REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
CHARCROFT ELECTRONICS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
CHARCROFT ELECTRONICS LIMITED |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
CHARCROFT ELECTRONICS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditors |
31 High Street |
Haverhill |
Suffolk |
CB9 8AD |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their strategic report for the year ended 31 January 2024. |
REVIEW OF BUSINESS |
The company's principal activity is the supply of electronic components to the aerospace, military, oil & gas, railways, instrumentation and audio industries. |
The company saw a 4.5% increase in revenue during the year and the statement of financial position remained strong with net assets of £6,378,847 (2023: £6,019,391). |
The company had a strong order book at the end of the year providing a good foundation for the coming year's trading. |
As a consequence of the strong order book and increase in business the company's stocks and debtors have increased causing pressure on the company's cash flow. However this has been managed well and we have arranged bank finance to cover the occasional requirement for overdraft finance. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company holds or issues financial instruments to finance its operations. Operations, working capital and fixed assets are all financed out of retained earnings. Various financial instruments such as trade receivables and trade payables arise directly from the company's operations. The company does not enter in to any hedging arrangements. |
The company is exposed to credit risk from credit sales which it manages by operating sound credit control policies and monitoring of all major customers. It also has exposure to the risk of stock losses. These are managed by ensuring that customers underwrite large stockholdings and keeping speculative purchases to a minimum. |
At the statement of financial position date there were no significant concentrations of credit risk and the risk of obsolete stock had been written off through the profit and loss account as a result of our stock valuation policies. |
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position. |
The company undertakes transactions in a limited number of foreign currencies and is therefore exposed to foreign exchange risk. To manage this risk the company maintains foreign currency bank accounts and tries to ensure that foreign currency sales are matched to foreign currency purchases. |
The directors carefully monitor liquidity and cash flow on a regular basis. |
FUTURE DEVELOPMENTS |
The directors expect a revenue to grow moderately over the next year as the company consolidates it recent gains. |
Our order intake since the year end has been strong but customers appear to be ordering over longer periods to secure products as manufacturing lead times increase. We believe that our stocks will increase slightly but should be financed from profits. |
The directors as always, are actively looking at other ways in which to grow the business. |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
KEY PERFORMANCE INDICATORS (KPI'S) |
The company employs several financial KPI's which it uses to monitor and control the business. These are split between the financial performance KPI's of margin and staff costs against gross profit and the financial position KPIs of inventory turnover days and receivables days. |
2024 | 2023 |
£ | £ |
Revenue | 15,325,446 | 14,667,723 |
Gross profit | 5,729,831 | 4,764,090 |
Gross profit (%) | 37% | 32% |
Staff Costs | 3,085,933 | 2,681,584 |
Staff Costs (% of gross profit) | 54% | 56% |
Inventory Turnover (days) | 170 | 180 |
Receivables (days) | 69 | 61 |
ON BEHALF OF THE BOARD: |
23 October 2024 |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their report with the financial statements of the company for the year ended 31 January 2024. |
DIVIDENDS |
Dividends of £745,560 were paid during the year. |
The directors recommend that no further dividends be paid in respect of the year. |
DIRECTORS |
The directors during the year under review were: |
The beneficial interests of the directors holding office on 31 January 2024 in the issued share capital of the company were as follows: |
31.1.24 | 1.2.23 |
Ordinary Shares 10p shares |
5,970 | 5,970 |
400 | 400 |
100 | 100 |
100 | 100 |
1,275 | 1,275 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently; |
- | make judgements 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
AUDITORS |
The auditors Hackett Griffey LLP will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARCROFT ELECTRONICS LIMITED |
Opinion |
We have audited the financial statements of Charcroft Electronics Limited (the 'company') for the year ended 31 January 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 January 2024 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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. |
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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARCROFT ELECTRONICS LIMITED |
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 Report of the Directors. |
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 Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARCROFT ELECTRONICS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether 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. |
As part of an audit in accordance with ISA's (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- | Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. |
- | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
Irregularities, including fraud, are instances on 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 irregularaties, including fraud is detailed below: |
Our audit was designed, after obtaining suitable knowledge and understanding of the company and the industry that it operates within, to include tests of detail together with an assessment of the control environment, to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition and areas where there is a risk of management override of systems and controls, and accounting estimates. |
We also obtained an understanding of the legal and regulatory framework that the company operates in, through discussions with the directors and other management, and from our own knowledge and experience of the sector. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- | obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with that legal and regulatory framework; |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARCROFT ELECTRONICS LIMITED |
- | enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known, actual, suspected or alleged instances of fraud; |
