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REGISTERED NUMBER: 01729062 (England and Wales)












CORNELIUS ELECTRONICS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 JUNE 2023






CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 14

Notes to the Financial Statements 15


CORNELIUS ELECTRONICS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023







DIRECTORS: D A Cornelius
J D Cornelius
P J Sargent





SECRETARY: D A Cornelius





REGISTERED OFFICE: Purcell Avenue
Port Talbot
West Glamorgan
SA12 7TZ





REGISTERED NUMBER: 01729062 (England and Wales)





AUDITORS: Bevan Buckland LLP
Chartered Accountants
And Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS
The principal activity of the company in the year under review was that of manufacturing of wire harnesses.

The trading activities of the company continued with good levels of profits, showing a gross profit of £3,482,749 (2022: £2,822,803) and a profit before tax of £717,810 (2022: £615,161).

2023 2022 2021 2020 2019
Turnover £'000 19,068 17,161 12,455 12,830 13,114
Gross Profit Margin 18% 16% 20% 16% 19%
Average Number of Employees 221 226 183 198 215

The directors are pleased to report a significant growth in turnover for the year following the initial bounce back last year after two years of decrease following the outbreak of Covid-19. Through control of costs in 2023 the company were able to improve its gross profit margin following a reduction in 2022 due to the raise in costs and cost of living rates.

The company faced numerous challenges in recent years, supply chain being one as turnover levels recovered and increased significantly. However the company maintained stable levels of availability due to forward planning, close relationships with suppliers and investing working capital into its stock levels. Through this the company was able to limit supply disruption as much as possible and met the needs of its customers.

The company has continued the investment in infrastructure and the company's bankers are fully supportive of the current trading position and of the plans moving forward. As a result, the director's consider the company to be well placed to respond to new opportunities or volatility in economic conditions and market demand. The company maintains its strategy for growth aiming to increase its market share within its broad industry sectors and maintaining its valued existing customer relationships.

The directors monitor the performance of the business both financially and operationally through Key Performance Indicators which cover all areas of the business. They include turnover, profit margins, quality indicators and health & Safety indicators.


CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company's risk management processes minimise its exposure to unforeseen events and identified risks, allowing the business to focus on delivering its strategic objectives. The directors regularly reviews the principal risks facing the company including those that would impact its business model, future performance and solvency.The directors ensure that the nature and extent of significant risks facing the business are identified and adequately managed.

The company uses various financial instruments which include cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

The directors will continually monitor the principal and other risks and uncertainties for the business. The directors will closely monitor business performance, including through the use of monthly key performance indicators, and will take appropriate action, including amendments to its business model, if and when required.

The following are the risks the directors believe to be the most important risks and uncertainties that may impact on the company's ability to deliver its strategy effectively.

Liquidity risk
Liquidity risk refers to the risk that the Company is unable to meet its obligations as they fall due owing to insufficient financial resources. The company manages financial risk by ensuring sufficient liquidity is available to meet its forecast needs. Short-term flexibility is achieved by overdraft facilities and sales financing. The company also finances some of its investments in tangible fixed assets through hire purchase contracts.

Interest rate risk
The company finances its operations through a combination of retained profits, bank overdrafts, sales financing, long term loans and finance lease or hire purchase agreements. Long term loans are repayable from June 2021 over a 5 year period at a fixed interest rate. The interest rate on sales financing is variable. The company manages its exposure to interest rate fluctuations on its hire purchase agreements and finance leases by entering into fixed rate agreements. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

Credit risk
The company's principal financial assets are cash and trade debtors. The principal credit risk arises from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references.

Given the size of the company, the directors have not delegate the responsibility of monitoring the financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Current economic climate
In light of recent inflation that has driven up costs of acquiring goods in the current economy as well as a rise in employee wages the directors continually review its investment strategies and pricing structure to mitigate this risk.

Supply Chain
There is the risk that the supply chain could affect the supply of components. The company manages its assets to ensure that there are contingency measures in place in such an event.

Cyber / IT Risks
IT risks consist of data loss (both commercial and financial), the inability to operate effectively due to technical fault, and/or system intrusion or hacking. The risk of inadequate protection of consumer data could lead to reputational damage and financial loss due to penalties and fines. The directors have a clear strategy aimed at addressing the principal exposures and risks likely to affect its brand.

Health & Safety, Quality and Environment

The company has in place a rigorous health and safety policy and is committed to adhering to all legislation requirements imposed on it. The company will also look to maintain its enhanced policies.

The company holds quality management and environmental accreditation e.g. IS014001, ISO9001, all of which ensure customers can have confidence in our products and commitment to reduce our carbon footprint.

Litigation / Regulatory

The Company is committed to complying with relevant laws and regulations.


CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

KEY PERFORMANCE INDICATORS
The directors carefully monitor results and consider that the company's key performance indicators are financial, namely turnover, operating profit and net assets:

2023 2022
£'000000 £'000000

Turnover 19,068 17,161
Profit before taxation 718 615
Net assets 3,095 2,978

These give a measure of work undertaken and measure of profit generated from core operations before the impact the impact of taxation.

FUTURE DEVELOPMENTS
The company's aim is to continue growth through diversification and increased sales levels together with expansion and further investment in the infrastructure of the business.

ON BEHALF OF THE BOARD:





J D Cornelius - Director


12 February 2024

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

DIVIDENDS
An interim dividend of £36.50 per share was paid on 30 June 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 June 2023 will be £ 365,000 .

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

D A Cornelius
J D Cornelius
P J Sargent

FINANCIAL RISK MANAGEMENT
The company's operations expose it to a variety of financial risks primarily interest rate and liquidity risks. The company manages a range of short term variable interest rate finance to ensure the company has sufficient funds for its operations.

Given the size of the company, the directors have not delegated the responsibility of monitoring the financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with s414C(11) of the Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the director's report. It has done so in respect of future developments and financial risk management.

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

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

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

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

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

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023


AUDITORS
The auditors, Bevan Buckland LLP, will be proposed for re-appointment.

ON BEHALF OF THE BOARD:





J D Cornelius - Director


12 February 2024

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

Opinion
We have audited the financial statements of Cornelius Electronics Limited (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other Comprehensive Income, 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 30 June 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

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

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

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

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


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

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

- enquiring of management, including obtaining and reviewing support documentation, concerning the company's policies and procedures relating to:
- identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
- discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.
- obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

In addition to the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;
- enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;
- assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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
CORNELIUS ELECTRONICS LIMITED


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




Henry Lloyd Davies (Senior Statutory Auditor)
for and on behalf of Bevan Buckland LLP
Chartered Accountants
And Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

12 February 2024

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 19,068,484 17,160,743

Cost of sales 15,585,735 14,337,940
GROSS PROFIT 3,482,749 2,822,803

Distribution costs 578,948 485,663
Administrative expenses 2,189,242 1,749,135
2,768,190 2,234,798
714,559 588,005

Other operating income 12,420 35,744
OPERATING PROFIT 5 726,979 623,749


Interest payable and similar expenses 6 9,169 8,588
PROFIT BEFORE TAXATION 717,810 615,161

Tax on profit 7 236,219 29,513
PROFIT FOR THE FINANCIAL YEAR 481,591 585,648

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 481,591 585,648


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

481,591

585,648

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

BALANCE SHEET
30 JUNE 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 1,289,823 1,305,928

CURRENT ASSETS
Stocks 10 1,963,640 2,253,996
Debtors 11 4,854,036 4,422,537
Cash at bank and in hand 172,298 18,856
6,989,974 6,695,389
CREDITORS
Amounts falling due within one year 12 4,706,952 4,433,472
NET CURRENT ASSETS 2,283,022 2,261,917
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,572,845

3,567,845

CREDITORS
Amounts falling due after more than one
year

13

(219,995

)

(342,006

)

PROVISIONS FOR LIABILITIES 17 (258,022 ) (247,602 )
NET ASSETS 3,094,828 2,978,237

CAPITAL AND RESERVES
Called up share capital 18 10,000 10,000
Retained earnings 19 3,084,828 2,968,237
SHAREHOLDERS' FUNDS 3,094,828 2,978,237

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

BALANCE SHEET - continued
30 JUNE 2023


The financial statements were approved by the Board of Directors and authorised for issue on 12 February 2024 and were signed on its behalf by:





J D Cornelius - Director


CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2021 10,000 2,972,589 2,982,589

Changes in equity
Dividends - (590,000 ) (590,000 )
Total comprehensive income - 585,648 585,648
Balance at 30 June 2022 10,000 2,968,237 2,978,237

Changes in equity
Dividends - (365,000 ) (365,000 )
Total comprehensive income - 481,591 481,591
Balance at 30 June 2023 10,000 3,084,828 3,094,828

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

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

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption 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.

Exemption has been taken on the grounds that the parent company, Cornelius Holdings Limited, includes the subsidiary in its published consolidated financial statements available at Companies House.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results in the future may differ from these estimates.

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 and in any future periods affected.

Significant management judgements
The following are management judgements in applying the accounting policies of the company that have the most significant effect on the amounts recognised in the financial statements.

Useful life of assets
Tangible fixed assets, other than investment properties, are depreciated over their useful economic lives based on various factors. The actual lives of the assets are re-assessed on a periodic basis and may vary depending on the standard of the asset.

