LIMITED |
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. |
for and on behalf of |
Statutory Auditor |
20 Havelock Road |
Hastings |
East Sussex |
TN34 1BP |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,329,473 | 1,296,000 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,329,679 | 1,352,395 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE LOSS |
Share buy back | ( |
) |
Income tax relating to other comprehensive loss |
OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
BALANCE SHEET |
31 MARCH 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Profit for the year | - | 1,068,905 | - | - | 1,068,905 |
Total comprehensive income | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 31 March 2022 |
Changes in equity |
Profit for the year | - | 975,487 | - | - | 975,487 |
Other comprehensive income | - | (50,000 | ) | - | (49,975 | ) |
Total comprehensive income | - | - |
Issue of share capital | ( |
) | - | - | ( |
) |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 31 March 2023 |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 3,681 |
Amount withdrawn by directors | (7,349 | ) | - |
Share issue | ( |
) |
Share buy back | ( |
) |
Government grants received |
Increase in invoice financing |
Increase in credit card financing |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(10,484 |
) |
(8,003 |
) |
Cash and cash equivalents at end of year |
2 |
29,608 |
( |
) |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) |
Finance costs | 79,041 | 45,788 |
Finance income | (206 | ) | - |
1,559,923 | 1,533,627 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 29,608 | 7,715 |
Bank overdrafts | ( |
) |
29,608 | (10,484 | ) |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 7,715 | 16,955 |
Bank overdrafts | ( |
) | ( |
) |
(10,484 | ) | (8,003 | ) |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 7,715 | 21,893 | 29,608 |
Bank overdrafts | (18,199 | ) | 18,199 | - |
(10,484 | ) | 29,608 |
Debt |
Finance leases | (75,181 | ) | 43,159 | (32,022 | ) |
Debts falling due within 1 year | (454,545 | ) | 378,787 | (75,758 | ) |
Debts falling due after 1 year | (75,758 | ) | 75,758 | - |
(605,484 | ) | 497,704 | (107,780 | ) |
Total | (615,968 | ) | 537,796 | (78,172 | ) |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Phase Electrical Distributors Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The operating and presentation currencies are both GBP (£). |
Going concern |
In preparing the financial statements, the directors are required to make an assessment of the ability of the company to continue as a going concern. The directors have prepared budgets and cash flow forecasts for the company. |
On the basis of these forecasts and the fact that the company has a good level of net current assets and net assets, the directors are confident that the company has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. In reaching this conclusion they are satisfied that no material uncertainty exists. As a result of the above, the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements and that no material uncertainty exists in reaching this conclusion. |
Changes in accounting policies |
There have been no changes in accounting policies. |
Turnover |
Turnover represents net invoiced sales of electrical parts and equipment and is stated after trade discounts, incentives, rebates and excluding value added tax. Revenue is recognised on despatch of goods to the customer. |
Intangible assets |
These represent the company's development of a sales website and an electronic stock control system. In addition, the company is now developing a new sales software system. |
Once operational, the company is amortizing intangible assets over their estimated useful life of five years. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost (net of discounts received) and net realisable value, after making due allowance for obsolete and slow moving stock. |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
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 are shown within borrowings in current liabilities. |
Impairment of financial assets |
Financial asset, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
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. |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
Invoice financing |
The company's trade debts are factored with HSBC Invoice Financing although the company retains all significant benefits and risks in respect of these. The trade debts of the company are disclosed within current assets and the amount advanced by HSBC is shown within other creditors. Charges associated with this facility are charged to the profit and loss account for the relevant period. |
Employee benefits |
The cost of short-term employee benefits are recognised as a liability and an expenses. |
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. |
