Company registration number 06457420 (England and Wales)
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
COMPANY INFORMATION
Directors
S D Tamplin
L M Cox
D R Sheerman
Secretary
J Hunt
Company number
06457420
Registered office
Unit 11 Bilton Road
Kingsland Business Park
Basingstoke
Hampshire
RG24 8NJ
Auditor
West & Berry Limited
Nile House
Nile Street
Brighton
BN1 1HW
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
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

Running a business is a constant schooling in all aspects of life, people, relationships, hopes, stumbles, disappointments and many more. Any business has external and internal forces competing to shape the nature of the company, how successful it is and how it operates. I’ve found that in reality the aspects the directors can directly control or influence are very few. We do not have control over the wider economic or employment environment, nor can we control behaviour of the general public let alone our customers. Instead we have to concentrate on the small items we can influence, as the serenity prayer goes “Grant me the Serenity, to accept the things I can not change, Courage to change the things I can, and Wisdom to know the difference”.

 

We therefore concentrate on the type of people we employ, checking their values match those of the company. We control our investment strategy, how much we spend on what and when as well as how we fund it. We can control how our company operates, what software we use and how we control quality. We control how we market ourselves, what work we agree to do or not do. Most of all we control how much energy we want to put into the company. It would be easier to sit on our hands and let the ship sail with the inertia it has but we continue to push and strive to improve every aspect of our company.

 

We very much subscribe to the concept of improvements little and often or the 1% compounding theory. The concept of the ‘infinite game’ influences our decision making and strategy, the idea being that there is no single point of ‘winning’ life or ‘winning’ business. We instead consider business something that you never ‘win’ but you continue to play and that where success and the rules by which you play are ours to decide.

 

During 2023 we concentrated on reducing our debt levels whilst maintaining investment into our rental inventory. We do have a goal to become sustainably debt free which if we achieve it over the long term will be a remarkable achievement for an asset rental business but something I am confident we can achieve.

 

A key way of monitoring our business is to look at EBD, a modified version of EBITDA. Interest and Tax are real costs to us so they must be included whilst amortisation is a real cost just with a timing difference. We’re interested in the cash the business is producing and available to reinvest or pay debt. Free cash flow is our ultimate measure of the company's success as it is easy to kid ourselves that the company is profitable despite years of evidence that all the EBD goes back in equipment reinvestment. Whilst this looks good on paper, the reality is the company isn’t producing anything at the end of its reinvestment. This is very common in our industry and something I want TSL to differ from the norm. Free cash flow increases cash levels which in turn ensures greater stability and steady growth. It is the cash that is generated by the company that isn’t required in capex or debt servicing. It helps improve cash flow as more cash enters our system which allows us to grow organically or without additional funding. The free cash flow created in 2023 was £373,260.

Principal risks and uncertainties

The key risks and uncertainties that relate to the future profitability of the business are:

 

corporate and event markets

 

The directors monitor all risks and have a proven track record of planning effectively to mitigate any and all risks.

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

Key financial and other performance indicators during the year were as follows:

 

 

2023

£

 

2022

£

 

 

 

 

Turnover

10,639,018

11,154,083

 

Gross Profit

6,505,021

6,951,709

 

EBD

1,985,561

3,143,508

 

Free Cash Flow

373,260

(199,585)

 

Shareholders Funds

4,670,383

4,015,852

 

 

Future developments

I am happy to say that since 2023 year end our services have continued to be in demand. Our strategy of prioritising debt repayments whilst continuing to reinvest in core equipment has continued. We are now looking at ways to grow the business and are excited to see how the next 10 years or so develop.

On behalf of the board

S D Tamplin
Director
12 September 2024
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
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 and group continued to be that of lighting and rigging design, consultancy and hire.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £75,720. The directors do not recommend payment of a further dividend.

Directors

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

S D Tamplin
L M Cox
D R Sheerman
Financial instruments

The groups financial instruments comprise bank balances, asset finance funders, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the group's asset purchases when needed and ongoing operations. Due to the nature of these funds there is little to no exposure to price risk. The groups approach to managing other risks applicable to the financial instruments concerned is shown below. In respect of bank balances an overdraft facility size and cost is reviewed and agreed each year with the bank. There are no loans from directors. Financial institutions are used for asset finance with all costs being fixed and not subject to change. The group manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding and overdue. Trade creditors risk is managed by ensuring sufficient funds are available to meet amounts due.

