Company registration number 02685144 (England and Wales)
SOUTHGATE LIGHTING LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
SOUTHGATE LIGHTING LIMITED
COMPANY INFORMATION
Directors
Mr A Stuart
Mr G Stuart
Mrs S Stuart
Mr C Fisher
Secretary
Mrs S Stuart
Company number
02685144
Registered office
Southgate House
Moorland Road
Drighlington
Bradford
BD11 1JY
Auditor
Parsons Accountants Ltd
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
SOUTHGATE LIGHTING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 35
SOUTHGATE LIGHTING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

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

Review of the business

The Directors present the Strategic Report for the Group (compromising the parent company Southgate Lighting Limited and the subsidiary company Sondia Lighting Limited) for the year ended 31 January 2024.

 

Southgate Lighting Limited remains focused on its core objective of being a leading provider of high-quality electrical installation services in various sectors. The Group strives to achieve long-term profitability by maximising revenues while managing operational costs efficiently. A commitment to continuous improvement in its services, processes, and solutions enables the company to consistently meet client requirements and deliver projects that are both reliable and fit-for-purpose.

 

The Group benefits from the contribution of its wholly owned subsidiary, Sondia Lighting Limited, which complements its operations by providing additional resources and support. This synergy enhances the Group’s ability to deliver comprehensive solutions to its clients and strengthens its market presence.

 

The Group continues to invest strategically in its technology, installation processes, and workforce to support its commercial goals. These efforts include adopting advanced lighting technologies and maintaining high industry standards to differentiate the company within a competitive market. By focusing on quality and innovation, Southgate Lighting Limited is well-positioned to meet evolving client demands and maintain its reputation for excellence.

 

While the electrical installation sector has faced significant challenges, including supply chain disruptions and material cost increases, the Group has leveraged its strong partnerships and operational adaptability to minimise disruptions. This resulted in higher production efficiency, enabling Southgate Lighting Limited to deliver projects on schedule and contribute to healthy financial performance. The Group remains committed to its strategic objectives and continues to focus on innovation, quality, and service excellence to drive future growth.

Principal risks and uncertainties

The Group believes the main risks and uncertainties to be outlined in the Economic impact of global events statement below.

Economic impact of global events

UK businesses are currently navigating a period of significant uncertainty due to a combination of global and domestic events, including the ongoing effects of Brexit, the aftermath of the COVID-19 pandemic, increased environmental sustainability pressures, and geopolitical challenges such as the Russian invasion of Ukraine. These events have created an economic climate marked by persistent inflation, rising interest rates, labour shortages and supply chain disruptions.

 

The Directors have undertaken a comprehensive assessment of the potential impact of these uncertainties on the business. This assessment considered not only the immediate risks but also the effectiveness of mitigation measures that the company has implemented. Key areas of focus have included maintaining financial stability amidst inflationary pressures, adapting supply chain strategies to minimize disruptions, and ensuring the availability of skilled labour in a tight employment market.

 

The Directors concluded that these global and national events are non-adjusting events. The most significant anticipated impact on the company stems from the broader economic ripple effect on the global economy, including increased costs, extended lead times for materials, and changes in customer demand due to shifting economic conditions.

 

The Directors have taken account of these potential impacts in their going concern assessment.

 

Southgate Lighting Limited continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

SOUTHGATE LIGHTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Key performance indicators

 

 

31 January 2024

 

31 January 2023

 

Turnover

£9,148,782

£9,091,303

 

Gross Profit

£5,030,430

£4,468,652

 

Gross Profit %

 

55%

 

49%

 

 

 

Net Assets

£6,238,416

£5,318,802

 

 

 

 

 

 

The Group has seen a 5% increase in gross profit through targeted cost savings and production efficiencies. The strengthening of the net asset position continues to underlie the Groups commitment to re-investing profits into the Group in order to achieve its long term goals of being a leader within the industry.

Other performance indicators

The Company have no other non-financial key performance indicators and believes the only key performance indicators are the financial key indicators stated above.

