The directors present the strategic report for the year ended 31 January 2024.
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.
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.
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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% |
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|
|
Net Assets | £6,238,416 | £5,318,802 |
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|
|
|
|
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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.
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
The directors present their annual report and financial statements for the year ended 31 January 2024.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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.
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.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
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).
Basis for qualified opinion
Key audit matters
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the industry.
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
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:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the group’s legal advisors.
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.
The notes on pages 17 to 35 form part of these financial statements.
The notes on pages 17 to 35 form part of these financial statements.
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.
The notes on pages 17 to 35 form part of these financial statements.
The notes on pages 17 to 35 form part of these financial statements.
The notes on pages 17 to 35 form part of these financial statements.
The notes on pages 17 to 35 form part of these financial statements.
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.
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.
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.
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.
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.
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.
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.
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.
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, 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.
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.
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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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.
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.
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:
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.
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.
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.
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.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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).
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:
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.
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.
Details of the company's subsidiaries at 31 January 2024 are as follows:
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.
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.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
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.
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).
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.
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:
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.
Amounts contracted for but not provided in the financial statements:
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.
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.
The directors consider there to be no single ultimate controlling party.
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.