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Company registration number: 10774860
CBS Products (KT), Ltd
Financial statements
31 December 2023
CBS Products (KT), Ltd
Contents
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
CBS Products (KT), Ltd
Strategic report
Year ended 31 December 2023
Principle activity
The principle activity for the year under review continues to be that of the design and manufacture of cable installation equipment for the telecoms and power distribution industries.
Fair review of the business
Sales in the UK Telecoms sector fell from a peak in 2022 during a year in which the overall market reduced in size, added to which the market saw increased competition from overseas manufacturers. Despite this, sales were the second highest in the company's history. During 2023, the company restructured its business to take account of the smaller UK market than it had previously anticipated. Sales in the Power sector grew and we expect this to continue in the future.
Principle risks and uncertainties
The outlook for the year to 31 December 2024 continues to be challenging in the UK Telecoms sector. The company is, however, looking to increase its exports to Europe, the USA, the Far East and Africa, where it sees opportunities for growth and has already made inroads into three of these areas. The market for the Power sector products is firming as electricity suppliers look to source more energy from green sources (solar and wind), all of which need to be connected to the National Grid. The regulatory requirement to have electric cars and boilers, among other items in the future is also driving investment in the power network. The company is well placed to take advantage of the growth afforded by these markets.
This report was approved by the board of directors on 7 March 2024 and signed on behalf of the board by:
M Turney
Director
CBS Products (KT), Ltd
Directors report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023.
Directors
The directors who served the company during the year were as follows:
R J Davidson (Resigned 21 September 2023)
L Klein Fox
T R Klein Jr
K J Owen
M J Thomason
M Turney (Appointed 21 September 2023)
Dividends
The directors do not recommend the payment of a dividend.
Other matters
Since the financial year-end the company has continued to trade well. There are no circumstances of which the directors are aware that would suggest that the going concern basis is inappropriate.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 07 March 2024 and signed on behalf of the board by:
M Turney
Director
CBS Products (KT), Ltd
Independent auditor's report to the members of
CBS Products (KT), Ltd
Year ended 31 December 2023
Opinion
We have audited the financial statements of CBS Products (KT), Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 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 has 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 where 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 the 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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 auditor’s report.
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 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.
Roger Neal (Senior Statutory Auditor)
For and on behalf of
Turner & Smith
Accountants and Statutory Auditor
Westgate House
Royland Road
Loughborough
Leicestershire
LE11 2EH
07 March 2024
CBS Products (KT), Ltd
Statement of comprehensive income
Year ended 31 December 2023
2023 2022
Note £ £
Turnover 4 7,882,839 10,764,393
Cost of sales ( 6,072,417) ( 7,035,522)
_______ _______
Gross profit 1,810,422 3,728,871
Distribution costs ( 602,053) ( 659,839)
Administrative expenses ( 1,398,926) ( 1,513,898)
_______ _______
Operating (loss)/profit 5 ( 190,557) 1,555,134
Interest payable and similar expenses 8 ( 108,879) ( 1,747)
(Loss)/profit before taxation ( 299,436) 1,553,387
Tax on (loss)/profit 9 ( 7,216) ( 350,259)
_______ _______
(Loss)/profit for the financial year and total comprehensive income ( 306,652) 1,203,128
_______ _______
Earnings per share 10
Basic and diluted earnings per share (pence per share) ( 306,652) 1,203,128
_______ _______
All the activities of the company are from continuing operations.
