Company Registration No. 03209293 (England and Wales)
Stage Electrics Partnership Limited
Annual report and financial statements
for the year ended 31 July 2023
Stage Electrics Partnership Limited
Company information
Directors
Trevor Smallwood
John Laycock
Adam Blaxill
David Coull
Andrew Preece
Daniel Aldridge
Anna Western
Secretary
Quayseco Limited
Company number
03209293
Registered office
Encore House
Unit 3 Britannia Road
Patchway
Bristol
BS34 5TA
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Bankers
Barclays Bank plc
Solicitors
Burges Salmon LLP
One Glass Wharf
Bristol
BS2 0ZX
Stage Electrics Partnership Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 25
Stage Electrics Partnership Limited
Strategic report
For the year ended 31 July 2023
1

The directors have great pleasure in presenting the Strategic Report for the year ended 31 July 2023.

Fair review of the business

The company continued to grow strongly, with revenues increasing by 13.3% compared to the previous year (2022: 28.2%). Costs were well controlled in the face of increased activity and continued inflationary pressures.

For the second year in a row, the company increased its trading profits, delivering a profit before tax of £1,083k in the period (2022: £696k) and a profit after tax of £893k (2022: £579k).

The company had a very strong end to the year, with revenues in the last 2 months 32% higher than the previous year. This helped improve profit for the year but also led to a higher-than-usual level of debtors at the year end.

The company focuses on customer service and delivering quality products and services. Supply chain issues continued to impact the company's ability to deliver some products and services as promptly as it had done in the past. Stock levels were increased during the year to ensure the business was able to maximise its ability to service growing customer demand.

Principal risks and uncertainties

The management of the business, and the execution of the Group's strategy, are subject to several risks. The key risks and uncertainties include price inflation, supply chain issues and an economic downturn.

These risks are mitigated and monitored through close cooperation with key suppliers, identifying and developing potential business opportunities, regular review of business risks, economic data, market trends and the available Arts, Government and Trade Body support initiatives that might impact the sector(s).

Development and performance

Group revenues for the year to July 2024 are currently forecast to increase by 9% compared to the year to July 2023, with budgeted operating profit expected to be met. The company's revenues form the majority of group revenues.

Key performance indicators

Gross margins for the year remained stable at 31% (2022: 31%), with profit before tax being 5.7% this year against 4.2% in 2022. There remains a focus on margin management and overhead control.

Future outlook

As noted above, trading in the year to July 2024 is expected to deliver budgeted operating profits.

 

The company continues to maintain a healthy cash and balance sheet position.

On behalf of the board

Andrew Preece
Director
31 January 2024
Stage Electrics Partnership Limited
Directors' report
For the year ended 31 July 2023
2

The directors present their annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the company during the year continued to be the sale, installation, inspection, testing and servicing of lighting, audio and visual equipment, primarily but not exclusively in the arts, entertainment, education, construction, and conference centre sectors.

Results, bonuses and dividends

The company ran a staff bonus scheme for a second year, under which all employees shared a proportion of any overperformance by the company against its budgeted operating profit. The company's operating profit for the year exceeded budget and as a result, an all-staff bonus in excess of £90k was paid shortly after the year end.

The company did not pay a dividend during the financial year.

 

A dividend of £500k was proposed and paid shortly after the year end.

The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Trevor Smallwood
John Laycock
Adam Blaxill
David Coull
Andrew Preece
William Rogers
(Resigned 19 July 2023)
Daniel Aldridge
Anna Western
Auditor

Saffery LLP have expressed their willingness to continue in office.

Stage Electrics Partnership Limited
Directors' report (continued)
For the year ended 31 July 2023
3
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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 company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of its fair review of the business, details of the group's risks and uncertainties and also its' future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Andrew Preece
Director
31 January 2024
Stage Electrics Partnership Limited
Independent auditor's report
To the members of Stage Electrics Partnership Limited
4
Opinion

We have audited the financial statements of Stage Electrics Partnership Limited (the 'company') for the year ended 31 July 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 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:

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.

