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REGISTERED NUMBER: 02518864 (England and Wales)















Trams Limited

Strategic Report, Directors' Report and

Financial Statements

for the Year Ended 31 December 2023






Trams Limited (Registered number: 02518864)

Contents of the Financial Statements
for the year ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Directors' Report 4

Independent Auditors' Report 6

Income Statement 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Trams Limited

Company Information
for the year ended 31 December 2023







Directors: W Peel
A B Diaz
B Wylie
L I Garcia Garcia





Registered office: New Derwent House
69-73 Theobalds Road
London
WC1X 8TA





Registered number: 02518864 (England and Wales)





Auditors: Mazars
Statutory Auditor
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

Trams Limited (Registered number: 02518864)

Strategic Report
for the year ended 31 December 2023


The directors present the Strategic Report for the year ended 31 December 2023.

Review of business
The directors continue to position Trams in new and value-adding areas within the IT reseller market. Trams continues to deliver specialist skills and consultancy in; End User Compute, Enterprise Device Management, Storage Workflows, Audio-Visual Solutions, Media Asset Management technologies and related media workflow solutions for video content management.

Our storage solutions for video content continue to see significant growth, as do our in-house cloud services, for the management of Apple desktop, tablet and smartphone devices, which have been well received in the enterprise, corporate and education sectors. Overall, margins have been maintained from the previous year bolstered by the ongoing diversification into new specialised hardware and software solutions (including Cloud, machine learning and AI) thereby enhancing the reputation of the Company. We have also continued to grow our commodity IT provision into enterprise markets.

The burgeoning integration with our parent, Econocom Group SE, has seen an increased appetite from customers to invest in Technology Management Finance & OPEX solutions from Trams. Additionally, Econocom Group SE is continuing to introduce Trams to a new and diverse set of customers which will increase the turnover and profitability of Trams in future years.

Principal risks and uncertainties
The directors have assessed the main risks facing the Company as being credit risk, exposure to foreign exchange currency movements, manufacturer supply chain issues and the general uncertainty of the UK & World economies.

Credit risk

The Company's principal financial assets are trade debtors and the recoverability of trade debtor balances represents the principal risk facing the business.

In order to manage credit risk, management set trading account limits for all customers based on a combination of payment history and third-party credit insurance references. Credit limits are reviewed by management on an ongoing basis and in conjunction with current debtor age profiling and an ongoing monitoring of debtor collection history.

Currency risk

The Company is increasingly exposed to translation and transaction foreign exchange risk. Where necessary the Company enters into forward exchange contracts in order to protect the business against adverse currency movement in both GBP/USD and other currency pairings. Foreign exchange differences on retranslation of these liabilities are taken to the Income Statement.

Manufacturer supply chain

Supply chains have returned to normal pre-Covid levels. Currently Trams is able to supply a diverse set of hardware from all major manufacturer brands from Apple, to Dell, to Lenovo, to HP, to Microsoft and more in a timely manner to match customer expectations around delivery and implementation.

Key performance indicators (KPI's)
Management use a range of performance measures to monitor and manage the business including our NetSuite ERP system which provides real-time KPI tools. The key financial performance measures used by the directors in assessing the company's performance are turnover, profit before taxation and shareholders' funds. The performance of the Company is considered to be satisfactory by the directors when using these indicators, results for which can be found in the Income Statement and Balance Sheet.


Trams Limited (Registered number: 02518864)

Strategic Report
for the year ended 31 December 2023

Financial instruments
The Company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in Pound Sterling. The Company does not enter into any normal hedging arrangements.

On behalf of the board:





W Peel - Director


9 February 2024

Trams Limited (Registered number: 02518864)

Directors' Report
for the year ended 31 December 2023


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

Dividends
No dividends will be distributed for the year ended 31 December 2023.

Directors
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

W Peel
A B Diaz
B Wylie
L I Garcia Garcia

Other changes in directors holding office are as follows:

A Page - resigned 30 June 2023

Disclosure in the strategic report
As permitted by paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the Directors' Report have been omitted as they are included in the Strategic Report. These matters relate to financial instruments, which otherwise would be required to be shown in the Directors' Report.

