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REGISTERED NUMBER: 02489937 (England and Wales)












STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

FOR

SUMMIT SYSTEMS LIMITED

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 July 2024










Page

Company Information 1

Strategic Report 2

Directors' Report 3

Independent Auditors' Report 5

Statement of Income and Retained Earnings 7

Balance Sheet 8

Cash Flow Statement 9

Notes to the Cash Flow Statement 10

Notes to the Financial Statements 11


SUMMIT SYSTEMS LIMITED

COMPANY INFORMATION
for the year ended 31 July 2024







DIRECTORS: M C Jordan
I Lowe
M Ross
D Cavill
R J Last
P A Perry





SECRETARY: I Lowe





REGISTERED OFFICE: Unit F Tame Park
Vanguard Wilnecote
Tamworth
Staffordshire
B77 5DY





REGISTERED NUMBER: 02489937 (England and Wales)





AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

STRATEGIC REPORT
for the year ended 31 July 2024


The directors present their strategic report for the year ended 31 July 2024.

REVIEW OF BUSINESS
2023-24 saw a 6.2% drop in sales as we were impacted by market conditions. Summit Process Cooling delivered record sales, building on the technical and project capability added in the prior year. Summit Plastic Automation delivered a number of high profile projects in the year. Summit Dynamic Solutions was established, to allow us to offer our unique blend of customer focus and technical expertise to a wider range of industries.

Summit Systems continued its focus on employee engagement, developing management capability, upskilling and training in the year. This has been augmented by an overhaul of the IT infrastructure replacing existing systems with Hubspot, Solidworks and Solarvista. We will start to see the benefits from this investment in 24-25.

Core product range was strong in the year, with particular strength in packaging. The company continues to focus on strengthening our relationship with key customers and made the conscious decision to respect quoted prices and not pass on subsequent price increases.

PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which could have a material impact on the group's performance. The directors view the principal risks to be foreign currency, credit, supply chain disruption and economic uncertainty.

Foreign currency risk
Foreign currency exposure resulting from trade with customers and suppliers abroad is mitigated by a hedging policy adopted by the company.

Credit risk
Managing cashflow and credit risk is a priority of the company. All customers are subject to continuous credit checks to reduce exposure to bad debts and to maintain cashflow to support the working capital required for the operations within the business. Due to the volatility of the market we have added credit insurance across the business.

Supply chain disruption risk
The ability to deliver to our customers in a timely manner is a key priority for the business. We are working with our suppliers to give greater visibility to our requirements whilst reviewing the level of stock holding.

KEY PERFORMANCE INDICATORS
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and operating profit.

The group's turnover decreased to £16,959,218 from £18,081,755. Operating profit has decreased to £852,254 from £1,319,035 and a profit before tax has been made of £842,730 (2023 - £1,302,290).

POST BALANCE SHEET POSITION AND SUBSEQUENT EVENTS
The year started positively with trading results in the year to date exceeding the budget set by directors.

The directors have assessed the financial position of the company as well as the uncertainty surrounding the current economic turmoil as part of its considerations surrounding the company's reviewing adoption of the going concern basis of accounting. Following this review the directors are confident that the company has adequate resources and sample working capital within the business to continue operating for the foreseeable future.

ON BEHALF OF THE BOARD:





M C Jordan - Director


21 January 2025

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

DIRECTORS' REPORT
for the year ended 31 July 2024


The directors present their report with the financial statements of the company for the year ended 31 July 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the distribution of handling equipment for the plastics industry and the fabrication of associated components. Based on it's experience in the plastics industry the company also distributes ranges of recycling and cooling equipment.

DIVIDENDS
Interim dividends were paid amounting to £333,208 (2023 - £562,582). The directors recommend that no final dividend be paid.

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

M C Jordan
I Lowe
M Ross
D Cavill
R J Last

Other changes in directors holding office are as follows:

P A Perry was appointed as a director after 31 July 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Directors' 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;
-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.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

DIRECTORS' REPORT
for the year ended 31 July 2024


AUDITORS
The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M C Jordan - Director


21 January 2025

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SUMMIT SYSTEMS LIMITED


Opinion
We have audited the financial statements of Summit Systems Limited (the 'company') for the year ended 31 July 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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 Directors' Report.

