Company registration number 00784246 (England and Wales)
DESIGNPLAN LIGHTING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DESIGNPLAN LIGHTING LIMITED
COMPANY INFORMATION
Directors
D Barnes (Managing Director)
L Marchant
P Muir
B Sonesson
S Tilling
M Wood
S Praloran
(Appointed 19 June 2023)
Company number
00784246
Registered office
16 Kimpton Park Way
Sutton
Surrey
SM3 9QS
Auditor
KPMG LLP
15 Canada Square
London
E14 5GL
DESIGNPLAN LIGHTING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report to the members of Designplan Lighting Ltd
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
DESIGNPLAN LIGHTING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
Our 60th birthday year was a record year for Designplan, becoming a £20m sales business, achieving sales growth of over 17.8% (having achieved 25% growth in 2022), equating to £20,191,709 (2022: £17,135,710).
We saw continued strong progress in our home markets of UK and Germany, including specific success in UK Rail where we delivered the platform lighting for both the Birmingham New Street rail station upgrade as well as the Bristol Temple Meads station upgrade.
Our successful 2022 strategy to manage the high inflation environment continued with great success as we continued to monitor our purchasing strategy, pricing and driving operational efficiencies, to manage our exposure to materials, labour and service provider costs.
The result of these actions is that we have successfully converted the 18% sales growth into a doubling of our operating profit, achieving a profit before tax of £2,646,023 (2022: £1,220,231).
The company looks ahead to 2024 with continued optimism as our strategy continues to build momentum. We have seen a 7% increase in our order intake in 2023 and continue to see strong growth in our opportunity bank. We are also focused on completing the delivery of the lighting for our second new build prison in the UK, HMP Millsike. Our product portfolio continues to evolve and is well suited to the fluorescent lighting restrictions that came into force from February 2023 through the updated Restriction of Hazardous Substance (RoHS) directive.
Going concern
Inflation remained high through most of 2023 in our home markets of UK and Germany but has sharply declined by the end of the year.
Whilst the directors are unable to predict the future impact on the company’s operation, externally we operate in well-funded sectors and the directors believe the company is well placed to manage its business risks.
This confidence is evidenced by the company’s outperforming the economic growth of its home markets in both revenue and profit in 2021, 2022 and 2023, and carrying a strong order book, larger opportunity bank and sustaining cash reserves. The directors have prepared cash flow forecasts and performed a going concern assessment which indicates that in both the base and reasonable downside scenarios, the company will have sufficient funds to meet its liabilities as they fall due during the going concern assessment period.
This provides further assurance that the company will continue in operational existence for the foreseeable future, and as a minimum for at least 12 months from the date of approval of these financial statements. Consequently, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Research and development
During 2023 the company continued to develop new and second-generation light fittings meeting the recognition criteria of Section 18 of FRS102.
Existence of overseas branches
The company has a German branch, as defined in s.1046(3) of the Companies Act 2006. The results of the branch are aggregated with the results of the company and are not disclosed separately.
DESIGNPLAN LIGHTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties
The uncertainty in the economy that the impending UK general election creates is the highest profile threat to the short term performance of all businesses at this time.
However, the infrastructure project nature of our business means that funding and decisions are taking over longer time periods, which creates stability in such times for us, evidenced again by the growth in our opportunity pipeline. In addition our exposure is more spread than ever (both in terms of geographically and sectors funding) and our proposition is equally well aligned to the growing sustainability agenda.
Exchange rate risk
The main treasury risk arises from exchange rate fluctuation. The company manages the risk from exchange rates by trading with customers and suppliers in the same currencies where possible.
We also saw forex gains of £1,607 (2022: £62,746 gains) due to a more stabilised Euro to Sterling movement.
Key performance indicators
In addition to turnover and profit, the following are further key performance indicators that are considered important measures of performance:
Future developments
The strategic focus remains on increasing and driving market share in our home markets and priority sectors through targeted product development and service excellence.
The company will also continue to leverage the global presence of the Fagerhult Group to further penetrate international markets where our product portfolio is relevant.
L Marchant
Director
2 August 2024
DESIGNPLAN LIGHTING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of design, manufacture and sale of light fittings.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £2,250,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D Barnes (Managing Director)
L Marchant
P Muir
B Sonesson
S Tilling
M Wood
S Praloran
(Appointed 19 June 2023)
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.
