Company Registration No. SC759014 (England and Wales)
Elite Tunnels Limited
Financial statements
for the period ended 30 June 2024
Pages for filing with the registrar
Elite Tunnels Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
Elite Tunnels Limited
Statement of financial position
As at 30 June 2024
1
2024
Notes
£
£
Fixed assets
Tangible assets
3
192,876
Current assets
Stocks
4
469,952
Debtors
5
990,971
Cash at bank and in hand
249,833
1,710,756
Creditors: amounts falling due within one year
6
(1,405,926)
Net current assets
304,830
Total assets less current liabilities
497,706
Provisions for liabilities
(48,219)
Net assets
449,487
Capital and reserves
Called up share capital
1
Profit and loss reserves
449,486
Total equity
449,487
The directors of the company have elected not to include a copy of the income statement 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 by the board of directors and authorised for issue on 4 November 2024 and are signed on its behalf by:
Philip Rossi
Director
Company Registration No. SC759014
Elite Tunnels Limited
Notes to the financial statements
For the period ended 30 June 2024
2
1
Accounting policies
Company information
Elite Tunnels Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Office, Arnhall Farm, United Kingdom, DD9 7UZ.
1.1
Reporting period
The company was incorporated on 15 February 2023. The accounting period has been extended to 30 June 2024 to align the period end with that of the parent group.
1.2
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.
1.3
Going concern
The Company meets its day-to-day working capital requirements through its cash in bank and balances with its parent company, Elite Tunnels PTY Limited. The parent company had pledged its continuing support for a minimum of 12 months from the date of issuing these financial statements. The directors have assessed the trading performance of the business and has a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. trueThus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The entity’s performance obligations in contracts with customers often stem from the delivery of goods and so obligations are deemed to be met and so revenue recognised upon sight of Bill of Lading in their transit and delivery to customer.
1.5
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.
Elite Tunnels Limited
Notes to the financial statements (continued)
For the period ended 30 June 2024
1
Accounting policies (continued)
3
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:
Plant and equipment
10% Straight Line
Fixtures and fittings
10% Straight Line
Motor vehicles
25% Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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 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 debtors, 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.
Elite Tunnels Limited
Notes to the financial statements (continued)
For the period ended 30 June 2024
1
Accounting policies (continued)
4
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
Elite Tunnels Limited
Notes to the financial statements (continued)
For the period ended 30 June 2024
1
Accounting policies (continued)
5
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
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
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
Number
Total
7
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 15 February 2023
Additions
216,689
Disposals
(1,291)
At 30 June 2024
215,398
Depreciation and impairment
At 15 February 2023
Depreciation charged in the period
22,764
Eliminated in respect of disposals
(242)
At 30 June 2024
22,522
Carrying amount
At 30 June 2024
192,876
Elite Tunnels Limited
Notes to the financial statements (continued)
For the period ended 30 June 2024
6
4
Stocks
2024
£
Work in progress
40,331
Finished goods and goods for resale
429,621
469,952
5
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
477,734
Other debtors
513,237
990,971
6
Creditors: amounts falling due within one year
2024
£
Trade creditors
360,586
Corporation tax
98,605
Other taxation and social security
5,332
Other creditors
941,403
1,405,926
7
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 qualified and the auditor reported as follows:
Elite Tunnels Limited
Notes to the financial statements (continued)
For the period ended 30 June 2024
7
Audit report information (continued)
7
We have audited the financial statements of Elite Tunnels Limited (the 'company') for the period ended 30 June 2024 which comprise , the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effect of the matter described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the period 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 qualified opinion
We were not appointed as auditors of the company until after 30 June 2024 and thus did not observe the counting of physical inventories at the end of the period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 30 June 2024, which are included in the balance sheet at £469,952, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Senior Statutory Auditor:
David Sedgwick
Statutory Auditors:
Saffery LLP
Date of audit report:
14 November 2024
8
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:
2024
£
42,500
9
Related party transactions
During the period the immediate parent, Elite Tunnels Pty Ltd, advanced £737,427 to the company. As at the year end the company owed Elite Tunnels Pty Ltd £731,585. The loan incurs interest at 8.4% and is deemed to be repayable on demand.
Elite Tunnels Limited
Notes to the financial statements (continued)
For the period ended 30 June 2024
8
10
Parent company
The immediate parent company of Elite Tunnels Limited is Elite Tunnels Pty Ltd.
The ultimate controlling party of Elite Tunnels Limited is Tapex Group Pty Ltd, a company incorporated in Australia, by virtue of its indirect shareholding within the company.