Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falseThe company's principal activity during the year continued to be that of dealing in electronic products.24242023-01-01falsefalsefalse 00895822 2023-01-01 2023-12-31 00895822 2022-01-01 2022-12-31 00895822 2023-12-31 00895822 2022-12-31 00895822 2022-01-01 00895822 5 2023-01-01 2023-12-31 00895822 5 2022-01-01 2022-12-31 00895822 d:Director1 2023-01-01 2023-12-31 00895822 d:Director2 2023-01-01 2023-12-31 00895822 d:RegisteredOffice 2023-01-01 2023-12-31 00895822 d:Agent1 2023-01-01 2023-12-31 00895822 e:PlantMachinery 2023-01-01 2023-12-31 00895822 e:PlantMachinery 2023-12-31 00895822 e:PlantMachinery 2022-12-31 00895822 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00895822 e:MotorVehicles 2023-01-01 2023-12-31 00895822 e:MotorVehicles 2023-12-31 00895822 e:MotorVehicles 2022-12-31 00895822 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00895822 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00895822 e:CurrentFinancialInstruments 2023-12-31 00895822 e:CurrentFinancialInstruments 2022-12-31 00895822 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 00895822 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 00895822 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 00895822 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 00895822 f:UnitedKingdom 2023-01-01 2023-12-31 00895822 f:UnitedKingdom 2022-01-01 2022-12-31 00895822 f:RestEuropeOutsideUK 2023-01-01 2023-12-31 00895822 f:RestEuropeOutsideUK 2022-01-01 2022-12-31 00895822 f:RestWorldOutsideUK 2023-01-01 2023-12-31 00895822 f:RestWorldOutsideUK 2022-01-01 2022-12-31 00895822 e:UKTax 2023-01-01 2023-12-31 00895822 e:UKTax 2022-01-01 2022-12-31 00895822 e:ShareCapital 2023-01-01 2023-12-31 00895822 e:ShareCapital 2023-12-31 00895822 e:ShareCapital 2022-01-01 2022-12-31 00895822 e:ShareCapital 2022-12-31 00895822 e:ShareCapital 2022-01-01 00895822 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2023-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2022-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2022-01-01 00895822 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 00895822 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 00895822 d:OrdinaryShareClass1 2023-01-01 2023-12-31 00895822 d:OrdinaryShareClass1 2023-12-31 00895822 d:OrdinaryShareClass1 2022-12-31 00895822 d:FRS102 2023-01-01 2023-12-31 00895822 d:Audited 2023-01-01 2023-12-31 00895822 d:FullAccounts 2023-01-01 2023-12-31 00895822 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 00895822 e:WithinOneYear 2023-12-31 00895822 e:WithinOneYear 2022-12-31 00895822 2 2023-01-01 2023-12-31 00895822 g:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 00895822









LUSO ELECTRONIC PRODUCTS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
COMPANY INFORMATION


Directors
David Zelkha 
Keith Zelkha 




Registered number
00895822



Registered office
595 Salisbury House
London Wall

London

EC2M 5QQ




Independent auditors
Pers & Co London LLP
Chartered accountants and Statotory Auditor

3 The Shrubberies

George Lane

London

E18 1BG




Bankers
Barclays Bank Plc
Level 27

1 Churchill Place

London

E14 5QQ





 
LUSO ELECTRONIC PRODUCTS LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 23


 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present the strategic report and financial statements for the year ended 31 December 2023.

Business review
 
As forecasted last year the directors were expecting 2023 to be a challenging year and were expecting to see a drop in turnover. The decline in turnover was in the region of 12% and this was principally driven by the elimination of spot business the company had benefited due to shortages.  However, the directors were pleased to see a marginal improvement in gross margin and are hopeful this will carry through to 2024.

Principal risks and uncertainties
 
The short term impact of Brexit is still affecting management time but the company is becoming more accustomed to working logistically within and outside of Europe. There has been a significant cost increase which the directors do not believe they will ever claw back.
The situation in the Middle East has led to supply chain issues and an increase in transit times as shipping has tried to by pass the Gulf. Freight costs during the first quarter of 2024 resumed an upward path and the directors continue to monitor them.

Financial key performance indicators
 
The company ended 2023 with a good order book going into 2024 and the first quarter continued to mirror the upward trend that started in the last quarter of 2023. The directors believe turnover should increase in the region of 5-8% for 2024. The challenges faced will be to maintain efficiency, and keep stocks under control so that cash management will improve.

Other key performance indicators
 
The directors are committed to promoting the health, safety and welfare of their staff and continue to ensure appropriate measures are undertaken in this regard.
The directors are mindful of environmental issues and have sought to minimise the impact of the company's activities on the environment.


This report was approved by the board on 18 September 2024 and signed on its behalf.