Information referred to in the 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 principal risks and future developments.
Auditor
Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
L Marchant
Director
2 August 2024
DESIGNPLAN LIGHTING LIMITED
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
DESIGNPLAN LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DESIGNPLAN LIGHTING LIMITED
- 5 -
Opinion
We have audited the financial statements of Designplan Lighting Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including the accounting policies in note 1.
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with UK accounting standards, including FRS 102 ; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.
Our conclusions based on this work:
we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.
Fraud and breaches of laws and regulations - ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
Enquiring of directors and inspection of policy documentation as to the Company’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.
Reading Board minutes.
Using analytical procedures to identify any unusual or unexpected relationships.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
DESIGNPLAN LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DESIGNPLAN LIGHTING LIMITED
- 6 -
As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries and the risk of bias in accounting estimates and judgements such as impairment. On this audit we do not believe there is a fraud risk related to revenue recognition because the accounting for the majority of the company's revenue is non-complex, and subject to limited levels of judgment with limited opportunities for intervention in the sales process to fraudulently manipulate revenue. We did not identify any additional fraud risks.
We performed procedures including:
Identifying and responding to risks of material misstatement related to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors (as required by auditing standards), and discussed with the directors the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, anti-bribery and employment law, recognising the nature of the Company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
DESIGNPLAN LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DESIGNPLAN LIGHTING LIMITED
- 7 -
Strategic report and directors’ report
The directors are responsible for the strategic report and the directors’ report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.
Our responsibility is to read the strategic report and the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
we have not identified material misstatements in the strategic report and the directors’ report;
in our opinion the information given in those reports for the financial year is consistent with the financial statements; and
in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
We have nothing to report in these respects.
Directors' responsibilities
As explained more fully in their statement set out on page 4, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities
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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
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.
DESIGNPLAN LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DESIGNPLAN LIGHTING LIMITED
- 8 -
The purpose of our audit work and to whom we owe our responsibilities
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.
Dominic Harvey
Senior Statutory Auditor
For and on behalf of KPMG LLP
2 August 2024
Chartered Accountants
Statutory Auditor
15 Canada Square
London
E14 5GL
DESIGNPLAN LIGHTING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
20,191,709
17,135,710
Cost of sales
(9,698,457)
(8,971,439)
Gross profit
10,493,252
8,164,271
Distribution costs
(1,165,857)
(1,190,646)
Administrative expenses
(6,774,650)
(5,783,593)
Other operating income
17,513
Operating profit
4
2,552,745
1,207,545
Interest receivable and similar income
7
93,278
12,686
Profit before taxation
2,646,023
1,220,231
Tax on profit
8
(663,496)
(265,723)
Profit for the financial year
1,982,527
954,508
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DESIGNPLAN LIGHTING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
81,799
185,709
Tangible assets
11
1,969,652
1,779,074
2,051,451
1,964,783
Current assets
Stocks
12
1,530,040
1,660,561
Debtors
13
2,997,868
2,351,788
Cash at bank and in hand
1,672,068
1,915,185
6,199,976
5,927,534
Creditors: amounts falling due within one year
14
(3,328,842)
(2,793,657)
Net current assets
2,871,134
3,133,877
Total assets less current liabilities
4,922,585
5,098,660
Provisions for liabilities
Provisions
15
558,875
513,387
Deferred tax liability
16
230,000
184,090
(788,875)
(697,477)
Net assets
4,133,710
4,401,183
Capital and reserves
Called up share capital
18
360,300
360,300
Capital redemption reserve
19
214,575
214,575
Profit and loss reserves
3,558,835
3,826,308
Total equity
4,133,710
4,401,183
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
L Marchant
Director
Company registration number 00784246 (England and Wales)
DESIGNPLAN LIGHTING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
360,300
214,575
3,171,800
3,746,675
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
954,508
954,508
Dividends
9
-
-
(300,000)
(300,000)
Balance at 31 December 2022
360,300
214,575
3,826,308
4,401,183
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,982,527
1,982,527
Dividends
9
-
-
(2,250,000)
(2,250,000)
Balance at 31 December 2023
360,300
214,575
3,558,835
4,133,710
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Designplan Lighting Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Kimpton Park Way, Sutton, Surrey, SM3 9QS.
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of AB Fagerhult. These consolidated financial statements are available from its registered office, AB Fagerhult, SE-566 80 Habo, Sweden.
