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REGISTERED NUMBER: 02489937 (England and Wales)












GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

FOR

SUMMIT SYSTEMS LIMITED

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 July 2023










Page

Company Information 1

Group Strategic Report 2

Directors' Report 3

Independent Auditors' Report 4

Consolidated Income Statement 7

Consolidated Other Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


SUMMIT SYSTEMS LIMITED

COMPANY INFORMATION
for the year ended 31 July 2023







DIRECTORS: M C Jordan
I Lowe
M Ross
D Cavill
R J Last



SECRETARY: I Lowe



REGISTERED OFFICE: Unit F Tame Park
Vanguard Wilnecote
Tamworth
Staffordshire
B77 5DY



REGISTERED NUMBER: 02489937 (England and Wales)



AUDITORS: Magma Audit LLP
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ



BANKERS: Lloyds Bank PLC
113 The Border
Telford
Shropshire
TF3 4AE

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

GROUP STRATEGIC REPORT
for the year ended 31 July 2023


The directors present their strategic report of the company and the group for the year ended 31 July 2023.

REVIEW OF BUSINESS
2022-23 was a very strong year for the business posting record sales and profitability. Both Plastic Automation and Summit Process Cooling delivered record sales, building on the technical and project capability added in the prior year.

Our continued focus on employee engagement, adding management capability, upskilling and training resulted in an employee churn rate of less than 1% per month.

Core product range was very strong in the year, with particular strength in packaging and construction. The company continues to focus on strengthening our relationship with key customers and made the conscious decision to respect quoted prices and not pass on subsequent price increases.

The Company recruited a Sales Director for Summit Process Cooling as we strengthen and deepen our position in the market.

PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which could have a material impact on the group's performance.
The directors view the principal risks to be foreign currency, credit, supply chain disruption and economic uncertainty.

Foreign currency risk
Foreign currency exposure resulting from trade with customers and suppliers abroad is mitigated by a hedging policy adopted by the company.

Credit risk
Managing cashflow and credit risk is a priority of the company. All customers are subject to continuous credit checks to reduce exposure to bad debts and to maintain cashflow to support the working capital required for the operations within the business

Supply chain disruption risk
The ability to deliver to our customers in a timely manner is a key priority for the business. We are working with our suppliers to give greater visibility to our requirements whilst reviewing the level of stock holding.

KEY PERFORMANCE INDICATORS
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and operating profit.

The group's turnover has increased to £18,081,755 from £13,593,418. Operating profit has increased to £1,293,154 from £426,310 and a profit before tax has been made of £1,276,409 (2022 - £417,358).

POST BALANCE SHEET POSITION AND SUBSEQUENT EVENTS
The year started positively with trading results in the year to date exceeding the budget set by directors.

The directors have assessed the financial position of the company as well as the uncertainty surrounding the current economic turmoil as part of its considerations surrounding the company's reviewing adoption of the going concern basis of accounting. Following this review the directors are confident that the company has adequate resources and sample working capital within the business to continue operating for the foreseeable future.

ON BEHALF OF THE BOARD:





M C Jordan - Director


1 February 2024

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

DIRECTORS' REPORT
for the year ended 31 July 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023.

PRINCIPAL ACTIVITY
The principal activity of the group continued to be that of distribution of handling equipment for the plastics industry, the fabrication of associated components and the supply and installation of a wide range of cooling equipment.

DIVIDENDS
Interim dividends were paid amounting to £562,582 (2022 - £604,165). The directors recommend that no final dividend be paid.

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

M C Jordan
I Lowe
M Ross
D Cavill

Other changes in directors holding office are as follows:

R J Last - appointed 1 August 2022

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

AUDITORS
The auditors, Magma Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M C Jordan - Director


1 February 2024

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SUMMIT SYSTEMS LIMITED


Opinion
We have audited the financial statements of Summit Systems Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 July 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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 Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SUMMIT SYSTEMS LIMITED


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

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

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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.