David Zelkha
Director

Page 1

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £456,396 (2022 - £531,411).

Dividends were paid during the year amounting to £135,000 (2022: £200,000).

Directors

The directors who served during the year were:

David Zelkha 
Keith Zelkha 

Future developments

The company expects to continue to offer its high quality products and services to its customers.

Page 2

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsPers & Co London LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 18 September 2024 and signed on its behalf.
 





David Zelkha
Director

Page 3

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED
 

Opinion


We have audited the financial statements of Luso Electronic Products Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 4

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 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.


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 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 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.


Page 5

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)


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 an Auditors' 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:
- the engagement partner ensured sufficient appropriate competence, skills and capabilities in audit team to identify or recognise non-compliance with applicable laws and regulations;
- we identified applicable laws and regulations to the company through discussions with the director and other management, and from our commercial knowledge and experience;
- we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety legislation; and
- we assessed the extent of compliance with the law and regulations identified above through making enquires of management and inspecting applicable legal correspondence.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with law and regulations.
To address the risk of fraud through management bias and override of controls, we
- performed analytical procedures to identify any unusual or unexpected relationships;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigate the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with law and regulations, we designed procedures which included, but were not limited to:
-  agreeing financial statement disclosures to underlying supporting documentation;
-  reading the minutes of meetings of those charged with governance;
-  enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including Health and Safety Executive, and the       company's legal advisors.
We were appointed auditors after the year end and therefore did not attend the year end stocktake. However we were able to carry our alternative audit procedures, including accessing and relying on stocktake attendances by the former auditors to obtain sufficient audit evidence in this area.


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 Auditors' report.


Page 6

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.


Pers Aswani (Senior statutory auditor)
  
for and on behalf of
Pers & Co London LLP
 
Chartered accountants and Statotory Auditor
  
3 The Shrubberies
George Lane
London
E18 1BG

18 September 2024
Page 7

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
15,964,520
18,878,236

Cost of sales
  
(12,924,519)
(16,093,833)

Gross profit
  
3,040,001
2,784,403

Distribution costs
  
(101,396)
(76,867)

Administrative expenses
  
(2,232,055)
(1,956,331)

Operating profit
 4 
706,550
751,205

Interest receivable and similar income
 8 
4,021
-

Interest payable and similar expenses
 9 
(110,774)
(98,609)

Profit before tax
  
599,797
652,596

Tax on profit
 10 
(143,401)
(121,185)

Profit for the financial year
  
456,396
531,411

Other comprehensive income for the year
  

Total comprehensive income for the year
  
456,396
531,411

The notes on pages 13 to 23 form part of these financial statements.

Page 8

 
LUSO ELECTRONIC PRODUCTS LIMITED
REGISTERED NUMBER: 00895822

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
39,875
47,168

  
39,875
47,168

Current assets
  

Stocks
 13 
2,226,160
1,880,902

Debtors: amounts falling due within one year
 14 
6,511,364
6,910,706

Cash at bank and in hand
 15 
670,554
1,006,116

  
9,408,078
9,797,724

Creditors: amounts falling due within one year
 16 
(3,731,553)
(4,449,888)

Net current assets
  
 
 
5,676,525
 
 
5,347,836

Total assets less current liabilities
  
5,716,400
5,395,004

  

Net assets
  
5,716,400
5,395,004


Capital and reserves
  

Called up share capital 
  
2,000
2,000

Profit and loss account
  
5,714,400
5,393,004

  
5,716,400
5,395,004


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 September 2024.




David Zelkha
Director

The notes on pages 13 to 23 form part of these financial statements.

Page 9

 
LUSO ELECTRONIC PRODUCTS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
2,000
5,061,593
5,063,593


Comprehensive income for the year

Profit for the year
-
531,411
531,411
Total comprehensive income for the year
-
531,411
531,411


Contributions by and distributions to owners

Dividends: Equity capital
-
(200,000)
(200,000)


Total transactions with owners
-
(200,000)
(200,000)



At 1 January 2023
2,000
5,393,004
5,395,004


Comprehensive income for the year

Profit for the year
-
456,396
456,396
Total comprehensive income for the year
-
456,396
456,396


Contributions by and distributions to owners

Dividends: Equity capital
-
(135,000)
(135,000)


Total transactions with owners
-
(135,000)
(135,000)


At 31 December 2023
2,000
5,714,400
5,716,400


The notes on pages 13 to 23 form part of these financial statements.

