Registered number |
EARS PLC | |
Report and accounts | |
Contents | |
Page | |
Company information | 1 |
Directors' report | 2 |
Statement of directors' responsibilities | 3 |
Strategic report | 4 |
Independent auditor's report | 5-7 |
Income statement | 8 |
Statement of comprehensive income | 9 |
Statement of financial position | 10 |
Statement of changes in equity | 11 |
Statement of cash flows | 12 |
Notes to the financial statements | 13-18 |
Company Information |
Directors |
Auditors |
1 Old Court Mews |
311 Chase Road |
London |
N14 6JS |
Bankers |
25 Notting Hill Gate |
Notting Hill |
London |
W11 3JJ |
Registered office |
Unit 5 23 Ladysmith Road |
Harrow |
Harrow |
Registered number |
Registered number: | |||||||
Directors' Report | |||||||
The directors present their report and financial statements for the year ended |
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Principal activities | |||||||
The directors consider the continued growth of the company as satisfactory in the current market conditions. Key performance indictators - Gross profit margins remain above average due to continued improved customer base and sale of higher profit margin goods. - Overall cashflow remains strong despite the current economic climate, and increased marketing costs to help maintain the existing customer base as well as allow for continued growth. - Improved debtor collection and creditor payment periods due to improved internal accounting systems. |
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Future developments | |||||||
The directors aim to maintain the management policies which have resulted in the company's continued growth in recent years. The company has pitched for new projects during the year under review which it expects to bear fruition within the next 12 months. The company continues its investment programme into new technology and products to keep the company ahead of its competition. |
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Research and development | |||||||
The company invests in Research and Development trying to build improving telecommunication systems aimed at the Stadia and other such developments. | |||||||
Financial instrument risk | |||||||
Dividends | |||||||
The directors recommend a final dividend of £0 (0p per share). | |||||||
Events since the balance sheet date | |||||||
Directors | |||||||
The following persons served as directors during the year: | |||||||
Disclosure of information to auditors |
Each person who was a director at the time this report was approved confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
This report was approved by the board on |
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D B Davies | |||||||
Director | |||||||
EARS PLC | |||||||
Statement of Directors' Responsibilities | |||||||
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 estimates that are reasonable and prudent; | ||||||
● | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; | ||||||
● | 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. | |||||||
Strategic Report | ||
The directors consider the company remains stable in the light of current market conditions. The directors aim to maintain the existing management policies which will continue to stabilise the company's position in future years. The company continues to pitch for new projects, which it expects to bear fruition on an ongoing basis. The company continues its investment programme into new technology and products to keep the company ahead of its competition. Key performance indictators - Gross profit margins remain above average due to continued improved customer base and sale of higher profit margin goods. - Overall cashflow remains strong despite the current economic climate, and increased marketing costs to help maintain the existing customer base as well as allow for continued growth. - Improved debtor collection and creditor payment periods due to improved internal accounting systems. |
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This report was approved by the board on 28 March 2024 and signed on its behalf. | ||
D B Davies | ||
Director | ||
EARS PLC | ||
Independent auditor's report | ||
to the members of EARS PLC | ||
Opinion |
We have audited the financial statements of EARS PLC (the 'company') for the year ended 31 August 2023 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and the 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 August 2023 and of its profit for the year then ended; | |
● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; | |
● | 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 Auditor’s 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 other information comprises the information included in the annual report other than the financial statements and our auditor’s 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. | ||
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. | |
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, 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. | ||
Auditor’s 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 auditor’s 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: | ||
