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COMPANY REGISTRATION NUMBER: 932856
Spring Electrical Limited
Filleted Unaudited Accounts
31 May 2023
Spring Electrical Limited
Statement of Financial Position
31 May 2023
2023
2022
(restated)
Note
£
£
£
Fixed assets
Tangible assets
5
850,709
712,331
Current assets
Stocks
791,670
777,866
Debtors
6
671,887
727,118
Cash at bank and in hand
2,168
22,634
------------
------------
1,465,725
1,527,618
Creditors: amounts falling due within one year
7
( 579,047)
( 671,971)
------------
------------
Net current assets
886,678
855,647
------------
------------
Total assets less current liabilities
1,737,387
1,567,978
Creditors: amounts falling due after more than one year
8
( 25,000)
( 35,000)
------------
------------
Net assets
1,712,387
1,532,978
------------
------------
Capital and reserves
Called up share capital
7,500
7,500
Capital redemption reserve
17,500
17,500
Profit and loss account
1,687,387
1,507,978
------------
------------
Shareholders funds
1,712,387
1,532,978
------------
------------
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts .
Spring Electrical Limited
Statement of Financial Position (continued)
31 May 2023
These accounts were approved by the board of directors and authorised for issue on 6 March 2024 , and are signed on behalf of the board by:
A B Panton
Director
Company registration number: 932856
Spring Electrical Limited
Notes to the Accounts
Year ended 31 May 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 10 Orange Street, Haymarket, London, WC2H 7DQ. The address of the principal place of business is 198-202 Kingston Road, Ewell, Surrey, KT19 0SF.
2. Statement of compliance
These accounts have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost basis, and in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have considered the basis of preparation of the financial statements and have concluded that it is appropriate to prepare these on the going concern basis. This assessment is due to the Company demonstrating sufficient funds and cash flows to be able to manage its liabilities as they fall due for a period of not less than 12 months of the approval of the financial statements. The directors have reviewed the forecasts for the company and have a reasonable expectation that the company has adequate resources to continue as a going concern for the foreseeable future, being at least twelve months from the date these financial statements have been approved.
Changes in accounting policies
During the year the directors decided to change the recognition policy of freehold property from cost less accumulated deprecation to revaluation at fair value through the profit and loss. This is to more accurately reflect the value of the property in the accounts. The prior year has been amended to apply this retrospectively. This has led to the following amendments which have been restated: - Freehold property depreciation as at 1 June 2021 has been reduced from £74,243 to £nil, - 2022 depreciation expense has been reduced by £5,506 and the charge to freehold property reduced from £5,506 to £nil, - Freehold property cost increased by £374,698 from £275,302 to £650,000 to reflect its value as at 1st June 2021, - Profit and Loss account as at 31 May 2022 has increased by £454,447, being the net impact of the above adjustments.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for the wholesale of electrical and lighting products, stated net of discounts and of Value Added Tax. Revenue from the wholesale of these products is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Freehold property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Freehold property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold Property
-
over the period of the lease
Fixtures & Fittings
-
10% reducing balance
Motor Vehicles
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stock comprises good for resale and is valued at the lower of cost and net realisable value.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
Financial assets Financial assets are recognised when the Company becomes a party to the contractual provisions of the financial instrument. The Company does not hold any third party financial assets. Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are initially recognised at fair value and are subsequently measured using the effective interest method less provision for any impairment. Financial liabilities and equity instruments Financial liabilities and equity 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. Other financial liabilities (including borrowing and trade and other payables) are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 21 (2022: 21 ).
5. Tangible assets
Freehold property
Long leasehold property
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 June 2022 (as restated)
650,000
71,741
109,067
93,268
924,076
Additions
4,200
4,200
Disposals
( 14,169)
( 14,169)
Revaluations
150,000
150,000
---------
--------
---------
--------
------------
At 31 May 2023
800,000
71,741
109,067
83,299
1,064,107
---------
--------
---------
--------
------------
Depreciation
At 1 June 2022
65,528
80,921
65,296
211,745
Charge for the year
1,035
4,222
7,203
12,460
Disposals
( 10,807)
( 10,807)
---------
--------
---------
--------
------------
At 31 May 2023
66,563
85,143
61,692
213,398
---------
--------
---------
--------
------------
Carrying amount
At 31 May 2023
800,000
5,178
23,924
21,607
850,709
---------
--------
---------
--------
------------
At 31 May 2022
650,000
6,213
28,146
27,972
712,331
---------
--------
---------
--------
------------
The deeds of the company's freehold property have been charged in favour of the bank as security for the loan facilities.
6. Debtors
2023
2022
(restated)
£
£
Trade debtors
628,620
683,974
Other debtors
43,267
43,144
---------
---------
671,887
727,118
---------
---------
7. Creditors: amounts falling due within one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
119,518
54,978
Trade creditors
392,632
532,397
Corporation tax
10,018
7,833
Social security and other taxes
41,327
32,964
Other creditors
15,552
43,799
---------
---------
579,047
671,971
---------
---------
8. Creditors: amounts falling due after more than one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
25,000
35,000
--------
--------
9. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
(restated)
£
£
Not later than 1 year
66,282
66,282
Later than 1 year and not later than 5 years
210,747
234,376
Later than 5 years
1,485
44,138
---------
---------
278,514
344,796
---------
---------
10. Other financial commitments
As at the reporting date, the company had no financial or other commitments or contracts for capital expenditure in place (2022: £nil).
11. Related party transactions
No transactions with related parties were undertaken as are required to be disclosed under FRS 102 Section 1A.
12. Reserves
Included in the Profit and loss account as at 31 May 2023 is an unrealised gain of £524,698 (2022: £374,698).