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Registration number: 00950937

Carling Technologies Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Carling Technologies Limited
(Registration number: 00950937)

Contents

Company Information

1

Directors' Report

2 to 3

Strategic Report

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 26

 

Carling Technologies Limited
(Registration number: 00950937)

Company Information

Directors

Mr A Liddle

Mr E R Van Erk

Mr R D Van Hal

Company secretary

Mrs K Halsey

Registered office

4 Airport Business Park
Clyst Honiton
Exeter
EX5 2UL

Solicitors

Birketts LLP
Providence House
141-145 Princes Street
Ipswich
Suffolk
IP1 1QJ

Auditors

Thompson Jenner LLP
Statutory Auditors
1 Colleton Crescent
Exeter
Devon
EX2 4DG

 

Carling Technologies Limited
(Registration number: 00950937)

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

The directors who held office during the year were as follows:

Mr A Liddle

Mr E R Van Erk

Mr R D Van Hal

Principal activity

The principal activity of the company is the marketing and distribution of electrical switches, circuit protection devices, power distribution units and marine control and monitoring systems.

Financial instruments

Objectives and policies

The company participates in hedging transactions when it is deemed in the best commercial interests to do so. The company does this to mitigate its price risk, credit risk, liquidity risk and cash flow risk to acceptable levels. The company considers its exposure to foreign exchange risks and the level of risk to be acceptable.

Price risk, credit risk, liquidity risk and cash flow risk

The business’ activities expose it primarily to the financial risks of changes in foreign currency exchange rates.

The business’ principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business’ operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business’ cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

The company intends to continue to grow sales and to continue leveraging cross business unit synergies.

Research and development

The company has a policy of carrying out internal research and development to maintain its market leading position.

 

Carling Technologies Limited
(Registration number: 00950937)

Directors' Report for the Year Ended 31 December 2023

Directors responsibilities

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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................
Mr R D Van Hal
Director

 

Carling Technologies Limited
(Registration number: 00950937)

Strategic Report for the Year Ended 31 December 2023

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

Fair review of the business

Sales continued to be very strong in 2023 with supply chain issues having normalised, the continued high demand has meant that our lead-times remain higher than optimal. Moving through the back end of 2023 and into 2024, we have seen a softening of demand from some key sectors of our OEM customer base. Our focus continues to be on leveraging our wider Littelfuse portfolio synergies, portfolio diversification and design-win led growth.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£,000

30,397

32,662

Turnover growth

%

(7)

17

Gross profit margin

%

17

25

Profit before tax

£,000

2,411

1,418

Net assets

£,000

11,458

9,060

Principal risks and uncertainties

The company exports to Europe, Middle East and Africa. This exposes the company to exchange rate volatility and variable customer demand.

Approved by the Board on 24 September 2024 and signed on its behalf by:

.........................................
Mr R D Van Hal
Director

 

Carling Technologies Limited
(Registration number: 00950937)

Independent Auditor's Report to the Members of Carling Technologies Limited

Opinion

We have audited the financial statements of Carling Technologies Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Carling Technologies Limited
(Registration number: 00950937)

Independent Auditor's Report to the Members of Carling Technologies Limited

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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and 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 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 set out on page 3, 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 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.

 

Carling Technologies Limited
(Registration number: 00950937)

Independent Auditor's Report to the Members of Carling Technologies Limited

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the marketing and distribution of electrical goods sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, fire safety and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing licenses, certificates and relevant correspondence including the inspection of legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;

 

Carling Technologies Limited
(Registration number: 00950937)

Independent Auditor's Report to the Members of Carling Technologies Limited

reviewing legal and professional fees incurred during the year;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Mr Jonathan Westley (Senior Statutory Auditor)
For and on behalf of Thompson Jenner LLP, Statutory Auditor

1 Colleton Crescent
Exeter
Devon
EX2 4DG

26 September 2024

 

Carling Technologies Limited
(Registration number: 00950937)

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£ 000

2022
£ 000

Turnover

3

30,397

32,662

Cost of sales

 

(25,172)

(24,458)

Gross profit

 

5,225

8,204

Distribution costs

 

(108)

(155)

Administrative expenses

 

(2,734)

(5,095)

Other operating income

4

13

11

Operating profit

5

2,395

2,966

Interest payable and similar expenses

6

16

(1,548)

