GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
TLA ELECTRICAL HOLDINGS LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
TLA ELECTRICAL HOLDINGS LTD |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 28 February 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
TLA ELECTRICAL HOLDINGS LTD |
COMPANY INFORMATION |
for the year ended 28 February 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Mr James Timothy Card FCCA |
AUDITORS: |
Statutory Auditors |
70-72 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BN |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
GROUP STRATEGIC REPORT |
for the year ended 28 February 2023 |
The Group's objectives are to provide from stock a comprehensive and high quality supply of switch and fuse gear along with associated products to industry users. |
This is achieved through a developing branch network and the employment of knowledgeable staff together with ensuring the supply of products from industry leading names. |
REVIEW OF BUSINESS |
The result for the year has again further strengthened the Group balance sheet with an increase in shareholders funds and net current assets. |
At the end of the year the Director is satisfied with both the result achieved and the year end position; and to date the Group continues to trade satisfactorily. |
The focus to improve the current position has proved particularly relevant given the situation with the supply chain issues. The Group has managed funds and resources prudently throughout and has maintained a balanced position providing supply to key industries while maintaining financial discipline to ensure continued profitability and work within the finance available and regulations imposed. |
The main risks facing the Group are detailed below. |
The Group manages these risks through involved and informed management; together with an integrated and real time management information reporting system to regularly produce critical financial reporting information to measure results against a forecasted budget and enable the Directors to respond promptly to challenges and opportunities arising both internally and externally. |
This is further enhanced through regular and systemised review of trading performance together with stock, debtor cash and creditor levels in conjunction with external market information of trends and economic activity. |
Ensuring the Group has the resources to provide a continued supply in the current market is of fundamental importance. Given the Group position the Director is confident that while the short term will again be challenging the Group is well positioned in terms of financial and skilled resource to respond to those challenges |
The key performance indicators of the Group are given below: |
2023 | 2022 |
Gross profit | £8.4m | £8.5m |
Gross profit percentage | 28.26% | 25.29% |
Net profit/(loss) | £1.97m | £1.3m |
Stockholding days | 85 | 67 |
Debtor days | 85 | 89 |
Shareholders funds | £8.5m | £6.5m |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
GROUP STRATEGIC REPORT |
for the year ended 28 February 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks facing the Group is the maintenance of a diverse and credit worthy customer base along with effective management of working capital. |
The Group manages it's cash flow through borrowing secured on the Group's debtors. These levels are continually reviewed to ensure projected needs are covered. |
The Group's exposure to debt is managed through debt control with review of the Group's customer base to ensure there is no concentration of risk. |
Stock levels are reviewed regularly to both ensure continuity of supply and combat obsolete stock. |
ON BEHALF OF THE BOARD: |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
REPORT OF THE DIRECTOR |
for the year ended 28 February 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 28 February 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the sale of electrical components. |
DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2023. |
DIRECTOR |
The director holding office at 28 February 2023 did not hold any beneficial interest in the issued share capital of the company at 1 March 2022 or 28 February 2023. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Hewitt Card 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 |
TLA ELECTRICAL HOLDINGS LTD |
Opinion |
We have audited the financial statements of TLA Electrical Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 28 February 2023 and of the group's 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 group 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 director's 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TLA ELECTRICAL HOLDINGS LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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: |
