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REGISTERED NUMBER: 03729407 (England and Wales)















Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 31 December 2023

for

Electrical Testing (Holdings) Limited

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023










Page

Company Information 1

Group Strategic Report 2

Directors' Report 4

Report of the Independent Auditors 6

Consolidated Statement of Income and Retained Earnings 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


Electrical Testing (Holdings) Limited

Company Information
for the Year Ended 31 December 2023







Directors: Mr S A Hobbs
Mr A J Hobbs
Mrs E J Hobbs



Secretary: Mrs E J Hobbs



Registered office: The Bridge
Old Road
Acle
Norwich
Norfolk
NR13 3AT



Registered number: 03729407 (England and Wales)



Senior statutory auditor: Mr Jeremy Laurence Hyde FCCA



Auditors: CG LEE Limited
Ingram House
6 Meridian Way
Norwich
NR7 0TA

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Group Strategic Report
for the Year Ended 31 December 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

Review of business
The Directors of Electrical Testing Limited have produced a business roadmap for the next two years with plans to expand its service offerings and capitalise on the growing electric vehicle (EV) market and support services between 2023 and 2025.

The main financial objectives during this period will include increasing overall revenues by 5% year-on-year, whilst maintaining a consistent net profit margin. In addition, we aim to maintain existing service offerings, ensure high levels of customer satisfaction, develop new software technology solutions, expand our services into the electric vehicle supply charging market, and establish ourselves as a traffic management service provider, primarily servicing our own contracts.

The company's expansion into the EV market will involve venturing into DNO Connections for electrical services associated with EV supplies. As the demand for EV charging infrastructure and related services continues to grow, this move will strengthen our position within the industry and diversify our service offerings.

Establishing a specialised traffic management services division within the company will enable us to provide expert solutions to a growing market segment.

In addition to organisational changes, we will continuously review and assess our existing service offerings to ensure they meet the changing needs of our clients. We will implement a comprehensive quality assurance programme to maintain the highest standards of service delivery and regularly solicit customer feedback to identify areas for improvement and enhancement.

To support our growth and stay ahead of the curve, we will invest in research and development to identify new software solutions that can improve the efficiency and effectiveness of our services. Collaborating with technology partners and regularly reviewing and updating our technology infrastructure will support innovation and growth.

Market research will be conducted to identify new opportunities within the electric vehicle supply charging market, and a targeted marketing strategy will be developed to promote our services within this market segment. Establishing strategic partnerships with key stakeholders within the electric vehicle supply charging industry will help us gain market access and share expertise.

Our growth strategy will require an investment of £1.5 million over the next two years, which will be allocated towards research and development activities, technology infrastructure upgrades, and market expansion efforts. It is crucial that we remain agile and responsive to the changes in the market, maintain a focus on our primary strengths, and carefully manage and support our expansion efforts to ensure success.

Electrical Testing Limited's expansion into the EV market, traffic management sector, and the necessary restructuring within the organisation, will position the company to capitalise on emerging opportunities in the rapidly growing electrical services market and secure our position for the duration of this business plan cycle.

Financial Highlights

The directors consider that the key performance indicators (KPIs) are turnover and profit or loss before taxation. The KPIs for the year ended 31 December 2023 with comparatives for the year ended 31 December 2022 are as follows:

Group turnover for the year ended 31 December 2023 is £13,714,399 (2022: £13,614,076)
Profit before taxation for the year ended 31 December 2023 is £818,353 (2022: profit of £1,526,703)


Electrical Testing (Holdings) Limited (Registered number: 03729407)

Group Strategic Report
for the Year Ended 31 December 2023

Principal risks and uncertainties
Principal risks and uncertainties are categorised as operational risks, commercial risks, ethical risks, environmental risks and training risks.

Risk analysis is considered a key business activity and we maintain a risk control spreadsheet that:-
1) Accurately identifies the category of risk
2) Provides details of the risk
3) Specifies the measures in place to minimise the risk and:
4) Details the potential consequences if the risk is not managed or mitigated

The risk register is discussed during board meetings and is regularly reviewed, updated and revised as necessary. It is considered that all risks identified are currently managed or mitigated.