Stage Electrics Partnership Limited
Independent auditor's report (continued)
To the members of Stage Electrics Partnership Limited
5

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

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:

 

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.

Stage Electrics Partnership Limited
Independent auditor's report (continued)
To the members of Stage Electrics Partnership Limited
6

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further 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, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Stage Electrics Partnership Limited
Independent auditor's report (continued)
To the members of Stage Electrics Partnership Limited
7

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.

Neil Davies
Senior Statutory Auditor
For and on behalf of Saffery LLP
31 January 2024
Chartered Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Stage Electrics Partnership Limited
Statement of comprehensive income
For the year ended 31 July 2023
8
2023
2022
Notes
£
£
Turnover
3
18,989,462
16,758,915
Cost of sales
(13,020,300)
(11,584,775)
Gross profit
5,969,162
5,174,140
Administrative expenses
(5,059,928)
(4,717,488)
Other operating income
176,796
253,122
Operating profit
4
1,086,030
709,774
Interest payable and similar expenses
7
(3,151)
(14,043)
Profit before taxation
1,082,879
695,731
Tax on profit
8
(189,793)
(117,074)
Profit for the financial year
893,086
578,657

The income statement has been prepared on the basis that all operations are continuing operations.

Stage Electrics Partnership Limited
Statement of financial position
As at 31 July 2023
31 July 2023
9
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
337,895
144,524
Investments
11
3,100
3,100
340,995
147,624
Current assets
Stocks
13
2,302,917
1,693,746
Debtors
14
7,239,228
6,652,793
Cash at bank and in hand
1,249,272
1,420,405
10,791,417
9,766,944
Creditors: amounts falling due within one year
15
(3,803,061)
(3,782,209)
Net current assets
6,988,356
5,984,735
Total assets less current liabilities
7,329,351
6,132,359
Creditors: amounts falling due after more than one year
16
(1,125,752)
(821,846)
Net assets
6,203,599
5,310,513
Capital and reserves
Called up share capital
20
136,665
136,665
Share premium account
101,066
101,066
Capital redemption reserve
3,688,249
3,688,249
Profit and loss reserves
2,277,619
1,384,533
Total equity
6,203,599
5,310,513
The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
Andrew  Preece
Director
Company Registration No. 03209293
Stage Electrics Partnership Limited
Statement of changes in equity
For the year ended 31 July 2023
10
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 August 2021
136,665
101,066
3,688,249
1,605,876
5,531,856
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
-
-
578,657
578,657
Dividends
9
-
-
-
(800,000)
(800,000)
Balance at 31 July 2022
136,665
101,066
3,688,249
1,384,533
5,310,513
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
-
-
893,086
893,086
Balance at 31 July 2023
136,665
101,066
3,688,249
2,277,619
6,203,599
Stage Electrics Partnership Limited
Notes to the financial statements
For the year ended 31 July 2023
11
1
Accounting policies
Company information

Stage Electrics Partnership Limited is a private company limited by shares incorporated in England and Wales. The registered office is Encore House, Unit 3 Britannia Road, Patchway, Bristol, BS34 5TA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Stage Electrics Group Limited. These consolidated financial statements are available from its registered office, Encore House, Unit 3 Britannia Road, Patchway Trading Estate, Patchway, Bristol, BS34 5TA.

1.2
Going concern

At the time of approving the financial statements, the Directors are confident that the Group has adequate resources to continue in operational existence for the foreseeable future.true

The Company has a strong cash position and continues to deliver good profits and generate cash.  The Directors have prepared prudent cash flow forecasts for the next 12 months, which show that the Company’s cash position is expected to remain healthy during that period.  Therefore, the Directors continue to adopt the Going Concern basis of accounting in preparing these financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
12

Turnover is taken on fixed price contracts while the contract is in progress, having regard to the proportion of the total contract which has been completed at the statement of financial position date, estimated by reference to the costs incurred to date versus the total estimated costs to completion. Provision is made for all foreseeable losses.

 

Turnover on equipment sales is recognised at the point of despatch.