We have adopted a risk based approach based upon analytical procedures and knowledge of the clients systems and environment it operates in. |
This enables us to design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for the audit opinion. |
To obtain an understanding of internal control where relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the companys internal control. |
To evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. |
To conclude on the appropriateness of management's 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 entity's ability to continue as a going concern. |
The likelihood of detecting irregularities is inherently difficult and we have designed our tests and procedures to reduce this risk. |
- We have enquired of management and the company's solicitors around actual and potential litigation and claims. |
- Review of company minutes of meetings of those charged with governance. |
- Reviewing financial statements disclosure and testing supporting documentation to assess compliance with applicable laws and regulations |
- Review and testing of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions. |
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 |
TLA ELECTRICAL HOLDINGS LTD |
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 Auditors |
70-72 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BN |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 28 February 2023 |
Year Ended | Period |
28.2.23 | 1.9.20 to 28.2.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 29,650,358 | 33,663,698 |
Cost of sales | 21,272,021 | 25,147,959 |
GROSS PROFIT | 8,378,337 | 8,515,739 |
Distribution costs | 103,966 | 143,636 |
Administrative expenses | 5,535,137 | 6,577,885 |
5,639,103 | 6,721,521 |
2,739,234 | 1,794,218 |
Other operating income | - | 18,329 |
OPERATING PROFIT | 4 | 2,739,234 | 1,812,547 |
Interest payable and similar expenses | 5 | 16,257 | 68,839 |
PROFIT BEFORE TAXATION | 2,722,977 | 1,743,708 |
Tax on profit | 6 | 709,451 | 468,340 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,013,526 |
1,275,368 |
Profit attributable to: |
Owners of the parent | 2,013,526 | 1,275,368 |
Total comprehensive income attributable to: |
Owners of the parent | 2,013,526 | 1,275,368 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
CONSOLIDATED BALANCE SHEET |
28 February 2023 |
28.2.23 | 28.2.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 83,810 | 94,133 |
Tangible assets | 9 | 1,914,469 | 1,757,800 |
Investments | 10 | - | - |
1,998,279 | 1,851,933 |
CURRENT ASSETS |
Stocks | 11 | 5,732,435 | 4,157,883 |
Debtors | 12 | 7,908,096 | 6,152,587 |
Cash at bank and in hand | 482,718 | 1,297,326 |
14,123,249 | 11,607,796 |
CREDITORS |
Amounts falling due within one year | 13 | 6,742,009 | 6,137,536 |
NET CURRENT ASSETS | 7,381,240 | 5,470,260 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 9,379,519 | 7,322,193 |
CREDITORS |
Amounts falling due after more than one year | 14 | (757,944 | ) | (773,637 | ) |
PROVISIONS FOR LIABILITIES | 18 | (131,153 | ) | (71,660 | ) |
NET ASSETS | 8,490,422 | 6,476,896 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 1,000 | 1,000 |
Share premium | 20 | 333,085 | 333,085 |
Retained earnings | 20 | 8,156,337 | 6,142,811 |
SHAREHOLDERS' FUNDS | 8,490,422 | 6,476,896 |
The financial statements were approved by the director and authorised for issue on 17 November 2023 and were signed by: |
D Curtis - Director |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
COMPANY BALANCE SHEET |
28 February 2023 |
28.2.23 | 28.2.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (31 | ) | (2 | ) |
The financial statements were approved by the director and authorised for issue on |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 28 February 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2020 | 1,000 | 4,867,443 | 333,085 | 5,201,528 |
Changes in equity |
Total comprehensive income | - | 1,275,368 | - | 1,275,368 |
Balance at 28 February 2022 | 1,000 | 6,142,811 | 333,085 | 6,476,896 |
Changes in equity |
Total comprehensive income | - | 2,013,526 | - | 2,013,526 |
Balance at 28 February 2023 | 1,000 | 8,156,337 | 333,085 | 8,490,422 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 28 February 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2020 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 28 February 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 28 February 2023 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 28 February 2023 |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 414,164 | 446,290 |
Interest paid | (1,817 | ) | (40,654 | ) |
Interest element of hire purchase payments paid |
(14,440 |
) |
(28,185 |
) |
Tax paid | (771,510 | ) | (362,790 | ) |