On behalf of the board

Mrs S Stuart
Director
29 January 2025
SOUTHGATE LIGHTING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the parent company and group continued to be that of supply of lighting.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £142,000 (2023 - £160,000). The directors do not recommend payment of a further dividend.

Directors

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

Mr A Stuart
Mr G Stuart
Mrs S Stuart
Mr C Fisher
Post reporting date events

On 17th January 2025, the group undertook a demerger process, resulting in the separation of Sondia Lighting Limited from Southgate Lighting Limited.

 

The shares in Southgate Lighting Limited were acquired by Southgate Group Limited and the shares in Sondia Lighting Limited were acquired by Sondia Group Limited.

 

The shares in Southgate Group Limited and Sondia Group Limited are owned by the former shareholders of Southgate Lighting Limited.

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

SOUTHGATE LIGHTING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
Statement of disclosure to auditor

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

Going concern

In the opinion of the directors the group and parent company has sufficient financial resources together with clearly defined performance objectives. The group and parent company has the strong support of its bankers, shareholders and other providers of funds in working towards meeting its financial objectives. As a consequence, the directors believe that the group and parent company is well placed to manage business risks successfully.

 

The directors have a reasonable expectation that the group and parent company has adequate financial resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual financial statements.

Medium-sized companies exemption

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

On behalf of the board
Mrs S Stuart
Director
29 January 2025
SOUTHGATE LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUTHGATE LIGHTING LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of Southgate Lighting Limited (the 'parent company') and its subsidiary (the 'group') for the year ended 31 January 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the group until after 31 January 2024, thus did not observe the counting of physical inventories at the end of that year. In addition, stock quantities at 31 January 2023 were unable to be verified. We were unable to satisfy ourselves by alternative means as to the quantities of inventory on hand or contract related balances at 31 January 2023 and 31 January 2024 by using other audit procedures. Consequently, we were unable to determine whether any adjustments to the amounts 31 January 2023 and 31 January 2024 were necessary or whether there was any consequential effect on the cost of sales or turnover for the year ended 31 January 2024.

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

Key audit matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Conclusions relating to going concern

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

 

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

 

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

SOUTHGATE LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTHGATE LIGHTING LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our audit report, we were unable to satisfy ourselves concerning the quantities of inventory at 31 January 2023 and 31 January 2024. We have concluded that where the other information refers to that inventory balance, related balances such as turnover; cost of sales or related metrics such as gross profit percentage, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report or the strategic report.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

 

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

SOUTHGATE LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTHGATE LIGHTING LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which our procedures are capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

SOUTHGATE LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTHGATE LIGHTING LIMITED
- 8 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters

We were not appointed as auditor for the year ended 31 January 2023. The year ended 31 January 2024 is the first period subject to audit and consequently, the comparatives are unaudited.

Use of our report

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

Ian Parsons (Senior Statutory Auditor)
For and on behalf of Parsons Accountants Ltd, Statutory Auditor
Chartered Accountants
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
29 January 2025
SOUTHGATE LIGHTING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
Unaudited 2023
as restated
Notes
£
£
Turnover
3
9,148,782
9,091,303
Cost of sales
(4,118,352)
(4,622,651)
Gross profit
5,030,430
4,468,652
Administrative expenses
(3,662,280)
(3,070,815)
Other operating income
2,981
3,048
Operating profit
4
1,371,131
1,400,885
Interest receivable and similar income
8
4,886
2,361
Interest payable and similar expenses
9
(852)
(2,167)
Profit before taxation
1,375,165
1,401,079
Tax on profit
10
(313,551)
(282,963)
Profit for the financial year
1,061,614
1,118,116
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 17 to 35 form part of these financial statements.

