Company registration number 03323205 (England and Wales)
OPTICAL VISION LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
OPTICAL VISION LTD
COMPANY INFORMATION
Directors
Mr S Frasi FCA
Mr R Crawford
Mr A R Rodoschegg
Company number
03323205
Registered office
Unit 3 Woolpit Business Park
Woolpit
Bury St Edmunds
IP30 9UP
Auditor
Ensors Accountants LLP
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
Business address
Unit 3 Woolpit Business Park
Woolpit
Bury St Edmunds
IP30 9UP
OPTICAL VISION LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
OPTICAL VISION LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The results for the year, as set put on pages 7 and 8 show a profit on ordinary activities before tax of £861,215 (2022: £1,828,789). The shareholders funds total £7,050,591 (2022: £6,897,721).

 

The directors are satisfied with the turnover and profit for the year. The company has performed well in a challenging economic environment. The directors are not aware, at the date of this report, of any likely major changes to the company's activities in the next year.

Principal risks and uncertainties

The objective of the company is to manage its financial risks as well as its other business risks with parameters agreed and approved by the board of directors.

 

The company is at risk from rising costs as well as normal commercial risks to the industry. Inflation remains a feature of the economy and needs to be reflected in the pricing policy, together with exchange rate movements although the company is aware that other parts of the industry may not be reflecting this in their prices. The company maintains sufficient assets to enable it to withstand swings in trade and to enable resources to be available to take advantage of future business opportunities, hence cash flow and liquidity risks are minimised. Credit risk is significant with large values owed to the company at any one time. Debtors are therefore monitored and, if necessary, action taken as appropriate.

Key performance indicators

The directors consider that the company's key performance indicators are level of turnover, profitability and cash generated.

On behalf of the board

Mr S Frasi FCA
Director
19 August 2024
OPTICAL VISION LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be the wholesale of microscopes and optical equipment.

Branches

The company has a branch in Germany.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a final dividend.

 

The disclosures relating to financial risk management and objectives have been set out in the strategic report on page 1.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S Frasi FCA
Mr R Crawford
Mr A R Rodoschegg
Auditor

In accordance with the company's articles, a resolution proposing that Ensors Accountants LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S Frasi FCA
Director
19 August 2024
OPTICAL VISION LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

OPTICAL VISION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OPTICAL VISION LTD
- 4 -

Qualified opinion on financial statements

We have audited the financial statements of Optical Vision Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We did not observe the counting of physical inventories at the start of the year for the overseas operations. We were unable to satisfy ourselves by alternative means concerning the total inventory quantities held by the overseas operation which are included in the balance sheet at £1,476,243 at 31 December 2022, by using other audit procedures.

 

Since inventories enter into the determination of the financial performance and cash flows, we were unable to determine whether adjustments might have been necessary in respect of the profit for the year reported in the income statement and the net cash flows from operating activities reported in the cash flow statement for the year ended 31 December 2023. Consequently we were unable to determine whether any adjustment to this amount at 31 December 2022 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2023. Our audit opinion on the financial statements for the period ended 31 December 2022 was modified accordingly. Our opinion on the current period’s financial statements is also modified because of the possible effect of this matter on the comparability of the currents period’s figures and the corresponding figures.

 

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 qualified 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.

OPTICAL VISION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OPTICAL VISION LTD (CONTINUED)
- 5 -

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

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:

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

OPTICAL VISION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OPTICAL VISION LTD (CONTINUED)
- 6 -

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.

 

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition and management override of systems and control.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Malcolm McGready
Senior Statutory Auditor
For and on behalf of Ensors Accountants LLP
19 August 2024
Chartered Accountants
Statutory Auditor
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
OPTICAL VISION LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
7,460,209
10,783,295
Cost of sales
(5,110,615)
(7,069,993)
Gross profit
2,349,594
3,713,302
Distribution costs
(141,012)
(132,439)
Administrative expenses
(1,322,714)
(1,705,989)
Operating profit
4
885,868
1,874,874
Interest receivable and similar income
8
20,702
197
Interest payable and similar expenses
9
(45,355)
(46,282)
Profit before taxation
861,215
1,828,789
Tax on profit
10
(208,345)
(622,333)
Profit for the financial year
652,870
1,206,456

The profit and loss account has been prepared on the basis that all operations are continuing operations.