Page 10

 
LUSO ELECTRONIC PRODUCTS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
456,396
531,411

Adjustments for:

Depreciation of tangible assets
11,572
11,571

Interest paid
110,774
98,609

Interest received
(4,021)
-

Taxation charge
143,401
121,185

(Increase) in stocks
(345,258)
(95,048)

Decrease/(increase) in debtors
399,342
(371,486)

(Decrease) in creditors
(23,515)
(593,423)

Corporation tax (paid)/received
(121,185)
-

Net cash generated from operating activities

627,506
(297,181)


Cash flows from investing activities

Purchase of tangible fixed assets
(4,279)
(24,533)

Interest received
4,021
-

Net cash from investing activities

(258)
(24,533)

Cash flows from financing activities

New secured loans
59,154
399,044

Dividends paid
(135,000)
(200,000)

Interest paid
(110,774)
(98,609)

Net cash used in financing activities
(186,620)
100,435

Net increase/(decrease) in cash and cash equivalents
440,628
(221,279)

Cash and cash equivalents at beginning of year
229,926
451,205

Cash and cash equivalents at the end of year
670,554
229,926


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
670,554
1,006,116

Bank overdrafts
-
(776,190)

670,554
229,926


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 
LUSO ELECTRONIC PRODUCTS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,006,116

(335,562)

670,554

Bank overdrafts

(776,190)

776,190

-

Debt due within 1 year

(399,044)

(59,154)

(458,198)


(169,118)
381,474
212,356

The notes on pages 13 to 23 form part of these financial statements.

Page 12

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Luso Electronic Products Limited is a private company limited by shares and incorporated in England and Wales. The registered office is 595 Salisbury House, London Wall, London EC2M 5QQ..

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The company has continued to grow and trade well and the directors have reviewed the 12 month forecast. In addition the directors expect continuing support from the fellow group company. This information gives the directors a reasonable expectation that the company will continue in operational existance for the foreseeable future hence the accounts should continue to be prepared on a going concern basis.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
Straight Line
Motor vehicles
-
25%
Straight Line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 16

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 17

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Turnover

2023
2022
£
£

Turnover
15,964,520
18,878,236

15,964,520
18,878,236


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
5,108,646
6,041,036

Rest of Europe
7,982,260
9,439,118

Rest of the world
2,873,614
3,398,082

15,964,520
18,878,236



4.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
131,257
(327,107)

Other operating lease rentals
125,846
111,750


5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
13,000
12,000
Page 18

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,373,725
1,629,931

Social security costs
111,172
110,419

Cost of defined contribution scheme
93,646
18,514

1,578,543
1,758,864


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
15
15



Sales
9
9

24
24


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
209,066
172,829

209,066
172,829


The highest paid director received remuneration of £122,945 (2022 - £122,945).


8.


Interest receivable

2023
2022
£
£


Other interest receivable
4,021
-

4,021
-

Page 19

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
110,774
98,609

110,774
98,609


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
143,401
121,185


143,401
121,185


Total current tax
143,401
121,185

Deferred tax

Total deferred tax
-
-


Tax on profit
143,401
121,185

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 20% (2022 - 20%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
599,797
652,596


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20% (2022 - 20%)
119,959
130,519

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
23,442
(9,334)

Total tax charge for the year
143,401
121,185

Page 20

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.




11.


Dividends

2023
2022
£
£


Dividends analysis - user input
135,000
200,000

135,000
200,000


12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Total

£
£
£



Cost or valuation


At 1 January 2023
488,660
16,991
505,651


Additions
4,279
-
4,279



At 31 December 2023

492,939
16,991
509,930



Depreciation


At 1 January 2023
441,492
16,991
458,483


Charge for the year on owned assets
11,572
-
11,572



At 31 December 2023

453,064
16,991
470,055



Net book value



At 31 December 2023
39,875
-
39,875



At 31 December 2022
47,168
-
47,168

Page 21

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Stocks

2023
2022
£
£

Finished goods and goods for resale
2,226,160
1,880,902

2,226,160
1,880,902



14.


Debtors

2023
2022
£
£


Trade debtors
6,371,376
6,886,008

Other debtors
139,988
24,698

6,511,364
6,910,706



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
670,554
1,006,116

Less: bank overdrafts
-
(776,190)

670,554
229,926



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
776,190

Bank loans
458,198
399,044

Trade creditors
1,777,797
1,716,436

Corporation tax
143,401
121,185

Other taxation and social security
54,717
45,584

Other creditors
1,122,575
1,103,844

Accruals and deferred income
174,865
287,605

3,731,553
4,449,888


Page 22

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
670,554
1,006,116




Financial assets measured at fair value through profit or loss comprise cash at bank.


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,000 (2022 - 2,000) Ordinary shares of £1.00 each
2,000
2,000



19.


Reserves

Profit and loss account

The movement in retained profit comprises retained profit of the year, after dividends, amounting to £349,187.


20.


Pension commitments


21.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
43,840
43,840

43,840
43,840


22.


Related party transactions

The ultimate controlling party is Mr David Zelkha.

 
Page 23