On behalf of the board:





Mr S A Hobbs - Director


16 September 2024

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Directors' Report
for the Year Ended 31 December 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

Principal activity
We are a leading provider of Highways Services in the United Kingdom. With over 30 years of experience, we have built the business on a foundation of trust, performance and unparalleled customer service.

Our team of chartered engineers and specialists work with a large range of clients across the UK, from local authorities and contractors to consultants and individuals. We're proud to be recognised as a significant independent player in the world of electrical inspection and testing, connections and training in cities and on highways across the country.

We're respected as one of the first independent companies to receive accreditation under the National Electricity Registration Scheme (NERS) run by Lloyds Register on behalf of the UK Distribution Network Operators.

With a commitment to modernisation, impartiality and technological innovation, we aim higher, to raise the bar and set the standards for others to follow.

We employ only the best staff, offering a broad range of experience and skills across industry, and we inspect and test a complete range of premises including Government buildings, MOD sites, petrol and oil installations, swimming pools, tower blocks, shopping malls, council assets, utility company assets, museums, public buildings, office blocks and private homes.

We offer a wide spectrum of services including electrical testing and inspections, Underground cable route tracing and plotting, Thermographic surveys, Street lighting data collection surveys, Jointing (live/dead) of street light columns, Structural testing street lighting using Dipstik, Underground cable fault locating.

We are approved to the highest standards for technical expertise, quality, environmental standards and health & safety. This is demonstrated with registrations held through UKAS, Lloyds (NERS), HEA (HERS), NICEIC, Lantra Awards and City and Guilds.

Dividends
Dividends of £420,000 were paid to the owners of the parent company during the year. Dividends of £27,224 were also paid to non-controlling interest's during the year.

Directors
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr S A Hobbs
Mr A J Hobbs
Mrs E J Hobbs


Electrical Testing (Holdings) Limited (Registered number: 03729407)

Directors' Report
for the Year Ended 31 December 2023

Statement of directors' responsibilities
The directors are responsible for preparing the Group Strategic Report, the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Auditors
The auditors, CG LEE Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





Mr S A Hobbs - Director


16 September 2024

Report of the Independent Auditors to the Members of
Electrical Testing (Holdings) Limited


Opinion
We have audited the financial statements of Electrical Testing (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2023 and of the group's profit 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors 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 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.

Report of the Independent Auditors to the Members of
Electrical Testing (Holdings) Limited


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Electrical Testing (Holdings) Limited


Auditors' 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 a Report of the Auditors 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:

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.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and tax legislation, and we considered the extent to which non­ compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

- discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation;
- evaluating management's controls designed to prevent and detect irregularities;
- identifying and testing of journal entries for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and
- reviewing significant accounting estimates for management bias.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Electrical Testing (Holdings) Limited


Use of our 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 a Report of the Auditors 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.




Mr Jeremy Laurence Hyde FCCA (Senior Statutory Auditor)
for and on behalf of CG LEE Limited
Ingram House
6 Meridian Way
Norwich
NR7 0TA

16 September 2024

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Consolidated Statement of Income and Retained Earnings
for the Year Ended 31 December 2023

2023 2022
Notes £ £

Turnover 13,714,399 13,614,076

Cost of sales (8,110,435 ) (7,491,985 )
Gross profit 5,603,964 6,122,091

Administrative expenses (4,821,290 ) (4,597,656 )
Operating profit 5 782,674 1,524,435

Interest receivable and similar income 35,731 2,308
818,405 1,526,743

Interest payable and similar expenses 6 (52 ) (40 )
Profit before taxation 818,353 1,526,703

Tax on profit 7 (137,011 ) (195,873 )
Profit for the financial year 681,342 1,330,830

