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USYSTEMS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2023






USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 12

Notes to the Financial Statements 13


USYSTEMS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: S Bailey
E Skelli-Levine
Y D Roullac





REGISTERED OFFICE: Systems House
235 Ampthill Road
Bedford
Bedfordshire
MK42 9QG





REGISTERED NUMBER: 04616025 (England and Wales)





AUDITORS: Forvis Mazars LLP
Registered Auditors
2 Chamberlain Square
Birmingham
B3 3AX

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

The directors present their strategic report for the year ended 31st December 2023.

REVIEW OF BUSINESS
During the financial year ending 31st December 2023 turnover increased by 35% compared to the prior year.

Operating profit performance of the company decreased from £1,026,545 in 2022 to £308,481 in 2023 due mainly to additional administrative expenses as a result of the company gearing up for planned increases in turnover from 2024 onwards.

The trading activity is well diversified and considered by the directors to be low risk.

The forecast for year ending 31st December 2024 is very positive in terms of sales and profitability, so long as there are no issues with supply chains and staffing levels.

PRINCIPAL RISKS AND UNCERTAINTIES

The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval.

The principal risks and uncertainties facing the company are:

Non-financial risks

Uncertainties within the UK and world economy are the main variable factor with regards to the ongoing operation of the group. In common with many organisations, the impact of wage inflation and skill shortages does create challenges in terms of staff recruitment. However, the company believes it offers competitive salaries and a good working environment which has resulted in continued low staff turnover.

Financial risks

The company's operations expose it to a variety of financial risks that include the effects of changes in price risk, credit risk and liquidity risk.

Price risk
The company is exposed to commodity price risk as a result of its operations - notably steel and energy prices. However, the size of the Legrand group enables the company to leverage its purchasing power to mitigate large fluctuations. The company also has an active policy in place to reduce the risk of price increases by spreading the procurement of key items across a number of suppliers where possible.

Credit risk
The principal financial assets of the business are trade debtors and the company has implemented policies that require credit checks on potential customers before sales are made. The company has a diverse range of customers with no great dependency on any one individual customer.

Liquidity risk
The company actively maintains an appropriate level of liquidity and borrowing facilities are available from group companies in the event of the company being in a negative liquid position.


USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

KEY PERFORMANCE INDICATORS
The company uses the following key performance indicators to monitor and assess performance:

Gross profit as a percentage of sales: 37.1% in the year ended 31 December 2023 and 35.5% in the year ended 31 December 2022.

Operating profit as a percentage of sales: 2.4% in the year ended 31 December 2023 and 10.9% in the year ended 31 December 2022. The main cause of this decrease is additional administrative costs as a result of the company gearing up for forecast additional sales going forward.


Net assets: Increased from £2,456,566 at 31 December 2022 to £2,622,169 at 31 December 2023.

FUTURE OUTLOOK
The company expects sales to continue to grow at a significant year on year rate as a result of additional focus on marketing and selling activity. The manufacturing facility is also being improved in order to be able to support the anticipated growth rate.

ON BEHALF OF THE BOARD:





S Bailey - Director


15th January 2025

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31st December 2023.

DIVIDENDS
No A share dividends will be distributed for the year ended 31st December 2023 (2022 £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

S Bailey
E Skelli-Levine
Y D Roullac

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law); including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' . Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
Due to the change of auditor at Legrand S.A., Mazars LLP have been appointed auditor of the company, in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





S Bailey - Director


15th January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
USYSTEMS LIMITED

Opinion
We have audited the financial statements of USystems Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
USYSTEMS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
USYSTEMS LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
- Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to, revenue recognition cut-off assertion and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
USYSTEMS LIMITED


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




Louis Burns (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
Registered Auditors
2 Chamberlain Square
Birmingham
B3 3AX

15th January 2025

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 12,738,211 9,403,622

Cost of sales 8,010,584 6,068,353
GROSS PROFIT 4,727,627 3,335,269

Distribution costs 622 15,335
Administrative expenses 4,432,695 2,296,929
4,433,317 2,312,264
294,310 1,023,005

