Company registration number 07939436 (England and Wales)
ELLIS PATENTS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
ELLIS PATENTS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr C J Calvert
Mr N R Foreman
Mr R M Lowish
Mr D Macfarlane
Mr M G Mullin
Mr R A Shaw
Mr J M Weaving
Mr E P Reid
(Appointed 2 November 2023)
Secretary
Mrs D Holmes
Company number
07939436
Registered office
High Street
Rillington
Malton
North Yorkshire
YO17 8LA
Auditor
BHP LLP
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
ELLIS PATENTS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
ELLIS PATENTS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 29 February 2024.

Review of the business

The principal activity of the Group is the design, manufacture, and marketing of cable fixings.

 

Whilst global uncertainties remain, and the number of competitors has increased, trading conditions for the Company have proved remarkably resilient throughout the year.

Principal risks and uncertainties

The Group operates in a competitive commercial environment which, by its nature, presents risks and uncertainties. However, there are strategies in place to maintain and grow market share globally, whilst geographical coverage and market-sector diversity ensure there is no overdependence on any territory or sector.

 

Principal risks also arise from financial aspects of doing business, in particular those related to financial instruments.

 

The Group’s principal financial instruments comprise cash, trade debtors and trade creditors, which stem direct from its operations. The Group does not enter into derivative transactions, and it is the Group’s policy that no trading in financial instruments be undertaken. The main risks arising from the Group’s financial instruments are commodity risk, credit risk and foreign-exchange risk.

 

Commodity risk

The Group mitigates risk by holding stock and through competitive procurement.

 

Credit risk

The Group trades with recognised, creditworthy third parties. Most trade debtors are insured, and trade-debtor balances are monitored on an ongoing basis. The Group’s exposure to bad debt is not considered to be significant.

 

Foreign exchange risk

As far as is practical, the Group continues to mitigate foreign-exchange risk by using forward exchange contracts.

Key performance indicators

The directors consider the key performance indicators to be sales, gross profit and cash.

Sales increased in the financial year by 6.1% following an increase of 22.4% in the previous year.

 

Gross profit (as a percentage of sales) has marginally reduced from 44.3% to 43.7%.

 

Cash levels have remained healthy throughout the year.

 

Given the straightforward nature of the Group’s operations, the Directors do not see value in a more in-depth review of its KPIs.


The Group’s balance sheet, as detailed on page 9 shows a satisfactory position, with shareholders’ funds amounting to £7,966,306 (2023: £7,736,329).

ELLIS PATENTS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Future developments

The group continues to develop new products, explore new market sectors and expand its global reach, and consequently the directors are confident about the future prospects of the company.

On behalf of the board

Mrs D Holmes
Secretary
28 November 2024
ELLIS PATENTS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the group is the design, manufacture and marketing of cable and pipe fixings.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,034,136. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C J Calvert
Mr N R Foreman
Mr R M Lowish
Mr D Macfarlane
Mr M G Mullin
Mr R A Shaw
Mr J M Weaving
Mr E P Reid
(Appointed 2 November 2023)
Auditor

BHP LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Research and development
The group  undertakes research and development activities to maintain competitive edge.  The group continues to
update and improve its existing products as well as developing new products and servces that can be taken to market.
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs D Holmes
Secretary
28 November 2024
ELLIS PATENTS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ELLIS PATENTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ELLIS PATENTS HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Ellis Patents Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

ELLIS PATENTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELLIS PATENTS HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment and likely future developments, including in relation t the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, design and perform audit procedures in responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risks of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management, those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the group through enquiry and inspection;

- Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rational of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias;

- Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.

ELLIS PATENTS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELLIS PATENTS HOLDINGS LIMITED
- 7 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Laura Masheder (Senior Statutory Auditor)
For and on behalf of BHP LLP
28 November 2024
Chartered Accountants
Statutory Auditor
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
ELLIS PATENTS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,759,010
9,200,095
Cost of sales
(5,489,850)
(5,127,376)
Gross profit
4,269,160
4,072,719
Distribution costs
(149,187)
(179,652)
Administrative expenses
(2,740,089)
(2,404,300)
Other operating income
67,100
13,550
Operating profit
4
1,446,984
1,502,317
Share of profits of associates
109,409
128,908
Interest receivable and similar income
8
27,287
13,174
Fair value gains and losses
9
(12,188)
100,000
Profit before taxation
1,571,492
1,744,399
Tax on profit
10
(351,813)
(281,977)
Profit for the financial year
1,219,679
1,462,422
Other comprehensive income
Revaluation of tangible fixed assets
-
0
(108,402)
Tax relating to other comprehensive income
-
0
77,436
Total comprehensive income for the year
1,219,679
1,431,456
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 14 to 34 form part of these financial statements.