"We are not responsible for preventing irregularities. Our approach to detect irregularity included, but was not limited to, the following: - obtaining an understanding of the legal and regulatory framework applicable to the company and how the company is complying with that framework; - obtaining an understanding of the company's policies and procedures and how the company has complied with these, through discussions and walkthrough testing; - obtaining an understanding of the company's risk assessment process, including the risk of fraud; - enquiring of management as to actual and potential fraud, litigation and claims; - designing our audit procedures to respond to our risk assessment; - performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; - assessing whether judgements and assumptions made in determining the accounting estimates, were indicative of potential bias; and - performing analytical procedures to identify any large, unusual or unexpected relationships. Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error. 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 available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 auditor's 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. | ||
(Senior Statutory Auditor) | 1 Old Court Mews | |
for and on behalf of | 311 Chase Road | |
London | ||
Statutory Auditor | ||
N14 6JS | ||
Income Statement | ||||||||
for the year ended |
||||||||
Notes | 2023 | 2022 | ||||||
£ | £ | |||||||
Turnover | 2 | |||||||
Cost of sales | ( |
( |
||||||
Gross profit | ||||||||
Administrative expenses | ( |
( |
||||||
Operating profit | 3 | |||||||
Profit/(loss) on sale of fixed assets | ( |
|||||||
Interest receivable | ||||||||
Interest payable | 6 | ( |
- | |||||
Profit on ordinary activities before taxation | ||||||||
Tax on profit on ordinary activities | 7 | ( |
( |
|||||
Profit for the financial year | ||||||||
Statement of Comprehensive Income | |||||||
for the year ended |
|||||||
Notes | 2023 | 2022 | |||||
£ | £ | ||||||
Profit for the financial year | |||||||
Other comprehensive income | |||||||
Total comprehensive income for the year | |||||||
Statement of Financial Position | |||||||
as at |
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Notes | 2023 | 2022 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Tangible assets | 9 | ||||||
Current assets | |||||||
Stocks | 10 | ||||||
Debtors | 11 | ||||||
Cash at bank and in hand | |||||||
Creditors: amounts falling due within one year | 12 | ( |
( |
||||
Net current assets | |||||||
Total assets less current liabilities | |||||||
Creditors: amounts falling due after more than one year | 13 | ( |
( |
||||
Provisions for liabilities | |||||||
Deferred taxation | 14 | ( |
- | ||||
Net assets | |||||||
Capital and reserves | |||||||
Called up share capital | 15 | ||||||
Profit and loss account | 16 | ||||||
Total equity | |||||||
D B Davies | |||||||
Director | |||||||
Approved by the board on |
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Statement of Changes in Equity | ||||||||||
for the year ended |
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Share | Share | Other | Profit | Total | ||||||
capital | premium | reserves | and loss | |||||||
account | ||||||||||
£ | £ | £ | £ | £ | ||||||
At 1 September 2021 | - | - | ||||||||
Profit for the financial year | 180,379 | 180,379 | ||||||||
Dividends | ( |
( |
||||||||
At 31 August 2022 | 50,000 | - | - | 636,624 | 686,624 | |||||
At 1 September 2022 | - | - | ||||||||
Profit for the financial year | ||||||||||
Dividends | ( |
( |
||||||||
At 31 August 2023 | - | - | ||||||||
Statement of Cash Flows | |||||
for the year ended |
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Notes | 2023 | 2022 | |||
£ | £ | ||||
Operating activities | |||||
Profit for the financial year | 154,056 | 180,379 | |||
Adjustments for: | |||||
(Profit)/loss on sale of fixed assets | (5,895) | 1,099 | |||
Interest receivable | (1,034) | (60) | |||
Interest payable | 1,716 | - | |||
Tax on profit on ordinary activities | 37,661 | 21,036 | |||
Depreciation | 57,592 | 60,290 | |||
(Increase)/decrease in stocks | (14,461) | 17,285 | |||
(Increase)/decrease in debtors | (200,632) | 116,957 | |||
Increase in creditors | 113,044 | 34,938 | |||
Interest received | |||||
Interest paid | ( |
- | |||
Corporation tax paid | ( |
||||
Cash generated by operating activities | |||||
Investing activities | |||||
Payments to acquire tangible fixed assets | ( |
( |
|||
Proceeds from sale of tangible fixed assets | |||||
Cash used in investing activities | ( |
( |
|||
Financing activities | |||||
Equity dividends paid | ( |
( |
|||
Repayment of loans | ( |
( |
|||
Cash used in financing activities | ( |
( |
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Net cash (used)/generated | |||||
Cash generated by operating activities | |||||
Cash used in investing activities | ( |
( |
|||
Cash used in financing activities | ( |
( |
|||
Net cash (used)/generated | ( |
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Cash and cash equivalents at 1 September | 539,769 | 272,304 | |||
Cash and cash equivalents at 31 August | 196,293 | 539,769 | |||
Cash and cash equivalents comprise: | |||||
Cash at bank | |||||
EARS PLC | ||||||||
Notes to the Accounts | ||||||||
for the year ended 31 August 2023 | ||||||||
1 | Summary of significant accounting policies | |||||||