Research and development

In 2023 we carried out various R&D projects related to customer projects as well as internal development projects. We have engaged an R&D specialist and see many ongoing opportunities.

Auditor

The auditor, West & Berry Limited, 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 auditor of the company 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 auditor of the company is aware of that information.

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the groups 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
S D Tamplin
Director
12 September 2024
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the groups and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
- 6 -
Opinion

We have audited the financial statements of TSL Lighting Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

 

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
- 8 -

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.

Michelle Westbury FCCA (Senior Statutory Auditor)
For and on behalf of West & Berry Limited
12 September 2024
Chartered Certified Accountants
Statutory Auditor
Nile House
Nile Street
Brighton
BN1 1HW
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
10,639,018
11,154,083
Cost of sales
(4,133,997)
(4,202,374)
Gross profit
6,505,021
6,951,709
Administrative expenses
(5,368,745)
(4,634,469)
Other operating income
1,500
56,780
Operating profit
4
1,137,776
2,374,020
Interest receivable and similar income
8
19,294
10,534
Interest payable and similar expenses
9
(133,686)
(146,589)
Amounts written off investments
10
(31,188)
(46,110)
Profit before taxation
992,196
2,191,855
Tax on profit
11
(261,945)
(241,017)
Profit for the financial year
29
730,251
1,950,838
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
6,178,684
6,100,188
Current assets
Stocks
18
74,824
71,494
Debtors
19
916,532
1,275,950
Investments
20
196,904
181,081
Cash at bank and in hand
1,266,352
893,092
2,454,612
2,421,617
Creditors: amounts falling due within one year
21
(1,806,136)
(2,294,444)
Net current assets
648,476
127,173
Total assets less current liabilities
6,827,160
6,227,361
Creditors: amounts falling due after more than one year
22
(560,535)
(928,168)
Provisions for liabilities
Provisions
25
242,243
-
0
Deferred tax liability
26
1,353,999
1,283,341
(1,596,242)
(1,283,341)
Net assets
4,670,383
4,015,852
Capital and reserves
Called up share capital
28
100
100
Profit and loss reserves
29
4,670,283
4,015,752
Total equity
4,670,383
4,015,852

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
S D Tamplin
Director
Company registration number 06457420 (England and Wales)
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
6,148,943
6,089,457
Investments
15
844
844
6,149,787
6,090,301
Current assets
Stocks
18
74,824
71,494
Debtors
19
807,903
1,163,988
Investments
20
196,904
181,081
Cash at bank and in hand
1,261,398
888,892
2,341,029
2,305,455
Creditors: amounts falling due within one year
21
(1,798,912)
(2,285,295)
Net current assets
542,117
20,160
Total assets less current liabilities
6,691,904
6,110,461
Creditors: amounts falling due after more than one year
22
(560,535)
(928,168)
Provisions for liabilities
Deferred tax liability
26
1,353,999
1,283,341
(1,353,999)
(1,283,341)
Net assets
4,777,370
3,898,952
Capital and reserves
Called up share capital
28
100
100
Profit and loss reserves
29
4,777,270
3,898,852
Total equity
4,777,370
3,898,952

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £954,139 (2022 - £1,969,834 profit).

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 12 September 2024 and are signed on its behalf by:
12 September 2024
S D Tamplin
Director
Company registration number 06457420 (England and Wales)
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
70,000
30,000
2,064,914
2,164,914
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,950,838
1,950,838
Reduction of shares
28
(69,900)
-
-
(69,900)
Other movements
-
(30,000)
-
(30,000)
Balance at 31 December 2022
100
-
0
4,015,752
4,015,852
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
730,251
730,251
Dividends
12
-
-
(75,720)
(75,720)
Balance at 31 December 2023
100
-
0
4,670,283
4,670,383
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
70,000
30,000
1,929,018
2,029,018
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,969,834
1,969,834
Reduction of shares
28
(69,900)
-
-
(69,900)
Other movements
-
(30,000)
-
(30,000)
Balance at 31 December 2022
100
-
0
3,898,852
3,898,952
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
954,138
954,138
Dividends
12
-
-
(75,720)
(75,720)
Balance at 31 December 2023
100
-
0
4,777,270
4,777,370
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
2,763,176
3,224,537
Interest paid
(133,686)
(146,589)
Income taxes paid
(2,599)
(1,174)
Net cash inflow from operating activities
2,626,891
3,076,774
Investing activities
Purchase of tangible fixed assets
(1,207,943)
(2,151,933)
Proceeds from disposal of tangible fixed assets
58,908
185,727
Purchase of investments
(95,376)
(148,865)
Proceeds from disposal of investments
49,123
-
Interest received
526
442
Dividends received
18,010
10,092
Net cash used in investing activities
(1,176,752)
(2,104,537)
Financing activities
Redemption of shares
-
0
(99,900)
Proceeds from borrowings
-
17,500
Repayment of borrowings
(10,000)
-
Repayment of bank loans
(180,920)
(417,756)
Payment of finance leases obligations
(810,239)
(671,666)
Dividends paid to equity shareholders
(75,720)
-
0
Net cash used in financing activities
(1,076,879)
(1,171,822)
Net increase/(decrease) in cash and cash equivalents
373,260
(199,585)
Cash and cash equivalents at beginning of year
893,092
1,092,677
Cash and cash equivalents at end of year
1,266,352
893,092
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