ELLIS PATENTS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 9 -
29 February 2024
28 February 2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,319,599
3,375,508
Investment property
14
565,000
565,000
Investments
15
145,498
290,995
4,030,097
4,231,503
Current assets
Stocks
17
2,018,552
2,498,664
Debtors
18
2,067,739
1,837,752
Cash at bank and in hand
1,595,924
1,263,451
5,682,215
5,599,867
Creditors: amounts falling due within one year
19
(1,183,205)
(1,555,365)
Net current assets
4,499,010
4,044,502
Total assets less current liabilities
8,529,107
8,276,005
Creditors: amounts falling due after more than one year
20
(175,801)
(167,676)
Provisions for liabilities
Deferred tax liability
21
387,000
372,000
(387,000)
(372,000)
Net assets
7,966,306
7,736,329
Capital and reserves
Called up share capital
23
43,064
42,864
Share premium account
98,159
98,159
Revaluation reserve
523,932
523,932
Other reserves
504,329
460,095
Profit and loss reserves
6,796,822
6,611,279
Total equity
7,966,306
7,736,329

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
27 November 2024
Mr R A Shaw
Director
Company registration number 07939436 (England and Wales)
ELLIS PATENTS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 10 -
29 February 2024
28 February 2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
1
1
Investment property
14
2,083,328
2,021,500
Investments
15
425,385
444,602
2,508,714
2,466,103
Current assets
Cash at bank and in hand
486,492
417,364
Creditors: amounts falling due within one year
19
(138,490)
(103,225)
Net current assets
348,002
314,139
Total assets less current liabilities
2,856,716
2,780,242
Provisions for liabilities
Deferred tax liability
21
141,000
122,000
(141,000)
(122,000)
Net assets
2,715,716
2,658,242
Capital and reserves
Called up share capital
23
43,064
42,864
Share premium account
98,159
98,159
Other reserves
382,464
338,230
Profit and loss reserves
2,192,029
2,178,989
Total equity
2,715,716
2,658,242

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,047,176 (2023 - £819,070 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
27 November 2024
Mr R A Shaw
Director
Company registration number 07939436 (England and Wales)
ELLIS PATENTS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
Share capital
Share premium account
Revaluation reserve
Other reserves
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
As restated for the period ended 28 February 2023:
Balance at 1 March 2022
42,664
98,159
554,898
294,532
121,865
6,006,137
7,118,255
Year ended 28 February 2023:
Profit for the year
-
-
-
-
-
1,462,422
1,462,422
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
(108,402)
-
-
-
(108,402)
Tax relating to other comprehensive income
-
-
77,436
-
-
-
0
77,436
Total comprehensive income
-
-
(30,966)
-
-
1,462,422
1,431,456
Issue of share capital
23
200
-
0
-
-
-
-
200
Dividends
11
-
-
-
-
-
(857,280)
(857,280)
Credit to equity for equity settled share-based payments
-
-
-
43,698
-
-
43,698
Balance at 28 February 2023 as restated
42,864
98,159
523,932
338,230
121,865
6,611,279
7,736,329
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
-
-
-
1,219,679
1,219,679
Issue of share capital
23
200
-
0
-
-
-
-
200
Dividends
11
-
-
-
-
-
(1,034,136)
(1,034,136)
Credit to equity for equity settled share-based payments
-
-
-
44,234
-
-
44,234
Balance at 29 February 2024
43,064
98,159
523,932
382,464
121,865
6,796,822
7,966,306
ELLIS PATENTS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 28 February 2023:
Balance at 1 March 2022
42,664
98,159
294,532
2,217,199
2,652,554
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
-
819,070
819,070
Issue of share capital
23
200
-
0
-
-
200
Dividends
11
-
-
-
(857,280)
(857,280)
Credit to equity for equity settled share-based payments
-
-
43,698
-
43,698
Balance at 28 February 2023 as restated
42,864
98,159
338,230
2,178,989
2,658,242
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
-
1,047,176
1,047,176
Issue of share capital
23
200
-
0
-
-
200
Dividends
11
-
-
-
(1,034,136)
(1,034,136)
Credit to equity for equity settled share-based payments
-
-
44,234
-
44,234
Balance at 29 February 2024
43,064
98,159
382,464
2,192,029
2,715,716
ELLIS PATENTS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,863,397
1,145,656
Income taxes paid
(450,661)
(168,770)
Net cash inflow from operating activities
1,412,736
976,886
Investing activities
Purchase of tangible fixed assets
(316,132)
(298,424)
Proceeds from disposal of tangible fixed assets
-
2,021
Proceeds from disposal of associates
141,826
-
Receipts from associates
100,892
65,751
Interest received
27,287
13,174
Net cash used in investing activities
(46,127)
(217,478)
Financing activities
Dividends paid to equity shareholders
(1,034,136)
(1,000,680)
Net cash used in financing activities
(1,034,136)
(1,000,680)
Net increase/(decrease) in cash and cash equivalents
332,473
(241,272)
Cash and cash equivalents at beginning of year
1,263,451
1,504,723
Cash and cash equivalents at end of year
1,595,924
1,263,451
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Ellis Patents Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is High Street, Rillington, Malton, North Yorkshire, YO17 8LA.