CBS Products (KT), Ltd
Statement of financial position
31 December 2023
2023 2022
Note £ £ £ £
Fixed assets
Intangible assets 11 801,479 1,017,029
Tangible assets 12 497,219 542,229
_______ _______
1,298,698 1,559,258
Current assets
Stocks 13 5,007,498 5,065,556
Debtors 14 1,466,526 1,873,709
Cash at bank and in hand 634,203 172,955
_______ _______
7,108,227 7,112,220
Creditors: amounts falling due
within one year 15 ( 2,753,929) ( 2,991,504)
_______ _______
Net current assets 4,354,298 4,120,716
_______ _______
Total assets less current liabilities 5,652,996 5,679,974
Creditors: amounts falling due
after more than one year 16 ( 322,691) ( 46,930)
Provisions for liabilities 18 ( 10,162) ( 6,235)
_______ _______
Net assets 5,320,143 5,626,809
_______ _______
Capital and reserves
Called up share capital 21 1 1
Capital contribution reserve 22 3,549,563 3,549,563
Profit and loss account 22 1,770,579 2,077,245
_______ _______
Shareholders funds 5,320,143 5,626,809
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 07 March 2024 , and are signed on behalf of the board by:
M Turney
Director
Company registration number: 10774860
CBS Products (KT), Ltd
Statement of changes in equity
Year ended 31 December 2023
Called up share capital Capital contribution reserve Profit and loss account Total
£ £ £ £
At 1 January 2022 1 3,549,563 874,117 4,423,681
(Loss)/profit for the year 1,203,128 1,203,128
_______ _______ _______ _______
Total comprehensive income for the year - - 1,203,128 1,203,128
_______ _______ _______ _______
At 31 December 2022 and 1 January 2023 1 3,549,563 2,077,231 5,626,795
(Loss)/profit for the year ( 306,652) ( 306,652)
_______ _______ _______ _______
Total comprehensive income for the year - - ( 306,652) ( 306,652)
_______ _______ _______ _______
At 31 December 2023 1 3,549,563 1,770,579 5,320,143
_______ _______ _______ _______
CBS Products (KT), Ltd
Statement of cash flows
Year ended 31 December 2023
2023 2022
£ £
Cash flows from operating activities
(Loss)/profit for the financial year ( 306,652) 1,203,128
Adjustments for:
Depreciation of tangible assets 45,007 38,788
Amortisation of intangible assets 215,551 215,551
Prior year adjustments (12) 6,319
Interest payable and similar expenses 108,879 1,747
Gain/(loss) on disposal of tangible assets - 910
Tax on loss/profit 7,216 350,259
Changes in:
Stocks 58,058 ( 1,679,762)
Trade and other debtors 47,643 ( 426,964)
Trade and other creditors (1,460,637) 581,003
_______ _______
Cash generated from operations (1,284,947) 290,979
Interest paid ( 108,879) ( 1,747)
Tax paid ( 199,981) ( 149,010)
_______ _______
Net cash (used in)/from operating activities ( 1,593,807) 140,222
_______ _______
Cash flows from investing activities
Purchase of tangible assets - ( 179,699)
Proceeds from sale of tangible assets - 999
_______ _______
Net cash from/(used in) investing activities - ( 178,700)
_______ _______
Cash flows from financing activities
(Increase)/decrease in monies due from group undertakings 2,077,321 ( 796,230)
Advances/(repayment) in respect of finance leases ( 22,266) 66,109
_______ _______
Net cash used in financing activities 2,055,055 (730,121)
_______ _______
Net increase/(decrease) in cash and cash equivalents 461,248 (768,599)
Cash and cash equivalents at beginning of year 172,955 941,554
_______ _______
Cash and cash equivalents at end of year 634,203 172,955
_______ _______
CBS Products (KT), Ltd
Notes to the financial statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Westgate House, Royland Road, Loughborough, Leicestershire, LE11 2EH.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 10 % straight line
Trade Name - 5 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off in the period in which it is incurred.
Tangible assets
tangible assets are initially recorded at cost, and are 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 capital and reserves, 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 capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
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:
Freehold property - Land is not depreciated. Buildings are depreciated at 2% per annum.
Leased assets - 20-33% straight line
Plant and machinery - 20 % straight line
Fittings fixtures and equipment - 17-25% straight line
Motor vehicles - 25 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position 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.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company 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.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023 2022
£ £
Sale of goods 7,882,839 10,764,393
_______ _______
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023 2022
£ £
UK 4,729,703 6,757,090
Rest of world 3,153,136 4,007,303
_______ _______
7,882,839 10,764,393
_______ _______
5. Operating loss/profit
Operating loss/profit is stated after charging/(crediting):
2023 2022
£ £
Amortisation of intangible assets 215,550 215,550
Depreciation of tangible assets 45,007 38,788
(Gain)/loss on disposal of tangible assets - 910
Impairment of trade debtors 44,558 -
Research and development expenditure written off 151,662 81,972
Foreign exchange differences 1,021 ( 3,737)
Fees payable for the audit of the financial statements 14,475 12,110
Loan interest 107,858 1,946
_______ _______
6. Staff costs
