Company registration number 07352591 (England and Wales)
THE TESTING LAB PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 SEPTEMBER 2024
THE TESTING LAB PLC
COMPANY INFORMATION
Directors
Mr S A Swinbourne
Mr P J F Thomas
Mr M Beastall
Ms K G Branston
Mr R W Brown
Mr M J Lister
Mr D L Paddison
Ms M Summers
Mr D Thomas
Mr L B Towill
Secretary
Mr M Appleyard
Company number
07352591
Registered office
Unit 2, James Road Industrial Estate
Adwick-Le-Street
Doncaster
South Yorkshire
DN6 7HH
Auditor
Henton & Co LLP
Northgate
118 North Street
Leeds
England
LS2 7PN
THE TESTING LAB PLC
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 18
THE TESTING LAB PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 29 September 2024.
Principal activity
The principal activity of The Testing Lab PLC is on Testing, Inspection, Certification and compliance (“TICC”) sector activities.
Review of the business
Upon inception The Testing Lab PLC mainly operated within the field of asbestos. Surveying, bulk identification and air testing remain one of the main strengths however, TTL PLC is committed to innovation and operational excellence and continue to invest in its active role within the mergers and acquisitions market within the TICC market.
The consolidation year of 2023 has led to a further 3 mergers within 2024 and TTL aims to become the largest independent testing facility within the UK.
By continuous inward investment and training along with outstanding results TTL is meeting its goals. This continuous investment can be seen in the additions to fixed assets of £568,415.
The main key performance indicators the company regularly uses are the movement in turnover, which this year has increased by 34.6% and gross profit margin, which has increased by 7.6%.
Mr P J F Thomas
Director
20 December 2024
THE TESTING LAB PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 29 September 2024.
Principal activities
The principal activity of the company continued to be that of environmental consulting activities.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S A Swinbourne
Mr P J F Thomas
Mr M Beastall
Ms K G Branston
Mr R W Brown
Mr M J Lister
Mr D L Paddison
Ms M Summers
Mr D Thomas
Mr L B Towill
Statement of directors' responsibilities
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 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; and
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 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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
THE TESTING LAB PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 3 -
On behalf of the board
Mr P J F Thomas
Director
20 December 2024
THE TESTING LAB PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THE TESTING LAB PLC
- 4 -
Opinion
We have audited the financial statements of The Testing Lab PLC (the 'company') for the year ended 29 September 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 29 September 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.
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 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THE TESTING LAB PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THE TESTING LAB PLC (CONTINUED)
- 5 -
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 and the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
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 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Reviewed the nature of the industry and sector, the control environment and business performance for the year.
Identifying the laws and regulations the company operates within and enquiring with management if they are aware of any non compliance issues.
Discussed how and where fraud may occur with all members of the audit engagement team.
In line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override. We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any bias, and assessed the rationale behind any significant or unusual transactions.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
THE TESTING LAB PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THE TESTING LAB PLC (CONTINUED)
- 6 -
Chris Howitt (Senior Statutory Auditor)
For and on behalf of Henton & Co LLP, Statutory Auditor
Chartered Accountants
Northgate
118 North Street
Leeds
England
LS2 7PN
20 December 2024
THE TESTING LAB PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 7 -
2024
2023
£
£
Turnover
7,940,207
5,191,862
Cost of sales
(3,317,616)
(2,562,777)
Gross profit
4,622,591
2,629,085
Administrative expenses
(1,868,528)
(1,627,840)
Operating profit
2,754,063
1,001,245
Interest payable and similar expenses
(77,942)
(39,986)
Profit before taxation
2,676,121
961,259
Tax on profit
(665,451)
(225,864)
Profit for the financial year
2,010,670
735,395
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE TESTING LAB PLC
BALANCE SHEET
AS AT
29 SEPTEMBER 2024
29 September 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,237,252
848,606
Investments
5
316,033
1,553,285
848,606
Current assets
Debtors
7
1,954,456
1,338,167
Cash at bank and in hand
2,008,710
435,138
3,963,166