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.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
SUMMIT SYSTEMS LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

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 an Auditors' 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:

Based on our understanding of the company and the industry, we have identified the principal risks of non-compliance with laws and regulations related to UK tax legislation and breaches with General Data Protection Regulation,, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included:

- Enquiries with management for consideration of known or suspected instances of non-compliance with laws and
regulations and fraud.
- Challenging assumptions made by management in their significant accounting estimates, in particular bad stock
provisions.
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations,
journal entries crediting revenue, journal entries crediting cash and journal entries with specific defined
descriptions.

There are inherent limitations in the audit procedures describes above and the further removed non-compliant with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting in error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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




Paul Orton FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

21 January 2025

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

STATEMENT OF INCOME AND
RETAINED EARNINGS
for the year ended 31 July 2024

2024 2023
As restated
Notes £    £   

TURNOVER 4 16,959,218 18,081,755

Cost of sales (12,546,070 ) (13,390,104 )
GROSS PROFIT 4,413,148 4,691,651

Administrative expenses (3,618,418 ) (3,430,699 )
794,730 1,260,952

Other operating income 5 57,524 58,083
OPERATING PROFIT 7 852,254 1,319,035

Interest receivable and similar income 8 13,393 4,353
865,647 1,323,388

Interest payable and similar expenses 9 (22,917 ) (21,098 )
PROFIT BEFORE TAXATION 842,730 1,302,290

Tax on profit 10 (164,712 ) (282,500 )
PROFIT FOR THE FINANCIAL YEAR 678,018 1,019,790

Retained earnings at beginning of year 3,188,976 2,731,768

Dividends 11 (333,208 ) (562,582 )

RETAINED EARNINGS AT END OF YEAR 3,533,786 3,188,976

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

BALANCE SHEET
31 July 2024

2024 2023
As restated
Notes £    £   
FIXED ASSETS
Tangible assets 13 397,280 365,382
Investments 14 150 100
397,430 365,482

CURRENT ASSETS
Stocks 15 2,275,333 2,420,979
Debtors 16 4,239,377 4,257,602
Investments 17 - 19,569
Cash in hand 1,675,818 1,044,142
8,190,528 7,742,292
CREDITORS
Amounts falling due within one year 18 (4,688,095 ) (4,582,000 )
NET CURRENT ASSETS 3,502,433 3,160,292
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,899,863

3,525,774

CREDITORS
Amounts falling due after more than one
year

19

(55,235

)

(47,154

)

PROVISIONS FOR LIABILITIES 22 (289,787 ) (268,589 )
NET ASSETS 3,554,841 3,210,031

CAPITAL AND RESERVES
Called up share capital 23 21,055 21,055
Retained earnings 24 3,533,786 3,188,976
SHAREHOLDERS' FUNDS 3,554,841 3,210,031

The financial statements were approved by the Board of Directors and authorised for issue on 21 January 2025 and were signed on its behalf by:





M C Jordan - Director


SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

CASH FLOW STATEMENT
for the year ended 31 July 2024

2024 2023
As restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,508,500 746,408
Interest paid (16,820 ) (12,252 )
Interest element of hire purchase and
finance lease rental payments paid

(6,097

)

(8,846

)
Tax paid/repaid (471,909 ) 3,509
Net cash from operating activities 1,013,674 728,819

Cash flows from investing activities
Purchase of tangible fixed assets (152,543 ) (160,615 )
Sale of tangible fixed assets 102,251 71,583
Interest received 13,393 4,353
Net cash from investing activities (36,899 ) (84,679 )

Cash flows from financing activities
Hire purchase repayments in year (48,544 ) (63,508 )
Amount introduced by directors 36,653 -
Amount withdrawn by directors - (2,501 )
Equity dividends paid (333,208 ) (562,582 )
Net cash from financing activities (345,099 ) (628,591 )