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

Based on our understanding of the company and the industry, we have identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and breaches with the Financial Conduct Authority and General Data Protection Regulation, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included:

- Enquiries with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
- Challenging assumptions made by management in their accounting estimates, in particular in relation to the depreciation of fixed assets and impairment of stock.
- Identifying and testing material journal entries, in particular those journal entries posted with unusual account combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific defined descriptions.

There are inherent limitations in the audit procedures described above. The more removed non-compliance with laws and regulations is, from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by forgery or intentional misrepresentation, for example, or through collusion.

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

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SUMMIT SYSTEMS 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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Paul Orton FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

2 February 2024

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CONSOLIDATED
INCOME STATEMENT
for the year ended 31 July 2023

2023 2022
Notes £    £   

TURNOVER 4 18,081,755 13,593,418

Cost of sales (13,390,104 ) (10,755,654 )
GROSS PROFIT 4,691,651 2,837,764

Distribution costs - (5,220 )
Administrative expenses (3,456,580 ) (2,456,786 )
1,235,071 375,758

Other operating income 5 58,083 50,552
OPERATING PROFIT 7 1,293,154 426,310

Interest receivable and similar income 8 4,353 11,229
1,297,507 437,539

Interest payable and similar expenses 9 (21,098 ) (20,181 )
PROFIT BEFORE TAXATION 1,276,409 417,358

Tax on profit 10 (282,500 ) 54,068
PROFIT FOR THE FINANCIAL YEAR 993,909 471,426
Profit attributable to:
Owners of the parent 993,909 471,426

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
for the year ended 31 July 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 993,909 471,426


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

993,909

471,426

Total comprehensive income attributable to:
Owners of the parent 993,909 471,426

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CONSOLIDATED BALANCE SHEET
31 July 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 13 141,031 166,912
Tangible assets 14 365,383 462,011
Investments 15 - -
506,414 628,923

CURRENT ASSETS
Stocks 16 2,420,979 1,420,007
Debtors 17 4,235,066 4,915,162
Investments 18 19,569 19,569
Cash at bank and in hand 1,082,507 1,069,530
7,758,121 7,424,268
CREDITORS
Amounts falling due within one year 19 (4,832,233 ) (5,026,831 )
NET CURRENT ASSETS 2,925,888 2,397,437
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,432,302

3,026,360

CREDITORS
Amounts falling due after more than one
year

20

(47,154

)

(66,639

)

PROVISIONS FOR LIABILITIES 23 (19,200 ) (25,100 )
NET ASSETS 3,365,948 2,934,621

CAPITAL AND RESERVES
Called up share capital 24 21,055 21,055
Retained earnings 25 3,344,893 2,913,566
SHAREHOLDERS' FUNDS 3,365,948 2,934,621

The financial statements were approved by the Board of Directors and authorised for issue on 1 February 2024 and were signed on its behalf by:





M C Jordan - Director


SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

COMPANY BALANCE SHEET
31 July 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 13 - -
Tangible assets 14 365,382 462,010
Investments 15 100 100
365,482 462,110

CURRENT ASSETS
Stocks 16 2,420,979 1,420,007
Debtors 17 4,257,602 4,940,270
Investments 18 19,569 19,569
Cash in hand 1,044,142 1,028,593
7,742,292 7,408,439
CREDITORS
Amounts falling due within one year 19 (4,831,389 ) (5,025,987 )
NET CURRENT ASSETS 2,910,903 2,382,452
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,276,385

2,844,562

CREDITORS
Amounts falling due after more than one
year

20

(47,154

)

(66,639

)

PROVISIONS FOR LIABILITIES 23 (19,200 ) (25,100 )
NET ASSETS 3,210,031 2,752,823

CAPITAL AND RESERVES
Called up share capital 24 21,055 21,055
Retained earnings 25 3,188,976 2,731,768
SHAREHOLDERS' FUNDS 3,210,031 2,752,823