Net cash from operating activities | (373,603 | ) | 14,661 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (482,798 | ) | (283,039 | ) |
Sale of tangible fixed assets | 77,247 | 68,975 |
Net cash from investing activities | (405,551 | ) | (214,064 | ) |
Cash flows from financing activities |
Loan repayments in year | (85,550 | ) | (52,821 | ) |
Capital repayments in year | 49,996 | (58,857 | ) |
Amount withdrawn by directors | 100 | (792 | ) |
Net cash from financing activities | (35,454 | ) | (112,470 | ) |
Decrease in cash and cash equivalents | (814,608 | ) | (311,873 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,297,326 |
1,609,199 |
Cash and cash equivalents at end of year | 2 | 482,718 | 1,297,326 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 28 February 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
£ | £ |
Profit before taxation | 2,722,977 | 1,743,708 |
Depreciation charges | 273,133 | 370,925 |
Profit on disposal of fixed assets | (13,928 | ) | (13,199 | ) |
Finance costs | 16,257 | 68,839 |
2,998,439 | 2,170,273 |
Increase in stocks | (1,574,552 | ) | (1,461,165 | ) |
Increase in trade and other debtors | (1,755,609 | ) | (1,520,360 | ) |
Increase in trade and other creditors | 745,886 | 1,257,542 |
Cash generated from operations | 414,164 | 446,290 |
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 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 482,718 | 1,297,326 |
Period ended 28 February 2022 |
28.2.22 | 1.9.20 |
£ | £ |
Cash and cash equivalents | 1,297,326 | 1,609,199 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.3.22 | Cash flow | At 28.2.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,297,326 | (814,608 | ) | 482,718 |
1,297,326 | (814,608 | ) | 482,718 |
Debt |
Finance leases | (346,040 | ) | (49,996 | ) | (396,036 | ) |
Debts falling due within 1 year | (69,921 | ) | 12,085 | (57,836 | ) |
Debts falling due after 1 year | (584,880 | ) | 73,465 | (511,415 | ) |
(1,000,841 | ) | 35,554 | (965,287 | ) |
Total | 296,485 | (779,054 | ) | (482,569 | ) |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 28 February 2023 |
1. | STATUTORY INFORMATION |
TLA Electrical Holdings Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The coronavirus pandemic has significantly disrupted individuals’ personal lives and businesses’ economic prospects in the UK and across the globe. |
Despite the restrictions placed on our industry during the pandemic, we have managed to ensure that the business has continued to serve customers and to act responsibly with suppliers and employees. We have taken advantage of government assistance including the Coronavirus Job Retention Scheme |
We have continued to prepare the accounts on a going concern basis and deem this appropriate. We do not consider that a material uncertainty about our going concern status currently exists. In making this assessment we have considered the likely trading conditions for a period of twelve months from the date of our approval of these accounts |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
Slow moving stock |
The group holds a diverse range of stock and closely monitors the movement of each line. The group recognises the need to provide a basis upon which to identify slow moving stock. It calculates this based on lines not moved for more than one year. The value used in the calculation is apportioned to 50% of the line that has not moved by more than 3 years but less than 4, to 100% of the value for anything that has not moved beyond 4 years. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill represents the acquisition of a business in the current financial year. Having performed an impairment review the directors are of the opinion that the goodwill has no residual value and has been impaired in full during the current year. |
Intangible fixed assets - development costs |
Expenditure on research and development is charged to the profit and loss account in the year in which it is incurred with the exception of expenditure incurred in respect of the development of major new products where the outcome of those projects is assessed as being reasonably certain as regards viability and technical feasibility. Such expenditure is capitalised and amortised straight line over the estimated period of sale for each product, commencing in the year that sales of the product are first made. |
Amortisation is provided over 2 years on a straight line |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
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. |
Financial assets and liabilities are offset, with 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 trade and other receivables, loans to fellow group companies 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. |
Impairment of financial assets |