3. | TURNOVER |
All turnover was generated from the company's sole class of business and almost exclusively within the UK. |
4. | OTHER OPERATING INCOME |
The entity has received the following from the UK government in respect of COVID 19 grants and reliefs: |
31.3.23 | 31.3.22 |
£ | £ |
Coronavirus Job retention Scheme (CJRS) | - | 50,408 |
Small Business Grant Fund | - | - |
Interest settlement in respect of the Coronavirus Business Interruption Loan Scheme (CBILS) | - | 5,987 |
- | 56,395 |
5. | EMPLOYEES AND DIRECTORS |
31.3.23 | 31.3.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Head Office Staff | 22 | 22 |
Warehouse/Branch Staff | 65 | 61 |
31.3.23 | 31.3.22 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.3.23 | 31.3.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Development costs amortisation |
Website development costs amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Rent |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.23 | 31.3.22 |
£ | £ |
Bank loan interest |
Factoring interest charges |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | TAXATION - continued |
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: |
31.3.23 | 31.3.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods |
Deferred tax movement | 51,253 | 44,612 |
Total tax charge | 275,151 | 237,702 |
Tax effects relating to effects of other comprehensive income |
31.3.23 |
Gross | Tax | Net |
£ | £ | £ |
Share buy back | ( |
) | - | (49,975 | ) |
31.3.22 |
Gross | Tax | Net |
£ | £ | £ |
Share buy back |
9. | DIVIDENDS |
31.3.23 | 31.3.22 |
£ | £ |
Ordinary A shares of £1 each - interim | 348,000 | 348,000 |
Ordinary B shares of £1 each - interim | 236,432 | 68,952 |
Ordinary C shares of £1 each - interim | 37,540 | 35,040 |
Ordinary E shares of £1 each - interim | 32,520 | 32,520 |
654,492 | 484,512 |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | INTANGIBLE FIXED ASSETS |
Website |
Development | development |
costs | costs | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 |
AMORTISATION |
At 1 April 2022 |
Amortisation for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
11. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 April 2022 |
Transfer to ownership | (115,695 | ) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Transfer to ownership | (40,291 | ) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
12. | STOCKS |
31.3.23 | 31.3.22 |
£ | £ |
Stock in transit |
Finished goods |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
The company's trade debts are factored with HSBC Invoice Financing although the company retains all significant benefits and risks in respect of these. |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Tax |
VAT |
Other creditors |
Directors' current accounts |
Accrued expenses |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
31.3.23 | 31.3.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.3.23 | 31.3.22 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
31.3.23 | 31.3.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.23 | 31.3.22 |
£ | £ |
Bank overdraft |
Advances for invoice financing | 1,971,630 | 1,100,301 |
The company's bankers, HSBC plc, hold a fixed and floating charge, dated 4th September 2003, over all property and assets of the company, both current and future. |
HSBC plc also hold a contract monies charge dated 18 March 2013. |
HSBC Invoice Finance (UK) Limited, hold a floating charge, dated 13 November 2009, over all of the assets of the company. |
HSBC Invoice Finance (UK) Limited also hold a fixed charge on purchased debts that fail to vest, dated 5 May 2004. |
Industrial Property Investment Fund, hold a lease charge, dated 1 September 2005, for the sum of £7,864. |
19. | PROVISIONS FOR LIABILITIES |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Accelerated capital allowances | 51,252 |
Balance at 31 March 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary A | £1 | 4,000 | 4,000 |
Ordinary B | £1 | 28 | 53 |
Ordinary C | £1 | 25 | 25 |
Ordinary E | £1 | 25 | 25 |
4,078 | 4,103 |
During the year, the company redeemed 25 ordinary B shares at a cost of £50,000. This transaction is shown within the other comprehensive loss on the statement of comprehensive income on page 8 of these financial statements. |
21. | RELATED PARTY DISCLOSURES |
PHASE ELECTRICAL DISTRIBUTORS LIMITED (REGISTERED NUMBER: 04424536) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
21. | RELATED PARTY DISCLOSURES - continued |
31.3.23 | 31.3.22 |
£ | £ |
Total compensation paid |
Dividends paid to directors and other key management personnel. | 477,168 | 445,560 |
Amounts due to related parties | ( |
) | ( |
) |
31.3.23 | 31.3.22 |
£ | £ |
Rentals paid to Mars Pension Trustees Limited for use of commercial property. |
22,500 |
36,333 |
Dividends | 177,324 | 36,432 |
22. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party. |