Auditors
The audit business of Haines Watts London LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts London LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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 Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

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

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

Trams Limited (Registered number: 02518864)

Directors' Report
for the year ended 31 December 2023


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

On behalf of the board:



W Peel - Director


9 February 2024

Independent Auditors' Report to the Members of
Trams Limited


Opinion
We have audited the financial statements of Trams Limited (the 'Company') for the year ended 31 December 2023 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and 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 December 2023 and of the Company'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 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Independent Auditors' Report to the Members of
Trams 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 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:
- 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 page 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation.

Independent Auditors' Report to the Members of
Trams Limited


Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

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/auditors responsibilities. This description forms part of our Report of the Independent Auditors.

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

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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Andrew Jepson FCCA (Senior Statutory Auditor)
for and on behalf of Mazars
Statutory Auditor
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

12 February 2024

Trams Limited (Registered number: 02518864)

Income Statement
for the year ended 31 December 2023

2023 2022
Notes £ £

Turnover 3 46,557,812 68,468,584

Cost of sales (40,990,477 ) (60,884,234 )
Gross profit 5,567,335 7,584,350

Administrative expenses (4,347,566 ) (5,103,415 )
Operating profit 1,219,769 2,480,935

Income from shares in group undertakings - 40,792
Interest receivable and similar income 492,794 100,050
1,712,563 2,621,777
Amounts written off investments 6 - (131 )
1,712,563 2,621,646

Interest payable and similar expenses 7 (453,583 ) (61,418 )
Profit before taxation 8 1,258,980 2,560,228

Tax on profit 10 (308,631 ) (489,335 )
Profit for the financial year 950,349 2,070,893

Trams Limited (Registered number: 02518864)

Balance Sheet
31 December 2023

2023 2022
Notes £ £ £ £
Fixed assets
Tangible assets 11 35,785 44,831

Current assets
Stocks 12 84,650 77,778
Debtors 13 818,409 8,181,351
Cash at bank and in hand 14,440,967 6,614,608
15,344,026 14,873,737
Creditors
Amounts falling due within one year 14 10,406,618 10,895,724
Net current assets 4,937,408 3,978,013
Total assets less current liabilities 4,973,193 4,022,844

Provisions for liabilities 18 3,722 3,722
Net assets 4,969,471 4,019,122

Capital and reserves
Called up share capital 19 330,229 330,229
Share premium 20 294,228 294,228
Capital redemption reserve 20 69,010 69,010
Retained earnings 20 4,276,004 3,325,655
Shareholders' funds 4,969,471 4,019,122

The financial statements were approved by the Board of Directors and authorised for issue on 9 February 2024 and were signed on its behalf by:





W Peel - Director


Trams Limited (Registered number: 02518864)

Statement of Changes in Equity
for the year ended 31 December 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£ £ £ £ £
Balance at 1 January 2022 330,229 1,254,762 294,228 69,010 1,948,229

Changes in equity
Total comprehensive income - 2,070,893 - - 2,070,893
Balance at 31 December 2022 330,229 3,325,655 294,228 69,010 4,019,122

Changes in equity
Total comprehensive income - 950,349 - - 950,349
Balance at 31 December 2023 330,229 4,276,004 294,228 69,010 4,969,471

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements
for the year ended 31 December 2023


1. Statutory information

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

The financial statements are presented in Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

2. Accounting policies

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Preparation of consolidated financial statements
The financial statements contain information about Trams Limited as an individual Company and do not contain consolidated financial information as the parent of a group. The Company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Econocom Group SE, Place du Champ de Mars, 5/ B14 1050 Brussels.

Significant judgements and estimates
In the application of the Company'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 in applying the Company's accounting policies
The critical judgements that directors have made in the process of applying the Company's accounting policies that have had the most significant effect on the amounts recognised in the statutory financial statements are discussed below:

(i) Assessing indicators and impairment
In assessing whether there have been any indicators or impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience or recoverability.

Key sources of estimation uncertainty

(ii) Revenue recognition in respect of services
The Company uses the percentage of completion method to recognise project revenue for fixed-priced contracts. This method requires the directors to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract. Variations to estimates could result in the over or under recognition of revenue.

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued

(iii) Recoverability of receivables
The Company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the receivables, past experience and recoverability, and the credit profile of individual or groups of customers.

