Registered number: 04470667
LEKTROPACKS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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LEKTROPACKS LIMITED
COMPANY INFORMATION
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Victoria Margaret Martin-Jones
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LEKTROPACKS LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Profit or Loss
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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LEKTROPACKS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The principle activity of the company in the year under review was that of the sale of electrical goods.
Directors' responsibilities statement
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The directors are responsible for preparing the Directors' Report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
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 the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The directors who served during the year were:
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Page 1
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LEKTROPACKS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST DECEMBER 2023
Small companies' exemption note
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In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
The auditors, Hamlyns Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 25 March 2024 and signed on its behalf.
Page 2
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LEKTROPACKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEKTROPACKS LIMITED
We have audited the financial statements of Lektropacks Limited for the year ended 31st December 2023 which comprise the Statement of Profit or Loss, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies set out on pages 11 - 12. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31st December 2023 and of its loss for the year then ended;
∙have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 United Kingdom, including the Financial Reporting Council'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
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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. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:
Review of managements budgets and forecasts and performing analysis on these. Review of post year end financials.
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.
The other information comprises the information included in the Annual Report, other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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LEKTROPACKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEKTROPACKS LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
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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.
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LEKTROPACKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEKTROPACKS LIMITED (CONTINUED)
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 in relation to which 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 directors' responsibilities statement on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The objectives of our audit in respect to irregularities including fraud are to identify and assess the risks of
material misstatement of the financial statements due to such issues. Our approach was to obtain an
understanding of the legal and regulatory frameworks applicable to the entity and the legal and regulatory
requirements regarding the preparation of the financial statements.
We considered the susceptibility of the financial statements to material misstatement, including due to fraud or
other irregularity and desgined tests to provide reasonable assurance that there were no material
misstatements. These included tests of journals, tests to check the authenticity of material payments made, challenging estimates and judgements made by management and reviews of relevant information regarding compliance with the entity's legal and regulatory framework.
Because of 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
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LEKTROPACKS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEKTROPACKS LIMITED (CONTINUED)
Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
Oliver Spevack ACA FCCA (Senior Statutory Auditor)
for and on behalf of
Hamlyns Limited
Sundial House
High Street
Horsell
Woking
Surrey
GU21 4SU
25 March 2024
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LEKTROPACKS LIMITED
STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31ST DECEMBER 2023
The notes on pages 11 to 17 form part of these financial statements.
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LEKTROPACKS LIMITED
REGISTERED NUMBER: 04470667
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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Property, plant and equipment
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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Issued capital and reserves
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The financial statements on pages 7 to 17 were approved and authorised for issue by the board of directors on 25 March 2024 and were signed on its behalf by:
The notes on pages 11 to 17 form part of these financial statements.
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LEKTROPACKS LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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The notes on pages 11 to 17 form part of these financial statements.
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Page 9
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LEKTROPACKS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER 2023
Cash flows from operating activities
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Depreciation of property, plant and equipment
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Depreciation of property, plant and equipment
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Movements in working capital:
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(Increase)/decrease in trade and other receivables
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Decrease in trade and other payables
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Cash generated from operations
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Net cash used in operating activities
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Cash flows from investing activities
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Cash flows from financing activities
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Net decrease in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 11 to 17 form part of these financial statements.
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LEKTROPACKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
Lektropacks Limited is a private company, limited by shares, registered in England and Wales.
The company's registered number is 04470667
The company's registered office address is Sundial House, 98 High Street, Horsell, Woking, Surrey, GU21 4SU.
The company's principle place of business is Unit 7, Shepperton Business Park, Govett Avenue, Shepperton, TW17 8BA.
The presentation currency of the financial statements is Pound Sterling (£).
The financial statements have been prepared in accordance with International Financial Reporting Standards. International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs) and the Companies Act 2006. They were authorised for issue by the Company's Board of directors.
Details of the Company's accounting policies, including changes during the year, are included in note 3.
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The financial statements have been prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration given for goods and services.