 

The group consists of Ellis Patents Holdings Limited and its subsidiary.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The company has taken advantage of the exemption of the disclosure exemptions of section 33.1A of FRS102 which permit it not to present details of transactions with members of the group headed by Ellis Patents Holdings Limited where relevant group companies are all wholly-owned. Details of outstanding balances are given in the notes.

1.2
Business combinations

The group has applied the principles of merger accounting in consolidating the results. Merger accounting requires that the results of the group are presented as if the group has always been in its present form, and does not require a re-evaluation of fair values at the point of acquisition, Accordingly merger reserve has been created which represents the difference between the net assets of the group as at the date of its creation and the retained profits recognised by the group as at that date.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Ellis Patents Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 29 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the group, the group continues to trade profitably and is cash generative. Budgets and cashflows have been prepared using assumptions for customer demand and supply chain costs as well as expectations for legal and regulatory environmental impacts. These budgets and cashflows indicate continuing profitability and cash generation, consequently the directors believe on balance that they have sufficiently resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements. Accordingly these financial statements have been prepared on the going concern basis.

1.5
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.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets represent separable items of software purchased to facilitate non-production activities. These are amortised on a straight-line basis over 5 years, being their estimated useful life.

Amortisation 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:

Software
5 years straight line
Patents
Over the expected useful life of the development
1.8
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.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -

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:

Freehold buildings
50 years straight line
Plant and machinery
5 - 10 years straight line
Fixtures, fittings and equipment
10 years straight line
Tooling
10 years 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 recognised in the profit and loss account.

1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks are costed on an activity based costing model, with absorption of directly incurred overheads.

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.

1.13
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.

1.14
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group 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.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -
1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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.

 

The group operates a Senior Employee Bonus Scheme whereby a discretionary allocation of points is made each year by the shareholders, with the value of each point linked to the underlying share valuation of the Group. Members of the Scheme can only recognise the value after a vesting period, but after the vesting period those Members have the right to take settlement of the value in cash as at that date. At each balance sheet date the estimated present value of the Group's obligations under the Scheme is provided for as a liability, with the movement from the prior year's present value recognised as a movement in profit or loss.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Share-based payments

The fair value of equity-settled share based payments to employees is determined at the date of grant and is expensed on a straight-line basis over the vesting period based on the company’s estimate of shares or options that will eventually vest. Where the date of grant and issue of shares is on the same date, amounts are recognised as an immediate expense to the profit and loss account as measured by reference to the fair value of shares provided to recipients.

1.20
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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tooling expenditure

As part of its manufacturing process, the group incurs expenditure on creating its own tooling for use in the primary trade; this expenditure is capitalised as a fixed asset and depreciated over 10 years.