SOUTHGATE LIGHTING LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 10 -
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
226,286
280,130
Investment property
13
810,658
810,658
1,036,944
1,090,788
Current assets
Stocks
16
74,910
21,660
Debtors
17
3,112,324
2,578,047
Cash at bank and in hand
3,660,896
2,960,688
6,848,130
5,560,395
Creditors: amounts falling due within one year
18
(1,612,093)
(1,275,618)
Net current assets
5,236,037
4,284,777
Total assets less current liabilities
6,272,981
5,375,565
Creditors: amounts falling due after more than one year
19
(18,333)
(28,333)
Provisions for liabilities
Deferred tax liability
21
16,232
28,430
(16,232)
(28,430)
Net assets
6,238,416
5,318,802
Capital and reserves
Called up share capital
23
150
150
Profit and loss reserves
6,238,266
5,318,652
Total equity
6,238,416
5,318,802

The notes on pages 17 to 35 form part of these financial statements.

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

The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
29 January 2025
Mrs S Stuart
Director
Company registration number 02685144 (England and Wales)
SOUTHGATE LIGHTING LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 11 -
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
121,680
145,931
Investment property
13
810,658
810,658
Investments
14
100,000
100,000
1,032,338
1,056,589
Current assets
Stocks
16
59,000
9,100
Debtors
17
2,532,945
2,264,129
Cash at bank and in hand
2,856,396
2,379,218
5,448,341
4,652,447
Creditors: amounts falling due within one year
18
(1,320,957)
(1,425,997)
Net current assets
4,127,384
3,226,450
Total assets less current liabilities
5,159,722
4,283,039
Creditors: amounts falling due after more than one year
19
(18,333)
(28,333)
Provisions for liabilities
Deferred tax liability
21
1,082
8,096
(1,082)
(8,096)
Net assets
5,140,307
4,246,610
Capital and reserves
Called up share capital
23
150
150
Profit and loss reserves
5,140,157
4,246,460
Total equity
5,140,307
4,246,610

The notes on pages 17 to 35 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,035,697 (Unaudited 2023 - £816,744).

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

SOUTHGATE LIGHTING LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2024
31 January 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
29 January 2025
Mrs S Stuart
Director
Company registration number 02685144 (England and Wales)
SOUTHGATE LIGHTING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 January 2023:
Balance at 1 February 2022
150
4,553,488
4,553,638
Effect of change in accounting policy
-
(192,952)
(192,952)
As restated
150
4,360,536
4,360,686
Year ended 31 January 2023:
Profit and total comprehensive income
-
1,118,116
1,118,116
Dividends
11
-
(160,000)
(160,000)
Balance at 31 January 2023
150
5,318,652
5,318,802
Year ended 31 January 2024:
Profit and total comprehensive income
-
1,061,614
1,061,614
Dividends
11
-
(142,000)
(142,000)
Balance at 31 January 2024
150
6,238,266
6,238,416

The notes on pages 17 to 35 form part of these financial statements.

SOUTHGATE LIGHTING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 January 2023:
Balance at 1 February 2022
150
3,782,668
3,782,818
Effect of change in accounting policy
-
(192,952)
(192,952)
As restated
150
3,589,716
3,589,866
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
816,744
816,744
Dividends
11
-
(160,000)
(160,000)
Balance at 31 January 2023
150
4,246,460
4,246,610
Year ended 31 January 2024:
Profit and total comprehensive income
-
1,035,697
1,035,697
Dividends
11
-
(142,000)
(142,000)
Balance at 31 January 2024
150
5,140,157
5,140,307

The notes on pages 17 to 35 form part of these financial statements.

SOUTHGATE LIGHTING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,170,249
1,471,729
Interest paid
(852)
(2,167)
Income taxes paid
(290,115)
(120,448)
Net cash inflow from operating activities
879,282
1,349,114
Investing activities
Purchase of tangible fixed assets
(12,003)
(103,445)
Proceeds from disposal of tangible fixed assets
2,221
11,910
Purchase of investment property
-
(495,562)
Repayment of loans
(22,178)
(152,791)
Interest received
4,886
2,361
Net cash used in investing activities
(27,074)
(737,527)
Financing activities
Repayment of bank loans
(10,000)
(9,995)
Payment of finance leases obligations
-
(24,929)
Dividends paid to equity shareholders
(142,000)
(160,000)
Net cash used in financing activities
(152,000)
(194,924)
Net increase in cash and cash equivalents
700,208
416,663
Cash and cash equivalents at beginning of year
2,960,688
2,544,025
Cash and cash equivalents at end of year
3,660,896
2,960,688

The notes on pages 17 to 35 form part of these financial statements.

