Company registration number 00857251 (England and Wales)
ABEL ALARM COMPANY LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
ABEL ALARM COMPANY LIMITED
COMPANY INFORMATION
Directors
M Eyre
J D W Mulloy
M P Keay
Mr D J Charles
Secretary
M Keay
Company number
00857251
Registered office
Detection House
4 Vaughan Way
Leicester
LE1 4ST
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
ABEL ALARM COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
ABEL ALARM COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. This review is consistent with the size and non-complex nature of the company and is written in the context of the risks and uncertainties that the company faces.
The company continues to install and provide rental and maintenance of electronic security systems, as well as operate a designer fashion boutique selling rare designer fashion items.
The key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross profit margin. During the year turnover has increased by 8.7% and the gross profit margin has increased to 47.0% in 2023 compared with 46.5% in 2022.
Overall there was an operating loss of £29,703 (2022 - £267,374 profit) and profit before tax of £19,145 (2022 - £274,704). After taxation and dividends, profit and loss reserves have decreased by £131,833 (2022 - £112,780 increase).
The principal risks and uncertainties facing the business are continually monitored by the directors who seek to mitigate such risks. Competitive pressure is a continuing risk in the security systems market and margins continue to be tight. The company responds to this risk by offering leading edge technology and providing a range of added-value services to its customers. Mounting levels of inflation throughout 2023 gave rise to increased costs most particularly within finished goods and fuel expenditure. The directors continue to meet this challenge within regular price review meetings.
J D W Mulloy
Director
16 September 2024
ABEL ALARM COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £90,400. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Eyre
J D W Mulloy
M P Keay
Mr D J Charles
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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
J D W Mulloy
Director
16 September 2024
ABEL ALARM COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABEL ALARM COMPANY LIMITED
- 3 -
Opinion
We have audited the financial statements of Abel Alarm Company Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
ABEL ALARM COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABEL ALARM COMPANY LIMITED
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the company.
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:
obtaining an understanding of the legal and regulatory framework applicable to the company by considering the nature of the industry in which the company operates and enquiring of management; and
identifying the key laws and regulations considered to have a direct impact on the financial statements including the UK Companies Act 2006, UK Generally Accepted Accounting Practice and UK tax legislation; and
assessing how the company is complying with the applicable legal and regulatory framework by making further enquiries of management and observing the company's control environment regarding compliance with regulations and fraud prevention; and
assessing the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by considering the effectiveness of the company’s accounting systems and controls and how these were monitored by management. Where the risk of material misstatement was considered to be higher in certain areas, further audit procedures were designed to address this increased risk; and
discussing amongst the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud.
ABEL ALARM COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABEL ALARM COMPANY LIMITED
- 5 -
Audit response to risks of irregularities identified
Our procedures to respond to risks identified included the following:
performing audit work over revenue recognition including analytical procedures and substantive tests of detail of a sample of revenue transactions; and
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
communicating identified laws and regulations and potential fraud risks to all engagement team members and assessing whether there are any indications of fraud or non-compliance with laws and regulations throughout the audit.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Christopher Castleman FCA (Senior Statutory Auditor)
For and on behalf of Newby Castleman LLP
16 September 2024
Chartered Accountants
Statutory Auditor
West Walk Building
110 Regent Road
Leicester
LE1 7LT
ABEL ALARM COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Notes
£
£
Turnover
3
10,023,740
9,222,374
Cost of sales
(5,313,476)
(4,929,786)
Gross profit
4,710,264
4,292,588
Distribution costs
(954,716)
(924,117)