(iv) Corporate taxes
The Company is subject to corporate tax and significant judgement is required in determining the provision for corporate taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. As a result, the Company recognises tax liabilities based on estimates of whether additional taxes and interest will be due. These tax liabilities are recognised when, despite the Company's belief that its tax return positions are supportable, the Company believes that certain positions are likely to be challenged and may not be fully sustained upon review by tax authorities. The Company believes that its accruals for tax liabilities are adequate for all open audit years based on its assessment of many factors including past experience and interpretations of tax law. This assessment relies on estimates and assumptions and may involve a series of complex judgments about future events. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact corporate tax expense in the period in which such determination is made.

Turnover
Turnover is recognised at 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.

Turnover 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 turnover 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.

Turnover from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

Turnover is recognised on the accruals basis of accounting.

Tangible fixed assets
Property, plant and equipment 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 basis:

Fixtures & fittings- 25% reducing balance

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 an asset, and is recognised in the Income Statement.

Impairment of non-current assets
At each reporting period end date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Income Statement.

Investments in subsidiaries
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses are recognised immediately in the Income Statement.

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all associated direct costs. Net realisable value is based on the estimated selling price.

When stock is sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Stocks are measured on the first-in-first-out (FIFO) basis of accounting.

Financial instruments
Financial assets and liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. The Company holds financial instruments which comprise cash and cash equivalents, trade and other receivables, equity investments and trade and other payables. The Company has chosen to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments in full.

Financial assets and liabilities - classified as basic financial instruments

(i) Cash and cash equivalents
This includes cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

(ii) Trade and other receivables
Trade and other receivables are initially recognised at the transaction price, including any transaction costs, and subsequently measured at amortised cost including the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the Company assesses whether there is objective evidence that a receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in the Income Statement.

(iii) Trade and other payables and loans and borrowings
Trade and other payables and loans and borrowings are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method.

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

Current or deferred taxation assets and liabilities are not discounted.

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


Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date.

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

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

Foreign exchange
Transactions in currencies other than Pounds Sterling are recorded at the rates of the 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 are included in the Income Statement for the period.

Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the Balance Sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Income Statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. 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.

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

Assets of the Scheme are held in a separately administered fund from the Company.

Going concern
These financial statements have been prepared on a going concern basis.

The current economic conditions present increased risks for all businesses. The directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment.

The directors have carefully considered these risks including an assessment on uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Based on assessment, the directors consider that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations and external debt liabilities.

In addition, the Company's assets are assessed for recoverability on a regular basis, and the directors consider that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


2. Accounting policies - continued

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubts upon the Company's ability to continue as a going concern. Thus the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

3. Turnover

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

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

2023 2022
£ £
Product 36,996,122 66,522,627
Services 9,561,690 1,945,957
46,557,812 68,468,584

An analysis of turnover by geographical market is given below:

2023 2022
£ £
United Kingdom 45,502,813 66,826,299
Overseas 1,054,999 1,642,285
46,557,812 68,468,584

4. Employees and directors
2023 2022
£ £
Wages and salaries 2,961,480 3,416,681
Social security costs 367,967 424,805
Other pension costs 47,888 42,755
3,377,335 3,884,241

The average number of employees during the year was as follows:
2023 2022

Business development 3 3
Finance 3 3
Marketing 1 1
Operations 6 6
Sales 13 12
Sales education 1 1
Service 10 10
37 36

5. Directors' emoluments
2023 2022
£ £
Directors' remuneration 318,034 399,116

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


5. Directors' emoluments - continued

Information regarding the highest paid director is as follows:
2023 2022
£ £
Emoluments etc 235,000 235,000

6. Amounts written off investments
2023 2022
£ £
Investments written off - 131

7. Interest payable and similar expenses
2023 2022
£ £
Other interest paid 453,583 61,418

8. Profit before taxation

The profit is stated after charging/(crediting):

2023 2022
£ £
Other operating leases 231,750 227,621
Depreciation - owned assets 11,111 13,317
Foreign exchange differences (12,900 ) 87,712

9. Auditors' remuneration

2023 2022
£    £   
Fees payable to the Company's auditors of the financial statements 82,913 89,852

2023 2022
Fees payable to the Company's auditor and associates: £    £   

For audit services
Audit of financial statements of the Company 65,000 65,000
65,000 65,000

For non-audit services
Corporation tax return and preparation of statutory accounts 11,000 11,000
Other professional services 6,319 13,852
17,319 24,852

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


10. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 308,631 489,335
Tax on profit 308,631 489,335

UK corporation tax has been charged at 23.52% (2022 - 19%).