1,773,305
Creditors: amounts falling due within one year
8
(1,444,390)
(818,591)
Net current assets
2,518,776
954,714
Total assets less current liabilities
4,072,061
1,803,320
Creditors: amounts falling due after more than one year
9
(771,300)
(440,073)
Provisions for liabilities
(282,997)
(169,153)
Net assets
3,017,764
1,194,094
Capital and reserves
Called up share capital
275,100
275,100
Profit and loss reserves
2,742,664
918,994
Total equity
3,017,764
1,194,094
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 20 December 2024 and are signed on its behalf by:
Mr P J F Thomas
Director
Company registration number 07352591 (England and Wales)
THE TESTING LAB PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 30 September 2022
275,100
183,599
458,699
Year ended 29 September 2023:
Profit and total comprehensive income
-
735,395
735,395
Balance at 29 September 2023
275,100
918,994
1,194,094
Year ended 29 September 2024:
Profit and total comprehensive income
-
2,010,670
2,010,670
Dividends
-
(187,000)
(187,000)
Balance at 29 September 2024
275,100
2,742,664
3,017,764
THE TESTING LAB PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
10
2,445,511
865,691
Interest paid
(77,942)
(39,986)
Income taxes paid
(138,883)
(17,416)
Net cash inflow from operating activities
2,228,686
808,289
Investing activities
Purchase of tangible fixed assets
(568,415)
(473,643)
Proceeds from disposal of investments
(316,033)
Net cash used in investing activities
(884,448)
(473,643)
Financing activities
Repayment of bank loans
(5,555)
(389,470)
Payment of finance leases obligations
421,889
348,210
Dividends paid
(187,000)
Net cash generated from/(used in) financing activities
229,334
(41,260)
Net increase in cash and cash equivalents
1,573,572
293,386
Cash and cash equivalents at beginning of year
435,138
141,752
Cash and cash equivalents at end of year
2,008,710
435,138
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information
The Testing Lab PLC is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, James Road Industrial Estate, Adwick-Le-Street, Doncaster, South Yorkshire, DN6 7HH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
10% straight line
Plant and equipment
10% straight line
Computer equipment
10% straight line
Motor vehicles
20% 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.
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. 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 company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. 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.
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.
1.6
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.
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 company 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 company after deducting all of its liabilities.
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
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 company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the 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.
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 16 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
86
83
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 30 September 2023
142,928
674,094
185,500
223,439
1,225,961
Additions
540,857
27,558
568,415
At 29 September 2024
142,928
1,214,951
185,500
250,997
1,794,376
Depreciation and impairment
At 30 September 2023
27,533
124,083
106,371
119,368
377,355
Depreciation charged in the year
14,293
114,727
18,550
32,199
179,769
At 29 September 2024
41,826
238,810
124,921
151,567
557,124
Carrying amount
At 29 September 2024
101,102
976,141
60,579
99,430
1,237,252
At 29 September 2023
115,395
550,011
79,129
104,071
848,606
5
Fixed asset investments
2024
2023
£
£
Other investments other than loans
316,033
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
5
Fixed asset investments
(Continued)
- 17 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 30 September 2023
-
Additions
316,033
At 29 September 2024
316,033
Carrying amount
At 29 September 2024
316,033
At 29 September 2023
-
6
Subsidiaries
Details of the company's subsidiaries at 29 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
U K Analytical Limited
Endon House 127 Barugh Lane, Barugh Green, Barnsley, S75 1LJ
Ordinary
100.00
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,847,193
1,260,593
Other debtors
107,263
77,574
1,954,456
1,338,167
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
6,372
6,600
Trade creditors
212,025
73,016
Taxation and social security
952,260
599,055
Other creditors
273,733
139,920
1,444,390
818,591
Creditors include loans and net obligations under finance lease and hire purchase contracts which are secured of £192,118 (2023 : £106,783).
THE TESTING LAB PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 SEPTEMBER 2024
- 18 -
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
25,110
30,437
Other creditors
746,190
409,636
771,300
440,073
Creditors include loans and net obligations under finance lease and hire purchase contracts which are secured of £678,512 (2023 : £409,636).