TSL Lighting Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 11, Bilton Road, Kingsland Business Park, Basingstoke, Hampshire, RG24 8NJ.

 

The group consists of TSL Lighting Limited and all of its subsidiaries.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The accounts comply with FRS 102.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of TSL Lighting Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The subsidiaries have been included in the group financial statements using the purchase method of

accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of the subsidiaries for the twelve month period.

 

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised in the period of rental and is shown net of VAT .

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is 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.

1.8
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:

Leasehold improvements
20% straight line
Plant and equipment
17.5% and 20% reducing balance
Fixtures, fittings and equipment
20% and 25% reducing balance
Motor vehicles
20% 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 recognised in the income statement.

1.9
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is

determined using the first-in first out method (FIFO).

 

1.12
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.

1.13
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
Taxation

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

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 income statement, 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 if, and only if, there is 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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
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.

1.18
Retirement benefits

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

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.19
Leases

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

 

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

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

1.20
Government grants

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

 

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

1.21
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 group’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
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
10,639,018
11,154,083
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other revenue
Interest income
1,284
442
Dividends received
18,010
10,092
Grants received
1,500
21,000

In the opinion of the Directors it would be seriously prejudicial to the interests of the company to disclose the turnover between geographical markets.

 

The group received government grants during the year of £1,500 (2022: £21,000).

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
904
7,630
Research and development costs
127,209
99,450
Government grants
(1,500)
(21,000)
Depreciation of owned tangible fixed assets
1,255,310
1,193,125
Operating lease charges
164,186
274,330
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,765
6,300
For other services
All other non-audit services
9,444
9,496
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Total
77
60
77
60
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,471,199
1,937,916
2,471,199
1,937,916
Social security costs
244,780
195,303
244,780
195,303
Pension costs
72,667
54,617
72,667
54,617
2,788,646
2,187,836
2,788,646
2,187,836

Defined contribution pension scheme payments recognised as an expense £72,667 (2022: £54,617).

7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
301,908
257,631
Company pension contributions to defined contribution schemes
29,642
22,742
331,550
280,373
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
145,000
125,500
Company pension contributions to defined contribution schemes
1,321
1,321

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022: 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
526
442
Other income from investments
Dividends received
18,010
10,092
Gains on financial instruments measured at fair value through profit or loss
758
-
0
Total income
19,294
10,534
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Interest receivable and similar income
(Continued)
- 23 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
526
442
Interest on financial assets measured at fair value through profit or loss
758
-
0
Dividends from financial assets measured at fair value through profit or loss
18,010
10,092
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
38,109
47,322
Other finance costs:
Interest on finance leases and hire purchase contracts
95,577
99,267
Total finance costs
133,686
146,589
10
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Loss on financial assets held at fair value through profit or loss
(31,188)
(46,110)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,469
1,115
Deferred tax
Origination and reversal of timing differences
70,658
448,117
Write down or reversal of write down of deferred tax asset
188,818
(208,215)
Total deferred tax
259,476
239,902
Total tax charge
261,945
241,017
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 24 -