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

2023 2022
£ £
Profit before tax 1,258,980 2,560,228
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

296,112

486,443

Effects of:
Expenses not deductible for tax purposes 9,046 11,380
Income not taxable for tax purposes - (8,103 )
Capital allowances in excess of depreciation - (385 )
Depreciation in excess of capital allowances 819 -
Effect of changes in tax rate 2,654 -
Total tax charge 308,631 489,335

From 1 April 2023, the UK corporation tax rate increased to 25% on profits over £250,000, 19% for profits below £50,000 and a hybrid rate for profits between £50,000 and £250,000. The rate above represents the average rate of corporation tax paid on taxable profits accrued evenly over the year.

11. Tangible fixed assets
Fixtures
and
fittings
£
Cost
At 1 January 2023 245,369
Additions 2,065
Disposals (48,001 )
At 31 December 2023 199,433
Depreciation
At 1 January 2023 200,538
Charge for year 11,111
Eliminated on disposal (48,001 )
At 31 December 2023 163,648
Net book value
At 31 December 2023 35,785
At 31 December 2022 44,831

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


12. Stocks
2023 2022
£ £
Stocks 84,650 77,778

13. Debtors: amounts falling due within one year
2023 2022
£ £
Trade debtors 404,243 777,163
Amounts owed by group undertakings 61,575 7,078,954
Other debtors 4,498 7,187
Prepayments and accrued income 348,093 318,047
818,409 8,181,351

Trade debtors are presented net of any invoice factoring facility, to the value of £5,282,212 (2022: £7,200,965).

14. Creditors: amounts falling due within one year
2023 2022
£ £
Trade creditors 8,497,026 9,414,309
Amounts owed to group undertakings 203,984 -
Tax 63,612 298,224
Social security and other taxes 127,311 132,135
VAT 208,361 525,691
Other creditors 6,309 7,514
Accruals and deferred income 1,300,015 517,851
10,406,618 10,895,724

15. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year 100,500 170,625
Between one and five years 268,335 280,350
368,835 450,975

16. Secured debts

The invoice factoring facility is secured via guarantee from Econocom Group SE.

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


17. Financial instruments

The Company’s financial instruments may be analysed as follows:
2023 2022
£    £   
Financial assets

Financial assets that are debt instruments measured at amortised cost 14,860,525 14,704,849

Financial liabilities

Financial liabilities measured at amortised cost 9,343,739 9,916,101

Financial assets that are debt instruments measured at amortised cost comprise cash, trade debtors, amounts owed by group undertakings, other debtors and accrued income.

Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors and accruals.

Information regarding the Company's exposure to risks are included in the Strategic Report.

No financial instruments at year end were held at fair value or any other measurement basis except for amortised cost.

18. Provisions for liabilities
2023 2022
£ £
Deferred tax
Accelerated capital allowances 3,722 3,722

Deferred tax
£
Balance at 1 January 2023 3,722
Balance at 31 December 2023 3,722

19. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
330,229 Ordinary £1 330,229 330,229

20. Reserves
Capital
Retained Share redemption
earnings premium reserve Totals
£ £ £ £

At 1 January 2023 3,325,655 294,228 69,010 3,688,893
Profit for the year 950,349 - - 950,349
At 31 December 2023 4,276,004 294,228 69,010 4,639,242

Trams Limited (Registered number: 02518864)

Notes to the Financial Statements - continued
for the year ended 31 December 2023


21. Pension commitments

Defined contribution schemes
20232022
£   £   
Charge to the Income Statement in respect of defined contribution schemes48,45844,076

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

22. Related party disclosures

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.

23. Ultimate controlling party

The ultimate controlling party is Econocom Group SE, a company headquartered in France with its registered office in Belgium.