Company registration number 07098127 (England and Wales)
TECHNICAL CONSUMER PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TECHNICAL CONSUMER PRODUCTS LIMITED
COMPANY INFORMATION
Director
Mrs J T Parker
(Appointed 13 March 2024)
Company number
07098127
Registered office
Unit 1 Exchange Court
Cottingham Road
Corby
Northamptonshire
United Kingdom
NN17 1TY
Auditor
Azets Audit Services
Thorpe House
93 Headlands
Kettering
Northamptonshire
United Kingdom
NN15 6BL
TECHNICAL CONSUMER PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 23
TECHNICAL CONSUMER PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

We aim to present a balanced and comprehensive review of the performance of our business during the year and its position at the period end. Our review is consistent with the size and non-complex nature of our business, which is the sale and distribution of energy efficient lighting products and Smart home technology products, and is written in the context of the risks and uncertainties of our industry.

We consider that our key financial performance activities are those that communicate the financial performance and strength of the company, these being turnover and pre-tax profit. We are part of an international group and continue to receive the financial support of our parent and other group companies.

Turnover decreased by 20.0% from £10.68m in 2022 to £8.55m in the current year, largely as a consequence of a general slow-down of consumer activity, impacting our retail customers, and the loss of a key customer, Wilko, which went into liquidation in the year. The company made pre-tax losses of £628,146 after exceptional bad debts of £865,131 during the year (2022: pre-tax losses £2,188,204).

Principal risks and uncertainties

The financial challenges in the global market continue. While we continue to receive the financial support of our parent and other group companies, the underlying majority of this support is priced in our main purchasing currency of US Dollars. Exchange rate movement this year has worked to our advantage, reducing our pre-tax losses by £530,556 (2022: Exchange rated added £1,092,962 to our pre-tax losses).

Any business endeavor carries with it the risk that it may encounter negative events. Nevertheless, we are confident that we are well suited to grow our business in the current challenging environment.

Going concern

In assessing the appropriateness of the going concern assumption, the Director has reviewed detailed cash flow forecasts, considering all reasonably foreseeable potential scenarios and uncertainties in relation to revenue and expenditure. Based on the cash flow forecasts prepared, the Director has a reasonable expectation that the company can meet its liabilities as they fall due and the Director has therefore concluded that there is not a material uncertainty in relation to the going concern and as such has deemed it appropriate for the financial statements to be prepared on the going concern basis.

On behalf of the board

Mrs J T Parker
Director
3 September 2024
TECHNICAL CONSUMER PRODUCTS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents her 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 the sale and distribution of energy efficient lighting products.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr K Nolan
(Resigned 26 March 2024)
Mrs J T Parker
(Appointed 13 March 2024)
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
Mrs J T Parker
Director
3 September 2024
TECHNICAL CONSUMER PRODUCTS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to:

 

 

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. She is 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.

TECHNICAL CONSUMER PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF TECHNICAL CONSUMER PRODUCTS LIMITED
- 4 -
Opinion

We have audited the financial statements of Technical Consumer Products Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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.

Material uncertainty related to going concern

We draw your attention to note 1.2 'Going concern' which indicates that the company has net current liabilities of £3,690,416 and net liabilities of £3,645,999 as at 31 December 2023. These conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

TECHNICAL CONSUMER PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TECHNICAL CONSUMER PRODUCTS LIMITED
- 5 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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.

TECHNICAL CONSUMER PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TECHNICAL CONSUMER PRODUCTS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Richard Monkhouse
Senior Statutory Auditor
For and on behalf of Azets Audit Services
3 September 2024
Chartered Accountants
Statutory Auditor
Thorpe House
93 Headlands
Kettering
Northamptonshire
United Kingdom
NN15 6BL
TECHNICAL CONSUMER PRODUCTS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
8,552,348
10,683,171
Cost of sales
(8,424,081)
(10,341,125)
Gross profit
128,267
342,046
Administrative expenses
(769,541)
(2,530,860)
Operating loss
4
(641,274)
(2,188,814)
Interest receivable and similar income
7
13,128
610
Loss before taxation
(628,146)
(2,188,204)
Tax on loss
8
-
0
12,355
Loss for the financial year
(628,146)
(2,175,849)
Retained earnings brought forward
(3,017,854)
(842,005)
Retained earnings carried forward
(3,646,000)
(3,017,854)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TECHNICAL CONSUMER PRODUCTS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
468
870
Tangible assets
10
43,948
74,662
Investments
11
1
1
44,417
75,533
Current assets
Stocks
13
1,951,688
3,616,567
Debtors
14
5,628,365
5,586,973
Cash at bank and in hand
1,223,690
1,540,563
8,803,743
10,744,103
Creditors: amounts falling due within one year
15
(12,494,159)
(13,837,489)
Net current liabilities
(3,690,416)
(3,093,386)
Net liabilities
(3,645,999)
(3,017,853)
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
18
(3,646,000)
(3,017,854)
Total equity
(3,645,999)
(3,017,853)
The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
Mrs J T Parker
Director
Company Registration No. 07098127
TECHNICAL CONSUMER PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(401,167)
523,354
Income taxes refunded/(paid)
67,252
(1,432)
Net cash (outflow)/inflow from operating activities
(333,915)
521,922
Investing activities
Purchase of tangible fixed assets
(5,189)
(6,021)
Proceeds from disposal of tangible fixed assets
9,103
-
0
Interest received
13,128
610
Net cash generated from/(used in) investing activities
17,042
(5,411)
Net (decrease)/increase in cash and cash equivalents
(316,873)
516,511
Cash and cash equivalents at beginning of year
1,540,563
1,024,052
Cash and cash equivalents at end of year
1,223,690
1,540,563
TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Technical Consumer Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 Exchange Court, Cottingham Road, Corby, Northamptonshire, United Kingdom, NN17 1TY.