Amounts recoverable on contracts represent turnover recognised, primarily on fixed price contracts, which has not yet been invoiced to clients net of any provision for unrecoverable amounts. Such amounts are separately disclosed within debtors. Conversely, amounts due on contracts represent costs recognised for work carried out but for which invoices from suppliers have not yet been received. Such amounts are separately disclosed within creditors

The company has entered into a joint operation. This is not in the form of a separate entity and as such the company has not accounted for the operation under the equity method. The joint operation is accounted for as an ordinary contract in the company's operation reflecting the level of interest that the group holds as per the contractual agreement in place.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Trademark
20 - 33.33% straight line
1.5
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.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short leasehold property
Straight line over unexpired lease term - maximum 50 years
Plant, equipment and machinery
25% straight line basis
Fixtures and fittings
10-33% straight line basis
Motor vehicles
25% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
13
1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

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.

1.9
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks. Bank overdrafts are shown within borrowings in current liabilities.

1.10
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 statement of financial position 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.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
14
Basic financial assets

Basic financial assets, which include debtors, 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.

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 trade and other 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

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

1.11
Equity instruments

Equity instruments issued by the company are recorded at proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
15

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.12
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 income statement 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
1
Accounting policies (continued)
16
1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
Foreign exchange

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 in the period are included in profit or loss.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
17
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Key areas of judgment include the estimation of provision against stock and percentage completion of long term contracts inclusive of the estimation of total costs to complete. 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.

Critical judgements

The following judgements and estimation uncertainties have had the most significant effect on amounts recognised in the financial statements.

Revenue recognised in respect of long term contracts

Revenue is recognised in respect of long term contracts. Revenue is recognised based on the cost of completion method and requires managements best estimate of the expected total costs to complete and the overall outcome of the contract. Related amounts due to or from long term contracts is included in the financial statements based on the agreed contract and management knowledge of variations and modifications as the contract progresses reflecting all available knowledge at any point in time.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
18
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of goods and related project management and installation services
17,735,202
15,633,551
Rendering of services
1,254,260
1,125,364
18,989,462
16,758,915
2023
2022
£
£
Other significant revenue
Grants received
-
20,960

In the opinion of the directors disclosure of information relating to turnover attributable to the markets supplied in the course of the year would be seriously prejudicial to the interests of the company, it is therefore not disclosed.

 

Other income recognised in the financial statements relates to government grants received under the Coronavirus Job Retention Scheme.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
13,677
1,537
Government grants
-
(20,960)
Fees payable to the company's auditor for the audit of the company's financial statements
21,810
19,750
Depreciation of owned tangible fixed assets
150,963
33,731
Depreciation of tangible fixed assets held under finance leases
-
9,261
Operating lease charges
119,397
115,355
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administrative staff
16
16
Sales and Hire
80
73
Total
96
89
Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
5
Employees (continued)
19

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,839,573
3,452,033
Social security costs
442,629
347,984
Pension costs
193,486
163,220
4,475,688
3,963,237
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
487,065
394,254
Company pension contributions to defined contribution schemes
39,986
30,170
527,051
424,424

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
110,278
97,948
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
3,151
14,043
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
215,508
117,074
Adjustments in respect of prior periods
(25,715)
-
0
Total current tax
189,793
117,074
Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
8
Taxation (continued)
20

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,082,879
695,731
Expected tax charge based on the standard rate of corporation tax in the UK of 21.01% (2022: 19.00%)
227,464
132,189
Tax effect of expenses that are not deductible in determining taxable profit
3,472
30,375
Change in unrecognised deferred tax assets
901
(38,980)
Adjustments in respect of prior years
(25,716)
-
0
Effect of change in corporation tax rate
(144)
9,355
Group relief
(16,625)
(10,941)
Depreciation on assets not qualifying for tax allowances
441
(4,924)
Taxation charge for the year
189,793
117,074
9
Dividends
2023
2022
£
£
Final paid
-
0
800,000
Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
21
10
Tangible fixed assets
Short leasehold property
Plant, equipment and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2022
103,062
489,420
45,541
35,387
673,410
Additions
-
0
34,169
29,192
280,973
344,334
Disposals
-
0
(144,619)
-
0
(21,786)
(166,405)
At 31 July 2023
103,062
378,970
74,733
294,574
851,339
Depreciation and impairment
At 1 August 2022
103,062
382,600
17,461
25,763
528,886
Depreciation charged in the year
-
0
52,815
9,747
88,401
150,963
Eliminated in respect of disposals
-
0
(144,619)
-
0
(21,786)
(166,405)
At 31 July 2023
103,062
290,796
27,208
92,378
513,444
Carrying amount
At 31 July 2023
-
0
88,174
47,525
202,196
337,895
At 31 July 2022
-
0
106,820
28,080
9,624
144,524