1.2
Going concern
Inflation remained high through most of 2023 in our home markets of UK and Germany but has sharply declined by the end of the year. true
Whilst the directors are unable to predict the future impact on the company’s operation, externally we operate in well-funded sectors and the directors believe the company is well placed to manage its business risks.
This confidence is evidenced by the company’s outperforming the economic growth of its home markets in both revenue and profit in 2021, 2022 and 2023, and carrying a strong order book, larger opportunity bank and sustaining cash reserves. The directors have prepared cash flow forecasts and performed a going concern assessment which indicates that in both the base and reasonable downside scenarios, the company will have sufficient funds to meet its liabilities as they fall due during the going concern assessment period.
This provides further assurance that the company will continue in operational existence for the foreseeable future, and as a minimum for at least 12 months from the date of approval of these financial statements. Consequently, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for sale of goods in the ordinary nature of the business. Turnover is shown net of VAT, and is recognised when goods are provided to customers upon dispatch.
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the customer (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 the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Turnover from bill-and-hold sales arises where delivery is delayed at the customer's request, but where the customer takes title and accepts billing. Turnover from bill-and-hold sales is recognised when the customer takes title, provided that it is probable that delivery will be made, the item is identified and ready for delivery to the customer at the time the sale is recognised, the customer specifically acknowledges the deferred delivery instructions and the usual payment terms apply. Turnover is not recognised when there is simply an intention to acquire or manufacture the goods in time for delivery.
1.4
Research and development expenditure
Expenditure on research activities is recognised in the profit and loss account as an expense as incurred. Expenditure on development activities may be capitalised if the product or process is technically and commercially feasible and the Company intends, and has the technical ability and sufficient resources, to complete development, future economic benefits are probable and if the Company can measure reliably the expenditure attributable to the intangible asset during its development. Development activities involve design for, construction or testing of the production of new or substantially improved products or processes. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Other development expenditure is recognised in the profit and loss account as an expense as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses.
1.5
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 from the point when the product is live or launched, on the following basis:
Development costs
20% straight line
1.6
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Long leasehold land and buildings
over the length of the lease
Plant, machinery and tools
3 to 20 years straight line
Computers, furniture and fittings
3 to 20 years straight line
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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. Allowance has been made for obsolete or slow moving items.
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Cash and cash equivalents
Cash and cash equivalents comprises solely of cash at bank. Bank overdrafts that are repayable on demand and form an integral part of the Company's cash management are included as a component of cash and cash equivalents.
1.9
Financial instruments
The company has elected to apply the recognition and measurement 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 trade and other 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 financial asset is measure at the present value of the future receipts discounted at a market rate of interest.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
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.
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 creditors and loans from fellow group 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.
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Taxation
The tax expense represents the sum of the tax currently payable or receivable and deferred tax.
Current tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet 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.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Provisions are made for liabilities arising in respect of potential sales agency commissions under an EU Agency Directive and costs associated with honouring our product warranty agreements.
1.12
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.
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leasing and hire purchase commitments
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.
1.15
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.
2
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. 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.
Key sources of estimation uncertainty
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.
Warranty provision
Warranty provisions are an extrapolation based on the cost of honouring past claims applied to recent trading levels, plus any specific liabilities that the company may be aware of.