 

The cost is determined by reference to the direct time incurred on each tool item, with the cost per hour calculated using a total cost formula, updated on an annual basis. The useful life is determined using management's expectation of the period of use of each tool using their experience of the renewal period of similar tools.

Investment properties

The group and company hold investment properties at their fair value, which approximates to open market value of the property on an existing use basis. The group and company obtain professional valuations to determine these estimates, with the last professional valuation being obtained for the year ending 28 February 2023.

Senior Employee Bonus Scheme

The group operates a long-term bonus scheme for a number of its primary management personnel. This is calculated by a discretionary allocation of points each year under the control of its shareholders, with these points being multiplied by an estimated market value for the group, The total provision is shown in note 20.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
9,540,538
9,055,926
Sundry and scrap sales
91,311
35,493
Carriage income
127,161
108,676
9,759,010
9,200,095
2024
2023
£
£
Turnover analysed by geographical market
UK
6,372,154
5,835,521
Europe but excluding EU states
1,017,982
732,972
EU Member states
1,079,784
724,013
Rest of the World
1,289,090
1,907,589
9,759,010
9,200,095
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
30,847
26,407
Research and development costs
67,526
53,220
Depreciation of owned tangible fixed assets
372,041
371,926
Profit on disposal of tangible fixed assets
-
(2,021)
Share-based payments
44,434
43,898
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,000
2,650
Audit of the financial statements of the company's subsidiaries
14,650
13,300
17,650
15,950
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office and management
29
25
7
7
Manufacturing
47
43
-
-
Total
76
68
7
7

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,450,979
2,362,593
37,417
30,544
Social security costs
255,211
231,361
2,153
2,078
Pension costs
257,898
228,541
-
0
-
0
2,964,088
2,822,495
39,570
32,622
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
7
Directors' remuneration
2024
2023
as restated
£
£
Remuneration for qualifying services
479,304
474,689
Company pension contributions to defined contribution schemes
31,141
27,454
510,445
502,143
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
as restated
£
£
Remuneration for qualifying services
272,411
274,308
Company pension contributions to defined contribution schemes
31,141
27,454

The number of directors for whom retirement benefits were accruing under defined benefit schemes amounted to 1 (2023: 1).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
27,287
13,174
9
Fair value gains/(losses)
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Loss on financial assets held at fair value through profit or loss
(7,931)
-
Other gains/(losses)
Changes in the fair value of investment properties
-
100,000
Other gains and losses
(4,257)
-
(12,188)
100,000

Included in the above is £4,257 arising on the part-disposal of investment in Procab A.S., as explained in note 15, and a revaluation loss of £7,931 arising from the change of classification of the retained investment in Procab A.S. from an associate to an investment held at fair value through profit and loss.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
352,666
312,000
Adjustments in respect of prior periods
(15,853)
(69,023)
Total current tax
336,813
242,977
Deferred tax
Origination and reversal of timing differences
15,000
39,000
Total tax charge
351,813
281,977

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,571,492
1,744,399
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
384,858
331,436
Tax effect of expenses that are not deductible in determining taxable profit
507
8,341
Tax effect of income not taxable in determining taxable profit
(19,195)
118
Gains not taxable
9,768
-
0
Effect of change in corporation tax rate
847
-
Depreciation on assets not qualifying for tax allowances
51
404
Other permanent differences
(10,834)
-
0
Under/(over) provided in prior years
(15,853)
(69,023)
Deferred tax adjustments in respect of prior years
(1,584)
-
0
Movement in provisions
3,248
10,937
Capitalised revenue
-
0
(236)
Taxation charge
351,813
281,977

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
(77,436)
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Taxation
(Continued)
- 25 -

The UK corporation tax rate was 19% until 31 March 2023.

In the March 2021 Budget, a change to the future UK corporation tax rate was announced, indicating that the rate will increase to 25% from April 2023. Deferred tax balances at the reporting date are therefore measured at 25% (2023: 25%).