Profit before tax

 

2,411

1,418

Taxation

10

(13)

(238)

Profit for the financial year

 

2,398

1,179

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Carling Technologies Limited
(Registration number: 00950937)

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£ 000

2022
£ 000

Profit for the year

2,398

1,179

Total comprehensive income for the year

2,398

1,179

 

Carling Technologies Limited
(Registration number: 00950937)

Balance Sheet as at 31 December 2023

Note

2023
£ 000

2022
£ 000

Fixed assets

 

Intangible assets

11

33

48

Tangible assets

12

1,247

1,223

 

1,281

1,272

Current assets

 

Stocks

13

4,837

5,523

Debtors

14

5,597

7,478

Cash at bank and in hand

 

3,772

2,019

 

14,206

15,020

Creditors: Amounts falling due within one year

16

(3,728)

(6,887)

Net current assets

 

10,478

8,133

Total assets less current liabilities

 

11,758

9,405

Provisions for liabilities

21

(300)

(345)

Net assets

 

11,458

9,060

Capital and reserves

 

Called up share capital

17

50

50

Revaluation reserve

18

107

114

Profit and loss account

18

11,301

8,896

Total equity

 

11,458

9,060

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................
Mr R D Van Hal
Director

 

Carling Technologies Limited
(Registration number: 00950937)

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£ 000

Revaluation reserve
£ 000

Retained earnings
£ 000

Total
£ 000

At 1 January 2023

50

114

8,896

9,060

Profit for the year

-

-

2,398

2,398

Transfers

-

(8)

8

-

At 31 December 2023

50

107

11,301

11,458

Share capital
£ 000

Revaluation reserve
£ 000

Retained earnings
£ 000

Total
£ 000

At 1 January 2022

50

118

7,712

7,881

Profit for the year

-

-

1,179

1,179

Transfers

-

(4)

4

-

At 31 December 2022

50

114

8,896

9,060

 

Carling Technologies Limited
(Registration number: 00950937)

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£ 000

2022
£ 000

Cash flows from operating activities

Profit for the year

 

2,398

1,179

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

68

57

Income tax expense

10

13

238

 

2,478

1,474

Working capital adjustments

 

Decrease/(increase) in stocks

13

686

(2,786)

Decrease/(increase) in trade debtors

14

1,829

(2,601)

(Decrease)/increase in trade creditors

16

(3,158)

4,822

Decrease in provisions

21

(57)

(58)

Cash generated from operations

 

1,778

852

Income taxes received/(paid)

10

52

(516)

Net cash flow from operating activities

 

1,829

336

Cash flows from investing activities

 

Acquisitions of tangible assets

(77)

(30)

Acquisition of intangible assets

11

-

(24)

Net cash flows from investing activities

 

(77)

(55)

Net increase in cash and cash equivalents

 

1,753

282

Cash and cash equivalents at 1 January

 

2,019

1,737

Cash and cash equivalents at 31 December

 

3,772

2,019

 

Carling Technologies Limited
(Registration number: 00950937)

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

1

General information

The company is a private company limited by share capital, incorporated in the United Kingdom.

The address of its registered office is:
4 Airport Business Park
Clyst Honiton
Exeter
EX5 2UL

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

The company has taken advantage of the following disclosure exemptions in FRS102 Section 1.12 as the information is provided in the consolidated financial statements of the parent group.

- Financial instrument disclosures, including categories of financial instruments, items of income, expenses, gains or losses relating to financial instruments and exposure to and management of financial risk.

Name of parent of group

These financial statements are consolidated in the financial statements of the company's ultimate parent, Littelfuse Inc.

The financial statements of Littelfuse Inc. may be obtained from 8755 West Higgins Road Suite 500, Chicago, Illinois 60631, United States of America.

 

Carling Technologies Limited
(Registration number: 00950937)

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

Key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the
assets. See note 12 for the carrying amount of the property, plant and equipment, and note 2 for the useful economic lives and depreciation rates applied for each class of assets..

Revenue recognition

The Company recognizes the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. The Company’s sales arrangements with customers provide for transfer of control at the time of shipment as this is the point at which title and risk of loss of the product transfers to the customer. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled net of sales/value added tax, in exchange for goods, and may include adjustments for returns, rebates and discounts. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and goods have been dispatched or services performed.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax.