Retained earnings at beginning of year 6,220,619 5,288,791

Dividends 9 (447,224 ) (399,002 )

Retained earnings for the group at end of
year

6,454,737

6,220,619

Profit attributable to:
Owners of the parent 680,892 1,330,830
Non-controlling interests 450 -
681,342 1,330,830

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £ £
Fixed assets
Tangible assets 10 1,108,769 1,013,462
Investments 11 - -
1,108,769 1,013,462

Current assets
Stocks 12 467,877 519,183
Debtors 13 2,672,827 2,769,104
Cash at bank and in hand 3,318,028 3,412,993
6,458,732 6,701,280
Creditors
Amounts falling due within one year 14 (1,038,611 ) (1,417,283 )
Net current assets 5,420,121 5,283,997
Total assets less current liabilities 6,528,890 6,297,459

Provisions for liabilities 16 (74,053 ) (76,740 )
Net assets 6,454,837 6,220,719

Capital and reserves
Called up share capital 17 100 100
Retained earnings 18 6,481,511 6,220,619
Shareholders' funds 6,481,611 6,220,719

Non-controlling interests 19 (26,774 ) -
Total equity 6,454,837 6,220,719

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





Mr S A Hobbs - Director


Electrical Testing (Holdings) Limited (Registered number: 03729407)

Company Balance Sheet
31 December 2023

2023 2022
Notes £ £
Fixed assets
Tangible assets 10 - -
Investments 11 625,095 624,100
625,095 624,100

Creditors
Amounts falling due within one year 14 (1,099 ) (104 )
Net current liabilities (1,099 ) (104 )
Total assets less current liabilities 623,996 623,996

Capital and reserves
Called up share capital 17 100 100
Retained earnings 18 623,896 623,896
Shareholders' funds 623,996 623,996

Company's profit for the financial year 420,000 399,000

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





Mr S A Hobbs - Director


Electrical Testing (Holdings) Limited (Registered number: 03729407)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 1,027,888 1,498,528
Interest paid (52 ) (22 )
Interest element of hire purchase or finance
lease rental payments paid

-

(18

)
Tax paid (196,574 ) (94,952 )
Net cash from operating activities 831,262 1,403,536

Cash flows from investing activities
Purchase of tangible fixed assets (208,371 ) (262,246 )
Interest received 35,731 2,308
Net cash from investing activities (172,640 ) (259,938 )

Cash flows from financing activities
Capital repayments in year - (7,446 )
Amount introduced by directors 15,791 10,095
Amount withdrawn by directors (322,154 ) (15,791 )
Equity dividends paid (447,224 ) (399,002 )
Net cash from financing activities (753,587 ) (412,144 )

(Decrease)/increase in cash and cash equivalents (94,965 ) 731,454
Cash and cash equivalents at beginning of
year

2

3,412,993

2,681,539

Cash and cash equivalents at end of year 2 3,318,028 3,412,993

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023


1. Reconciliation of profit before taxation to cash generated from operations
2023 2022
£ £
Profit before taxation 818,353 1,526,703
Depreciation charges 109,338 143,806
Loss on disposal of fixed assets 3,725 19,375
Finance costs 52 40
Finance income (35,731 ) (2,308 )
895,737 1,687,616
Decrease/(increase) in stocks 51,306 (88,332 )
Decrease/(increase) in trade and other debtors 411,420 (245,743 )
(Decrease)/increase in trade and other creditors (330,575 ) 144,987
Cash generated from operations 1,027,888 1,498,528

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£ £
Cash and cash equivalents 3,318,028 3,412,993
Year ended 31 December 2022
31.12.22 1.1.22
£ £
Cash and cash equivalents 3,412,993 2,681,539


3. Analysis of changes in net funds

At 1.1.23 Cash flow At 31.12.23
£ £ £
Net cash
Cash at bank and in hand 3,412,993 (94,965 ) 3,318,028
3,412,993 (94,965 ) 3,318,028
Total 3,412,993 (94,965 ) 3,318,028

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023


1. Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2. Accounting policies

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The group consolidated financial statements include the financial statements of the company and all of its subsidiaries as if they form a single entity. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the group obtains control and continue to be consolidated until the date that such control ceases. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Land and buildings- Over the lease period
Plant and machinery etc. -15 - 25% reducing balance, 25% straight line

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and
slow moving items. Net realisable value is calculated at the lower of cost or selling price less cost to complete.