OPTICAL VISION LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,950
2,881
Current assets
Stocks
14
3,335,542
4,436,011
Debtors
15
892,226
515,468
Cash at bank and in hand
6,404,822
6,231,575
10,632,590
11,183,054
Creditors: amounts falling due within one year
16
(3,588,949)
(4,288,214)
Net current assets
7,043,641
6,894,840
Net assets
7,050,591
6,897,721
Capital and reserves
Called up share capital
19
50,000
50,000
Profit and loss reserves
20
7,000,591
6,847,721
Total equity
7,050,591
6,897,721

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 19 August 2024 and are signed on its behalf by:
Mr S  Frasi FCA
Director
Company registration number 03323205 (England and Wales)
OPTICAL VISION LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
50,000
6,141,265
6,191,265
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,206,456
1,206,456
Dividends
11
-
(500,000)
(500,000)
Balance at 31 December 2022
50,000
6,847,721
6,897,721
Year ended 31 December 2023:
Profit and total comprehensive income
-
652,870
652,870
Dividends
11
-
(500,000)
(500,000)
Balance at 31 December 2023
50,000
7,000,591
7,050,591
OPTICAL VISION LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,680,140
2,849,460
Interest paid
(45,355)
(46,282)
Income taxes paid
(975,174)
(465,959)
Net cash inflow from operating activities
659,611
2,337,219
Investing activities
Purchase of tangible fixed assets
(7,072)
(543)
Interest received
20,702
197
Net cash generated from/(used in) investing activities
13,630
(346)
Financing activities
Dividends paid
(500,000)
(500,000)
Net cash used in financing activities
(500,000)
(500,000)
Net increase in cash and cash equivalents
173,241
1,836,873
Cash and cash equivalents at beginning of year
6,231,575
4,394,739
Effect of foreign exchange rates
6
(37)
Cash and cash equivalents at end of year
6,404,822
6,231,575
OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Optical Vision Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Woolpit Business Park, Woolpit, Bury St Edmunds, IP30 9UP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised on despatch of the goods.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch 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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.6
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 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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 trade and other payables, bank loans and loans from fellow group companies 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 receipts discounted at a market rate of interest.

 

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

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

The company operates defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

 

 

 

 

OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.

1.15
Foreign exchange

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 profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risks of causing a material adjustment to the carrying amount of assets and liabilities are as follow.

Stock provisioning

The company sells products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the provision, management considers the nature and age of the stock as well as applying assumptions around anticipated saleability of stock.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Microscopes and optical equipment
7,460,209
10,783,295
2023
2022
£
£
Turnover analysed by geographical market
Europe
4,501,215
6,687,280
Great Britain
2,958,994
4,096,015
7,460,209
10,783,295
OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2022
£
£
Other revenue
Interest income
20,702
197
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(35,485)
61,685
Depreciation of owned tangible fixed assets
2,997
3,710
Operating lease charges
122,452
153,930
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,000
13,500
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Distribution
3
3
Administrative
12
12
Total
15
15

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
861,951
1,105,548
Social security costs
132,846
130,258
Pension costs
40,565
39,861
1,035,362
1,275,667
OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
467,683
718,040
Company pension contributions to defined contribution schemes
34,000
33,700
501,683
751,740

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
226,530
343,351
Company pension contributions to defined contribution schemes
4,000
3,700
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
20,680
-
0
Other interest income
22
197
Total income
20,702
197
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
20,680
-
0
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
45,355
46,223
Other finance costs:
Other interest
-
0
59
45,355
46,282
OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
178,542
349,070
Adjustments in respect of prior periods
12,829
53,225
Double tax relief
(100,183)
(226,733)
Total UK current tax
91,188
175,562
Foreign current tax on profits for the current period
124,968
372,617
Adjustments in foreign tax in respect of prior periods
(31,811)
74,154
Total current tax
184,345
622,333
Deferred tax
Origination and reversal of timing differences
24,000
-
0
Total tax charge
208,345
622,333

