Company registration number 04513462 (England and Wales)
A.C. WORLDWIDE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
A.C. WORLDWIDE GROUP LIMITED
COMPANY INFORMATION
Directors
D A Leggett
P R Capstick
Company number
04513462
Registered office
Centauri House
Hillbottom Road
Sands Industrial Estate
High Wycombe
Buckinghamshire
United Kingdom
HP12 4HQ
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
A.C. WORLDWIDE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 41
A.C. WORLDWIDE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

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

Business review

The profit for the year, after taxation, is £6,191,499 (2023: £12,552,835).

 

The Group's key financial and other performance indicators during the year were as follows:

 

2024

2023

Change

£’000

£’000

%

Financial:
UK Turnover

 

55,985

 

73,519

 

-23.8%

Overseas Turnover

50,912

55,210

-7.9%

Operating profit

7,715

15,168

-49.1%

Profit for the financial year

6,191

12,553

-50.7%

Shareholder’s equity

61,073

58,187

4.9%

 

KPI’s:

Current assets as % of current liabilities

 

372%

 

259%

 

113%

 

Turnover from the UK market decreased by 23.8% & Overseas markets decreased by 7.9% during the year, this was due to the impact of the Writers and Actors strikes which severely impacted Film productions across the UK and international markets.

 

Turnover and thus profitability for FY25 has continued to feel the effects of the Writers and Actors strikes, but there are signs that FY26 will be a much more productive year for big budget film productions. It is also expected we will also see the launch of new product(s) from our manufacturing company which will replace a key legacy product and should give a boost to our global turnover.

 

Operating profit decreased by 49.1% during the year, this was due to the reduction in turnover caused by the Writers and Actors strikes.

 

Shareholders’ equity increased by 4.9% due to retained earnings.

 

The Group's "current ratio" (current assets as a percentage of current liabilities) has increased mainly due to the improvement of working capital.

Principal risks and uncertainties

The Group companies have regular management meetings where the board meet and evaluates the risks faced by each company. The principal risks and uncertainties facing each Company are broadly grouped as – competitive, technological, legislative and financial instrument risk.

 

Competitive risks

The Group operates within a competitive market place which is addressed by focussing on client service, competitive pricing and maintaining the Group’s strong reputation. To help streamline the operations of the Group so we can better service our customers a new ERP system will be implemented to ensure we can continue to support our customers with the highest levels of support.

 

Technological risks

The innovation in new products by existing suppliers and potential new suppliers means there is an increased risk of purchased stock becoming obsolete, we use various automated forecasting methods to assist us in trying to manage this risk.

 

Legislative risks

The Group operates mostly in highly regulated countries, so the level of reporting needed for the group continues to grow however with the new systems being implemented we expect to be able to comply with current and future requirements with minimal disruption.

A.C. WORLDWIDE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

Exposure to price, credit, liquidity, foreign exchange and cash flow risk

Price risk arises on financial instruments because of changes in, for example, commodity prices or equity prices. Included with the current asset investments are Listed investments with a book value of £18,213 (2023: £42,941) which are exposed to price risk but this exposure is within the Groups risk appetite.

 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the Groups receivables are shown in the notes to the financial statements.

 

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Group aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets throughout the Group. The Group also manages liquidity risk via revolving credit facilities and long term debt.

 

Foreign exchange risk is the risk that an entity will suffer financial loss due to the movement in the strength of its base currency. The Group manages this risk through self-hedging.

Directors' statement of compliance with duty to promote success of the Group

The Directors have a duty under Section 172 of the Companies Act 2006 to act in a way which they consider in good faith would promote the success of the Group for the benefits of its Members, whilst having regard to other stakeholders. For the year under review and up to the date of this report and thereafter, the Directors consider that they have acted and will act, both individually and collectively, in a manner most likely to promote the interests of the Group and its Members. Being a privately owned group, the Directors have regard to deriving long-term benefit which accrues equitably to all Members.