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 £.

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

The financial statements contain information about Technical Consumer Products Limited as an individual company and do not contain consolidated financial information as a parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as to the inclusion of its subsidiary undertaking is not material for the purpose of giving a true and fair view.

1.2
Going concern

At the time of approving the financial statements, the director acknowledges a material uncertainty in respect of going concern as the company, at the year end date, had net current liabilities of £3,690,416 and net liabilities of £3,645,999. true

 

The director has received confirmation that Paragon Enterprises Inc, a company incorporated in the USA, has committed to provide financial support for a period of at least 12 months from the approval of these financial statements, if required. On this basis, in the view of the Director, after considering profit and cashflow forecasts for a period of 12 months from the date of approval of these financial statements, deem it appropriate to continue to prepare these financial statements on a going concern basis, which assumes that the company will continue in operational existence for a period of at least 12 months from the date these financial statements were approved.

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.

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

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business in 2013 over the fair value of net assets acquired. It was initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.5
Intangible fixed assets other than goodwill

Intangible fixed assets other than goodwill comprise a customer list in connection with the acquisition of a business in 2013 and trademark registrations acquired in the normal course of business. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 89 months and 60 months respectively. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.

1.6
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:

Fixtures, fittings and leasehold improvements
25% on cost and in equal instalments over the lease term
Computer equipment
20% - 33% on cost
Motor vehicles
20% on cost

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.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities 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.

1.8
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.

TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

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.

1.9
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.10
Cash at bank and in hand

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

1.11
Financial instruments

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

 

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

 

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

Basic financial assets

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

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.

TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

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.

TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

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

1.12
Equity instruments

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

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.

1.13
Taxation

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

Current tax

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

Deferred tax

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

 

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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.14
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.

1.15
Retirement benefits

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

TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.16
Leases

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.

1.17
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.

2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Useful economic life of tangible and intangible fixed assets

The useful economic life of tangible and intangible fixed assets are judged at the point of purchase and are then re-assessed at each reporting date as necessary. The useful economic life of each asset class is stated in the accounting policies above.

Provision for slow moving and obsolete stock

At each balance sheet date, management undertake an assessment of the value at which stock items are held within the accounts. The provision is calculated on a stock usage basis, allowing for known obsolete stock items. This provision is reviewed and updated at each reporting date.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
UK
7,599,109
8,757,574
Europe
953,239
1,925,597
8,552,348
10,683,171
2023
2022
£
£
Other revenue
Interest income
13,128
610
TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 16 -

The analysis of auditor's remuneration is as follows:

4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(530,556)
1,092,962
Fees payable to the company's auditor for the audit of the company's financial statements
8,600
8,000
Depreciation of owned tangible fixed assets
35,903
38,631
Profit on disposal of tangible fixed assets
(9,103)
-
Amortisation of intangible assets
402
402
Operating lease charges
42,101
43,131
5
Employees

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

2023
2022
Number
Number
Management, sales and administration
15
18

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
804,561
905,507
Social security costs
77,145
95,996
Pension costs
50,980
54,678
932,686
1,056,181
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
127,618
111,077
Company pension contributions to defined contribution schemes
11,948
8,895
139,566
119,972

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
13,128
-
0
Other interest income
-
0
610
Total income
13,128
610
8
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(724)
Deferred tax
Origination and reversal of timing differences
-
0
(11,631)
Total tax charge/(credit)
-
0
(12,355)