Stock Provision
Management reviews stock on a line by line basis and using knowledge of their products and order book to estimate a stock provision.

Valuation of debtors
Management review balances on a customer by customer basis and use knowledge of their customers to determine the recoverability of its debts.

Provisions and accruals
Management bases its judgements on the circumstances relating to each specific event and upon currently available information. However, given the inherent difficulties in the estimation of liabilities in these areas, it cannot be guaranteed that additional costs will not be incurred beyond the amounts accrued.

Turnover
Turnover, which excludes value added tax, represents the invoiced value of goods and services supplied and is recognised on despatch of goods to customers.

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and Machinery - 14% on reducing balance
Fixtures and fittings - 15% reducing balance
Motor vehicles - 25% reducing balance

Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition of the item.

A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the income statement.

Impairment of fixed assets
The company performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement.

Stocks
Stocks and work in progress are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes all direct expenditure and production overheads based on the normal level of activity. Where necessary, provision is made for obsolescent, slow moving and defective stocks.

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other receivables and payables, amounts due to and from related parties.

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Debt instruments like loans and other receivables and payables are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying value and the present value of estimated cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount recognised in the balance sheet when there is an 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. At each reporting date non-financial assets not carried at fair value, such as property, plant and equipment are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less costs to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

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.

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

2. ACCOUNTING POLICIES - continued

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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Debtors
Short term debtors are measured at transaction price, less any impairment.

Creditors
Short term creditors are measured at transaction price.

Provision for liabilities
Provisions are recognised when the company has a present obligation (legal and constructive) from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

Short term benefits, including holiday pay and similar non-monetary benefits are recognised as an expense in the period in which the service is received.

Functional and Presentation Currency
These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Company operates (its functional currency).

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 17,970,237 16,363,297
Europe 964,010 739,911
Rest of the world 134,237 57,535
19,068,484 17,160,743

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,822,824 4,665,128
Social security costs 432,094 359,545
Other pension costs 119,355 113,814
5,374,273 5,138,487

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

Production 205 212
Sales, distribution and administration 16 14
221 226

Included in wages is £18,626 (2022: £65,756) relating to agency wages.

Included in creditors is £2,824 (2022: £3,748) relating to pension contributions.

2023 2022
£    £   
Directors' remuneration 162,117 149,420
Directors' pension contributions to money purchase schemes 18,907 28,918

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 3

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 26,031 26,304
Other operating leases 74,171 60,000
Depreciation - owned assets 152,466 149,689
Depreciation - assets on hire purchase contracts 67,022 79,480
Profit on disposal of fixed assets (4,704 ) -
Auditors' remuneration 13,004 12,550
Taxation compliance services 5,400 6,250
Taxation advisory services - 300
Exchange differences (70,349 ) (125,725 )
Deferred capital grants (10,311 ) (11,744 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Hire purchase 9,169 8,588

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

7. 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 140,876 31,828
Adjustment in respect of prior years 83,104 -
Interest on tax 1,819 -
Total current tax 225,799 31,828

Deferred tax 10,420 (2,315 )
Tax on profit 236,219 29,513

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 717,810 615,161
Profit multiplied by the standard rate of corporation tax in the UK of
20.496% (2022 - 19%)

147,122

116,881

Effects of:
Expenses not deductible for tax purposes 9,392 6,292
Capital allowances in excess of depreciation (7,094 ) (10,001 )
Utilisation of tax losses - (7,104 )
Adjustments to tax charge in respect of previous periods 84,923 -
Effective change on deferred tax 1,876 (555 )
R&D tax credit - (76,000 )
Total tax charge 236,219 29,513

Factors that may affect future current and total tax charges
The deferred tax assets/liabilities at 30 June 2023 have been calculated at the rate of 25% (2022: 25%).

8. DIVIDENDS

20232022
£   £   
Ordinary shares of £1 each
Interim365,000590,000

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
Machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 July 2022 3,876,441 771,391 297,472 4,945,304
Additions 153,689 - 64,990 218,679
Disposals - - (26,990 ) (26,990 )
At 30 June 2023 4,030,130 771,391 335,472 5,136,993
DEPRECIATION
At 1 July 2022 2,819,800 666,248 153,328 3,639,376
Charge for year 161,338 15,777 42,373 219,488
Eliminated on disposal - - (11,694 ) (11,694 )
At 30 June 2023 2,981,138 682,025 184,007 3,847,170
NET BOOK VALUE
At 30 June 2023 1,048,992 89,366 151,465 1,289,823
At 30 June 2022 1,056,641 105,143 144,144 1,305,928