Company's profit for the financial year 1,019,790 475,320

The financial statements were approved by the Board of Directors and authorised for issue on 1 February 2024 and were signed on its behalf by:





M C Jordan - Director


SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 July 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 August 2021 21,055 3,046,305 3,067,360

Changes in equity
Dividends - (604,165 ) (604,165 )
Total comprehensive income - 471,426 471,426
Balance at 31 July 2022 21,055 2,913,566 2,934,621

Changes in equity
Dividends - (562,582 ) (562,582 )
Total comprehensive income - 993,909 993,909
Balance at 31 July 2023 21,055 3,344,893 3,365,948

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 31 July 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 August 2021 21,055 2,860,613 2,881,668

Changes in equity
Dividends - (604,165 ) (604,165 )
Total comprehensive income - 475,320 475,320
Balance at 31 July 2022 21,055 2,731,768 2,752,823

Changes in equity
Dividends - (562,582 ) (562,582 )
Total comprehensive income - 1,019,790 1,019,790
Balance at 31 July 2023 21,055 3,188,976 3,210,031

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 July 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 743,836 39,514
Interest paid (12,252 ) (8,868 )
Interest element of hire purchase payments
paid

(8,846

)

(11,313

)
Tax refund/payment 3,509 155,073
Net cash from operating activities 726,247 174,406

Cash flows from investing activities
Purchase of tangible fixed assets (160,615 ) (49,832 )
Sale of tangible fixed assets 71,583 84,605
Interest received 4,353 11,229
Net cash from investing activities (84,679 ) 46,002

Cash flows from financing activities
Loan repayments in year - (648,178 )
Hire purchase repayments in year (63,508 ) (151,883 )
Amount introduced by directors - 551,797
Amount withdrawn by directors (2,501 ) -
Equity dividends paid (562,582 ) (604,165 )
Net cash from financing activities (628,591 ) (852,429 )

Increase/(decrease) in cash and cash equivalents 12,977 (632,021 )
Cash and cash equivalents at beginning
of year

2

1,069,530

1,701,551

Cash and cash equivalents at end of year 2 1,082,507 1,069,530

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 July 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,276,409 417,358
Depreciation charges 251,119 239,253
Profit on disposal of fixed assets (39,578 ) (16,664 )
Gain on revaluation of fixed assets - (100 )
Finance costs 21,098 20,181
Finance income (4,353 ) (11,229 )
1,504,695 648,799
(Increase)/decrease in stocks (1,000,972 ) 54,789
Decrease/(increase) in trade and other debtors 682,597 (1,605,743 )
(Decrease)/increase in trade and other creditors (442,484 ) 941,669
Cash generated from operations 743,836 39,514

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023
31/7/23 1/8/22
£    £   
Cash and cash equivalents 1,082,507 1,069,530
Year ended 31 July 2022
31/7/22 1/8/21
£    £   
Cash and cash equivalents 1,069,530 1,708,527
Bank overdrafts - (6,976 )
1,069,530 1,701,551


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/22 Cash flow At 31/7/23
£    £    £   
Net cash
Cash at bank and in hand 1,069,530 12,977 1,082,507
1,069,530 12,977 1,082,507

Liquid resources
Current asset investments 19,569 - 19,569
19,569 - 19,569
Debt
Finance leases (127,590 ) 63,508 (64,082 )
(127,590 ) 63,508 (64,082 )
Total 961,509 76,485 1,037,994

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 July 2023


1. STATUTORY INFORMATION

Summit Systems Limited is a private group, limited by shares, registered in England and Wales. The company's registered number is 02598183 and the registered office address is Unit F, Tame Park Vanguard, Wilnecote, Tamworth, Staffordshire, B77 5DY.

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.