Administrative expenses
(3,785,251)
(3,101,097)
Operating (loss)/profit
4
(29,703)
267,374
Other interest receivable and similar income
7
48,848
7,330
Profit before taxation
19,145
274,704
Taxation
8
(67,420)
(108,506)
(Loss)/profit for the financial year
(48,275)
166,198
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ABEL ALARM COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
£
£
(Loss)/profit for the year
(48,275)
166,198
Other comprehensive income
Tax relating to other comprehensive income
46,623
Total comprehensive income for the year
(48,275)
212,821
ABEL ALARM COMPANY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
144,170
208,056
Other intangible assets
10
979,684
1,133,114
Total intangible assets
1,123,854
1,341,170
Tangible assets
11
1,921,961
1,871,342
3,045,815
3,212,512
Current assets
Stocks
12
234,462
188,423
Debtors
13
1,993,124
2,097,565
Cash at bank and in hand
3,640,760
3,217,430
5,868,346
5,503,418
Creditors: amounts falling due within one year
14
(4,661,827)
(4,317,360)
Net current assets
1,206,519
1,186,058
Total assets less current liabilities
4,252,334
4,398,570
Provisions for liabilities
Deferred tax liability
16
36,753
44,314
(36,753)
(44,314)
Net assets
4,215,581
4,354,256
Capital and reserves
Called up share capital
18
8,012
8,012
Revaluation reserve
19
419,619
426,461
Other reserves
36,540
36,540
Profit and loss reserves
20
3,751,410
3,883,243
Total equity
4,215,581
4,354,256
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 16 September 2024 and are signed on its behalf by:
J D W Mulloy
Director
Company registration number 00857251 (England and Wales)
ABEL ALARM COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
8,012
416,820
36,540
3,770,463
4,231,835
Year ended 31 December 2022:
Profit
-
-
-
166,198
166,198
Other comprehensive income:
Tax relating to other comprehensive income
-
46,623
-
46,623
Total comprehensive income
-
46,623
-
166,198
212,821
Dividends
9
-
-
-
(90,400)
(90,400)
Transfers
-
(36,982)
-
36,982
-
Balance at 31 December 2022
8,012
426,461
36,540
3,883,243
4,354,256
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(48,275)
(48,275)
Dividends
9
-
-
-
(90,400)
(90,400)
Transfers
-
(6,842)
-
6,842
-
Balance at 31 December 2023
8,012
419,619
36,540
3,751,410
4,215,581
ABEL ALARM COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
895,998
717,599
Income taxes paid
(126,545)
(208,413)
Net cash inflow from operating activities
769,453
509,186
Investing activities
Purchase of intangible assets
(9,929)
(452,190)
Purchase of tangible fixed assets
(670,550)
(308,313)
Proceeds on disposal of tangible fixed assets
331,108
367,000
Proceeds on disposal of investment property
275,000
Interest received
48,848
7,330
Net cash used in investing activities
(300,523)
(111,173)
Financing activities
Dividends paid
(45,600)
(46,400)
Net cash used in financing activities
(45,600)
(46,400)
Net increase in cash and cash equivalents
423,330
351,613
Cash and cash equivalents at beginning of year
3,217,430
2,865,817
Cash and cash equivalents at end of year
3,640,760
3,217,430
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Abel Alarm Company Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office which is the same as the place of business is given in the company information page of these financial statements.
1.1
Basis of preparation
These financial statements have been prepared in accordance with applicable accounting standards including 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, as modified to include the revaluation of certain freehold properties (in accordance with FRS 102). The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation 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.
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 comprises;
- Turnover from installation of security systems, which is recognised when the installation is complete.
- Turnover from rental and maintenance services, which is recognised equally over the period that the services are provided.
- Turnover from sale of goods is recognised on the date that the goods are despatched as this is the point that all risks and rewards are deemed to be transferred.
1.4
Intangible fixed assets
Intangible fixed assets are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are written off on a straight line basis over their estimated useful economic life of 10 years.
1.5
Tangible fixed assets
Tangible fixed assets are 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:
Freehold property
Over periods up to 50 years
Long leasehold property
4% per annum of cost or valuation
Leasehold alterations
4% per annum of cost
Plant and machinery
15% per annum of net book vaue
Fixtures, fittings and equipment
15-25% per annum of net book value
Motor vehicles
25% per annum of net book value
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
No depreciation is provided in respect of freehold land.