- | discussed matters about non-compliance with laws or regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the company's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
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 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 Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants |
& Statutory Auditors |
31 High Street |
Haverhill |
Suffolk |
CB9 8AD |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,476,935 | 1,275,533 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
BALANCE SHEET |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Purchase of own shares | (8 | ) | (49,600 | ) | 8 | (49,600 | ) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2024 |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Purchase of own shares | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
483,428 |
1,742,194 |
Cash and cash equivalents at end of year | 2 |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Finance costs | 14,559 | 16,520 |
Finance income | (7,993 | ) | (5,152 | ) |
1,614,041 | 1,401,774 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 411,329 | 713,133 |
Bank overdrafts | ( |
) | ( |
) |
102,895 | 483,428 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 713,133 | 1,742,194 |
Bank overdrafts | ( |
) |
483,428 | 1,742,194 |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank | 713,133 | (301,804 | ) | 411,329 |
Bank overdrafts | (229,705 | ) | (78,729 | ) | (308,434 | ) |
483,428 | ( |
) | 102,895 |
Debt |
Debts falling due within 1 year | (200,000 | ) | - | (200,000 | ) |
Debts falling due after 1 year | (283,333 | ) | 200,000 | (83,333 | ) |
(483,333 | ) | 200,000 | (283,333 | ) |
Total | 95 | (180,533 | ) | (180,438 | ) |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | STATUTORY INFORMATION |
Charcroft Electronics Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is the amount derived from ordinary activities, stated after trade discounts, other sales taxes and net of VAT. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of goods. |
Goodwill |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all cost of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. |
Stock lines that have not moved during the financial year are written down to nil value. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 4,498,889 | 1,254,520 |
4. | EMPLOYEES AND DIRECTORS |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The average number of persons employed by the company during the year, includingthe directors, amounted to: |
2024 | 2023 |
Sales & purchasing | 20 | 19 |
Administration & accounts | 12 | 12 |
Manufacturing & stores | 58 | 48 |
90 | 79 |
The aggregate payroll costs during the year were: |
2024 | 2023 |
£ | £ |
Wages & salaries | 2,460,203 | 2,165,390 |
Social security costs | 244,900 | 225,281 |
Other pension costs | 380,830 | 290,913 |
3,085,933 | 2,681,584 |
5. | DIRECTORS' REMUNERATION |
The directors aggregate remuneration in respect of qualifying services was: |
2024 | 2023 |
£ | £ |
Remuneration | 306,213 | 250,517 |
Company contributions in to pension schemes in respect of qualifying services | 150,047 | 54,699 |
456.260 | 305,216 |
The number of directors who accrued benefits under company pension plans was as follows: |
2024 | 2023 |
Number | Number |
Defined contribution plans | 4 | 5 |
Remuneration of the highest paid director in respect of qualifying services |
2024 | 2023 |
£ | £ |
Aggregate remuneration | 122,643 | 134,936 |
Company contributions to pension plans in respect of qualifying services | 70,596 | 14,787 |
193,239 | 149,723 |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
6. | OPERATING PROFIT |
Operating profit is stated after charging/crediting: |
2024 | 2023 |
£ | £ |
Amortisation of intangible assets | 15,448 | 20,598 |
Depreciation of tangible fixed assets | 132,295 | 110,483 |
Profit/loss on disposal of tangible assets | (2,644 | ) | 312 |
Cost of stocks recognised as an expense | 9, 595,615 | 9,903,633 |
Impairment of trade debtors | 47,914 | (31 | ) |
Foreign exchange differences | 56,801 | (125,703 | ) |
Fees payable for the audit of the financial statements | 9,000 | 10,250 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Interest on loans & overdrafts |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Excess of capital allowances over depreciation | ( |
) |
Tax on profit |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Amortisation disallowed | 3,712 | 3,914 |
Depreciation of freehold property | 1,620 | 1,105 |
Enhanced capital allowances (superdeduction) | (103 | ) | (4,501 | ) |
Change in rate of deferred tax in relation to timing differences at year end. | (352 | ) | 9,655 |
Total tax charge | 357,360 | 249,929 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary Shares shares of 10p each |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
AMORTISATION |
At 1 February 2023 |
Amortisation for year |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Short | and | Motor |
property | leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Included in cost of land and buildings is freehold land of £ 70,000 (2023 - £ 70,000 ) which is not depreciated. |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Taxation |
Social security and other taxes |
Other creditors |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Comparatives have been restated to reflect the bank loan repayable within one year. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 16) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Invoice financing | 308,434 | 229,705 |
Invoice financing is secured by a fixed and floating charge over the assets of the company. |
19. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Excess of capital allowances over depreciation | 37,671 | 40,227 |
CHARCROFT ELECTRONICS LIMITED (REGISTERED NUMBER: 01181853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
19. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 February 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 January 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary Shares | 10p | 912 | 912 |
21. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 6,018,479 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 January 2024 | 6,377,935 |
22. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £641,343 (2023 - £549,283) were paid to the directors . |
P G Newman |
Director |
The company occupies premises owned by P G Newman and was charged a rent of £38,005 during the year. |
Dilloways Limited |
A company in which L D Dilloway has a material interest. |
Fees to the value of £54,982 were charged to the company during the year. |