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

2023
2022
£
£
Loss before taxation
(628,146)
(2,188,204)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(157,037)
(415,759)
Tax effect of expenses that are not deductible in determining taxable profit
1,530
1,608
Unutilised tax losses carried forward
148,388
410,308
Amortisation on assets not qualifying for tax allowances
100
76
Under/(over) provided in prior years
-
0
(724)
Short term timing differences
7,019
(7,864)
Taxation charge/(credit) for the year
-
(12,355)
TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
825,263
2,126,015
2,951,278
Amortisation and impairment
At 1 January 2023
825,263
2,125,145
2,950,408
Amortisation charged for the year
-
0
402
402
At 31 December 2023
825,263
2,125,547
2,950,810
Carrying amount
At 31 December 2023
-
0
468
468
At 31 December 2022
-
0
870
870

Other intangible fixed assets comprise the customer list and non-competition agreement costs in connection with the acquisition of a business in 2013 together with trademarks registered in the previous year.

10
Tangible fixed assets
Fixtures, fittings and leasehold improvements
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
478,430
214,508
30,488
723,426
Additions
-
0
5,189
-
0
5,189
Disposals
-
0
(3,407)
(15,999)
(19,406)
At 31 December 2023
478,430
216,290
14,489
709,209
Depreciation and impairment
At 1 January 2023
478,430
144,609
25,725
648,764
Depreciation charged in the year
-
0
31,140
4,763
35,903
Eliminated in respect of disposals
-
0
(3,407)
(15,999)
(19,406)
At 31 December 2023
478,430
172,342
14,489
665,261
Carrying amount
At 31 December 2023
-
0
43,948
-
0
43,948
At 31 December 2022
-
0
69,899
4,763
74,662
TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
1
1
12
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Wolbu Limited
Thorpe House, 93 Headlands, Kettering, Northamptonshire, NN15 6BL
Dormant
Ordinary
100
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,951,688
3,616,567

Finished goods and goods for resale are stated net of a provision for slow moving or obsolete stock of £247,294 (2022: £640,576).

14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,566,105
2,728,883
Corporation tax recoverable
-
0
67,252
Amounts owed by group undertakings
2,866,109
2,691,568
Other debtors
40
610
Prepayments and accrued income
196,111
98,660
5,628,365
5,586,973
TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
751,632
861,859
Amounts owed to group undertakings
10,908,496
11,562,275
Taxation and social security
318,014
506,540
Accruals and deferred income
516,017
906,815
12,494,159
13,837,489

During the year ended 31 December 2021 the company entered in to a confidential invoice discounting agreement with is bankers. This has been secured by a fixed and floating charge over the assets of the company. At the year end the company had been advanced £Nil (2022: £Nil) under this agreement.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,980
54,678

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.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1
1
1
1
18
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(3,017,854)
(842,005)
Loss for the year
(628,146)
(2,175,849)
At the end of the year
(3,646,000)
(3,017,854)
TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
19
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
100,000
100,000
Between two and five years
7,671
107,671
107,671
207,671

At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £89,986 (2022: £103,836).

20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
953,239
1,809,144
503,842
966,775
Recharged warehouse and other costs
Shared royalty costs under an agreement
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
-
-
4,070
8,158
Other related parties
192,916
358,668
-
-

The sales of goods to other related parties were made for subsequent resale to the group company's customers, and are included in the company's turnover for the year.

 

Purchases were made at market values.

 

Recharged warehouse costs have been recharged at cost and have been offset against cost of sales and are not included in the turnover figure.

 

Shared royalty costs under an agreement were shared in accordance with that agreement.

TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Related party transactions
(Continued)
- 22 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Other related parties
10,908,496
11,562,275

The amounts outstanding are due on demand, unsecured, interest-free and are expected to be settled in cash.

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
430,515
392,229
Other related parties
2,435,595
2,299,339

The amounts outstanding are due on demand, unsecured, interest free and are expected to be settled in cash.

21
Ultimate controlling party

The parent company is TCP BV, a company incorporated in The Netherlands.

The ultimate parent company is Paragon Enterprises Inc, a company incorporated in the USA, which is under the control of the Yan family.

22
Cash (absorbed by)/generated from operations
2023
2022
£
£
Loss for the year after tax
(628,146)
(2,175,849)
Adjustments for:
Taxation charged/(credited)
-
0
(12,355)
Investment income
(13,128)
(610)
Gain on disposal of tangible fixed assets
(9,103)
-
Amortisation and impairment of intangible assets
402
402
Depreciation and impairment of tangible fixed assets
35,903
38,631
Movements in working capital:
Decrease in stocks
1,664,879
3,089,153
(Increase)/decrease in debtors
(108,644)
143,054
Decrease in creditors
(1,343,330)
(559,072)
Cash (absorbed by)/generated from operations
(401,167)
523,354
TECHNICAL CONSUMER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
23
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,540,563
(316,873)
1,223,690
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