Basis of preparation | ||||||||
Turnover | ||||||||
Intangible fixed assets | ||||||||
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: | ||||||||
Plant and machinery | Between 15% and 25% reducing balance |
Stocks | ||||||||
Taxation | ||||||||
Provisions | ||||||||
Foreign currency translation | ||||||||
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets | ||||||||
Pensions | ||||||||
2 | Analysis of turnover | 2023 | 2022 | |||||
£ | £ | |||||||
Sale of goods | ||||||||
By geographical market: | ||||||||
UK | ||||||||
3 | Operating profit | 2023 | 2022 | |||||
£ | £ | |||||||
This is stated after charging: | ||||||||
Depreciation of owned fixed assets | ||||||||
Auditors' remuneration for audit services | ||||||||
Auditors' remuneration for other services | ||||||||
4 | Directors' emoluments | 2023 | 2022 | |||||
£ | £ | |||||||
Emoluments | ||||||||
Number of directors to whom retirement benefits accrued: | 2023 | 2022 | ||||||
Number | Number | |||||||
Defined contribution plans | ||||||||
5 | Staff costs | 2023 | 2022 | |||||
£ | £ | |||||||
Wages and salaries | ||||||||
Social security costs | ||||||||
Other pension costs | ||||||||
Average number of employees during the year | Number | Number | ||||||
Administration | ||||||||
Development | ||||||||
Distribution | ||||||||
Marketing | ||||||||
Sales | ||||||||
6 | Interest payable | 2023 | 2022 | |||||
£ | £ | |||||||
Bank loans and overdrafts | - | |||||||
7 | Taxation | 2023 | 2022 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period | ||||||||
Deferred tax: | ||||||||
Origination and reversal of timing differences | - | |||||||
Tax on profit on ordinary activities | ||||||||
Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2023 | 2022 | |||||||
£ | £ | |||||||
Profit on ordinary activities before tax | ||||||||
£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax | ||||||||
Effects of: | ||||||||
Enhanced R&D tax credit | - | ( |
||||||
Capital allowances for period in excess of depreciation | ( |
( |
||||||
Current tax charge for period | ||||||||
Factors that may affect future tax charges | ||||||||
8 | Intangible fixed assets | £ | ||||||
Goodwill: | ||||||||
Cost | ||||||||
At 1 September 2022 | ||||||||
At 31 August 2023 | ||||||||
Amortisation | ||||||||
At 1 September 2022 | ||||||||
At 31 August 2023 | ||||||||
Carrying amount | ||||||||
At 31 August 2023 | - | |||||||
9 | Tangible fixed assets | |||||||
Plant and machinery | ||||||||
At cost | ||||||||
£ | ||||||||
Cost | ||||||||
At 1 September 2022 | ||||||||
Additions | ||||||||
Disposals | ( |
|||||||
At 31 August 2023 | ||||||||
Depreciation | ||||||||
At 1 September 2022 | ||||||||
Charge for the year | ||||||||
On disposals | ( |
|||||||
At 31 August 2023 | ||||||||
Carrying amount | ||||||||
At 31 August 2023 | ||||||||
At 31 August 2022 | ||||||||
10 | Stocks | 2023 | 2022 | |||||
£ | £ | |||||||
Finished goods and goods for resale | ||||||||
11 | Debtors | 2023 | 2022 | |||||
£ | £ | |||||||
Trade debtors | ||||||||
Directors loans | 153,192 | - | ||||||
Other debtors and prepayments | ||||||||
Amounts due after more than one year included in: | ||||||||
Other debtors | - | |||||||
12 | Creditors: amounts falling due within one year | 2023 | 2022 | |||||
£ | £ | |||||||
Bank loans | ||||||||
Trade creditors | ||||||||
Corporation tax | ||||||||
Other taxes and social security costs | ||||||||
Accruals and deferred income | ||||||||
13 | Creditors: amounts falling due after one year | 2023 | 2022 | |||||
£ | £ | |||||||
Bank loans | ||||||||
14 | Deferred taxation | 2023 | 2022 | |||||
£ | £ | |||||||
Accelerated capital allowances | - | |||||||
2023 | 2022 | |||||||
£ | £ | |||||||
Charged to the profit and loss account | - | |||||||
At 31 August | - | |||||||
15 | Share capital | Nominal | 2023 | 2023 | 2022 | |||
value | Number | £ | £ | |||||
Allotted, called up and fully paid: | ||||||||
£ |
||||||||
16 | Profit and loss account | 2023 | 2022 | |||||
£ | £ | |||||||
At 1 September | ||||||||
Profit for the financial year | ||||||||
Dividends | ( |
( |
||||||
At 31 August | ||||||||
17 | Dividends | 2023 | 2022 | |||||
£ | £ | |||||||
Dividends on ordinary shares (note 16) | ||||||||
18 | Events after the reporting date | |||||||
There are no events after the reporting date. | ||||||||
19 | Other financial commitments | |||||||
Total future minimum lease payments under non-cancellable operating leases: | ||||||||
Land and buildings | Land and buildings | Other | Other | |||||
2023 | 2022 | 2023 | 2022 | |||||
£ | £ | £ | £ | |||||
Falling due: | ||||||||
within two to five years | - | - | - | |||||
20 | Transactions with the directors | |||||||
As at 31 August 2023 the directors had been loaned £153,192 (2022: £nil). This can be seen in debtors. This will be repaid after the year end before end of May 2024. | ||||||||
21 | Controlling party | |||||||
22 | Presentation currency | |||||||
23 | Legal form of entity and country of incorporation | |||||||
EARS PLC is a private company limited by shares and incorporated in England. | ||||||||
24 | Principal place of business | |||||||
The address of the company's principal place of business and registered office is: | ||||||||
Unit 5 | ||||||||
23 Ladysmith Road | ||||||||
Harrow | ||||||||
HA3 5FE |