SOUTHGATE LIGHTING LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
779,425
1,418,257
Interest paid
(852)
(1,217)
Income taxes paid
(216,974)
(16,812)
Net cash inflow from operating activities
561,599
1,400,228
Investing activities
Purchase of tangible fixed assets
(10,350)
(102,299)
Proceeds from disposal of tangible fixed assets
2,221
11,910
Purchase of investment property
-
0
(495,562)
Repayment of loans
71,945
(152,791)
Interest received
3,763
2,361
Net cash generated from/(used in) investing activities
67,579
(736,381)
Financing activities
Repayment of bank loans
(10,000)
(9,995)
Dividends paid to equity shareholders
(142,000)
(160,000)
Net cash used in financing activities
(152,000)
(169,995)
Net increase in cash and cash equivalents
477,178
493,852
Cash and cash equivalents at beginning of year
2,379,218
1,885,366
Cash and cash equivalents at end of year
2,856,396
2,379,218

The notes on pages 17 to 35 form part of these financial statements.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
1
Accounting policies
Company information

Southgate Lighting Limited (“the parent company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Southgate House, Moorland Road, Drighlington, Bradford, BD11 1JY.

 

The group consists of Southgate Lighting Limited and all of its subsidiaries.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

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

 

All financial statements are made up to 31 January 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.4
Going concern

In the opinion of the directors the group and parent company has sufficient financial resources together with clearly defined performance objectives. The group and parent company has the strong support of its bankers, shareholders and other providers of funds in working towards meeting its financial objectives. As a consequence, the directors believe that the group and parent company is well placed to manage business risks successfully.

 

The directors have a reasonable expectation that the group and parent company has adequate financial resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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.

1.6
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
Over 50 years
Plant and equipment
20%/25% reducing balance
Fixtures and fittings
20%/25% reducing balance
Computers
25% straight line
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Investment property

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

 

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.8
Fixed asset investments

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

 

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

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

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

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

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.

1.10
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
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.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -
1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

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

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The key assumptions concerning the future and other key sources of estimation uncertainty that have a heightened risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(i) Impairment of investments

The group considers whether investments are impaired. Where indication of impairment is identified the estimation of the recoverable amount requires estimation of the future cash flows from the cash generating units and a selection of appropriate discount rates in order to calculate the net present value of those future cash flows.

(ii) Recoverability of trade debtors

The group considers the recoverability of trade debtors at each reporting period, where there is objective evidence of impairment the debts are written off. Management considers the value of trade debts as at the end of the reporting period to be recoverable in full.

(iii) Value of investment properties

The group makes an estimate of the fair value of investment properties at each reporting date. When assessing the fair values, management considers current property trends and rental yields and conclude that the historic costs still represents the fair value of the properties.

(iv) Useful economic life 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 re-assessed 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.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
Unaudited 2023
£
£
Turnover analysed by geographical market
UK
7,482,314
7,501,003
Europe
1,666,468
1,590,300
9,148,782
9,091,303
SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
3
Turnover and other revenue
(Continued)
- 24 -
2024
Unaudited 2023
£
£
Other revenue
Interest income
4,886
2,361
4
Operating profit
2024
Unaudited 2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
3,181
326
Depreciation of owned tangible fixed assets
54,522
52,601
Loss on disposal of tangible fixed assets
9,104
5,898
Operating lease charges
218,728
186,894
5
Auditor's remuneration
2024
Unaudited 2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,925
-
Audit of the financial statements of the company's subsidiaries
4,975
-
19,900
-
For other services
Taxation compliance services
4,325
4,075
All other non-audit services
12,975
12,227
17,300
16,302
SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
6
Employees