10
Cash generated from operations
2024
2023
£
£
Profit after taxation
2,010,670
735,395
Adjustments for:
Taxation charged
665,451
225,864
Finance costs
77,942
39,986
Depreciation and impairment of tangible fixed assets
179,769
135,940
Movements in working capital:
Increase in debtors
(616,289)
(425,528)
Increase in creditors
127,968
154,034
Cash generated from operations
2,445,511
865,691
11
Analysis of changes in net funds/(debt)
30 September 2023
Cash flows
29 September 2024
£
£
£
Cash at bank and in hand
435,138
1,573,572
2,008,710
Borrowings excluding overdrafts
(37,037)
5,555
(31,482)
Obligations under finance leases
(516,419)
(421,889)
(938,308)
(118,318)
1,157,238
1,038,920
2024-09-292023-09-30falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310Mr S A SwinbourneMr P J F ThomasMr M BeastallMs K G BranstonMr R W BrownMr M J ListerMr D L PaddisonMs M SummersMr D ThomasMr L B TowillMr M Appleyard073525912023-09-302024-09-2907352591bus:Director12023-09-302024-09-2907352591bus:Director22023-09-302024-09-2907352591bus:Director32023-09-302024-09-2907352591bus:Director42023-09-302024-09-2907352591bus:Director52023-09-302024-09-2907352591bus:Director62023-09-302024-09-2907352591bus:Director72023-09-302024-09-2907352591bus:Director82023-09-302024-09-2907352591bus:Director92023-09-302024-09-2907352591bus:Director102023-09-302024-09-2907352591bus:CompanySecretary12023-09-302024-09-2907352591bus:RegisteredOffice2023-09-302024-09-29073525912024-09-29073525912022-09-302023-09-2907352591core:RetainedEarningsAccumulatedLosses2022-09-302023-09-2907352591core:RetainedEarningsAccumulatedLosses2023-09-302024-09-29073525912023-09-2907352591core:LandBuildingscore:OwnedOrFreeholdAssets2024-09-2907352591core:PlantMachinery2024-09-2907352591core:ComputerEquipment2024-09-2907352591core:MotorVehicles2024-09-2907352591core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-2907352591core:PlantMachinery2023-09-2907352591core:ComputerEquipment2023-09-2907352591core:MotorVehicles2023-09-2907352591core:CurrentFinancialInstrumentscore:WithinOneYear2024-09-2907352591core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-2907352591core:Non-currentFinancialInstrumentscore:AfterOneYear2024-09-2907352591core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-2907352591core:CurrentFinancialInstruments2024-09-2907352591core:CurrentFinancialInstruments2023-09-2907352591core:Non-currentFinancialInstruments2024-09-2907352591core:Non-currentFinancialInstruments2023-09-2907352591core:ShareCapital2024-09-2907352591core:ShareCapital2023-09-2907352591core:RetainedEarningsAccumulatedLosses2024-09-2907352591core:RetainedEarningsAccumulatedLosses2023-09-2907352591core:ShareCapital2022-09-2907352591core:RetainedEarningsAccumulatedLosses2022-09-290735259112023-09-302024-09-290735259112022-09-302023-09-29073525912023-09-29073525912022-09-2907352591core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-302024-09-2907352591core:PlantMachinery2023-09-302024-09-2907352591core:ComputerEquipment2023-09-302024-09-2907352591core:MotorVehicles2023-09-302024-09-2907352591core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-2907352591core:PlantMachinery2023-09-2907352591core:ComputerEquipment2023-09-2907352591core:MotorVehicles2023-09-2907352591core:WithinOneYear2024-09-2907352591core:WithinOneYear2023-09-2907352591bus:PrivateLimitedCompanyLtd2023-09-302024-09-2907352591bus:FRS1022023-09-302024-09-2907352591bus:Audited2023-09-302024-09-2907352591bus:FullAccounts2023-09-302024-09-29xbrli:purexbrli:sharesiso4217:GBP