Other operating income 14,171 3,540
OPERATING PROFIT 5 308,481 1,026,545

Interest receivable and similar income 2,520 -
311,001 1,026,545

Interest payable and similar expenses 6 90,927 23,785
PROFIT BEFORE TAXATION 220,074 1,002,760

Tax on profit 7 55,988 65,509
PROFIT FOR THE FINANCIAL YEAR 164,086 937,251

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

164,086

937,251

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 200,567 209,268

CURRENT ASSETS
Stocks 9 899,465 1,853,282
Debtors 10 6,509,263 4,494,908
Cash at bank and in hand 362,489 255,884
7,771,217 6,604,074
CREDITORS
Amounts falling due within one year 11 5,299,473 4,304,459
NET CURRENT ASSETS 2,471,744 2,299,615
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,672,311

2,508,883

CREDITORS
Amounts falling due after more than one
year

12

(1,517

)

-

PROVISIONS FOR LIABILITIES 15 (50,142 ) (52,317 )
NET ASSETS 2,620,652 2,456,566

CAPITAL AND RESERVES
Called up share capital 16 834,185 834,185
Share premium 17 (852 ) (852 )
Retained earnings 17 1,787,319 1,623,233
SHAREHOLDERS' FUNDS 2,620,652 2,456,566

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

BALANCE SHEET - continued
31ST DECEMBER 2023


The financial statements were approved by the Board of Directors and authorised for issue on 15th January 2025 and were signed on its behalf by:





S Bailey - Director


USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 834,185 685,982 (852 ) 1,519,315

Changes in equity
Total comprehensive income - 937,251 - 937,251
Balance at 31st December 2022 834,185 1,623,233 (852 ) 2,456,566

Changes in equity
Total comprehensive income - 164,086 - 164,086
Balance at 31st December 2023 834,185 1,787,319 (852 ) 2,620,652

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

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

1. STATUTORY INFORMATION

USystems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements have been prepared on a going concern basis. The Director has reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Director has concluded that the company can continue to adopt the going concern basis in preparing the annual report and accounts.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgement, 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.

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Revenue
Revenue is recognised when it is probable that future economic benefit will flow to the company and the revenue can be measured reliably. Revenue is measured at fair value of consideration received or receivable, excluding any discounts, rebates and value added tax. Listed below is the revenue recognition policy which must be met before revenue can be recognised:

Sale of equipment
Revenue from sale of equipment is recognised when risk and rewards have been transferred to the customer, this occurs upon dispatch of equipment. The company considers the effect of variable consideration where certain contracts require an upfront deposit which are treated as deferred income initially and recognised when risk and rewards have transferred to customer.

Interest income
Interest income, including income arising from finance leases and other financial instruments, is recognised
using the effective interest method.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 10% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Fixed assets are stated at cost less accumulated depreciation.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula.

Fixed and Variable production overheads have been allocated to the costs of conversion. For Fixed overheads this has been included on the basis of actual production expected, and for Variable overheads it has effectively been allocated to each unit of production on the basis of actual use of the production facilities.

Work in Progress and Finished goods values are evaluated using a method of absorption costing. An uplift is applied to the hourly labour time to account for general overheads.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Financial instruments
Basic financial liabilities, including trade and other payables, bank loans, loans from group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measures at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.


USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 3,982,573 2,579,600
Europe 3,275,478 624,141
United States of America 5,139,404 6,199,881
Rest Of The World 340,756 -
12,738,211 9,403,622

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,751,991 1,978,059
Social security costs 280,066 214,115
Other pension costs 49,137 42,987
3,081,194 2,235,161

The average number of employees during the year was as follows:
2023 2022

Directors 1 1
Management 6 2
Other 55 58
62 61

2023 2022
£    £   
Directors' remuneration 148,303 51,231
Directors' pension contributions to money purchase schemes - 2,000

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 43,525 37,940
Depreciation - assets on hire purchase contracts 472 13,505
Auditors' remuneration 29,000 29,900
Foreign exchange differences 211,344 (213,062 )
Stock provision increase 484,401 134,000
R & D expenses 7,086 13,926

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Barclays sales financing interest - 10,283
Other interest - 6,322
Interest payable to group
entities 85,698 -
Other loan interest - 7,180
Interest on late tax payment 5,138 -
Hire purchase interest 91 -
90,927 23,785

