Company registration number 06612708 (England and Wales)
GALA LIGHTS LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
GALA LIGHTS LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
GALA LIGHTS LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
406,855
355,734
Current assets
Stocks
177,135
137,310
Debtors
5
2,762,053
2,525,095
Cash at bank and in hand
294,908
362,765
3,234,096
3,025,170
Creditors: amounts falling due within one year
6
(1,865,753)
(1,692,977)
Net current assets
1,368,343
1,332,193
Total assets less current liabilities
1,775,198
1,687,927
Provisions for liabilities
(87,938)
(77,631)
Net assets
1,687,260
1,610,296
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
1,686,260
1,609,296
Total equity
1,687,260
1,610,296
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
C Stille
Director
Company Registration No. 06612708
GALA LIGHTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Gala Lights Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10, Britannia Business Park, Aylesford, Kent, United Kingdom, ME20 7NT.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
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 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
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’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; 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 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Groupe Leblanc. These consolidated financial statements are available from its registered office, 6 - 8 Rue Michael Faraday, 71200 Le Mans, France.
1.2
Going concern
At the time of approving the financial statements, taking into consideration all relevant factors and other evidence available to the directors in respect of the company's trading prospects (including truethe current economic climate), the directors remain satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
GALA LIGHTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover
Sales of goods
Revenue is recognised at the fair value of the consideration received or receivable for goods 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.
Hire Sales
Hire revenue relates to the installation, hire, maintenance and removal of electrical light displays over the Christmas period. The sales contracts encompass each of these four elements as part of a package.
Due to the indeterminate number of acts due to be undertaken by the company between installation and removal, revenue is recognised systematically on a straight line basis over the specific period over which the light display is erected. Deferred or accrued income is recognised on the balance sheet to the extent that a mismatch arises between the amounts invoiced and the amounts eligible for recognition as revenue.
Management consider it reasonable to recognise all revenue relating to the Christmas period of a given year wholly within that year, given that the lights are switched-off circa 6 days after the year end, which would give rise only to an immaterial cut-off discrepancy.
Revenue is recognised net of VAT and any trade discounts and only to the extent of the expenses recognised that it is probable will be recovered.
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
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:
Plant, machinery, fixtures, fittings & equipment
25% on written down value
Computer equipment
25% on written down value
Motor vehicles
25% on written down value
Hire lighting
33% straight line
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.
Light assemblies are written off 5 years from purchase.
1.5
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.
GALA LIGHTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.6
Cash and cash equivalents
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
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.
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, are recognised at transaction price.
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 at transaction price.
1.8
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.
1.9
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.
GALA LIGHTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Total
9
8
GALA LIGHTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
Hire lighting
Total
£
£
£
Cost
At 1 January 2023
46,805
713,746
760,551
Additions
68,056
177,880
245,936
Disposals
(328,788)
(328,788)
At 31 December 2023
114,861
562,838
677,699
Depreciation and impairment
At 1 January 2023
27,746
377,071
404,817
Depreciation charged in the year
12,600
182,215
194,815
Eliminated in respect of disposals
(328,788)
(328,788)
At 31 December 2023
40,346
230,498
270,844
Carrying amount
At 31 December 2023
74,515
332,340
406,855
At 31 December 2022
19,059
336,675
355,734
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,442,072
1,826,943
Other debtors
319,981
698,152
2,762,053
2,525,095
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
193,330
126,887
Corporation tax
61,749
97,672
Other taxation and social security
367,495
239,907
Other creditors
204,907
201,966
Accruals and deferred income
354,345
388,571
Balances due to related parties
683,927
637,974
1,865,753
1,692,977
GALA LIGHTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Daniel Graves BA(Hons) FCA
Statutory Auditor:
Azets Audit Services
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
54,000
56,964
9
Related party transactions
The company made purchases amounting to £Nil (2022: £36) on behalf of the director during the year, giving rise to a closing balance of £293 (2022: £293) due to the company at the year end. This amount is included within other debtors.
During the year, the company purchased goods from its immediate parent, Leblanc Illuminations SAS, amounting to £506,870 (2022: £533,881). At 31 December 2023 a total of £676,927 (2022: £637,974) was payable to Leblanc Illuminations SAS.
In addition, during the period, the company paid rent to the minority shareholder, Ellits Limited, totalling £27,000 (2022: £27,000) and paid accountancy fees on behalf of Ellits Limited totalling £250 (2022: £Nil).. At 31 December 2023 a total of £171,250 (2022: £171,500) was due to Ellits Limited, and is included within other creditors.
In respect of all stated related party balances above, the loans are provided on an interest free basis and are repayable on demand.
Otherwise, the Company has taken exemption from disclosing related party transactions which occur under normal market conditions, in accordance with section 1AC.35 of the Financial Reporting Standards 102, s1A.
10
Control
The immediate parent of the company is Leblanc Illuminations SAS, which forms the smallest group which draws-up consolidated financial statements. Its registered office is 6-8 Rue Michael Faraday, 72027 Le Mans, France.