Stock provision
Provisions are recognised when there is objective evidence of impairment or obsolescence of stock items. The provision is calculated based on the analysis of historic usage and expected future use of stock lines, and represents the expected write-down between the estimated net realisable value and the original cost. Net realisable value represents the estimated selling price less estimated costs of completion.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
20,191,709
17,135,710
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover
(Continued)
- 17 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,876,577
11,163,200
Overseas sales
6,315,132
5,972,510
20,191,709
17,135,710
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(1,607)
(62,746)
Research and development costs
92,910
69,584
Fees payable to the company's auditor for the audit of the company's financial statements
109,300
87,000
Depreciation of owned tangible fixed assets
432,445
413,945
Amortisation of intangible assets
103,910
101,525
Operating lease charges
1,048,662
965,506
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Production staff
53
48
Sales
31
29
Administration
40
34
Total
124
111
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,907,797
5,182,249
Social security costs
527,866
471,698
Pension costs
173,834
125,257
6,609,497
5,779,204
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
560,952
520,443
Company pension contributions to defined contribution schemes
27,507
25,251
588,459
545,694
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
169,930
164,047
Company pension contributions to defined contribution schemes
8,383
8,086
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
93,278
12,686
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
515,000
150,000
Adjustments in respect of prior periods
15,218
(14,826)
Total UK current tax
530,218
135,174
Foreign current tax on profits for the current period
85,000
103,000
Adjustments in foreign tax in respect of prior periods
2,368
Total current tax
617,586
238,174
Deferred tax
Origination and reversal of timing differences
61,036
6,693
Adjustment in respect of prior periods
(15,126)
20,856
Total deferred tax
45,910
27,549
Total tax charge
663,496
265,723
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 19 -
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
2,646,023
1,220,231
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
621,815
231,844
Tax effect of expenses that are not deductible in determining taxable profit
7,720
5,284
Adjustments in respect of prior years
2,459
6,030
Amortisation on assets not qualifying for tax allowances
4,222
3,413
Research and development tax credit
(1,537)
Effect of overseas tax rates
18,087
37,840
Enhanced capital allowances
(693)
(17,838)
Other tax adjustments
9,886
687
Taxation charge for the year
663,496
265,723
The company has brought forward capital losses of £167,373 (2022 - £167,373) which are available to offset capital gains in the future.
9
Dividends
2023
2022
£
£
Interim paid
2,250,000
300,000
10
Intangible fixed assets
Development costs
£
Cost
At 1 January 2023 and 31 December 2023
490,791
Amortisation and impairment
At 1 January 2023
305,082
Amortisation charged for the year
103,910
At 31 December 2023
408,992
Carrying amount
At 31 December 2023
81,799
At 31 December 2022
185,709
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Tangible fixed assets
Long leasehold land and buildings
Plant, machinery and tools
Computers, furniture and fittings
Total
£
£
£
£
Cost
At 1 January 2023
913,643
4,179,919
931,523
6,025,085
Additions
522,241
100,782
623,023
At 31 December 2023
913,643
4,702,160
1,032,305
6,648,108
Depreciation and impairment
At 1 January 2023
439,762
3,047,761
758,488
4,246,011
Depreciation charged in the year
54,179
270,742
107,524
432,445
At 31 December 2023
493,941
3,318,503
866,012
4,678,456
Carrying amount
At 31 December 2023
419,702
1,383,657
166,293
1,969,652
At 31 December 2022
473,881
1,132,158
173,035
1,779,074
12
Stocks
2023
2022
£
£
Raw materials and consumables
1,064,072
1,145,239
Work in progress
294,117
299,191
Finished goods and goods for resale
171,851
216,131
1,530,040
1,660,561
During the year, an impairment loss on finished goods of £1,027 (2022 - £70,472) was recognised in cost of sales.
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,025,759
1,372,137
Corporation tax recoverable
60,570
52,655
Amounts owed by group undertakings
474,611
479,456
Other debtors
367
42,071
Prepayments
436,561
405,469
2,997,868
2,351,788
Included within group debtors is £365,349 (2022 - £278,300) which relates to the company's share of the group cash pool. This is immediately withdrawable on demand. The balance relates to sales made by the company which are subject to normal trading terms.
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Payments received on account
28,170
24,141
Trade creditors
1,454,460
1,131,232
Amounts owed to group undertakings
17,158
112,357
Taxation and social security
170,112
248,666
Other creditors
29,323
25,882
Accruals
1,629,619
1,251,379
3,328,842
2,793,657
15
Provisions for liabilities
2023
2022
£
£
Commercial agent indemnity provision
64,872
110,296
Warranty provision
494,003
403,091
558,875
513,387
Movements on provisions:
Commercial agent indemnity provision
Warranty provision
Total
£
£
£
At 1 January 2023
110,296
403,091
513,387
Additional provisions in the year
7,086
169,686
176,772
Utilisation of provision
(52,510)
(78,774)
(131,284)
At 31 December 2023
64,872
494,003
558,875
A provision is made of £64,872 (2022 - £110,296) at the rate of 0.5% of net invoiced sales generated by each agent, for amounts likely to be payable by the company to sales consultants operating in Europe on retirement or otherwise on the termination of the agency agreement, under the EU Agency Directive.
A provision has also been made of £494,003 (2022 - £403,091) for liabilities expected to arise in respect of costs for product warranties.