3.Accounting policies
The financial statements have been prepared on a going concern basis. The directors have acknowledged the latest guidance on going concern and financial reporting published by the Financial Reporting Council.
The company has significant retained earnings that have been accumulated over a number of years which is the main source of financing. The directors have also considered the current level of cash held by the company and are confident that this together with positive cash flows from trading will be sufficient to enable the company to settle its liabilities as they fall due. Assurances have been received from the directors of the immediate parent company that additional funding would be made available by way of loans or share capital should this be necessary.
During the past year the company has felt the impact of the cost of living crisis, rising inflation as well as more cautionary purchasing from some of our European partners due to the Ukraine War.
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LEKTROPACKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
3.Accounting policies (continued)
Sale of goods - whole sale and internet based transactions
Revenue is recognised when the risks and rewards of ownership have passed to the customer. This is determined as at the point at which goods are dispatched from the Lektropacks Limited premises to the customer. There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occurred, the group no longer has physical possession, usually will have a present right to payment (as a single payment on delivery) and retains none of the significant risks and rewards of the goods in question.
Revenue represents net invoiced sales of goods, excluding value added tax.
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
Basic financial instruments are recongised at amortised cost.
The company only has basic financial instruments.
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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Slow-moving stock provision
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Inventories are provided for over their estimated useful economic life from the date of purchase.
Inventories aged over 1 year old are written down by 25% of their cost.
Inventories aged over 2 years old are written down by 50% of their cost.
Inventories aged over 3 years old are written down by 100% of their cost.
Current taxes are based on the results in the financial statement and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.
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LEKTROPACKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
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Employee benefit expenses
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Employee benefit expenses (including directors) comprise:
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Defined contribution pension cost
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The monthly average number of persons, including the directors, employed by the Company during the year was as follows:
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Average number of employees
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Turnover by geographical market
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Page 13
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LEKTROPACKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
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Finance income and expense
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Recognised in profit or loss
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Net finance income recognised in profit or loss
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7.1 Income tax recognised in profit or loss
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No liability to UK corporation tax arose for the year ended 31 December 2023 nor for the year ended 31 December 2022.
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The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:
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Tax using the Company's domestic tax rate of 19% (2022:19%)
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Unrelieved tax losses carried forward
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Factors that may affect future tax charges
An increase in the UK corporation tax rate from 19% to 25% (this was effective from 1 April 2023) was substantially enacted on May 2021. This will increase the company's future tax charge accordingly.To note, the rate of taxable profit applied, stands at 19% for 2023.
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LEKTROPACKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
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Property, plant and equipment
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Accumulated depreciation and impairment
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Charge owned for the year
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Charge owned for the year
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Page 15
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LEKTROPACKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
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Trade and other receivables
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Prepayments and accrued income
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Total trade and other receivables
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Total trade and other payables
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Ordinary shares shares of £1.00 each
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Ordinary shares shares of £1.00 each
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At 1 January and 31 December
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Page 16
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LEKTROPACKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023
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Notes supporting statement of cash flows
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Cash at bank available on demand
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Cash and cash equivalents in the statement of financial position
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Cash and cash equivalents in the statement of cash flows
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Related Party Disclosures
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During the year, Lektropacks Limited purchased goods and was recharged expenses from a fellow subsidiary company amounting to £88,355 (2022: £450,657).
At 31st December 2022 Lektropacks owed the same subsidiary company £237,016 (2022: £32,124).
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Issued Financial Guarantees
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The company has a cross guarantee with Barclays Bank Plc with CYP (UK) Limited, a company under
common control, which is secured by a fixed and floating charge over the assets of the company, dated
19th May 2003.
Barclays Bank Plc holds a fixed and floating charge over the assets of the company in respect of a bond
guarantee. This charge is dated 3rd March 2020.
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Ultimate Controlling Party
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Cypress Technology Co Limited (Taiwan) is the ultimate parent company by virtue of their shareholding. Cypress Technology Co Limited (Taiwan) is the ultimate controlling party.
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