Financial assets, 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 arising 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. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities |
Basic financial liabilities, including trade and other payables, and bank loans 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method |
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 though 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 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled |
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 Consolidated 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. |
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 |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
£ | £ |
Wages and salaries | 2,528,532 | 3,394,001 |
Social security costs | 307,245 | 375,519 |
Other pension costs | 399,429 | 322,007 |
3,235,206 | 4,091,527 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
£ | £ |
Director's remuneration | 194,583 | 269,520 |
Director's pension contributions to money purchase schemes | 40,000 | 40,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
£ | £ |
Hire of plant and machinery | 120,471 | 172,823 |
Depreciation - owned assets | 118,666 | 162,235 |
Depreciation - assets on hire purchase contracts | 144,144 | 193,205 |
Profit on disposal of fixed assets | (13,928 | ) | (13,199 | ) |
Goodwill amortisation | 10,323 | 15,485 |
Auditors' remuneration | 15,875 | 11,340 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
£ | £ |
Invoice discounting interest | 3,921 | 7 |
Other interest | (9 | ) | 1,744 |
Loan | (2,095 | ) | 38,903 |
Hire purchase | 14,440 | 28,185 |
16,257 | 68,839 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
£ | £ |
Current tax: |
UK corporation tax | 649,273 | 470,825 |
Adjustment in respect of prior years | 685 | - |
Total current tax | 649,958 | 470,825 |
Deferred tax: |
Deferred tax | 24,474 | - |
Origination and reversal | 35,019 | (2,485 | ) |
Total deferred tax | 59,493 | (2,485 | ) |
Tax on profit | 709,451 | 468,340 |
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: |
Period |
1.9.20 |
Year Ended | to |
28.2.23 | 28.2.22 |
£ | £ |
Profit before tax | 2,722,977 | 1,743,708 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
517,366 |
331,305 |
Effects of: |
Expenses not deductible for tax purposes | 172,959 | 135,053 |
Income not taxable for tax purposes | (2,646 | ) | (2,509 | ) |
Capital allowances in excess of depreciation | (38,406 | ) | - |
Depreciation in excess of capital allowances | - | 6,976 |
Adjustments to tax charge in respect of previous periods | 685 | - |
Deferred tax | 59,493 | (2,485 | ) |
Total tax charge | 709,451 | 468,340 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
8. | INTANGIBLE FIXED ASSETS |
Group |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1 March 2022 |
and 28 February 2023 | 206,456 | 39,830 | 246,286 |
AMORTISATION |
At 1 March 2022 | 112,323 | 39,830 | 152,153 |
Amortisation for year | 10,323 | - | 10,323 |
At 28 February 2023 | 122,646 | 39,830 | 162,476 |
NET BOOK VALUE |
At 28 February 2023 | 83,810 | - | 83,810 |
At 28 February 2022 | 94,133 | - | 94,133 |
9. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 March 2022 | 1,325,555 | 34,545 | 534,493 |
Additions | - | - | 109,901 |
Disposals | - | - | (6,500 | ) |
At 28 February 2023 | 1,325,555 | 34,545 | 637,894 |
DEPRECIATION |
At 1 March 2022 | 134,915 | 34,545 | 356,437 |
Charge for year | 17,711 | - | 59,962 |
Eliminated on disposal | - | - | (6,500 | ) |
At 28 February 2023 | 152,626 | 34,545 | 409,899 |
NET BOOK VALUE |
At 28 February 2023 | 1,172,929 | - | 227,995 |
At 28 February 2022 | 1,190,640 | - | 178,056 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2022 | 326,520 | 636,245 | 241,169 | 3,098,527 |
Additions | 99,418 | 272,336 | 1,143 | 482,798 |
Disposals | - | (170,678 | ) | - | (177,178 | ) |
At 28 February 2023 | 425,938 | 737,903 | 242,312 | 3,404,147 |
DEPRECIATION |
At 1 March 2022 | 247,421 | 343,570 | 223,839 | 1,340,727 |
Charge for year | 44,629 | 125,423 | 15,085 | 262,810 |
Eliminated on disposal | - | (107,359 | ) | - | (113,859 | ) |
At 28 February 2023 | 292,050 | 361,634 | 238,924 | 1,489,678 |
NET BOOK VALUE |
At 28 February 2023 | 133,888 | 376,269 | 3,388 | 1,914,469 |
At 28 February 2022 | 79,099 | 292,675 | 17,330 | 1,757,800 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 March 2022 | 339,047 | - | 361,410 | 29,230 | 729,687 |
Additions | - | 31,032 | 272,336 | - | 303,368 |
Transfer to ownership | - | - | (155,843 | ) | - | (155,843 | ) |
At 28 February 2023 | 339,047 | 31,032 | 477,903 | 29,230 | 877,212 |
DEPRECIATION |
At 1 March 2022 | 204,838 | - | 142,266 | 16,239 | 363,343 |
Charge for year | 33,553 | 7,758 | 93,090 | 9,743 | 144,144 |