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
992,196
2,191,855
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
188,517
416,452
Tax effect of expenses that are not deductible in determining taxable profit
6,925
14,496
Tax effect of utilisation of tax losses not previously recognised
(143,502)
(2,113)
Permanent capital allowances in excess of depreciation
(285,648)
(722,362)
Depreciation on assets not qualifying for tax allowances
238,509
226,694
Profit or loss on disposal of fixed assets
(2,332)
1,090
Deferred tax movement
259,476
239,902
Tax losses carried forward
-
66,858
Taxation charge
261,945
241,017
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
75,720
-
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
21,785
Amortisation and impairment
At 1 January 2023 and 31 December 2023
21,785
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Intangible fixed assets
(Continued)
- 25 -
Company
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
1,504
Amortisation and impairment
At 1 January 2023 and 31 December 2023
1,504
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
14
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
244,845
10,661,814
207,571
254,689
11,368,919
Additions
40,968
1,242,344
26,131
71,000
1,380,443
Disposals
-
0
(164,484)
-
0
-
0
(164,484)
At 31 December 2023
285,813
11,739,674
233,702
325,689
12,584,878
Depreciation and impairment
At 1 January 2023
87,844
5,014,059
125,168
41,660
5,268,731
Depreciation charged in the year
53,409
1,119,771
23,642
58,488
1,255,310
Eliminated in respect of disposals
-
0
(117,847)
-
0
-
0
(117,847)
At 31 December 2023
141,253
6,015,983
148,810
100,148
6,406,194
Carrying amount
At 31 December 2023
144,560
5,723,691
84,892
225,541
6,178,684
At 31 December 2022
157,001
5,647,755
82,403
213,029
6,100,188
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Tangible fixed assets
(Continued)
- 26 -
Company
Leasehold improvements
Plant and equipment
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
198,675
10,661,815
207,571
254,688
11,322,749
Additions
6,000
1,242,344
26,131
71,000
1,345,475
Disposals
-
0
(164,484)
-
0
-
0
(164,484)
At 31 December 2023
204,675
11,739,675
233,702
325,688
12,503,740
Depreciation and impairment
At 1 January 2023
52,406
5,014,059
125,167
41,660
5,233,292
Depreciation charged in the year
37,451
1,119,771
23,642
58,488
1,239,352
Eliminated in respect of disposals
-
0
(117,847)
-
0
-
0
(117,847)
At 31 December 2023
89,857
6,015,983
148,809
100,148
6,354,797
Carrying amount
At 31 December 2023
114,818
5,723,692
84,893
225,540
6,148,943
At 31 December 2022
146,269
5,647,756
82,404
213,028
6,089,457

National Westminster Bank PLC holds charges over the groups assets.

 

The deprecation rate applied to part of plant and equipment has been adjusted from 20% to 17.5% (reducing balance basis) at the start of the year. This change is to reflect the increase in residual values of lighting equipment. If the change had not occurred the charge for the year would have increased by £151,961.

 

The net book value of tangible fixed assets includes £779,545 (2022: £743,588) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £134,846 (2022: £88,857) for the year.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
844
844
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
844
Carrying amount
At 31 December 2023
844
At 31 December 2022
844
16
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
Blinding Light Limited
England
Lighting Rental
Ordinary
100.00
Point Source Productions Limited
England
Dormant
Ordinary
100.00

The registered office address of both subsidiaries is Unit 11 Bilton Road, Kingsland Business Park, Basingstoke, Hampshire, RG24 8LJ.

17
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
196,904
181,081
196,904
181,081
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
74,824
71,494
74,824
71,494
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
753,374
877,013
753,373
877,012
Corporation tax recoverable
189
59
189
59
Other debtors
143,572
190,663
34,944
78,702
897,135
1,067,735
788,506
955,773
Deferred tax asset (note 26)
19,397
208,215
19,397
208,215
916,532
1,275,950
807,903
1,163,988
20
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Listed investments
196,904
181,081
196,904
181,081

Listed investments are carried at market value.

 

Historic cost of listed investments as at 31 December 2023 is £275,768 (2022: £229,269).

21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
23
180,920
180,920
180,920
180,920
Obligations under finance leases
24
363,569
814,595
363,569
814,595
Other borrowings
23
7,500
17,500
7,500
17,500
Trade creditors
415,241
622,208
411,338
616,064
Other taxation and social security
316,910
303,280
316,887
303,273
Other creditors
521,996
355,941
518,698
352,943
1,806,136
2,294,444
1,798,912
2,285,295
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
256,304
437,224
256,304
437,224
Obligations under finance leases
24
304,231
490,944
304,231
490,944
560,535
928,168
560,535
928,168
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
437,224
618,144
437,224
618,144
Other loans
7,500
17,500
7,500
17,500
444,724
635,644
444,724
635,644
Payable within one year
188,420
198,420
188,420
198,420
Payable after one year
256,304
437,224
256,304
437,224
24
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
363,569
814,595
363,569
814,595
In two to five years
304,231
296,922
304,231
296,922
In over five years
-
0
194,022
-
0
194,022
667,800
1,305,539
667,800
1,305,539

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Leased assets act as security until final payments have been made.