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

Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
Number
Number
Number
Number
Directors
6
6
4
4
Admin
3
3
3
3
Operations
63
60
41
37
Total
72
69
48
44

Their aggregate remuneration comprised:

Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Wages and salaries
2,385,715
2,024,710
1,743,497
1,452,477
Social security costs
228,402
212,069
169,299
162,004
Pension costs
42,480
39,823
28,464
28,284
2,656,597
2,276,602
1,941,260
1,642,765
7
Directors' remuneration
2024
Unaudited 2023
£
£
Remuneration for qualifying services
381,909
362,945
Company pension contributions to defined contribution schemes
2,567
2,431
384,476
365,376

The number of directors for whom received payments through payroll amounted to 6 (2023 - 6).

 

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
7
Directors' remuneration
(Continued)
- 26 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
Unaudited 2023
£
£
Remuneration for qualifying services
102,450
119,733
Company pension contributions to defined contribution schemes
1,265
1,195
8
Interest receivable and similar income
2024
Unaudited 2023
£
£
Interest income
Other interest income
4,886
2,361
9
Interest payable and similar expenses
2024
Unaudited 2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
852
1,098
Other finance costs:
Interest on finance leases and hire purchase contracts
-
214
Other interest
-
855
Total finance costs
852
2,167
SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
10
Taxation
2024
Unaudited 2023
£
£
Current tax
UK corporation tax on profits for the current period
325,749
290,115
Deferred tax
Origination and reversal of timing differences
(12,198)
(7,152)
Total tax charge
313,551
282,963

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

2024
Unaudited 2023
£
£
Profit before taxation
1,375,165
1,401,079
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (Unaudited 2023: 19.00%)
330,452
266,205
Tax effect of expenses that are not deductible in determining taxable profit
16,666
13,570
Adjustments in respect of prior years
(32,763)
14,505
Effect of change in corporation tax rate
(473)
6,823
Permanent capital allowances in excess of depreciation
-
0
(2,703)
Deferred tax adjustments in respect of prior years
-
0
(15,437)
Tax at marginal rate
(331)
-
0
Taxation charge
313,551
282,963

The group's consolidated tax rates are marginally lower than the UK main corporation tax rate of 25% due to the fact that profits of some consolidated companies within the group are subject to the small profits rate.

11
Dividends
2024
Unaudited 2023
Recognised as distributions to equity holders:
£
£
Interim paid
142,000
160,000
SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2023
40,020
405,432
182,418
1,146
101,699
730,715
Additions
-
0
-
0
-
0
1,653
10,350
12,003
Disposals
-
0
(33,720)
(22,604)
-
0
(10,175)
(66,499)
At 31 January 2024
40,020
371,712
159,814
2,799
101,874
676,219
Depreciation and impairment
At 1 February 2023
667
259,526
153,838
199
36,355
450,585
Depreciation charged in the year
800
30,413
6,896
424
15,989
54,522
Eliminated in respect of disposals
-
0
(29,664)
(21,718)
-
0
(3,792)
(55,174)
At 31 January 2024
1,467
260,275
139,016
623
48,552
449,933
Carrying amount
At 31 January 2024
38,553
111,437
20,798
2,176
53,322
226,286
At 31 January 2023
39,353
145,906
28,580
947
65,344
280,130
(Unaudited)
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
40,020
66,916
180,806
76,879
364,621
Additions
-
0
-
0
-
0
10,350
10,350
Disposals
-
0
(25,761)
(22,604)
(10,175)
(58,540)
At 31 January 2024
40,020
41,155
158,202
77,054
316,431
Depreciation and impairment
At 1 February 2023
667
39,383
152,756
25,884
218,690
Depreciation charged in the year
800
6,738
6,790
12,402
26,730
Eliminated in respect of disposals
-
0
(25,159)
(21,718)
(3,792)
(50,669)
At 31 January 2024
1,467
20,962
137,828
34,494
194,751
Carrying amount
At 31 January 2024
38,553
20,193
20,374
42,560
121,680
At 31 January 2023
39,353
27,533
28,050
50,995
145,931
(Unaudited)
SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 February 2023 and 31 January 2024
810,658
810,658

The directors undertake a review of the property portfolio at each reporting date to assess whether the fair value has changed significantly since the previous reporting date. The company has opted to maintain the valuation of properties at historical cost.