The financial statement are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Changes in accounting policies
The Company has reviewed the estimated useful life of its computer equipment during the reporting period. As a result of this review, the Company has determined that the estimated useful life of its computer equipment has changed resulting in a change in depreciation rate from 10% - 30% straight line to 10% - 33% straight line.

The change in accounting estimate has been applied prospectively, the impact of this change in the financial statements is not considered material.

Turnover
Turnover is measured as as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.

Rendering of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to there with and the costs incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.

Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows;

Plant and computer equipment-10% - 33% straight line
Fixtures and fittings-10% - 25% straight line
Motor vehicles-25% straight line

Investments in subsidiaries
Investment in the subsidiary company is held at cost less accumulated impairment losses.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprise of direct materials.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.


SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


2. ACCOUNTING POLICIES - continued
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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


Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


2. ACCOUNTING POLICIES - continued

Leases
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.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future
periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property, plant and equipment, and note 2 for the useful economic lives for each class of assets.

(ii) Stock provisioning
The principal activity of the company is that of distribution of handling equipment for the plastics industry and the fabrication of associated components. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around the anticipated saleability of the stock. See note 16 for the net of provisioning carrying amount of stock.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


4. TURNOVER

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

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

2023 2022
£    £   
Products sales 17,702,276 13,335,033
Rentals 379,479 258,385
18,081,755 13,593,418

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 17,906,314 13,362,615
Europe 56,929 192,435
Rest of the world 118,512 38,368
18,081,755 13,593,418

5. OTHER OPERATING INCOME
2023 2022
£    £   
Rents received 58,083 50,552

6. EMPLOYEES AND DIRECTORS

2023 2022
£ £
Wages and salaries 2,859,334 2,416,581
Social security costs 318,252 282,879
Other pension costs 249,461 217,086
3,427,047 2,916,546

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

External sales 4 7
Service 14 12
Technical 6 7
Operations 9 8
Administration 5 7
Marketing 2 2
Internal sale 3 4
Fabrications 5 5
Chilled 11 7
Recyclate 2 1
Directors 5 5
Warehouse 1 -
67 65

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


2023 2022
£    £   
Directors' remuneration 456,063 284,849
Directors' pension contributions to money purchase schemes 37,046 24,257

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

Money purchase schemes 4 3

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 167,906 101,628
Pension contributions to money purchase schemes 18,450 5,460

7. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 46,771 43,861
Other operating leases 192,678 189,676
Depreciation - owned assets 168,985 144,695
Depreciation - assets on hire purchase contracts 56,253 68,677
Profit on disposal of fixed assets (39,578 ) (16,664 )
Goodwill amortisation 25,881 25,881
Auditors' remuneration 20,500 17,875
Foreign exchange (gain)/loss 93,185 39,612

8. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Interest received 4,353 11,229

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest payable - 3,084
Non bank interest on loans 12,252 5,784
Hire purchase interest payable 8,846 11,313
21,098 20,181

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


10. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 291,909 -
Adjustment to prior years (3,509 ) (33,668 )
Total current tax 288,400 (33,668 )

Deferred tax (5,900 ) (20,400 )
Tax on profit 282,500 (54,068 )

UK corporation tax has been charged at 21 % .

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

2023 2022
£    £   
Profit before tax 1,276,409 417,358
Profit multiplied by the standard rate of corporation tax in the UK of 21 %
(2022 - 19 %)

268,046

79,298

Effects of:
Expenses not deductible for tax purposes 25,376 77,632
Income not taxable for tax purposes (9,664 ) (66,799 )
Depreciation in excess of capital allowances 15,246 28,923
Utilisation of tax losses (7,095 ) -
Adjustments to tax charge in respect of previous periods (3,509 ) (33,668 )
Unused tax losses - 6,419
Qualifying research and development - (125,473 )
Movement in deferred tax (5,900 ) (20,400 )
Total tax charge/(credit) 282,500 (54,068 )

On 24 May 2021, the Finance Act 2021 was substantively enacted to introduce a main rate of corporation tax of 25% with effect from 1 April 2023.