Increase in cash and cash equivalents 631,676 15,549
Cash and cash equivalents at beginning
of year

2

1,044,142

1,028,593

Cash and cash equivalents at end of year 2 1,675,818 1,044,142

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 31 July 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
As restated
£    £   
Profit before taxation 842,730 1,302,290
Depreciation charges 154,390 225,238
Profit on disposal of fixed assets (55,737 ) (39,578 )
Finance costs 22,917 21,098
Finance income (13,393 ) (4,353 )
950,907 1,504,695
Decrease/(increase) in stocks 145,646 (1,000,972 )
Decrease in trade and other debtors 53,831 685,169
Increase/(decrease) in trade and other creditors 358,116 (442,484 )
Cash generated from operations 1,508,500 746,408

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2024
31/7/24 1/8/23
£    £   
Cash and cash equivalents 1,675,818 1,044,142
Year ended 31 July 2023
31/7/23 1/8/22
As restated
£    £   
Cash and cash equivalents 1,044,142 1,028,593


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/23 Cash flow At 31/7/24
£    £    £   
Net cash
Cash at bank and in hand 1,044,142 631,676 1,675,818
1,044,142 631,676 1,675,818

Liquid resources
Current asset investments 19,569 (19,569 ) -
19,569 (19,569 ) -
Debt
Hire purchase and finance leases (64,082 ) (31,715 ) (95,797 )
(64,082 ) (31,715 ) (95,797 )
Total 999,629 580,392 1,580,021

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 July 2024


1. STATUTORY INFORMATION

Summit Systems Limited is a private limited company, limited by shares, registered in England and Wales. The company's registered number is 02598183 and the registered office address is Unit F, Tame Park Vanguard, Wilnecote, Tamworth, Staffordshire, B77 5DY.

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 statement 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.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover
Turnover is measured as the fair value of the consideration received or receivable, excluding discounts,
rebates, value added tax and other sales taxes.

Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.

Rendering of goods
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 there with and the costs incurred in respect of the transaction can be measured reliably.

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.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows;

Plant and computer equipment - 10% - 33% straight line
Fixtures and fittings - 10% - 25% straight line
Motor vehicles - 25% straight line

Investments in subsidiaries
Investment in the subsidiary company is held at cost less accumulated impairment losses.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise of direct materials.

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.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


2. ACCOUNTING POLICIES - continued

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.

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.

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.

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.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.


SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


2. ACCOUNTING POLICIES - continued
Cash and cash equivalents
Cash at bank and in hand 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.

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.

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
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 are included in the profit and loss account for the period.

Government grants
Government grants are presented within deferred income on the Balance Sheet with recognition of income being in line with the annual depreciation charge of the associated capital asset.

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 the profit and loss account 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 income 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 lease asset are consumed.

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

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.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


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

(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment, and note 2 for the useful economic lives for each class of assets.

(ii) Stock provisioning
The principal activity of the company is that of distribution of handling equipment for the plastics industry and the fabrication of associated components. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around the anticipated saleability of the stock. See note 14 for the net of provisioning carrying amount of stock.

4. TURNOVER

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

An analysis of turnover by class of business is given below:

2024 2023
As restated
£    £   
Product sales 16,590,755 17,702,276
Rentals 368,463 379,479
16,959,218 18,081,755

An analysis of turnover by geographical market is given below:

2024 2023
As restated
£    £   
United Kingdom 16,874,076 17,906,314
Europe 85,142 56,929
Rest of the world - 118,512
16,959,218 18,081,755

5. OTHER OPERATING INCOME
2024 2023
As restated
£    £   
Rents received 57,524 58,083

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


6. EMPLOYEES AND DIRECTORS

2023
2024As restated
££
Wages and salaries 3,156,4882,753,754
Social security costs 361,189326,815
Other pension costs 283,155249,461
3,800,8323,330,030

The average number of employees during the year was as follows:
20242023
££

External sales104
Service1614
Technical86
Operations79
Administration95
Marketing22
Internal sales53
Fabrications45
Chilled-11
Recyclate32
Directors55
Warehouse51
7467