The company previously adopted a policy of revaluing freehold properties. The company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous revaluation as deemed cost.
1.6
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, or the asset's cash generating unit is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the profit and loss account unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials costs. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
1.8
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
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. 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.
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.10
Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates.
Useful economic lives of intangible assets
The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover
Sales of goods
5,701,486
4,968,525
Sales of services
4,322,254
4,253,849
10,023,740
9,222,374
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 14 -
Other revenue
Interest income
48,848
7,330
All turnover originates in the United Kingdom from the company's principal activity.
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
11,000
Depreciation of owned tangible fixed assets
260,496
234,615
Loss/(profit) on disposal of tangible fixed assets
24,827
(164,479)
Amortisation of intangible assets
227,245
215,385
Operating lease charges
41,000
41,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management and administration
33
30
Production
77
80
Sales
5
3
Total
115
113
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,866,228
4,264,262
Social security costs
507,955
479,714
Pension costs
82,147
73,364
5,456,330
4,817,340
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,221,968
883,570
Company pension contributions to defined contribution schemes
3,963
3,963
1,225,931
887,533
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
788,946
423,767
Company pension contributions to defined contribution schemes
1,321
1,321
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
48,848
7,330
Disclosed on the profit and loss account as follows:
Other interest receivable and similar income
48,848
7,330
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
48,848
7,330
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
74,981
126,545
Deferred tax
Origination and reversal of timing differences
(7,561)
(18,039)
Total tax charge
67,420
108,506
From 1 April 2023, the UK corporation tax rate increased from 19% to 25%. The current year rate is pro-rated accordingly.
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
19,145
274,704
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
4,503
52,194
Tax effect of expenses that are not deductible in determining taxable profit
5,967
1,531
Effect of change in corporation tax rate
(448)
(15,520)
Group relief
(2,925)
(1,458)
Permanent capital allowances in excess of depreciation
(406)
(4,782)
Depreciation on assets not qualifying for tax allowances
60,729
46,883
Chargeable gains
21,562
Tax on fair value reserve
46,623
Profit on disposal of ineligible assets
(38,527)
Taxation charge for the year
67,420
108,506
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
(46,623)
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
9
Dividends
2023
2022
£
£
Ordinary interim paid
90,400
90,400
90,400
90,400
10
Intangible fixed assets
Goodwill
Customer lists
Total
£
£
£
Cost
At 1 January 2023
2,785,917
1,635,318
4,421,235
Additions - separately acquired
9,929
9,929
At 31 December 2023
2,785,917
1,645,247
4,431,164
Amortisation and impairment
At 1 January 2023
2,577,861
502,204
3,080,065
Amortisation charged for the year
63,886
163,359
227,245
At 31 December 2023
2,641,747
665,563
3,307,310
Carrying amount
At 31 December 2023
144,170
979,684
1,123,854
At 31 December 2022
208,056
1,133,114
1,341,170
The following intangible assets, excluding goodwill, are individually material to the financial statements:
Carrying value Remaining amortisation period
Customer list £241,819 (2022: £277,502) 6.8 years
Customer list £417,248 (2022: £478,629) 8.3 years
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Tangible fixed assets
Freehold property
Long leasehold property
Leasehold alterations
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,335,000
214,311
30,206
236,946
1,714,428
1,221,239
4,752,130
Additions
78,940
591,610
670,550
Disposals
(497,751)
(497,751)
At 31 December 2023
1,335,000
214,311
30,206
236,946
1,793,368
1,315,098
4,924,929
Depreciation and impairment
At 1 January 2023
258,376
88,600
25,101
234,002
1,553,315
721,394
2,880,788
Depreciation charged in the year
19,713
8,572
1,208
441
47,557
183,005
260,496
Eliminated in respect of disposals
(138,316)
(138,316)
At 31 December 2023
278,089
97,172
26,309
234,443
1,600,872
766,083
3,002,968
Carrying amount
At 31 December 2023
1,056,911
117,139
3,897
2,503
192,496
549,015
1,921,961
At 31 December 2022
1,076,624
125,711
5,105
2,944
161,113
499,845
1,871,342
The company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use a previous revaluation as the deemed cost for freehold properties held at the date of transition to FRS 102.