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
£
£
Plant, equipment and machinery
-
0
23,925
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
3,100
3,100
Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
22
12
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
SE1 Events Limited
England and Wales
Dormant
Ordinary
100.00
Stage Electrics Limited
England and Wales
Dormant
Ordinary
100.00
Studio Electrics Limited
England and Wales
Dormant
Ordinary
100.00
Theatre Direct Limited
England and Wales
Dormant
Ordinary
100.00
Theatre Vision Limited
England and Wales
Dormant
Ordinary
100.00

The registered address of all subsidiaries is Encore House, Unit 3 Britannia Road, Patchway Trading Estate, Patchway, Bristol, United Kingdom, BS34 5TA

13
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,302,917
1,693,746
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,446,641
1,368,589
Gross amounts owed by contract customers
468,274
234,426
Amounts owed by group undertakings
4,131,717
4,702,275
Other debtors
-
0
197,262
Prepayments and accrued income
192,596
150,241
7,239,228
6,652,793

Amounts due from group undertakings are all due in greater than one year. This is consistent with the comparative period.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
23
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
250,000
250,000
Obligations under finance leases
18
12,934
12,934
Trade creditors
2,129,395
1,983,176
Gross amounts owed to contract customers
282,822
200,727
Corporation tax
215,508
117,074
Other taxation and social security
418,635
339,421
Other creditors
12,882
146,018
Accruals and deferred income
480,885
732,859
3,803,061
3,782,209
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
208,333
458,333
Obligations under finance leases
18
3,210
16,143
Amounts owed to group undertakings
914,209
347,370
1,125,752
821,846
17
Loans and overdrafts
2023
2022
£
£
Bank loans
458,333
708,333
Payable within one year
250,000
250,000
Payable after one year
208,333
458,333

The long term loan relates to an application made by the company under the Coronavirus Business Interruption Loan Scheme. As a result, under the terms of the scheme, the Secretary of State for Business, Energy and Industrial Strategy has provided a limited guarantee to Barclays Bank for 80% of the loan balance.

 

The CBILs loan was taken out in 2020, equal monthly instalments are paid of £20,833 with the final repayment falling due in May 2025. Interest is charged at a floating rate of 2.65% + base rate. The full remaining balance of the loan at the year end was subsequently paid post year end in August 2023.

Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
24
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
12,934
12,934
In two to five years
3,210
16,143
16,144
29,077
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
193,486
163,220

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.

20
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
133,332 Ordinary shares of £1 each
133,332
133,332
3,333 'C' Ordinary shares of £1 each
3,333
3,333
136,665
136,665

The ordinary shares rank equally for voting purposes, dividends declared and in respect of distributions made on a winding up.

 

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
148,056
196,896
Between two and five years
90,431
218,460
238,487
415,356
Stage Electrics Partnership Limited
Notes to the financial statements (continued)
For the year ended 31 July 2023
25
22
Related party transactions

The company has taken advantage of the exemption available in FRS 102 section 33 "Related Party Disclosures" whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

23
Ultimate controlling party

The company is a subsidiary undertaking of Stage Electrics Group Limited which is the immediate parent company incorporated in England and Wales.

 

The largest and smallest group in which the results of the company are consolidated is that headed by Stage Electrics Group Limited. No other group financial statements include the results of the company. The consolidated financial statements of this group are available to the public and may be obtained from Encore House, Unit 3 Britannia Road, Patchway, Bristol, BS34 5TA.

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