2024 2023
As restated
£    £   
Directors' remuneration 418,135 456,063
Directors' pension contributions to money purchase schemes 40,716 37,046

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
2024 2023
As restated
£    £   
Emoluments etc 188,845 167,906
Pension contributions to money purchase schemes 8,000 18,450

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


7. OPERATING PROFIT

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

2024 2023
As restated
£    £   
Hire of plant and machinery 99,766 46,771
Other operating leases 207,584 192,678
Depreciation - owned assets 133,702 198,925
Depreciation - assets on hire purchase contracts and finance leases 20,688 26,313
Profit on disposal of fixed assets (55,737 ) (39,578 )
Auditors' remuneration 20,000 20,500
Foreign exchange (gain)/loss 95,074 93,185

8. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
As restated
£    £   
Interest received 13,393 4,353

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
As restated
£    £   
Non bank interest on loans 16,820 12,252
Hire purchase interest payable 6,097 8,846
22,917 21,098

10. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
As restated
£    £   
Current tax:
UK corporation tax 210,037 291,909
Adjustment to prior years (58,525 ) (3,509 )
Total current tax 151,512 288,400

Deferred tax 13,200 (5,900 )
Tax on profit 164,712 282,500

UK corporation tax has been charged at 25% (2023 - 21%).

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


10. TAXATION - continued

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

2024 2023
As restated
£    £   
Profit before tax 842,730 1,302,290
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21%)

210,683

273,481

Effects of:
Expenses not deductible for tax purposes 12,280 25,376
Income not taxable for tax purposes - (9,664 )
Capital allowances in excess of depreciation (12,926 ) -
Depreciation in excess of capital allowances - 9,811
Utilisation of tax losses - (7,095 )
Adjustments to tax charge in respect of previous periods (58,525 ) (3,509 )
Movement in deferred tax 13,200 (5,900 )
Total tax charge 164,712 282,500

11. DIVIDENDS
2024 2023
As restated
£    £   
Ordinary shares of £1 each
Interim 333,208 562,582

12. PRIOR YEAR ADJUSTMENT

Reclassification adjustments have been made to the comparative balance sheet as detailed in note 22.

13. TANGIBLE FIXED ASSETS
Plant and Fixtures
computer and Motor
equipment fittings vehicles Totals
£    £    £    £   
COST
At 1 August 2023 608,400 334,576 655,384 1,598,360
Additions 198,130 34,672 - 232,802
Disposals - - (193,762 ) (193,762 )
At 31 July 2024 806,530 369,248 461,622 1,637,400
DEPRECIATION
At 1 August 2023 544,469 262,923 425,586 1,232,978
Charge for year 63,545 12,625 78,220 154,390
Eliminated on disposal - - (147,248 ) (147,248 )
At 31 July 2024 608,014 275,548 356,558 1,240,120
NET BOOK VALUE
At 31 July 2024 198,516 93,700 105,064 397,280
At 31 July 2023 63,931 71,653 229,798 365,382

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


13. TANGIBLE FIXED ASSETS - continued

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

20242023
££
Motor vehicles36.20567,206

Depreciation charge for the year in respect of leased assets20,68826,313

14. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 August 2023 100
Additions 50
At 31 July 2024 150
NET BOOK VALUE
At 31 July 2024 150
At 31 July 2023 100

15. STOCKS
2024 2023
As restated
£    £   
Finished goods 2,275,333 2,420,979

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
As restated
£    £   
Trade debtors 3,330,732 3,475,269
Other debtors 545,273 474,540
Amount due from group undertakings 30,000 53,191
Directors' loan accounts - 20,399
Tax 28,488 -
Prepayments and accrued income 304,884 234,203
4,239,377 4,257,602

17. CURRENT ASSET INVESTMENTS
2024 2023
As restated
£    £   
Other investments - 19,569

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
As restated
£    £   
Hire purchase contracts and finance leases (see note 20)
40,562

16,928
Trade creditors 2,174,735 1,687,592
Corporation tax - 291,909
Social security and other taxes 346,124 214,810
Other creditors 1,354,064 1,565,235
Amounts due to group undertakings 25,698 20,456
Directors' loan accounts 16,254 -
Accrued expenses 730,658 785,070
4,688,095 4,582,000

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
As restated
£    £   
Hire purchase contracts and finance leases (see note 20)
55,235

47,154

20. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023
2024 As restated
£ £

Net obligations repayable:
Within one year 11,377 16,928
Between one and five years 35,778 47,154
47,155 64,082

Hire purchase contracts represent rentals payable by the company for certain tangible fixed assets. The average lease term is 3 years.