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


2. Accounting policies - continued

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


2. Accounting policies - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investments in subsidiaries
Investments in subsidiary undertakings are held at cost less accumulated impairment losses.

3. Employees and directors
2023 2022
£ £
Wages and salaries 2,161,627 1,958,566
Social security costs 61,298 64,427
Other pension costs 36,574 29,320
2,259,499 2,052,313

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


3. Employees and directors - continued

The average number of employees during the year was as follows:
2023 2022

Directors 6 6
Sales 3 3
Administration 36 32
45 41

The average number of employees by undertakings that were proportionately consolidated during the year was 45 (2022 - 41 ) .

4. Directors' emoluments

Directors' remuneration for the year was £577,749 (2022 - £500,433) with pension contributions to money purchase schemes of £8,377 (2022 - £3,963).

The number of directors to whom retirement benefits were accruing was 3 (2022 - 3).

Emoluments to the highest paid director amounted to £202,467 (2022 - £191,683) with pension contributions to money purchase schemes of £5,735 (2022 - £1,321).

5. Operating profit

The operating profit is stated after charging:

2023 2022
£ £
Other operating leases 68,659 66,449
Depreciation - owned assets 109,339 140,883
Depreciation - assets on hire purchase contracts or finance leases - 2,923
Loss on disposal of fixed assets 3,725 19,375
Auditors' remuneration 11,750 10,750

6. Interest payable and similar expenses
2023 2022
£ £
Bank interest 52 22
Leasing - 18
52 40

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


7. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 139,698 270,464
Adjustment for prior years - (56,257 )
Total current tax 139,698 214,207

Deferred tax (2,687 ) (18,334 )
Tax on profit 137,011 195,873

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 818,353 1,526,703
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

204,588

290,074

Effects of:
Expenses not deductible for tax purposes 5,832 4,218
Income not taxable for tax purposes (58,910 ) (30,770 )
Adjustments to tax charge in respect of previous periods - (56,257 )
Structures & building allowance (5,404 ) (3,604 )
Super deduction allowance (303 ) (3,388 )
Change in tax rate (8,792 ) (4,400 )
Total tax charge 137,011 195,873

8. Individual income statement

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


9. Dividends

2023 2022
£    £   

Dividends paid to owners of the parent company 420,000 399,002
Dividends paid to non-controlling interests 27,224 -
447,224 399,002

10. Tangible fixed assets

Group
Short Long Plant and
leasehold leasehold machinery
£ £ £
Cost
At 1 January 2023 642,272 198,199 390,141
Additions 132,245 - 53,247
Disposals - - -
At 31 December 2023 774,517 198,199 443,388
Depreciation
At 1 January 2023 104,743 - 225,360
Charge for year 26,236 - 29,457
Eliminated on disposal - - -
At 31 December 2023 130,979 - 254,817
Net book value
At 31 December 2023 643,538 198,199 188,571
At 31 December 2022 537,529 198,199 164,781

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


10. Tangible fixed assets - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£ £ £ £
Cost
At 1 January 2023 38,539 701,234 271,420 2,241,805
Additions 5,338 - 17,541 208,371
Disposals - - (17,489 ) (17,489 )
At 31 December 2023 43,877 701,234 271,472 2,432,687
Depreciation
At 1 January 2023 21,761 694,509 181,970 1,228,343
Charge for year 4,679 4,660 44,307 109,339
Eliminated on disposal - - (13,764 ) (13,764 )
At 31 December 2023 26,440 699,169 212,513 1,323,918
Net book value
At 31 December 2023 17,437 2,065 58,959 1,108,769
At 31 December 2022 16,778 6,725 89,450 1,013,462

11. Fixed asset investments

Company
Shares in
group
undertakings
£
Cost
At 1 January 2023 624,100
Additions 995
At 31 December 2023 625,095
Net book value
At 31 December 2023 625,095
At 31 December 2022 624,100


Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


11. Fixed asset investments - continued


The investment in group undertakings relates to 99.7% of the share capital of Electrical Testing Limited and 100% of the share capital in ET Property Holdings Limited.