The freehold properties were last revalued in either 2012 or 2013 on the basis of existing use value by independent qualified valuers. The resulting revaluation adjustments were taken to the revaluation reserve.
The comparable historic cost of the freehold properties that have been valued using the deemed cost exemption at the date of transition to FRS 102 is as follows:
2023
2022
£
£
Cost
490,318
490,318
Accumulated depreciation
(221,982)
(217,262)
Carrying value
268,336
273,056
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
234,462
188,423
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Debtors
2023
2022
Amounts falling due within one year
£
£
Trade debtors
1,569,058
1,713,711
Other debtors
5,067
10,391
Prepayments and accrued income
418,999
373,463
1,993,124
2,097,565
14
Creditors: amounts falling due within one year
2023
2022
£
£
Directors' current account
127,024
726
Payments received on account
2,321,274
2,230,756
Trade creditors
806,533
713,100
Amount due to parent undertaking
633,983
601,918
Corporation tax
74,981
126,545
Other taxation and social security
344,600
311,772
Other creditors
54,895
123,722
Accruals and deferred income
298,537
208,821
4,661,827
4,317,360
15
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
16
36,753
44,314
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
27,631
30,409
Other timing differences
9,122
13,905
36,753
44,314
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Deferred taxation
(Continued)
- 20 -
2023
Movements in the year:
£
Liability at 1 January 2023
44,314
Credit to profit or loss
(7,561)
Liability at 31 December 2023
36,753
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
82,147
73,364
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.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares class A of 10p each
57,520
57,520
5,752
5,752
Ordinary shares class B of 10p each
22,600
22,600
2,260
2,260
80,120
80,120
8,012
8,012
Both classes of share rank equally in all respects except that the B shares do not carry any voting rights.
19
Revaluation reserve
The revaluation reserve comprises revaluation surpluses for certain freehold and investment properties net of associated deferred tax on these surpluses.
20
Profit and loss reserves
The profit and loss reserve comprises retained profits and losses for the current and prior periods.
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
37,000
41,000
Between two and five years
100,000
112,000
In over five years
262,500
287,500
399,500
440,500
22
Related party transactions
Transactions with related parties
The company occupies a property owned by close family of a director and a rental of £16,000 (2022: £16,000) was charged to the company in the year in respect of this property.
During the year, dividends of £40,000 and £44,800 (2022: £40,000 and £44,000) were paid respectively to the company directors and the parent company.
During the year, remuneration of £71,917 (2022: £59,650) was paid to close family members of the directors.
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
-
75,125
24
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors
-
86,341
(86,341)
-
-
86,341
(86,341)
-
ABEL ALARM COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
25
Ultimate controlling party
The ultimate parent company is Abel Group Limited, a company registered in England and Wales. J Mulloy is the ultimate controlling party through his controlling interest in Abel Group Limited.
The registered address of Abel Group Limited is the same as the company's registered office address as given in the company information page of these financial statements.
Copies of the ultimate parent company's consolidated financial statements can be obtained from Companies House, Cardiff.
26
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(48,275)
166,198
Adjustments for:
Taxation charged
67,420
108,506
Investment income
(48,848)
(7,330)
Loss/(gain) on disposal of tangible fixed assets
24,827
(164,479)
Amortisation and impairment of intangible assets
227,245
215,385
Depreciation and impairment of tangible fixed assets
260,496
234,615
Movements in working capital:
(Increase) in stocks
(46,039)
(16,842)
Decrease/(increase) in debtors
104,441
(128,298)
Increase in creditors
354,731
309,844
Cash generated from operations
895,998
717,599
27
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,217,430
423,330
3,640,760
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