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

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets with a cost greater than $5,000 are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Carling Technologies Limited
(Registration number: 00950937)

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

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

Straight line up to 11 years

Buildings

Straight line up to 30 years

Intangible assets

Intangible assets with a cost greater than $5,000 are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Computer software

Straight line up to 10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is determined using the first-in, first-out (FIFO) method.

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

Trade creditors

Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Carling Technologies Limited
(Registration number: 00950937)

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

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expenses when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£ 000

2022
£ 000

Sale of goods

30,397

32,662

 

Carling Technologies Limited
(Registration number: 00950937)

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

The analysis of the company's turnover for the year by market is as follows:

2023
 £ 000

2022
 £ 000

Sale of goods, UK

5,663

7,853

Sale of goods, Europe

19,626

22,256

Sale of goods, Rest of World

5,108

2,554

30,397

32,662

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£ 000

2022
£ 000

Miscellaneous other operating income

13

11

5

Operating profit

Arrived at after charging/(crediting)

2023
 £ 000

2022
 £ 000

Depreciation expense

53

47

Amortisation expense

15

10

6

Interest payable and similar charges

2023
£ 000

2022
£ 000

Foreign exchange gains/(losses)

16

(1,548)

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£ 000

2022
£ 000

Wages and salaries

1,421

1,533

Social security costs

188

162

Pension costs, defined contribution scheme

78

67

Share-based payment expenses

8

2

Other employee expense

39

45

1,733

1,810

 

Carling Technologies Limited
(Registration number: 00950937)

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

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

25

29

Sales

6

5

31

34

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£ 000

2022
£ 000

Remuneration

132

139

Contributions paid to money purchase schemes

11

6

143

144

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Received or were entitled to receive shares under long term incentive schemes

1

1

Accruing benefits under money purchase pension scheme

1

1

9

Auditors' remuneration

2023
 £ 000

2022
 £ 000

Audit of the financial statements

17

17


 

10

Taxation

Tax charged/(credited) in the profit and loss account

 

Carling Technologies Limited
(Registration number: 00950937)

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

2023
£ 000

2022
£ 000

Current taxation

UK corporation tax

-

272

UK corporation tax adjustment to prior periods

-

(48)

-

224

Deferred taxation

Arising from origination and reversal of timing differences

13

10

Arising from changes in tax rates and laws

-

4

Total deferred taxation

13

14

Tax expense in the income statement

13

238

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£ 000

2022
£ 000

Profit before tax

2,411

1,418

Corporation tax at standard rate

603

269

Effect of expense not deductible in determining taxable profit (tax loss)

6

3

Deferred tax expense relating to changes in tax rates or laws

-

4

Deferred tax expense from unrecognised temporary difference from a prior period

13

10

Decrease in UK and foreign current tax from adjustment for prior periods

-

(48)

Tax decrease from effect of capital allowances and depreciation

(2)

(1)

Tax decrease arising from group relief

(607)

-

Total tax charge

13

238

As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%.

Deferred tax

Deferred tax liabilities

2023

Asset
£ 000

Liability
£ 000

Accelerated capital allowances

-

41

-

41

 

Carling Technologies Limited
(Registration number: 00950937)

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

2022

Asset
£ 000

Liability
£ 000

Accelerated capital allowances

-

28

-

28

11

Intangible assets

Computer software
£ 000

Total
£ 000

Cost or valuation

At 1 January 2023

112

112

At 31 December 2023

112

112

Amortisation

At 1 January 2023

63

63

Amortisation charge

15

15

At 31 December 2023

78

78

Carrying amount

At 31 December 2023

33

33

At 31 December 2022

48

48

Amortisation is included within administrative expenses in the income statement.

 

Carling Technologies Limited
(Registration number: 00950937)

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

12

Tangible assets

Land and buildings
£ 000

Other property, plant and equipment
£ 000

Total
£ 000

Cost or valuation

At 1 January 2023

1,157

117

1,275

Additions

-

77

77

At 31 December 2023

1,157

194

1,351

Depreciation

At 1 January 2023

37

14

51

Charge for the year

34

18

53

At 31 December 2023

71

33

104

Carrying amount

At 31 December 2023

1,087

161

1,247

At 31 December 2022

1,121

103

1,223

Included within the net book value of land and buildings above is £1,086,591 (2022 - £1,120,723) in respect of freehold land and buildings.
 

