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REGISTERED NUMBER: 09361288 (England and Wales)





















UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

FORMATION LIGHTING LTD

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


FORMATION LIGHTING LTD

COMPANY INFORMATION
for the year ended 31 December 2023







DIRECTORS: A C Barber
J Doyle
A C Jolliffe
J Koch





REGISTERED OFFICE: Unit 1 Evercreech Way
Highbridge
TA9 4AR





REGISTERED NUMBER: 09361288 (England and Wales)





ACCOUNTANTS: Dafferns LLP
Chartered Accountants
One Eastwood
Harry Weston Road
Binley Business Park
Coventry
CV3 2UB

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 402,709 194,934
Investments 5 1,938,717 2,154,164
2,341,426 2,349,098

CURRENT ASSETS
Stocks 467,057 559,368
Debtors 6 1,205,596 1,471,471
Cash at bank 754,853 574,384
2,427,506 2,605,223
CREDITORS
Amounts falling due within one year 7 2,101,885 2,443,098
NET CURRENT ASSETS 325,621 162,125
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,667,047

2,511,223

CREDITORS
Amounts falling due after more than one
year

8

(848,073

)

(1,185,305

)

PROVISIONS FOR LIABILITIES (69,000 ) (43,978 )
NET ASSETS 1,749,974 1,281,940

CAPITAL AND RESERVES
Called up share capital 10 1,000 1,000
Capital redemption reserve 250 250
Retained earnings 1,748,724 1,280,690
SHAREHOLDERS' FUNDS 1,749,974 1,281,940

The Company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the Company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the Company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the Company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the Company.

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

BALANCE SHEET - continued
31 December 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:




A C Jolliffe - Director



A C Barber - Director


FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023

1. STATUTORY INFORMATION

Formation Lighting Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

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 is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of lighting products is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 25% straight line
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% straight line

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the Income Statement. Reversals of impairment losses are also recognised in the Income Statement.

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes
party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

Basic financial liabilities
Basic financial liabilities, including creditors , bank loans, loans from fellow group companies and
preference shares that are classified as debt, are initially recognised at transaction price unless the
arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.


FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the Income Statement.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the Balance Sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the Income Statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to the Income Statement on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Pension costs and other post-retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan based on actuarial advice.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are
recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to the Income Statement in subsequent periods.

The net defined benefit pension asset or liability in the Balance Sheet comprises the total for each plan of the present value of the defined benefit obligation, less the fair value of plan assets out of which the obligations are to be settled directly. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

At the year end, the defined benefit pension scheme closed. The underlying assets have been transferred out into a defined contribution scheme.

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 36 (2022 - 26 ) .

4. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST
At 1 January 2023 30,702 356,862 387,564
Additions 8,793 290,607 299,400
Disposals - (10,200 ) (10,200 )
At 31 December 2023 39,495 637,269 676,764
DEPRECIATION
At 1 January 2023 11,687 180,943 192,630
Charge for year 9,476 76,412 85,888
Eliminated on disposal - (4,463 ) (4,463 )
At 31 December 2023 21,163 252,892 274,055
NET BOOK VALUE
At 31 December 2023 18,332 384,377 402,709
At 31 December 2022 19,015 175,919 194,934

5. FIXED ASSET INVESTMENTS
Other
investments
£   
COST
At 1 January 2023 2,154,164
Impairments (215,447 )
At 31 December 2023 1,938,717
NET BOOK VALUE
At 31 December 2023 1,938,717
At 31 December 2022 2,154,164

The Company's investments at the Balance Sheet date in the share capital of companies include the following:

Versa Engineering Limited
Registered office: Unit 1 Evercreech Way, Highbridge, England, TA9 4AR
Nature of business: Manufacture of electric lighting equipment
%
Class of shares: holding
Ordinary 100.00

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

6. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 1,142,459 1,396,253
Other debtors - 2,691
Prepayments and accrued income 17,952 29,442
1,160,411 1,428,386

Amounts falling due after more than one year:
Other debtors 45,185 43,085

Aggregate amounts 1,205,596 1,471,471

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 180,525 162,930
Other loans 200,000 200,000
Hire purchase contracts (see note 9) 95,183 17,628
Trade creditors 288,851 1,106,261
Amounts owed to group undertakings 195,445 159,960
Tax 400,898 247,807
Social security and other taxes - 24,368
VAT 191,725 179,725
Other creditors 58,503 49,571
Directors' current accounts 9,767 81,346
Accruals and deferred income 480,988 213,502
2,101,885 2,443,098

Creditors include the following secured liabilities:

Amounts owing in respect of Hire Purchase agreements totalling £95,183 (2022: £17,628) which are secured against the assets acquired.

Amounts owing in respect of the Company's invoice discounting facility totalling £58,503 (2022: £44,712) which are secured by fixed and floating charges over the Company's assets including assignment of contract monies.

Amounts owing in respect of the Company's Bank Loan totalling £180,525 (2022: £162,930) which are secured by fixed and floating charges over the Company's assets.

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans - 1-2 years - 178,809
Other loans - 1-2 years 725,201 906,961
Hire purchase contracts (see note 9) 122,872 78,376
Other creditors - 21,159
848,073 1,185,305

Creditors include the following secured liabilities:

Amounts owing in respect of Hire Purchase agreements totalling £122,872 (2022: £78,376) which are secured against the assets acquired.

Amounts owing in respect of loan notes totalling £725,201 (2022: £906,961) which are secured by floating charges over the Company's assets.

Amounts owing in respect of the Company's Bank Loan totalling £Nil (2022: £178,809) which are secured by fixed and floating charges over the Company's assets.

9. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 95,183 17,628
Between one and five years 122,872 78,376
218,055 96,004

Non-cancellable operating leases
2023 2022
£    £   
Within one year 180,808 149,808
Between one and five years 256,631 297,760
437,439 447,568

FORMATION LIGHTING LTD (REGISTERED NUMBER: 09361288)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
46,500 A Ordinary 1p 465 465
42,500 B Ordinary 1p 425 425
10,000 C Ordinary 1p 100 100
1,000 D Ordinary 1p 10 10
1,000 1,000

11. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the beginning of the year, the Company owed the directors £81,346 (2022: £40,716), total repayments of £81,346 (2022: £37,806) and total advances of £9,767 (2022: £78,436) were seen during the financial year. At the end of the year, the Company owed the directors £9,767 (2022: £81,346). No interest has been charged on these loans.