Electrical Testing Limited is a company registered in England and Wales, their registered office is The Bridge, Acle, Norwich, Norfolk, NR13 3AT.

ET Property Holdings Limited is a company registered in England and Wales, their registered office is The Bridge, Acle, Norwich, Norfolk, NR13 3AT.

12. Stocks

Group
2023 2022
£ £
Stocks 467,877 519,183

13. Debtors

Group
2023 2022
£ £
Amounts falling due within one year:
Trade debtors 968,792 1,161,319
Applications 473,641 675,711
Other debtors 1,191 1,007
Directors' loan accounts 77,207 15,791
VAT debtor 49,394 123,285
Prepayments and accrued income 772,890 789,896
2,343,115 2,767,009

Amounts falling due after more than one year:
Directors' loan accounts 244,947 -
Tax 84,765 2,095
329,712 2,095

Aggregate amounts 2,672,827 2,769,104

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


14. Creditors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£ £ £ £
Trade creditors 405,023 642,889 - -
Amounts owed to group undertakings - - 1,095 100
Tax 222,368 270,465 - -
Social security and other taxes 98,484 114,446 - -
Other creditors 61,269 70,004 4 4
Accrued expenses 251,467 319,479 - -
1,038,611 1,417,283 1,099 104

15. Leasing agreements

Minimum lease payments fall due as follows:

Group
Non-cancellable
operating leases
2023 2022
£ £
Within one year 261,442 166,524
Between one and five years 187,361 54,503
448,803 221,027

16. Provisions for liabilities

Group
2023 2022
£ £
Deferred tax 74,053 76,740

Group
Deferred tax
£
Balance at 1 January 2023 76,740
Credit to Income Statement during year (2,687 )
Balance at 31 December 2023 74,053

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


17. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
45 Ordinary A £1 45 45
35 Ordinary B £1 35 35
20 Ordinary C £1 20 20
100 100

18. Reserves

Group
Retained
earnings
£

At 1 January 2023 6,220,619
Profit for the year 680,892
Dividends (447,224 )
Non-controlling interest 27,224
At 31 December 2023 6,481,511

Company
Retained
earnings
£

At 1 January 2023 623,896
Profit for the year 420,000
Dividends (420,000 )
At 31 December 2023 623,896

Profit and loss account - This reserve records distributable retained earnings and accumulated losses.

19. Non-controlling interests

The movement in non-controlling interests was as follows:

At 1 January 2023 -
Profit for the year attributable to non-controlling interests 450
Dividends paid to non-controlling interests (27,224 )
At 31 December 2023 (26,774 )

Electrical Testing (Holdings) Limited (Registered number: 03729407)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


20. Directors' advances, credits and guarantees

2023 2022
£    £   

Mr A J Hobbs
Balance outstanding at start of year 104 104
Amounts repaid (95 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 9 104


Mr S A Hobbs
Balance outstanding at start of year 15,490 9,794
Amounts advanced 306,457 6,407
Amounts repaid - (711 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 321,947 15,490


Mr J N Hill
Balance outstanding at start of year 198 198
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 198 198


Interest has been charged at HM Revenue & Customs' authorised rate where applicable.

21. Ultimate controlling party

Ultimate control of the company rests with Mr S A Hobbs.

22. Pension scheme

The group operates a defined contribution pension scheme. Contributions payable to the pension scheme are charged to the profit or loss in the period to which they relate. There were no outstanding pension commitments at the year end.