Long term consequences of decisions

The Directors regularly assess the products and services the Group provides to ensure they are aligned to client needs. The Directors review and consider new business opportunities, both in the UK and abroad, as part of their long-term planning with a view to growing the business and sustaining profitability in the longer term. The Directors will give consideration to the level of investment in core infrastructure and automation where appropriate, with the objective to improve the client product and service offering and to manage its cost base. The Directors also actively engage with the client base to foster strong relationships which enable the Group to meet client needs on a long-term basis.

 

Business relationships

The Directors implement strategies to enhance the Group's business relationships with suppliers, clients, and others. The Group provides stage, studio and event lighting products for the live entertainment, worship, theatre and architectural markets. It is therefore vitally important that the risks that the Group faces are effectively identified and managed, in order to provide an appropriate level of resilience for its clients. The principal risks and uncertainties faced by the Group and the risk management procedures adopted by the Directors are set out within this report under the section headed 'Principal risks and uncertainties'.

Impact on employees, the community and the environment

In carrying out ther duties, the Directors are mindful of the impact their decisions may have on employees, the community and the environment. An employee review process is conducted with annual objectives aligned to the Group's values to support employees in managing their performance for the mutual benefit of themselves and the Group.

 

The Directors adopt a long-term approach to managing the environmental risks and opportunities facing the business, periodically reviewing and seeking initiatives that aim to minimise the impacts of the business on the environment. Management periodically review the Group's environmental performance and take corrective action where appropriate and issuing guidance where necessary.

A.C. WORLDWIDE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
Reputation and standards of business conduct

The maintenance and enhancement of the Group's reputation is a key consideration of the Directors, ensuring that its officers and employees consistently act in compliance with regulatory rules and in accordance with the high standards of business conduct expected of firms operating within the lighting and adjacent industries. The Directors review the Group's ethics and whistleblowing policies and provides training to all employees on a regular basis covering ethics and standards of business conduct, making use of online and in-person training tools.

On behalf of the board

D A Leggett
Director
31 January 2025
A.C. WORLDWIDE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -

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

Principal activities

The principal activity of the Company and Group continued to be that of a distributor of stage, studio and event lighting products for the live entertainment, worship, theatre and architectural markets.

Results and dividends

The profit for the year, after taxation, is £6,191,499 (2023: £12,552,835).

Ordinary dividends were paid amounting to £2,087,800. 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:

D A Leggett
P R Capstick
Political donations

The Company made the following political donations in the current year:

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The Group is an equals opportunity employer and is committed to the promotion and equality of opportunity in all aspects of employment. The Group will take reasonable steps to employ, train and promote employees on the basis of their experience, abilities and qualifications without regard to age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race (including colour, nationality and ethnic or national origins), religion or belief, sex or sexual orientation. The Group values diversity and it is on everyone’s interests for the environment in which we work to be harmonious and respectful. We aim to provide a creative working environment where everyone has an equal opportunity for success. Proven acts of deliberate or very serious harassment, bullying or discrimination will result in the summary dismissal of the person concerned.

Future developments

The Group will continue to invest in its staff, research and development and new partnerships to support our vision of being the leading international provider of cutting-edge entertainment technology products and solutions and will look to grow through organic client opportunities and strategic geographical expansion.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

A.C. WORLDWIDE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
Energy and carbon report

As the group has consumed more than 40,000 kWh of energy in this reporting period, it is required to report on its UK emissions, energy consumption and energy efficiency activities.

 

UK energy use and associated greenhouse gas emissions

Current UK based annual energy usage and associated annual greenhouse gas (“GHG”) emissions are reported pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report)Regulations 2018 (“the 2018 Regulations”) that came into force 1 April 2019.

 

Organisational boundary

In accordance with the 2018 Regulations, the energy use and associated greenhouse gas emissions are for those within the UK only that come under the operational control boundary and for which the subsidiary would itself be obliged to include if reporting on its own account. As a consequence, energy use and emissions are aligned with financial reporting for A.C. Worldwide Group Limited and exclude the non-UK based subsidiaries and those UK subsidiaries that would not qualify under the 2018 regulations in their own right.