 

25
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
242,243
-
-
-
Movements on provisions:
Group
£
Other movements
242,243

The group has recognised a provision relating to its obligation to re-instate business premises to the acquired condition upon termination of the lease.

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
26
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
1,353,999
1,283,341
-
-
Tax losses
-
-
19,397
208,215
1,353,999
1,283,341
19,397
208,215
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
1,353,999
1,283,341
-
-
Tax losses
-
-
19,397
208,215
1,353,999
1,283,341
19,397
208,215
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,075,126
1,075,126
Charge to profit or loss
259,476
259,476
Liability at 31 December 2023
1,334,602
1,334,602

The estimated amount of the deferred tax liabilities expected to reverse during the year beginning after the reporting period is £273,218 (2022: £253,271).

27
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,667
54,617

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date contributions of £9,987 (2022: £8.322) were due to the fund.

TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
100
100
100
100

All shares carry one voting right at the general meeting and equal rights in the company. No shares can be sold to a third party without approval of the board. Each share carries equal rights on final distribution in the event of the company winding up.

29
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
4,015,752
2,064,914
3,898,852
1,929,018
Profit for the year
730,251
1,950,838
954,138
1,969,834
Dividends
(75,720)
-
(75,720)
-
At the end of the year
4,670,283
4,015,752
4,777,270
3,898,852
30
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
-
72,781
-
-
-
72,781
-
-

Operating lease payments recognised as an expense in the year £164,186 (2022: £274,330).

31
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
171,229
-
171,229
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
32
Related party transactions

No details are included for transactions with Blinding Light Limited as the exemption for 100% owned subsidiaries is being claimed. Other group companies were dormant during the year.

 

During the year consultancy fees of £217,000 (2022: £132,000) were paid to a company owned and controlled by the director S Tamplin. At the end of the period an amount of £102,000 (2022: £nil) was due to a company owned and controlled by the director S Tamplin.

33
Controlling party

The company is controlled by the director, S D Tamplin by reason of his shareholding.

34
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
730,251
1,950,838
Adjustments for:
Taxation charged
261,945
241,017
Finance costs
133,686
146,589
Investment income
(19,294)
(10,534)
(Gain)/loss on disposal of tangible fixed assets
(12,271)
3,460
Depreciation and impairment of tangible fixed assets
1,255,310
1,193,125
Other gains and losses
31,188
46,110
Increase in provisions
242,243
-
Movements in working capital:
Increase in stocks
(3,330)
(4,899)
Decrease/(increase) in debtors
170,730
(275,778)
Decrease in creditors
(27,282)
(65,391)
Cash generated from operations
2,763,176
3,224,537
TSL LIGHTING LIMITED AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
35
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
954,138
1,969,834
Adjustments for:
Taxation charged
261,945
241,017
Finance costs
133,686
146,589
Investment income
(19,294)
(10,534)
(Gain)/loss on disposal of tangible fixed assets
(12,271)
3,460
Depreciation and impairment of tangible fixed assets
1,239,352
1,187,808
Other gains and losses
35,244
23,580
Movements in working capital:
Increase in stocks
(3,330)
(4,899)
Decrease/(increase) in debtors
167,397
(276,473)
Decrease in creditors
(25,357)
(67,350)
Cash generated from operations
2,731,510
3,213,032
36
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
893,092
373,260
-
1,266,352
Borrowings excluding overdrafts
(635,644)
190,920
-
(444,724)
Obligations under finance leases
(1,305,539)
810,239
(172,500)
(667,800)
(1,048,091)
1,374,419
(172,500)
153,828
37
Analysis of changes in net funds/(debt) - company
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
888,892
372,506
-
1,261,398
Borrowings excluding overdrafts
(635,644)
190,920
-
(444,724)
Obligations under finance leases
(1,305,539)
810,239
(172,500)
(667,800)
(1,052,291)
1,373,665
(172,500)
148,874
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