Non-cancellable operating leases
2024 2023
As restated
£    £   
Within one year 431,798 273,689
Between one and five years 1,100,647 283,775
In more than five years 960,526 -
2,492,971 557,464

Operating lease payments represent rentals payable by the company for motor vehicles, equipment, land and buildings. Leases are negotiated for an average term of 1-5 years and rentals are fixed during this period.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


21. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
As restated
£    £   
Hire purchase contracts and finance leases 95,797 64,082

The hire purchase contracts are secured on the assets concerned.

22. PROVISIONS FOR LIABILITIES
2024 2023
As restated
£    £   
Deferred tax 32,400 19,200
Other provisions 257,387 249,389
289,787 268,589

Deferred Dilapidati
tax ons
£    £   
Balance at 1 August 2023
As previously reported 19,200 -
Prior year adjustment - 249,389
As restated 19,200 249,389
Charge to Statement of Comprehensive Income during year 13,200 7,998
Balance at 31 July 2024 32,400 257,387

It was determined during the year that a dilapidations provision of £257,387 included within accruals should be reclassified as a provision in the accounts. A corresponding entry of £249,389 has been recognised in the prior year to reflect this adjustment. This adjustment has no effect on the profit and loss account.

The movement in deferred tax for the following period, based on current rates and information, is an estimated release of £30,000. This primarily relates to the reversal of timing differences on capital allowances.

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
21,055 Ordinary £1 21,055 21,055

The 21,055 shares in issue are split as follows; 15,841 Ordinary A, 1,000 Ordinary B, 1,053 Ordinary C, 1,053 Ordinary D, 1,053 Ordinary E, 1,053 Ordinary F, 1 Ordinary G and 1 Ordinary H.

The Ordinary A - E shares have full rights in the company with respect to voting, dividends and distributions.

The Ordinary G - H shares have rights in the company with respect to dividends but are non-voting.

24. RESERVES

Retained earnings
Retained earnings represent accumulated comprehensive income for the year and prior periods less dividends paid.

SUMMIT SYSTEMS LIMITED (REGISTERED NUMBER: 02489937)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2024


25. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £283,156 (2023 - £249,461) were paid in the year in respect of the defined contribution scheme.

26. OTHER FINANCIAL COMMITMENTS

At the year end the company had a financial commitment to purchase forward exchange contracts of $400,000 and €700,000 which was the equivalent of £314,758 and £603,084 respectively.

27. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2024 and 31 July 2023:

2024 2023
As restated
£    £   
M C Jordan
Balance outstanding at start of year 20,399 17,898
Amounts advanced 27,826 171,142
Amounts repaid (64,479 ) (168,641 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (16,254 ) 20,399

Dividends totalling £41,400 (2023 - £156,599) were paid in the year in respect of shares held by the company's directors.

28. RELATED PARTY DISCLOSURES

During the year the company undertook transactions with the following related companies, all ultimately controlled by M C Jordan:

2024 2023
£ £
Sales to Summit Protech Limited 64,339 -
Amount due from Summit Protech Limited 30,000 30,000
Consultancy fees paid to Gusty Shore Limited 72,000 72,869
Amounts due to Gusty Shore Limited - (6,000 )


During the year, the company paid dividends of £291,808 (2023 - £405,983) to other shareholders excluding the directors.

Entities with control, joint control or significant influence over the entity
2024 2023
As restated
£    £   
Amount due from related party - 23,191

29. ULTIMATE CONTROLLING PARTY

The company is controlled by M C Jordan by virtue of his shareholding in the issued share capital of the company.