11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,034,136
857,280
Equity dividends paid on ordinary shares amounted to £24.00 (2023: £20.00) per share.
12
Intangible fixed assets
Group
Software
£
Cost
At 1 March 2023 and 29 February 2024
11,516
Amortisation and impairment
At 1 March 2023 and 29 February 2024
11,516
Carrying amount
At 29 February 2024
-
0
At 28 February 2023
-
0
Company
Patents
£
Cost
At 1 March 2023 and 29 February 2024
1
Amortisation and impairment
At 1 March 2023 and 29 February 2024
-
0
Carrying amount
At 29 February 2024
1
At 28 February 2023
1
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 26 -
13
Tangible fixed assets
Group
Freehold buildings
Plant and machinery
Fixtures, fittings and equipment
Tooling
Total
£
£
£
£
£
Cost or valuation
At 1 March 2023
2,021,500
2,654,735
290,805
3,533,568
8,500,608
Additions
61,828
140,175
24,723
89,406
316,132
At 29 February 2024
2,083,328
2,794,910
315,528
3,622,974
8,816,740
Depreciation and impairment
At 1 March 2023
-
0
2,050,801
199,490
2,874,809
5,125,100
Depreciation charged in the year
32,098
152,653
17,871
169,419
372,041
At 29 February 2024
32,098
2,203,454
217,361
3,044,228
5,497,141
Carrying amount
At 29 February 2024
2,051,230
591,456
98,167
578,746
3,319,599
At 28 February 2023
2,021,500
603,934
91,315
658,759
3,375,508
The company had no tangible fixed assets at 29 February 2024 or 28 February 2023.

Freehold land and buildings represents premises used by the subsidiary company Ellis Patents Limited under an operating lease arrangement, with the group electing to revalue these sites to fair value with any gains taken through other comprehensive income to the revaluation reserve. The investment property was revalued on 10 May 2023 by Lawrence Hannah Property and Construction Consultants on the basis of its open market value for continued use, which is believed by the directors to be equivalent to its fair value. The directors believe this valuation fairly presents the value at the balance sheet date.

 

The carrying value of land is:

 

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
831,500
831,500
-
0
-
0
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
13
Tangible fixed assets
(Continued)
- 27 -

If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2024
2023
£
£
Group
Cost
2,477,658
2,477,658
Accumulated depreciation
(522,093)
(493,188)
Carrying value
1,955,565
1,984,470
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 March 2023
565,000
2,021,500
Additions
-
61,828
At 29 February 2024
565,000
2,083,328

The investment property was revalued on 10 May 2023 by Lawrence Hannah Property and Construction Consultants on the basis of its open market value for continued use, which is believed by the directors to be equivalent to its fair value. The directors believe this valuation fairly presents the value at the balance sheet date,

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
266,689
266,689
2,477,658
2,477,658
Accumulated depreciation
(65,782)
(60,625)
(527,994)
(495,071)
Carrying amount
200,907
206,064
1,949,664
1,982,587

The carrying value of land within investment properties is:

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
142,000
142,000
831,500
831,500
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 28 -
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
40,129
40,129
Investments in associates
-
0
290,995
-
0
208,949
Unlisted investments
145,498
-
0
145,498
-
0
Other investments
-
0
-
0
239,758
195,524
145,498
290,995
425,385
444,602
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 March 2023
290,995
-
290,995
Additions
-
145,498
145,498
Amortisation of goodwill
(7,438)
-
(7,438)
Dividends received
(100,892)
-
(100,892)
Disposals
(182,665)
-
(182,665)
At 29 February 2024
-
145,498
145,498
Carrying amount
At 29 February 2024
-
145,498
145,498
At 28 February 2023
290,995
-
290,995

During the year the Group's investment in Procab A.S. was reduced to 10%, resulting in an investment being held. On reclassification this is shown in the above tables as a disposal and addition equal to the fair value of the portion retained in Procab A.S.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
15
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
Other investments
Other
Total
£
£
£
£
Cost or valuation
At 1 March 2023
249,078
-
195,524
444,602
Share based payments expensed in the subsidiary
-
-
44,234
44,234
Valuation changes
-
82,047
-
82,047
Amortisation of goodwill
(63,451)
63,451
-
-
Disposals
(145,498)
-
-
(145,498)
At 29 February 2024
40,129
145,498
239,758
425,385
Carrying amount
At 29 February 2024
40,129
145,498
239,758
425,385
At 28 February 2023
249,078
-
195,524
444,602
16
Subsidiaries

Details of the company's subsidiaries at 29 February 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Ellis Patents Limited
England and Wales
Manufacturing
Ordinary
100.00

The registered office of Ellis Patents Limited is the same as the registered office of Ellis Patents Holdings Limited.