Revaluation

The fair value of the company's Land and buildings was revalued on 1 January 2014 by an independent valuer.
The valuation of £1,200,000 on transition to FRS 102 was prepared by Edward Symmons LLP.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £709,009 (2022 - £742,927).

13

Stocks

2023
£ 000

2022
£ 000

Finished goods and goods for resale

4,837

5,523

The cost of stocks recognised as an expense in the year amounted to £24,181,302 (2022 - £23,392,638).

 

Carling Technologies Limited
(Registration number: 00950937)

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

14

Debtors

Note

2023
£ 000

2022
£ 000

Trade debtors

 

5,219

6,997

Other debtors

 

321

389

Prepayments and accrued income

 

58

40

Corporation tax asset

10

-

52

Total current trade and other debtors

 

5,597

7,478

15

Cash and cash equivalents

2023
£ 000

2022
£ 000

Cash on hand

1

1

Cash at bank

3,771

2,018

3,772

2,019

16

Creditors

Note

2023
£ 000

2022
£ 000

Due within one year

 

Trade creditors

 

399

583

Amounts due to related parties

24

2,745

5,736

Social security and other taxes

 

39

37

Other creditors

 

277

-

Accruals

 

269

531

 

3,728

6,887

17

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No. 000

£ 000

No. 000

£ 000

Ordinary A shares of £1 each

50

50

50

50

Ordinary B shares of £1 each

-

-

-

-

 

50

50

50

50

 

Carling Technologies Limited
(Registration number: 00950937)

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

Rights, preferences and restrictions

Ordinary have the following rights, preferences and restrictions:
There are no restrictions on the distribution of dividends and the repayment of capital for all share classes. All share classes carry the same voting rights of 1 per share.

18

Reserves

Called up share capital

Called up share capital represents the nominal value of the shares issued.

Revaluation reserve

Revaluation reserve represents the accumulated increase in value of fixed assets initially recorded at historical cost

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments

19

Analysis of changes in net debt

At 1 January 2023
£ 000

Cash flow
£ 000

At 31 December 2023
£ 000

Cash and cash equivalents

Cash at bank and in hand

2,019

1,761

3,780

 

2,019

1,761

3,780

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£ 000

2022
£ 000

Not later than one year

14

10

Later than one year and not later than five years

16

17

31

27

The amount of non-cancellable operating lease payments recognised as an expense during the year was £17,578 (2022 - £14,190).

 

Carling Technologies Limited
(Registration number: 00950937)

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

21

Deferred tax and other provisions

Warranties
£ 000

Deferred tax
£ 000

Total
£ 000

At 1 January 2023

317

28

345

Increase (decrease) in existing provisions

(57)

12

(45)

At 31 December 2023

260

40

300

The company offers a 12 month warranty on all products sold. The provision at the year end is estimated based on the historical percentage of actual warranty costs during the year in relation to sales made, in addition to any specific provisions for products with known defects, whereby a further provision is estimated based on the expected uptake following targeted campaigns and anticipated replacement costs.

22

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £77,602 (2022 - £66,666).

23

Share-based payments

Key-employee share option scheme

Scheme details and movements

Certain employees participate in the key-employee share option scheme which provides additional remuneration to those employees who are key to the operations of the Company. The options are granted with an exercise price equalling the nominal value of the shares and are exercisable three years after the date of grant. Employees are not entitled to dividends until the shares are exercised. Vesting of the options is subject to continued employment within the Company and is based on a 3-year vesting cycle, beginning 1-year post grant.

The total expense recognised in profit & loss for the period is £8,067 (2022: £2,494).

The total carrying amount of the liabilities arising from share-based payments at the end of the year was £nil (2022: £nil).

 

Carling Technologies Limited
(Registration number: 00950937)

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

24

Related party transactions

Key management compensation

2023
£ 000

2022
£ 000

Salaries and other short term employee benefits

157

164

The company has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with other members of the group.

25

Parent and ultimate parent undertaking

The company's immediate parent is Carling Technologies Inc, incorporated in the United States of America.

 The ultimate controlling party is Littelfuse Inc, incorporated in the United States of America.

The parent of the smallest group in which these financial statements are consolidated is Littelfuse Inc, incorporated in the United States of America.

The address of Littelfuse Inc is:
8755 West Higgins Road Suite 500
Chicago
Illinois 60631