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 58,837 191,158
Prior period under/(over) provisions (674 ) (93,876 )
Research & development tax credit - (35,946 )
Total current tax 58,163 61,336

Deferred tax (2,175 ) 4,173
Tax on profit 55,988 65,509

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 220,074 1,002,760
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

55,019

190,524

Effects of:
Expenses not deductible for tax purposes 5,344 9,404
Depreciation in excess of capital allowances 2,175 7,966
Utilisation of tax losses - (17,411 )
Adjustments to tax charge in respect of previous periods (674 ) (129,147 )
Deferred tax (2,175 ) 4,173
Change of tax rate (3,701 ) -
Total tax charge 55,988 65,509

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1st January 2023 1,413,353 18,359 121,146 39,570 1,592,428
Additions 29,771 - - 5,525 35,296
Disposals - - (58,421 ) - (58,421 )
At 31st December 2023 1,443,124 18,359 62,725 45,095 1,569,303
DEPRECIATION
At 1st January 2023 1,220,093 17,388 120,524 25,155 1,383,160
Charge for year 34,643 971 622 7,761 43,997
Eliminated on disposal - - (58,421 ) - (58,421 )
At 31st December 2023 1,254,736 18,359 62,725 32,916 1,368,736
NET BOOK VALUE
At 31st December 2023 188,388 - - 12,179 200,567
At 31st December 2022 193,260 971 622 14,415 209,268

The net book value of tangible fixed assets includes £ 5,084 (2022 - £ 33,620 ) in respect of assets held under hire purchase contracts.

9. STOCKS
2023 2022
£    £   
Stocks 899,465 1,853,282

31/12/2331/12/22
£   £   
Raw materials746,8271,247,175
WIP45,18055,876
Finished goods725,859684,231
Provision(618,401)(134,000)
899.4651,853,282

The write down of stocks to net realisable value amounted to £618,401 (2022 : £134,000).

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,149,634 1,199,061
Doubtful debt provision (423,441 ) -
Amounts owed by group undertakings 2,976,907 2,966,088
Other debtors 7,291 17,481
VAT 309,821 134,224
Accrued income 450,369 -
Prepayments 38,682 178,054
6,509,263 4,494,908

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 13) 644 2,379
Trade creditors 837,002 909,493
Amounts owed to group undertakings 3,346,491 3,075,661
Corporation tax 218,612 155,212
Social security and other taxes 76,842 56,024
Other creditors 61,895 21,491
Company credit card 24,827 14,878
Accruals and deferred income 733,160 69,321
5,299,473 4,304,459

Amounts owed to group undertakings includes loan from group undertaking of £1,686,000 which is unsecured and repayable on demand. It bears interest at a rate of 5.608%.

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Other creditors 1,517 -

13. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 644 2,379

14. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 644 2,379

Hire purchase agreements are secured against the assets to which they relate.

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 50,142 52,317

USYSTEMS LIMITED (REGISTERED NUMBER: 04616025)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

15. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1st January 2023 52,317
Movement during the year (2,175 )
Balance at 31st December 2023 50,142

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
18,518 ORDINARY A £1 18,518 18,518
815,667 ORDINARY B £1 815,667 815,667
834,185 834,185

17. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 1,623,233 (852 ) 1,622,381
Profit for the year 164,086 164,086
At 31st December 2023 1,787,319 (852 ) 1,786,467

The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.

Retained earnings represents cumulative profits or losses, net of dividends paid and other adjustments.

18. PENSION COMMITMENTS

Employers pension contributions for the year were £49,137 (2022: £40,973).

19. CONTROLLING PARTY

The ultimate parent undertaking and controlling party is Legrand SA, a company incorporated in France.

Legrand SA is the parent undertaking of the largest and smallest group of undertakings to consolidate these financial statements at December 31, 2023. The consolidated financial statements of Legrand SA can be obtained from the company’s registered address at 128 Avenue Du Maréchal De Lattre De Tassigny, 87045, Limoges, France.

The immediate parent company is 18MC Global Limited, a company incorporated in England & Wales.