Deferred tax has been provided at the rate prevailing the balance sheet date of 25%.

11. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


12. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 562,582 604,165

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


13. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 August 2022
and 31 July 2023 258,814
AMORTISATION
At 1 August 2022 91,902
Amortisation for year 25,881
At 31 July 2023 117,783
NET BOOK VALUE
At 31 July 2023 141,031
At 31 July 2022 166,912

14. TANGIBLE FIXED ASSETS

Group
Plant and Fixtures
computer and Motor
equipment fittings vehicles Totals
£    £    £    £   
COST
At 1 August 2022 802,254 375,604 733,753 1,911,611
Additions 57,073 24,522 79,020 160,615
Disposals (250,927 ) (65,550 ) (157,389 ) (473,866 )
At 31 July 2023 608,400 334,576 655,384 1,598,360
DEPRECIATION
At 1 August 2022 749,643 314,067 385,890 1,449,600
Charge for year 45,753 14,405 165,080 225,238
Eliminated on disposal (250,927 ) (65,550 ) (125,384 ) (441,861 )
At 31 July 2023 544,469 262,922 425,586 1,232,977
NET BOOK VALUE
At 31 July 2023 63,931 71,654 229,798 365,383
At 31 July 2022 52,611 61,537 347,863 462,011

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023 2022
£ £
Motor vehicles 71,479 154,540

Depreciation charge for the year in respect of leased assets 56,253 68,677

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


14. TANGIBLE FIXED ASSETS - continued

Company
Plant and Fixtures
computer and Motor
equipment fittings vehicles Totals
£    £    £    £   
COST
At 1 August 2022 802,254 375,604 733,753 1,911,611
Additions 57,073 24,522 79,020 160,615
Disposals (250,927 ) (65,550 ) (157,389 ) (473,866 )
At 31 July 2023 608,400 334,576 655,384 1,598,360
DEPRECIATION
At 1 August 2022 749,643 314,068 385,890 1,449,601
Charge for year 45,753 14,405 165,080 225,238
Eliminated on disposal (250,927 ) (65,550 ) (125,384 ) (441,861 )
At 31 July 2023 544,469 262,923 425,586 1,232,978
NET BOOK VALUE
At 31 July 2023 63,931 71,653 229,798 365,382
At 31 July 2022 52,611 61,536 347,863 462,010

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

20232022
££
Motor vehicles71,479154,540

Depreciation charge for the year in respect of leased assets56,25368,677

15. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 August 2022
and 31 July 2023 100
NET BOOK VALUE
At 31 July 2023 100
At 31 July 2022 100

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


15. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Total Process Cooling Limited
Registered office: Unit F Tame Park Vanguard, Wilnecote, Tamworth, Staffordshire, England, B77 5DY
Nature of business: Supply and installation of cooling equipment
%
Class of shares: holding
Ordinary 100.00


16. STOCKS

Group Company
2023 2022 2023 2022
£    £    £    £   
Finished goods 2,420,979 1,420,007 2,420,979 1,420,007

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 3,475,868 4,117,557 3,475,269 4,117,557
Other debtors 474,596 419,508 474,540 419,508
Amount due from group undertakings 30,000 30,000 53,191 55,108
Directors' loan accounts 20,399 17,898 20,399 17,898
Prepayments and accrued income 234,203 330,199 234,203 330,199
4,235,066 4,915,162 4,257,602 4,940,270

18. CURRENT ASSET INVESTMENTS

Group Company
2023 2022 2023 2022
£    £    £    £   
Other investments 19,569 19,569 19,569 19,569