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
Machinery vehicles Totals
£    £    £   
COST
At 1 July 2022 233,587 197,373 430,960
Additions 37,273 58,990 96,263
Disposals - (26,990 ) (26,990 )
At 30 June 2023 270,860 229,373 500,233
DEPRECIATION
At 1 July 2022 34,609 71,991 106,600
Charge for year 30,466 36,556 67,022
Eliminated on disposal - (11,694 ) (11,694 )
At 30 June 2023 65,075 96,853 161,928
NET BOOK VALUE
At 30 June 2023 205,785 132,520 338,305
At 30 June 2022 198,978 125,382 324,360

10. STOCKS
2023 2022
£    £   
Stocks 1,963,640 2,253,996

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,218,912 3,966,961
Amounts owed by group undertakings - 986
Other debtors 1,624,667 426,633
Prepayments and accrued income 10,457 27,957
4,854,036 4,422,537

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

The company has entered into a Sales Financing Agreement with Lloyds TSB Commercial Finance Ltd with recourse, for its trade debtors. In line with FRS 102, section 2, Concepts and Pervasive Principles, the company has reflected this by disclosing both the gross trade debtors and the corresponding liability to the finance company.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 62,000 62,000
Hire purchase contracts (see note 15) 111,318 88,380
Trade creditors 1,528,139 2,125,542
Amounts owed to group undertakings 1,961,239 1,311,909
Tax 225,799 31,828
Social security and other taxes 82,925 93,756
VAT 387,532 325,107
Other creditors 161,363 232,530
Accruals and deferred income 186,637 162,420
4,706,952 4,433,472

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 14) 62,000 124,000
Hire purchase contracts (see note 15) 64,802 115,749
Accruals and deferred income 93,193 102,257
219,995 342,006

Accruals and deferred income due in over one year consists entirely of Government grants.

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 62,000 62,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 62,000 62,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 62,000

The company received £248,000 through the Coronavirus Business Interruption Scheme. The loan is repayable by 48 equal monthly installments commencing in July 2021. The interest rate on the loan is 1.83% plus base rate.

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 111,318 88,380
Between one and five years 64,802 115,749
176,120 204,129

Non-cancellable operating leases
2023 2022
£    £   
Within one year - 1,070

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 124,000 186,000
Hire purchase contracts 176,120 204,129
300,120 390,129

Bank Loans & Overdrafts

A fixed and floating charge over all the company's assets dated 26/06/2020.

A fixed charge over the Land on north side of Handel Avenue and floating charge over all moveable plant and machinery, furniture and equipment dated 19/01/1990.

A fixed charge over various chattels dated 01/05/2001.

A fixed charge containing a negative pledge dated 07/03/2022.

Sales Ledger Financing

An all assets debenture dated 26/05/2005 incorporating a fixed and floating charge.

Hire Purchase

Balances are secured on the assets to which they relate.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 258,022 247,602

Deferred
tax
£   
Balance at 1 July 2022 247,602
Charge to Income Statement during year 10,420
Balance at 30 June 2023 258,022

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

17. PROVISIONS FOR LIABILITIES - continued

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following analysis is the analysis of the deferred tax balances for financial reporting purposes:

20232022
Net LiabilitiesNet Liabilities
Balances:£   £   

ACAs258,728248,539
Other(706)(937)
258,022247,602

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary 1 10,000 10,000

Each share is entitled to:
- One vote in any circumstances;
- Pari Passu to dividend or any other distribution; and
- full participation in capital distributions.

19. RESERVES
Retained
earnings
£   

At 1 July 2022 2,968,237
Profit for the year 481,591
Dividends (365,000 )
At 30 June 2023 3,084,828

Called up share capital - represents the nominal value of shares that have been issued.

Retained Earnings - includes all current and prior period retained profits and losses.

20. ULTIMATE PARENT COMPANY

The immediate and ultimate parent company is Cornelius Holdings Limited by virtue of its ownership of 100% of the issued share capital.

21. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 17,500 17,500

22. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Management charge (400,000 ) (400,000 )
Rent (60,000 ) (60,000 )

CORNELIUS ELECTRONICS LIMITED (REGISTERED NUMBER: 01729062)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

22. RELATED PARTY DISCLOSURES - continued

Entities over which the entity has control, joint control or significant influence
2023 2022
£    £   
Sales 92,854 32,157
Purchases (563,157 ) (385,404 )
Management charges (48,000 ) (24,000 )

23. POST BALANCE SHEET EVENTS

There were no events after the reporting period that are material for disclosure in the financial statements.

24. ULTIMATE CONTROLLING PARTY

The director, Mr D A Cornelius, was the ultimate controlling party by virtue of his ownership of the majority of the issued share capital of Cornelius (Holdings) Limited at 30 June 2023. Since the year end a change in ultimate controlling party has occurred and is the now the director, Mr J D Cornelius.