Transfer to ownership | - | - | (69,256 | ) | - | (69,256 | ) |
At 28 February 2023 | 238,391 | 7,758 | 166,100 | 25,982 | 438,231 |
NET BOOK VALUE |
At 28 February 2023 | 100,656 | 23,274 | 311,803 | 3,248 | 438,981 |
At 28 February 2022 | 134,209 | - | 219,144 | 12,991 | 366,344 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2022 |
and 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
28.2.23 | 28.2.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
Registered office: England |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group |
28.2.23 | 28.2.22 |
£ | £ |
Stocks | 5,732,435 | 4,157,883 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
28.2.23 | 28.2.22 | 28.2.23 | 28.2.22 |
£ | £ | £ | £ |
Trade debtors | 6,930,112 | 5,467,858 |
Other debtors | 376,220 | 123,227 |
Directors' current accounts | 5,371 | 5,471 | 5,371 | 5,471 |
Prepayments | 596,393 | 556,031 |
7,908,096 | 6,152,587 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
28.2.23 | 28.2.22 | 28.2.23 | 28.2.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 57,836 | 69,921 |
Hire purchase contracts (see note 16) | 149,507 | 157,283 |
Trade creditors | 5,508,182 | 4,913,849 |
Amounts owed to group undertakings | - | 137,600 |
Tax | 349,273 | 470,825 |
Social security and other taxes | 66,370 | 56,062 |
VAT | 403,525 | 214,712 | - | - |
Other creditors | 19,239 | 18,086 |
Accrued expenses | 188,077 | 99,198 |
6,742,009 | 6,137,536 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
28.2.23 | 28.2.22 |
£ | £ |
Bank loans (see note 15) | 511,415 | 584,880 |
Hire purchase contracts (see note 16) | 246,529 | 188,757 |
757,944 | 773,637 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
28.2.23 | 28.2.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 57,836 | 69,921 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 58,136 | 70,960 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 174,407 | 219,270 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 278,872 | 294,650 |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
28.2.23 | 28.2.22 |
£ | £ |
Gross obligations repayable: |
Within one year | 169,117 | 172,034 |
Between one and five years | 265,767 | 199,397 |
434,884 | 371,431 |
Finance charges repayable: |
Within one year | 19,610 | 14,751 |
Between one and five years | 19,238 | 10,640 |
38,848 | 25,391 |
Net obligations repayable: |
Within one year | 149,507 | 157,283 |
Between one and five years | 246,529 | 188,757 |
396,036 | 346,040 |
Group |
Non-cancellable operating | leases |
28.2.23 | 28.2.22 |
£ | £ |
Within one year | 26,756 | 132,829 |
Between one and five years | 311,728 | 467,441 |
In more than five years | 485,892 | 292,940 |
824,376 | 893,210 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
28.2.23 | 28.2.22 |
£ | £ |
Bank loans | 569,251 | 654,801 |
Hire purchase contracts | 396,036 | 346,040 |
965,287 | 1,000,841 |
The bank overdraft is secured on the company's trade debtors and by a debenture dated 27th March 1999. |
The bank also holds a charge over the company's premises at Bingham and Northamptonshire. |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
18. | PROVISIONS FOR LIABILITIES |
Group |
28.2.23 | 28.2.22 |
£ | £ |
Deferred tax | 131,153 | 71,660 |
Group |
Deferred |
tax |
£ |
Balance at 1 March 2022 | 71,660 |
Provided during year | 59,493 |
Balance at 28 February 2023 | 131,153 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 28.2.23 | 28.2.22 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
During the period the shares in TLA Electrical Holdings Ltd were acquired in full by TLA Trustee Limited. |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 March 2022 | 6,142,811 | 333,085 | 6,475,896 |
Profit for the year | 2,013,526 | 2,013,526 |
At 28 February 2023 | 8,156,337 | 333,085 | 8,489,422 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 March 2022 | 1,443,610 |
Deficit for the year | ( |
) | ( |
) |
At 28 February 2023 | 1,443,579 |
21. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate. |
The total cost of contributions in the period is £399,429 (2022: £322,007). At 28th February 2023 £116,717 was outstanding in respect of contributions (2022:£11,000) |
TLA ELECTRICAL HOLDINGS LTD (REGISTERED NUMBER: 07344626) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 28 February 2023 |
22. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the year ended 28 February 2023 and the period ended 28 February 2022: |
28.2.23 | 28.2.22 |
£ | £ |
D Curtis |
Balance outstanding at start of year | 5,473 | 4,679 |
Amounts advanced | - | 794 |
Amounts repaid | (100 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 5,373 | 5,473 |
23. | ULTIMATE CONTROLLING PARTY |
The group is owned by TLA Trustee Limited which operates as a trust and there is no overall controlling party |