Company Registration No. 08502929 (England and Wales)
ELECTRIC GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
ELECTRIC GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
ELECTRIC GROUP LIMITED
BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
15,909
31,818
Current assets
Debtors
5
46,462
906,449
Cash at bank and in hand
770
10,608
47,232
917,057
Creditors: amounts falling due within one year
6
(98,856)
(963,247)
Net current liabilities
(51,624)
(46,190)
Total assets less current liabilities
(35,715)
(14,372)
Provisions for liabilities
(110,000)
Net liabilities
(145,715)
(14,372)
Capital and reserves
Called up share capital
7
1,000
1,000
Share premium account
104,200
104,200
Profit and loss reserves
(250,915)
(119,572)
Total equity
(145,715)
(14,372)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 11 October 2024
D J G Madden
Director
Company Registration No. 08502929
ELECTRIC GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 May 2022:
Balance at 1 June 2021
1,000
104,200
20,624
125,824
Effect of change in accounting policy
-
(127,273)
(127,273)
As restated
1,000
104,200
(106,649)
(1,449)
Year ended 31 May 2022:
Loss and total comprehensive income for the year
-
-
(12,923)
(12,923)
Balance at 31 May 2022
1,000
104,200
(119,572)
(14,372)
Year ended 31 May 2023:
Loss and total comprehensive income for the year
-
-
(131,343)
(131,343)
Balance at 31 May 2023
1,000
104,200
(250,915)
(145,715)
ELECTRIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information
Electric Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Electric Brixton, Town Hall Parade, Brixton Hill, London, United Kingdom, SW2 1RJ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
The company is in a net current liability position at the year end of £51,624 (2022: £46,190), after taking into account amounts owed to group undertakings of £53,658 (2022: £42,061). true
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future due to the continued support of the group. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is derived from rental income net of VAT. Turnover is equal to the rental expense which is recharged to another company in the group.
Rental income is recognised on an accruals basis.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the life of the lease
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 period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
ELECTRIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditorsand loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.8
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.
ELECTRIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation 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.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.10
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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
Dilapidation provision
Provisions have been recognised relating to dilapidations in respect of the lease the company are entered into. The dilapidations relate to wear and tear which has accumulated over the course of the lease. An independent third party expert has completed their assessment of the dilapidation works to be completed and which are estimated to be of £110,000, which has been provided for in these financial statements.
3
Employees
There were no persons employed by the company during the year.
ELECTRIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
4
Tangible fixed assets
Land and buildings
£
Cost
At 1 June 2022 and 31 May 2023
175,000
Depreciation and impairment
At 1 June 2022
143,182
Depreciation charged in the year
15,909
At 31 May 2023
159,091
Carrying amount
At 31 May 2023
15,909
At 31 May 2022
31,818
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
860,051
Other debtors
1,056
992
Prepayments
11,582
11,582
12,638
872,625
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
33,824
33,824
Total debtors
46,462
906,449
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
14,640
Amounts owed to group undertakings
53,658
902,112
Corporation tax
801
801
Other taxation and social security
5,797
Other creditors
1,000
Accruals and deferred income
43,397
39,897
98,856
963,247
ELECTRIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Gary Miller.
The auditor was HW Fisher LLP.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
191,943
383,886
10
Prior period adjustment
During the preparation of the financial statements, management identified errors in the prior period figures. These have been corrected and further details are set out below.
Changes to the balance sheet
As previously reported
Adjustment at 1 Jun 2021
Adjustment at 31 May 2022
As restated at 31 May 2022
£
£
£
£
Fixed assets
Tangible assets
-
47,727
(15,909)
31,818
Investment properties
175,000
(175,000)
-
Net assets
128,810
(127,273)
(15,909)
(14,372)
Capital and reserves
Profit and loss
23,610
(127,273)
(15,909)
(119,572)
ELECTRIC GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
10
Prior period adjustment
(Continued)
- 8 -
Reconciliation of changes in equity
1 June
31 May
2021
2022
£
£
Adjustments to prior year
Adjustments for the recognition of lease premium as expense
-
(143,182)
Equity as previously reported
125,824
128,810
Equity as adjusted
125,824
(14,372)
Notes to reconciliation
Adjustment for the capitalisation of premium paid on operating lease
In 2013, the company paid £175,000 to be assigned a lease from which a group company operates. The cost was capitalised as investment property despite the lease being an operating lease, and therefore an adjustment has been posted to recognise the lease premium as leasehold land and buildings to be depreciated over the life of the lease.
11
Parent company
The company's immediate parent company is Electric Group Holdings Limited. These financial statements are consolidated in the financial statements of Electric Group Holdings Limited, which are available online from Companies House. The registered office of Electric Group Holdings Limited is Electric Brixton Town Hall Parade, Brixton Hill, London, United Kingdom, SW2 1RJ.
In the opinion of the Director, Jacob Lewis is the ultimate controlling party.
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