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
257,397
228,378
Other timing differences
(27,397)
(44,288)
230,000
184,090
2023
Movements in the year:
£
Liability at 1 January 2023
184,090
Charge to profit or loss
45,910
Liability at 31 December 2023
230,000
The amount of the deferred tax liability set out above which is expected to reverse within 12 months of the balance sheet date is £50,000 and relates to accelerated capital allowances that are expected to reverse within the same period.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
173,834
125,257
The company operates a defined contribution scheme. The scheme is a funded defined contribution personal pension plan where the assets are held separately for individual members and are not available generally to all members.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
360,300
360,300
360,300
360,300
19
Capital redemption reserve
The capital redemption reserve is non-distributable reserve that arose where the company purchased some of its own shares and subsequently cancelled these.
DESIGNPLAN LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
20
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
1,045,490
1,046,727
Between two and five years
3,692,918
3,800,819
In over five years
5,023,855
5,923,650
9,762,263
10,771,196
The above commitments include annual rental payments of £900,000 for the period to July 2034 in respect of the property occupied by the company.
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
50,200
78,593
The above commitment relates to contractual implementation costs of two assets currently under development.
22
Ultimate controlling party
The company's immediate and ultimate parent company is AB Fagerhult, a company incorporated in Sweden.
The largest and smallest group preparing consolidated accounts that include the results of the company is AB Fagerhult. These accounts can be obtained from AB Fagerhult, SE-566 80 Habo, Sweden.
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100D Barnes (Managing Director)L MarchantP MuirB SonessonS TillingM WoodS Praloranfalsefalse007842462023-01-012023-12-3100784246bus:Director12023-01-012023-12-3100784246bus:Director22023-01-012023-12-3100784246bus:Director32023-01-012023-12-3100784246bus:Director42023-01-012023-12-3100784246bus:Director52023-01-012023-12-3100784246bus:Director62023-01-012023-12-3100784246bus:Director72023-01-012023-12-3100784246bus:RegisteredOffice2023-01-012023-12-31007842462023-12-31007842462022-01-012022-12-3100784246core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3100784246core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3100784246core:OtherResidualIntangibleAssets2023-12-3100784246core:OtherResidualIntangibleAssets2022-12-3100784246core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3100784246core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31007842462022-12-3100784246core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3100784246core:PlantMachinery2023-12-3100784246core:ComputerEquipment2023-12-3100784246core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3100784246core:PlantMachinery2022-12-3100784246core:ComputerEquipment2022-12-3100784246core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3100784246core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31007842462022-12-3100784246core:ShareCapital2023-12-3100784246core:ShareCapital2022-12-3100784246core:CapitalRedemptionReserve2023-12-3100784246core:CapitalRedemptionReserve2022-12-3100784246core:RetainedEarningsAccumulatedLosses2023-12-3100784246core:RetainedEarningsAccumulatedLosses2022-12-3100784246core:ShareCapital2021-12-3100784246core:CapitalRedemptionReserve2021-12-3100784246core:RetainedEarningsAccumulatedLosses2021-12-3100784246core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3100784246core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3100784246core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3100784246core:PlantMachinery2023-01-012023-12-3100784246core:ComputerEquipment2023-01-012023-12-3100784246core:UKTax2023-01-012023-12-3100784246core:UKTax2022-01-012022-12-3100784246core:ForeignTax2023-01-012023-12-3100784246core:ForeignTax2022-01-012022-12-310078424612023-01-012023-12-310078424612022-01-012022-12-310078424622023-01-012023-12-310078424622022-01-012022-12-310078424632023-01-012023-12-310078424632022-01-012022-12-3100784246core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3100784246core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3100784246core:PlantMachinery2022-12-3100784246core:ComputerEquipment2022-12-3100784246core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3100784246core:CurrentFinancialInstruments2023-12-3100784246core:CurrentFinancialInstruments2022-12-3100784246core:WithinOneYear2023-12-3100784246core:WithinOneYear2022-12-3100784246core:BetweenTwoFiveYears2023-12-3100784246core:BetweenTwoFiveYears2022-12-3100784246core:MoreThanFiveYears2023-12-3100784246core:MoreThanFiveYears2022-12-3100784246bus:PrivateLimitedCompanyLtd2023-01-012023-12-3100784246bus:FRS1022023-01-012023-12-3100784246bus:Audited2023-01-012023-12-3100784246bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP