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Company registration number: 07087247







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


ICON ELECTRONICS LIMITED






































img0af5.png                        

 


ICON ELECTRONICS LIMITED
 


 
COMPANY INFORMATION


Directors
Mr D Maloney 
Mr I Mclnnes 
Mrs J Mclnnes 




Company secretary
Mr A Ward



Registered number
07087247



Registered office
Unit 3-4 Mountbatten Business Park
Jackson Close

Portsmouth

Hampshire

PO6 1UR




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

3000a Parkway

Whiteley

Hampshire

PO15 7FX





 


ICON ELECTRONICS LIMITED
 



CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Statement of Income and Retained Earnings
8
Statement of Financial Position
9
Statement of Cash Flows
10
Analysis of Net Debt
11
Notes to the Financial Statements
12 - 25


 


ICON ELECTRONICS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The principal activity of the Company continued to be that of manufacturing and distribution of electronic components and assemblies.

Business review
 
The company reported a net profit before taxation for the year of £467,933 (2022 - £334,010) on sales for the year of £11,759,892 (2022 - £9,732,334).
UK electronic assembly has undergone major changes since the Covid-19 pandemic in 2020.  There have been world wide component shortages and the industry continues to adapt to the consequences of those shortages.  Major customers have repeatedly had to consider and reconsider the impacts of shortages and sometimes the consequences on pricing and their product ranges.  Icon Electronics Limited continues to adapt to its long term customer needs and notes the reciprocal commitment to it by its key customers.
At the year end, the directors consider the Company remains in a strong financial position with secured financial support and healthy Shareholders funds totalling £2,062,345 (2022 - £1,713,063).  

Principal risks and uncertainties
 
The impact of the pandemic on customers and suppliers continues to impact on material availability, lead times and pricing.  In a competitive market, the annual increases in minimum wage costs have to be managed.  As with most companies, the loss of a major customer would have a substantial impact on the Company but that impact could be mitigated to some extent with the structure of the company’s manufacturing capacity.  The directors consider that the company is well placed for the future and has the flexibility to respond positively to any challenge it may face. 

Financial key performance indicators
 
The directors consider the financial key performance indicators of the company to be summarised below:

Key performance indicators

2023
2022
        £
        £
Gross profit

2,640,210

2,216,104
 
Profit after tax

349,282

274,750
 
Net assets

2,062,345

1,713,063
 

Future developments
 
The company will continue to develop its close relationships with both its customer and supplier base.  The directors are pleased to note that it has strong financial support to be able to take the opportunities the company encounters for the long term. 
 


This report was approved by the board and signed on its behalf.



Mr A Ward
Secretary

Date: 17 October 2024

Page 1

 


ICON ELECTRONICS LIMITED
 


 
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' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £349,282 (2022 - £274,750).


Directors

The directors who served during the year were:

Mr D Maloney 
Mr I Mclnnes 
Mrs J Mclnnes 

Future developments

Please refer to the Strategic Report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 2

 


ICON ELECTRONICS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





Mr D Maloney
Director

Date: 17 October 2024

Page 3

 


ICON ELECTRONICS LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ICON ELECTRONICS LIMITED

Opinion


We have audited the financial statements of Icon Electronics Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
Other matters
The comparative figures disclosed in these financial statements are unaudited.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 4

 


ICON ELECTRONICS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ICON ELECTRONICS LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 2, 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.


Page 5

 


ICON ELECTRONICS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ICON ELECTRONICS LIMITED (CONTINUED)

Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety, general data protection regulation and copyright law. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to
management, those responsible for legal and compliance procedures. We corroborated our inquiries through our review of documentation.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:
o Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
o Understanding how those charged with governance considered and addressed the potential for override of controls
or other inappropriate influence over the financial reporting process;
o Challenging assumptions and judgments made by management in its significant accounting estimates; and
o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation
for fraud and identified the greatest potential for fraud in the following areas:
o Posting of unusual journals and complex transactions;
o Misappropriation of funds through fraudulent supplier ledger and payroll activity; and
o Manipulation of amounts subject to significant judgement or estimate.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 6

 


ICON ELECTRONICS LIMITED


img4a33.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ICON ELECTRONICS LIMITED (CONTINUED)

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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Galliers (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
3000a Parkway
Whiteley
Hampshire
PO15 7FX

24 October 2024
Page 7

 


ICON ELECTRONICS LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
Unaudited 2022
Note
£
£

  

Turnover
 3 
11,759,892
9,732,334

Cost of sales
  
(9,119,682)
(7,516,230)

Gross profit
  
2,640,210
2,216,104

Administrative expenses
  
(2,145,214)
(1,860,018)

Operating profit
 4 
494,996
356,086

Interest receivable and similar income
 8 
2,409
461

Interest payable and similar expenses
 9 
(29,472)
(22,537)

Profit before tax
  
467,933
334,010

Tax on profit
 10 
(118,651)
(59,260)

Profit after tax
  
349,282
274,750

  

  

Retained earnings at the beginning of the year
  
1,712,963
1,438,213

  
1,712,963
1,438,213

Profit for the year
  
349,282
274,750

Retained earnings at the end of the year
  
2,062,245
1,712,963
The notes on pages 12 to 25 form part of these financial statements.

Page 8

 


ICON ELECTRONICS LIMITED
REGISTERED NUMBER:07087247



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
Unaudited 2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
5
5

Tangible assets
 12 
426,252
496,530

  
426,257
496,535

Current assets
  

Stocks
 13 
2,729,063
2,749,915

Debtors: amounts falling due within one year
 14 
1,783,580
1,886,817

Cash at bank and in hand
  
228,815
180,233

  
4,741,458
4,816,965

Creditors: amounts falling due within one year
 15 
(2,880,121)
(3,238,205)

Net current assets
  
 
 
1,861,337
 
 
1,578,760

Total assets less current liabilities
  
2,287,594
2,075,295

Creditors: amounts falling due after more than one year
 16 
(176,758)
(307,133)

Provisions for liabilities
  

Deferred tax
 19 
(48,491)
(55,099)

  
 
 
(48,491)
 
 
(55,099)

Net assets
  
2,062,345
1,713,063


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account
 21 
2,062,245
1,712,963

  
2,062,345
1,713,063


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr D Maloney
Director

Date: 17 October 2024

The notes on pages 12 to 25 form part of these financial statements.

Page 9

 


ICON ELECTRONICS LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
Unaudited 2022
£
£

Cash flows from operating activities

Profit for the financial year
349,282
274,750

Adjustments for:

Depreciation of tangible assets
92,636
81,131

Loss on disposal of tangible assets
(250)
(1,250)

Interest paid
29,472
22,537

Interest received
(2,409)
(461)

Taxation charge
118,651
42,021

Decrease/(increase) in stocks
20,852
(633,407)

Decrease in debtors
103,237
116,114

(Decrease)/increase in creditors
(457,976)
359,458

Increase in provisions
-
17,239

Corporation tax (paid)
(42,022)
(20,070)

Net cash generated from operating activities

211,473
258,062


Cash flows from investing activities

Purchase of tangible fixed assets
(22,358)
(200,318)

Sale of tangible fixed assets
250
1,250

Interest received
2,409
461

HP interest paid
(11,516)
(8,634)

Net cash from investing activities

(31,215)
(207,241)

Cash flows from financing activities

Repayment of loans
(66,666)
(66,667)

Repayment of/new finance leases
(65,955)
63,041

Movements on invoice discounting
18,901
(33,122)

Interest paid
(17,956)
(13,903)

Net cash used in financing activities
(131,676)
(50,651)

Net increase in cash and cash equivalents
48,582
170

Cash and cash equivalents at beginning of year
180,233
180,063

Cash and cash equivalents at the end of year
228,815
180,233


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
228,815
180,233

228,815
180,233


The notes on pages 12 to 25 form part of these financial statements.

Page 10

 


ICON ELECTRONICS LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

180,233

48,582

228,815

Debt due after 1 year

(183,333)

72,221

(111,112)

Debt due within 1 year

(79,653)

7,305

(72,348)

Finance leases

(190,333)

65,955

(124,378)


(273,086)
194,063
(79,023)

The notes on pages 12 to 25 form part of these financial statements.

Page 11

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Icon Electronics Limited is a private limited company limited by shares, registered in England and Wales. The address of it's registered office, which is the same as it's principal place of business, is disclosed on the company information page.  

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 12

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income 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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
over lease term
Plant and machinery
-
10%
straight line
Motor vehicles
-
20%
straight line
Office equipment
-
20%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 16

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Turnover

An analysis of turnover by class of business is as follows:


2023
Unaudited 2022
£
£

Sale of goods
11,759,892
9,732,334

11,759,892
9,732,334


Analysis of turnover by country of destination:

2023
Unaudited 2022
£
£

United Kingdom
11,759,892
9,732,334

11,759,892
9,732,334



4.


Operating profit

The operating profit is stated after charging:

2023
Unaudited 2022
£
£

Exchange differences
(4,918)
12,309

Other operating lease rentals
199,708
203,079


5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
Unaudited 2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
20,750
-
Page 17

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
Unaudited 2022
£
£

Wages and salaries
2,053,010
1,826,901

Social security costs
180,856
161,858

Cost of defined contribution scheme
111,417
106,753

2,345,283
2,095,512


The average monthly number of employees, including the directors, during the year was as follows:


        2023
   Unaudited 2022
            No.
            No.







Admin employees
78
75


7.


Directors' remuneration

2023
Unaudited 2022
£
£

Directors' emoluments
78,000
78,000

Company contributions to defined contribution pension schemes
64,500
66,000

142,500
144,000


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


8.


Interest receivable

2023
Unaudited 2022
£
£


Other interest receivable
2,409
461

2,409
461

Page 18

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest payable and similar expenses

2023
Unaudited 2022
£
£


Bank interest payable
17,956
13,903

Finance leases and hire purchase contracts
11,516
8,634

29,472
22,537


10.


Taxation


2023
Unaudited 2022
£
£

Corporation tax


Current tax on profits for the year
125,259
59,260


125,259
59,260


Total current tax
125,259
59,260

Deferred tax


Origination and reversal of timing differences
(6,608)
-

Total deferred tax
(6,608)
-


Tax on profit
118,651
59,260
Page 19

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
Unaudited 2022
£
£


Profit on ordinary activities before tax
467,933
334,010


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
110,058
63,462

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
142
-

Capital allowances for year in excess of depreciation
8,841
(4,202)

Adjustments to tax charge in respect of prior periods
(390)
-

Total tax charge for the year
118,651
59,260


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
5



At 31 December 2023

5






Net book value



At 31 December 2023
5



At 31 December 2022
5



Page 20

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
46,976
976,362
104,021
80,541
1,207,900


Additions
7,330
13,087
-
1,941
22,358



At 31 December 2023

54,306
989,449
104,021
82,482
1,230,258



Depreciation


At 1 January 2023
9,396
581,411
68,307
52,256
711,370


Charge for the year on owned assets
3,132
66,584
10,012
12,908
92,636



At 31 December 2023

12,528
647,995
78,319
65,164
804,006



Net book value



At 31 December 2023
41,778
341,454
25,702
17,318
426,252



At 31 December 2022
37,580
394,951
35,714
28,285
496,530




The net book value of land and buildings may be further analysed as follows:


2023
Unaudited 2022
£
£

Long leasehold
41,778
37,580

41,778
37,580


The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
Unaudited 2022
£
£



Plant and machinery
136,499
166,416

Motor vehicles
25,702
35,714

Office equipment
6,329
14,768

168,530
216,898

Page 21

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Stocks

2023
Unaudited 2022
£
£

Raw materials and consumables
466,214
532,700

Work in progress
1,675,699
1,782,798

Finished goods and goods for resale
587,150
434,417

2,729,063
2,749,915


Included within the Statement of Income and Retained Earnings is a stock provision charge of £363,610.


14.


Debtors

2023
Unaudited 2022
£
£


Trade debtors
1,682,817
1,802,516

Other debtors
47,378
43,237

Prepayments and accrued income
43,287
30,966

Tax recoverable
10,098
10,098

1,783,580
1,886,817



15.


Creditors: Amounts falling due within one year

2023
Unaudited 2022
£
£

Bank loans
72,222
66,667

Trade creditors
1,026,077
1,787,383

Corporation tax
125,353
42,116

Other taxation and social security
272,909
157,850

Obligations under finance lease and hire purchase contracts
58,732
66,532

Proceeds of factored debts
821,713
802,812

Other creditors
42,785
54,594

Accruals and deferred income
460,330
260,251

2,880,121
3,238,205


Bank loans totalling £72,222 (2022: £66,667) are secured by way of a fixed and floating charge over the assets of the company.

Page 22

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Creditors: Amounts falling due after more than one year

2023
Unaudited 2022
£
£

Bank loans
111,112
183,333

Net obligations under finance leases and hire purchase contracts
65,646
123,800

176,758
307,133


Bank loans totalling £111,112 (2022: £183,333) are secured by way of a fixed and floating charge over the assets of the company.


17.


Loans


Analysis of the maturity of loans is given below:


2023
Unaudited 2022
£
£

Amounts falling due within one year

Bank loans
72,222
66,667


72,222
66,667

Amounts falling due 1-2 years

Bank loans
111,112
183,333


111,112
183,333



183,334
250,000



18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
Unaudited 2022
£
£


Within one year
58,731
66,532

Between 1-5 years
65,645
123,800

124,376
190,332

Page 23

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Deferred taxation




2023


£






At beginning of year
55,099


Charged to profit or loss
6,608



At end of year
48,491

The provision for deferred taxation is made up as follows:

2023
Unaudited 2022
£
£


Accelerated capital allowances
48,491
55,099

48,491
55,099


20.


Share capital

2023
Unaudited 2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100

Each ordinary shares has equal voting and dividend rights.



21.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits or losses net of dividends paid and other adjustments.


22.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held seperatly from
those of the company in an independently administered fund. The pension cost charge represents contributions
payable by the company to the fund and amounted to £111,417 (2022 - £106,753). Contributions totalling £8,133 (2022 - £7,081) were payable to the fund at the statement of financial position date and are included in other creditors.

Page 24

 


ICON ELECTRONICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
Unaudited 2022
£
£


Not later than 1 year
217,761
213,602

Later than 1 year and not later than 5 years
224,677
394,009

Later than 5 years
-
41,889

442,438
649,500


24.


Related party transactions

During the year purchases were made from PCB Partners, a trading division of Wavelength Holdings Limited, a company under common control, of £347,857 (2022: £397,306) during the year. A balance of £112,790 (2022 - £212,736) was outstanding at the year end.
During the year purchases were made from Esprit Electronics Limited, a company under common control, of £1,839 (2022: £Nil) during the year. A balance of £474 (2022 - £Nil) was outstanding at the year end.
During the year purchases were made from KML Property Limited, a company controlled by one of the directors, of £57,139 (2022: £15,838) during the year. A balance of £1,500 (2022 - £1,500) was outstanding at the year end.
During the year management fees were paid to Wavelength Holdings Ltd, a company under common control, of £230,000 (2022: £120,000) during the year. A balance of £12,000 (2022 - £8,000) was outstanding at the year end.
 


25.


Controlling party

The directors consider the ultimate controlling party to be Iain McInnes by nature of his majority shareholding.

 
Page 25