The UK Corporation tax rates were 19% until 31st March 2023, from 1 April 2023 the corporation tax rate increased to 25%. Deferred taxes for both the previous and current year have been calculated using the rates enacted at the balance sheet date, being 25%.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
861,215
1,828,789
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
215,304
347,470
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,401
Adjustments in respect of prior years
(18,985)
(11,520)
Effect of overseas tax rates
24,785
284,783
Tax at marginal rate
(11,230)
-
0
Other
(1,529)
199
Taxation charge for the year
208,345
622,333
11
Dividends
2023
2022
£
£
Interim paid
500,000
500,000
OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 January 2023
133,158
24,178
157,336
Additions
7,072
-
0
7,072
Exchange adjustments
(432)
-
0
(432)
At 31 December 2023
139,798
24,178
163,976
Depreciation and impairment
At 1 January 2023
130,277
24,178
154,455
Depreciation charged in the year
2,997
-
0
2,997
Exchange adjustments
(426)
-
0
(426)
At 31 December 2023
132,848
24,178
157,026
Carrying amount
At 31 December 2023
6,950
-
0
6,950
At 31 December 2022
2,881
-
0
2,881
13
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
432,926
452,670
Carrying amount of financial liabilities
Measured at amortised cost
3,379,121
3,734,020
14
Stocks
2023
2022
£
£
Finished goods and goods for resale
3,335,542
4,436,011
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
432,926
382,495
Corporation tax recoverable
417,685
-
0
Other debtors
-
0
70,175
Prepayments and accrued income
15,615
12,798
866,226
465,468
OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Debtors
(Continued)
- 20 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
26,000
50,000
Total debtors
892,226
515,468
16
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
85,220
162,065
Amounts owed to group undertakings
2,888,487
2,790,299
Corporation tax
-
0
373,144
Other taxation and social security
209,828
181,050
Accruals and deferred income
405,414
781,656
3,588,949
4,288,214
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2023
2022
Balances:
£
£
ACAs
-
1,000
Retirement benefit obligations
1,000
1,000
Unpaid Remuneration
25,000
48,000
26,000
50,000
2023
Movements in the year:
£
Asset at 1 January 2023
(50,000)
Charge to profit or loss
24,000
Asset at 31 December 2023
(26,000)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of unpaid remuneration against future expected profits of the same period.

OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,565
39,861

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
50,000
50,000
50,000
50,000

Called-up share capital represents the nominal value of shares that have been issued.

20
Profit and loss reserves
2023
2022
as restated
£
£
At the beginning of the year
6,847,721
6,141,265
Profit for the year
652,870
1,206,456
Dividends declared and paid in the year
(500,000)
(500,000)
At the end of the year
7,000,591
6,847,721

The profit and loss account includes all current and prior period retained profits and losses.

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
39,357
39,768
22
Related party transactions

During the year the company made a Nil (2022: £14,000) charitable donation to a registered charity where a director is also a trustee of the charity.

OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
23
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Advance
-
70,175
579
(70,754)
-
70,175
579
(70,754)
-
24
Ultimate controlling party

The parent company is Goldfyre Limited and the ultimate parent company is Boston Registrars and Nominees Limited, both of these companies are registered in England and Wales. During the year the company paid £65,000 (2022: £65,000) management charges to Goldfyre Limited.

 

The Company is under the day to day control of the directors.

25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
652,870
1,206,456
Adjustments for:
Taxation charged
208,345
622,333
Finance costs
45,355
46,282
Investment income
(20,702)
(197)
Depreciation and impairment of tangible fixed assets
2,997
3,710
Movements in working capital:
Decrease/(increase) in stocks
1,100,469
(191,877)
Decrease in debtors
16,927
1,278,034
Decrease in creditors
(326,121)
(115,281)
Cash generated from operations
1,680,140
2,849,460
26
Analysis of changes in net funds
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
6,231,575
173,241
6
6,404,822
27
Prior period adjustment

The prior year adjustment relates to a reclassification of goods in transit.

OPTICAL VISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
27
Prior period adjustment
(Continued)
- 23 -
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Current assets
Stocks
3,953,789
482,222
4,436,011
Debtors due within one year
997,690
(482,222)
515,468
Net assets
6,897,721
-
6,897,721
Capital and reserves
Total equity
6,897,721
-
6,897,721
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