14
Fixed asset investments
Group
Unaudited
Company
Unaudited
2024
2023
2024
2023
as restated
as restated
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
100,000
100,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
100,000
Carrying amount
At 31 January 2024
100,000
At 31 January 2023
100,000
15
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sondia Lighting Limited
Southgate House, Moorland Road, Drighlington, West Yorkshire, BD11 1JY
Ordinary
100.00

Sondia Lighting Limited was exempt from the requirements of an audit of the individual financial statements by virtue of section 479A of the Companies Act 2006.

 

The principal activity of Sondia Lighting Limited is that of the design and manufacture of lighting equipment.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 30 -
16
Stocks
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Finished goods and goods for resale
74,910
21,660
59,000
9,100
17
Debtors
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,423,071
1,882,148
1,917,478
1,534,604
Other debtors
659,184
683,688
599,816
721,444
Prepayments and accrued income
30,069
12,211
15,651
8,081
3,112,324
2,578,047
2,532,945
2,264,129
18
Creditors: amounts falling due within one year
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
Notes
£
£
£
£
Bank loans
20
10,000
10,000
10,000
10,000
Trade creditors
734,722
630,404
411,293
447,203
Amounts owed to group undertakings
-
0
-
0
99,591
481,561
Corporation tax payable
325,749
290,115
312,453
216,974
Other taxation and social security
259,483
108,481
218,124
42,279
Other creditors
112,237
78,121
110,501
77,729
Accruals and deferred income
169,902
158,497
158,995
150,251
1,612,093
1,275,618
1,320,957
1,425,997
19
Creditors: amounts falling due after more than one year
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
Notes
£
£
£
£
Bank loans and overdrafts
20
18,333
28,333
18,333
28,333
SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
20
Loans and overdrafts
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Bank loans
28,333
38,333
28,333
38,333
Payable within one year
10,000
10,000
10,000
10,000
Payable after one year
18,333
28,333
18,333
28,333

The bank borrowings, including any overdrafts are secured by a fixed and floating charge over all the assets of the Group. The security is dated 23 January 1996 with Lloyds Bank PLC.

21
Deferred taxation

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

Liabilities
Liabilities
2024
Unaudited 2023
Group
£
£
Accelerated capital allowances
16,232
28,430
Liabilities
Liabilities
2024
Unaudited 2023
Company
£
£
Accelerated capital allowances
1,082
8,096
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
28,430
8,096
Credit to profit or loss
(12,198)
(7,014)
Liability at 31 January 2024
16,232
1,082

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 32 -
22
Retirement benefit schemes
2024
Unaudited 2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,480
39,823

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

 

There were contributions payable to the fund at the date of the statement of financial position totalling £5,886 (2023: £1,507).

 

23
Share capital
Group and company
2024
Unaudited 2023
2024
Unaudited 2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
150
150
150
150

The shares rank pari passu in respect of dividends, voting rights and distribution of capital in the event of a sale or a winding up.

24
Operating lease commitments
Lessee

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

Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Within one year
71,000
67,126
62,460
58,356
Between two and five years
59,347
79,668
53,741
73,058
130,347
146,794
116,201
131,414

Amounts in respect of operating lease arrangements are recognised in profit or loss as an expense during the period.

 

Operating lease charges in the year represent rentals payable by the company for motor vehicles and use of land and buildings; for which there is no formal lease agreement in place.

Outstanding lease commitments relate solely to motor vehicles and no restrictions are placed on the use of the assets by the lessor. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 33 -
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Acquisition of tangible fixed assets
99,950
-
-
-
26
Events after the reporting date

On 17th January 2025, the group undertook a demerger process, resulting in the separation of Sondia Lighting Limited from Southgate Lighting Limited.