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,318,973
1,398,755
-
-
Work in progress
61,129
434,918
-
-
Finished goods and goods for resale
638,450
664,991
-
0
-
0
2,018,552
2,498,664
-
-
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 30 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,892,841
1,733,746
-
0
-
0
Prepayments and accrued income
174,898
104,006
-
0
-
0
2,067,739
1,837,752
-
-
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
as restated
£
£
£
£
Trade creditors
465,067
409,525
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
20,652
12,450
Corporation tax payable
198,152
312,000
96,548
77,000
Other taxation and social security
252,622
177,975
-
-
Dividends payable
-
0
600
-
0
600
Accruals and deferred income
267,364
655,265
21,290
13,175
1,183,205
1,555,365
138,490
103,225
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
as restated
Notes
£
£
£
£
Senior employee bonus scheme
175,801
167,676
-
0
-
0

The long term creditor represents a provision for amounts due under the group's Senior Employee Bonus Scheme, as detailed in note 2 Amounts accrued which fall due within one year are included in note 19 in accruals and deferred income and amount to £80,174 (2023: £71,508).

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 31 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
400,000
395,000
Share based payments
(63,000)
(73,000)
Investment property
50,000
50,000
387,000
372,000
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
141,000
122,000
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
372,000
122,000
Charge to profit or loss
15,000
19,000
Liability at 29 February 2024
387,000
141,000

Deferred taxation balances are not expected to substantially unwind within 12 months.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
257,898
228,541

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 32 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary voting of £1 each
41,064
40,864
41,064
40,864
Ordinary non-voting of £1 each
2,000
2,000
2,000
2,000
43,064
42,864
43,064
42,864

Each ordinary share is entitled to one vote, and carries rights to any discretionary dividend payments but no rights to fixed income. Each share carries equal rights to any capital distributions made.

Each ordinary non-voting share carries equal rights to any capital distributions made.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
51,933
39,053
-
-
Between two and five years
22,640
51,930
-
-
74,573
90,983
-
-
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
5,430
-
-
-
ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 33 -
26
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
2024
2023
£
£
Group
Other related parties
629,412
594,540
Dividends
Dividends
2024
2023
£
£
Group
Other related parties
100,892
65,751
Company
Other related parties
100,892
65,751

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
120,491
76,726
27
Directors' transactions

Dividends totalling £401,664 (2023 - £316,656) were paid in the year in respect of shares held by the company's directors and, where relevant, their pension schemes.

28
Controlling party

The directors are of the opinion that there is no ultimate controlling party.

ELLIS PATENTS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 34 -
29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,219,679
1,462,422
Adjustments for:
Share of results of associates and joint ventures
(109,409)
(128,908)
Taxation charged
351,813
281,977
Investment income
(27,287)
(13,174)
Gain on disposal of tangible fixed assets
-
(2,021)
Fair value gain on investment properties
-
0
(100,000)
Depreciation and impairment of tangible fixed assets
372,041
371,926
Other gains and losses
12,188
-
Equity settled share based payment expense
44,434
43,898
Movements in working capital:
Decrease/(increase) in stocks
480,112
(378,135)
Increase in debtors
(229,987)
(223,332)
Decrease in creditors
(250,187)
(168,997)
Cash generated from operations
1,863,397
1,145,656
30
Analysis of changes in net funds - group
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
1,263,451
332,473
1,595,924

The company and group has no debt in this or the previous year.

31
Prior year adjustment
Company and group


The company and group balance sheet has been restated to present premiums arising on option and bonus shares as other reserves rather than share premium on the basis that these are not cash settled. The impact of this has been to create other reserves of £294,532 and reduce share premium by £294,532. There is no impact on the results, net assets or distributable profits.

 

The group balance sheet has been updated to present short term remuneration awards as creditors due within one year. The impact of this adjustment has been to increase current liabilities by £49,019 and to decrease net current assets and long term liabilities by £49,019. There is no impact to net assets or reserves. In addition directors remuneration and highest paid director were understated by £42,607 and have been restated accordingly.

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