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts (see note 21) 16,928 60,951 16,928 60,951
Trade creditors 1,687,592 1,704,939 1,687,592 1,704,939
Corporation tax 291,909 - 291,909 -
Social security and other taxes 215,654 375,910 214,810 375,066
Other creditors 1,565,235 2,288,288 1,565,235 2,288,288
Amounts due to group undertakings 20,456 20,078 20,456 20,078
Accrued expenses 1,034,459 570,665 1,034,459 570,665
Deferred government grants - 6,000 - 6,000
4,832,233 5,026,831 4,831,389 5,025,987

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts (see note 21) 47,154 66,639 47,154 66,639

21. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase contracts
2023 2022
£ £

Net obligations repayable:
Within one year 16,928 60,951
Between one and five years 47,154 66,639
64,082 127,590

Hire purchase contracts represent rentals payable by the company for certain tangible fixed assets. The average lease term is 3 years.

Company

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£ £

Net obligations repayable:
Within one year 16,928 60,951
Between one and five years 47,154 66,639
64,082 127,590

Hire purchase contracts represent rentals payable by the company for certain tangible fixed assets. The average lease term is 3 years.

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 273,689 164,721
Between one and five years 283,775 351,618
557,464 516,339

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


21. LEASING AGREEMENTS - continued

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 273,689 164,721
Between one and five years 283,775 351,618
557,464 516,339

Operating lease payments represent rentals payable by the company for motor vehicles, equipment, land and buildings. Leases are negotiated for an average term of 1-5 years and rentals are fixed during this period.

22. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts 64,082 127,590 64,082 127,590

The hire purchase contracts are secured on the assets concerned.

23. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax 19,200 25,100 19,200 25,100

Group
Deferred
tax
£   
Balance at 1 August 2022 25,100
Movement (5,900 )
Balance at 31 July 2023 19,200

Company
Deferred
tax
£   
Balance at 1 August 2022 25,100
Credit to Statement of Comprehensive Income during year (5,900 )
Balance at 31 July 2023 19,200

The movement in deferred tax for the following period, based on current rates and information, is an estimated release of £32,500. This primarily relates to the reversal of timing differences on capital allowances.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


24. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
21,055 Ordinary £1 21,055 21,055

The 21,055 shares in issue are split as follows; 15,841 Ordinary A, 1,000 Ordinary B, 1,053 Ordinary C, 1,053 Ordinary D, 1,053 Ordinary E, 1,053 Ordinary F, 1 Ordinary G and 1 Ordinary H.

The Ordinary A - E shares have full rights in the company with respect to voting, dividends and distributions.

The Ordinary G - H shares have rights in the company with respect to dividends but are non-voting.

25. RESERVES

Retained earnings
Retained earnings represent accumulated comprehensive income for the year and prior periods less dividends paid.

26. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £249,461 (2022 - £213,872) were paid in the year in respect of the defined contribution scheme.

27. OTHER FINANCIAL COMMITMENTS

At the year end the company had a financial commitment to purchase forward exchange contracts of $1,500,000 which was the equivalent of £1,222,957.

28. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2023 and 31 July 2022:

2023 2022
£    £   
M C Jordan
Balance outstanding at start of year 17,898 569,695
Amounts advanced 171,142 91,566
Amounts repaid (168,641 ) (643,363 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 20,399 17,898

Dividends totalling £156,599 (2022 - £69,900) were paid in the year in respect of shares held by the company's directors.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


29. RELATED PARTY DISCLOSURES

During the year the company had transactions with the following related companies, all ultimately controlled by M C Jordan:

2023 2022
£ £
Amounts due from Summit Protech Limited 30,000 30,000
Consultancy fees paid to Gusty Shore Limited 72,869 -
Amounts due to Gusty Shore Limited (6,000 ) -


During the year, the company paid dividends of £405,983 (2022 - £534,265) to other shareholders not including the directors.

The company sold 2 motor vehicles to a shareholder and a member of staff during the year. Both disposals were undertaken at values below their true market value with combined proceeds of £2.

Key management personnel consists solely of the directors.

30. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is M C Jordan.