 

The shares in Southgate Lighting Limited were acquired by Southgate Group Limited and the shares in Sondia Lighting Limited were acquired by Sondia Group Limited.

 

The shares in Southgate Group Limited and Sondia Group Limited are owned by the former shareholders of Southgate Lighting Limited.

27
Related party transactions

The Group and parent company has taken advantage of the exemption made available in section 33 of FRS102 'The Financial Reporting Standard applicable in the UK and Republic Of Ireland' related party disclosures from the requirement to disclose transactions with group companies.

 

The Group financial statements contain balances owed by entities that are under common control. At the balance sheet date the Group is owed £449,980 (2023: £475,980) by these entities.

 

During the period the Group was invoiced £102,500 (2023: £102,500) by a connected company in respect of a rental charge of land and buildings.

 

During the period the group operated directors loan accounts on behalf of the directors. At the period-end the directors group owed the group £174,969 (2023: £152,791). During the period the maximum level of indebtedness of the directors to the group in the period was £217,560 (2023: £152,791).

 

During the period the director group as a whole was advanced £197,055 and repaid £176,000. In total interest was charged on the directors loans totalling £1,123. The loans in Southgate Lighting Limited are interest free and attract an interest rate of 2.25% in Sondia Lighting Limited.

 

In the opinion of the directors there are no individuals categorised as key management personnel outside the director group. The remuneration of directors is disclosed in note 8 of the financial statements.

 

During the period £162,000 (2023 - £140,000) of dividends were declared to the directors.

28
Ultimate controlling party

The directors consider there to be no single ultimate controlling party.

SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 34 -
29
Cash generated from group operations
2024
Unaudited 2023
£
£
Profit after taxation
1,061,614
1,118,116
Adjustments for:
Taxation charged
313,551
282,963
Finance costs
852
2,167
Investment income
(4,886)
(2,361)
Loss on disposal of tangible fixed assets
9,104
5,898
Depreciation and impairment of tangible fixed assets
54,522
52,601
Movements in working capital:
Increase in stocks
(53,250)
(1,160)
(Increase)/decrease in debtors
(512,099)
227,496
Increase/(decrease) in creditors
300,841
(213,991)
Cash generated from operations
1,170,249
1,471,729
30
Cash generated from operations - company
2024
Unaudited 2023
£
£
Profit after taxation
1,035,697
816,744
Adjustments for:
Taxation charged
305,439
221,362
Finance costs
852
1,217
Investment income
(3,763)
(2,361)
Loss on disposal of tangible fixed assets
5,650
5,898
Depreciation and impairment of tangible fixed assets
26,730
17,894
Movements in working capital:
Increase in stocks
(49,900)
(600)
(Increase)/decrease in debtors
(340,761)
46,841
(Decrease)/increase in creditors
(200,519)
311,262
Cash generated from operations
779,425
1,418,257
SOUTHGATE LIGHTING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 35 -
31
Analysis of changes in net funds - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
2,960,688
700,208
3,660,896
Borrowings excluding overdrafts
(38,333)
10,000
(28,333)
2,922,355
710,208
3,632,563
32
Analysis of changes in net funds - company
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
2,379,218
477,178
2,856,396
Borrowings excluding overdrafts
(38,333)
10,000
(28,333)
2,340,885
487,178
2,828,063
33
Prior period adjustment

A prior year adjustment has been included to reduce the value of investments in subsidiaries by £132,952 down to the corresponding value of the share capital of £100,000 in the subsidiary. This has been written off through retained earnings brought forward as the adjustment relates to a period prior to this set of financial statements.

 

A prior year adjustment has been made for contractual customer rebates not recognised in the financial year ended 31 January 2022. The adjustment is an increase to other creditors and a reduction to sales of £76,343.

 

A prior year adjustment has been made to recognise deferred income arising in the financial year ended 31 January 2022. The adjustment is an increase to other creditors and a reduction to sales of £60,000.

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