The aggregate payroll costs incurred during the year were:
2023 2022
£ £
Wages and salaries 2,673,126 2,902,627
Other pension costs 102,026 95,534
_______ _______
2,775,152 2,998,161
_______ _______
7. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2023 2022
£ £
Remuneration 175,914 108,750
Directors pension costs 21,960 24,481
Benefits 1258 2615
_______ _______
199,132 135,846
_______ _______
8. Interest payable and similar expenses
2023 2022
£ £
Loan interest paid 107,858 1,946
VAT Penalty - 3,538
(Profit)/Loss on exchange 1,021 (3,737)
_______ _______
108,879 1,747
_______ _______
9. Tax on loss/profit
Major components of tax expense
2023 2022
£ £
Current tax:
UK current tax expense 3,289 350,259
_______ _______
Deferred tax:
Origination and reversal of timing differences 3,927 -
_______ _______
Tax on loss/profit 7,216 350,259
_______ _______
10. Earnings per share
Basic and diluted earnings/(loss) per share
2023 2022
Basic and diluted earnings/(loss) per share from continuing operations (pence per share) ( 306,652) 1,203,128
_______ _______
The earnings/(loss) and weighted average number of shares used in the calculation of basic and diluted earnings/(loss) per share are as follows:
2023 2022
£ £
(Loss)/profit for the year attributable to the owners of the company ( 306,652) 1,203,128
_______ _______
2023 2022
No No
Weighted average number of ordinary shares in issue 1 1
_______ _______
11. Intangible assets
Goodwill Trade Name Total
£ £ £
Cost
At 1 January 2023 and 31 December 2023 2,090,487 130,032 2,220,519
_______ _______ _______
Amortisation
At 1 January 2023 1,167,189 36,300 1,203,489
Charge for the year 209,049 6,502 215,551
_______ _______ _______
At 31 December 2023 1,376,238 42,802 1,419,040
_______ _______ _______
Carrying amount
At 31 December 2023 714,249 87,230 801,479
_______ _______ _______
At 31 December 2022 923,298 93,732 1,017,030
_______ _______ _______
12. Tangible assets
Freehold property Leased assets Plant & machinery Fixtures & fittings Total
£ £ £ £ £
Cost
At 1 January 2023 462,285 94,882 96,157 67,446 720,770
Disposals - ( 17,073) - - ( 17,073)
_______ _______ _______ _______ _______
At 31 December 2023 462,285 77,809 96,157 67,446 703,697
_______ _______ _______ _______ _______
Depreciation
At 1 January 2023 41,645 27,519 60,658 48,721 178,543
Charge for the year 7,889 23,541 3,386 10,192 45,008
Disposals - ( 17,073) - - ( 17,073)
_______ _______ _______ _______ _______
At 31 December 2023 49,534 33,987 64,044 58,913 206,478
_______ _______ _______ _______ _______
Carrying amount
At 31 December 2023 412,751 43,822 32,113 8,533 497,219
_______ _______ _______ _______ _______
At 31 December 2022 420,640 67,363 35,499 18,725 542,227
_______ _______ _______ _______ _______
13. Stocks
2023 2022
£ £
Finished goods and goods for resale 5,007,498 5,065,556
_______ _______
14. Debtors
2023 2022
£ £
Trade debtors 932,310 801,695
Amounts owed by group undertakings 456,550 816,090
Prepayments and accrued income 77,666 61,733
Other debtors - 194,191
_______ _______
1,466,526 1,873,709
_______ _______
15. Creditors: amounts falling due within one year
2023 2022
£ £
Trade creditors 698,345 1,951,275
Amounts owed to group companies 1,457,467 39,686
Accruals and deferred income 143,217 203,386
Corporation tax 152,557 349,249
Social security and other taxes 223,932 59,175
Obligations under finance leases 21,152 19,179
Other creditors 57,259 369,554
_______ _______
2,753,929 2,991,504
_______ _______
16. Creditors: amounts falling due after more than one year
2023 2022
£ £
Amounts owed to group undertakings 300,000 -
Obligations under finance leases 22,691 46,930
_______ _______
322,691 46,930
_______ _______
17. Obligations under finance leases
Company lessee
The total future minimum lease payments under finance lease agreements are as follows:
2023 2022
£ £
Not later than 1 year 21,152 19,179
Later than 1 year and not later than 5 years 22,691 46,930
_______ _______
43,843 66,109
_______ _______
Present value of minimum lease payments 43,843 66,109
_______ _______
18. Provisions
Deferred tax (note 19) Total
£ £
At 1 January 2023 and 31 December 2023 10,162 10,162
_______ _______
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note 18) 10,162 6,235
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of accelerated capital allowances.
20. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 113,498 (2022: £ 105,647 ).
21. Called up share capital
Issued, called up and fully paid
2023 2022
No £ No £
Ordinary shares of £ 1.00 each 1 1 1 1
_______ _______ _______ _______
22. Reserves
Capital contribution reserve represents a capital contribution from the parent company, Zah Group, Inc, of £3,549,563 which was provided for the purpose of acquiring capital assets.Profit and loss account represents retained earnings to date.
23. Analysis of changes in net debt
At 1 January 2023 Cash flows At 31 December 2023
£ £ £
Cash and cash equivalents 172,955 461,248 634,203
Debt due within one year (19,179) (1,411,618) (1,430,797)
Debt due after one year (46,930) (275,761) (322,691)
_______ _______ _______
106,846 ( 1,226,131) ( 1,119,285)
_______ _______ _______
24. Parent undertaking
The parent undertaking is Zah Group, Inc a company incorporated in the U.S.A. The address of Zah Group, Inc is 500 Klein Tools Boulevard, Mansfield, Texas, 76063, USA.