 

Reporting period

The annual reporting period is 1st February to 31st January each year and the energy and carbon emissions are aligned to this period.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
892,203
872,036
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
64.61
60.99
- Fuel consumed for owned transport
37.19
32.51
101.80
93.50
Scope 2 - indirect emissions
- Electricity purchased
82.98
78.28
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
1.56
1.54
Total gross emissions
186.34
173.32
Intensity ratio
Tonnes CO2e per employee
1.43
1.30
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per UK employee.

Measures taken to improve energy efficiency

There were no energy efficiency actions recorded for this year.

A.C. WORLDWIDE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
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.

On behalf of the board
D A Leggett
Director
31 January 2025
A.C. WORLDWIDE GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -

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.

A.C. WORLDWIDE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A.C. WORLDWIDE GROUP LIMITED
- 8 -
Opinion

We have audited the financial statements of A.C. Worldwide Group Limited (the 'parent company') and its subsidiaries (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 and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

A.C. WORLDWIDE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.C. WORLDWIDE GROUP LIMITED
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters 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 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.

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.

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.

A.C. WORLDWIDE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.C. WORLDWIDE GROUP LIMITED
- 10 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Adam East ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
31 January 2025
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
A.C. WORLDWIDE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
106,896,658
128,729,088
Cost of sales
(70,486,485)
(85,258,974)
Gross profit
36,410,173
43,470,114
Administrative expenses
(29,052,281)
(28,370,819)
Other operating income
357,091
68,684
Operating profit
5
7,714,983
15,167,979
Share of profits of joint ventures
78,414
544,437
Interest receivable and similar income
8
262,603
79,086
Interest payable and similar expenses
9
(349,479)
(276,507)
Profit before taxation
7,706,521
15,514,995
Tax on profit
10
(1,515,022)
(2,962,160)
Profit for the financial year
6,191,499
12,552,835
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(1,216,971)
810,638
Total comprehensive income for the year
4,974,528
13,363,473
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
A.C. WORLDWIDE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
14
97,576
65,348
Tangible assets
15
13,124,976
13,802,836
Investments
16
133,908
68,176
13,356,460
13,936,360
Current assets
Stocks
20
31,124,835
35,175,880
Debtors
21
19,091,944
26,033,441
Investments
23
18,213
42,941
Cash at bank and in hand
16,206,414
13,139,843
66,441,406
74,392,105
Creditors: amounts falling due within one year
24
(17,863,603)
(28,719,351)
Net current assets
48,577,803
45,672,754
Total assets less current liabilities
61,934,263
59,609,114
Creditors: amounts falling due after more than one year
25
(674,547)
(916,446)
Provisions for liabilities
Deferred tax liability
28
186,446
506,126
(186,446)
(506,126)
Net assets
61,073,270
58,186,542
Capital and reserves
Called up share capital
30
730
730
Capital redemption reserve
670
670
Profit and loss reserves
61,071,870
58,185,142
Total equity
61,073,270
58,186,542
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
D A Leggett
Director
Company registration number 04513462 (England and Wales)
A.C. WORLDWIDE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
15
1,984,090
2,035,726
Investments
16
4,595,749
4,595,749
6,579,839
6,631,475
Current assets
Debtors
21
-
0
1,924,477
Investments
23
1,572,462
-
0
Cash at bank and in hand
4,134,983
539,312
5,707,445
2,463,789
Creditors: amounts falling due within one year
24
(3,963,021)
(130,282)
Net current assets
1,744,424
2,333,507
Net assets
8,324,263
8,964,982
Capital and reserves
Called up share capital
30
730
730
Capital redemption reserve
670
670
Profit and loss reserves
8,322,863
8,963,582
Total equity
8,324,263
8,964,982

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 £1,447,081 (2023: £4,651,208).

The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
31 January 2025
D A Leggett
Director
Company registration number 04513462 (England and Wales)
A.C. WORLDWIDE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
730
670
47,951,179
47,952,579
Year ended 31 January 2023:
Profit for the year
-
-
12,552,835
12,552,835
Other comprehensive income:
Currency translation differences
-
-
810,638
810,638
Total comprehensive income
-
-
13,363,473
13,363,473
Dividends
13
-
-
(3,129,510)
(3,129,510)
Balance at 31 January 2023
730
670
58,185,142
58,186,542
Year ended 31 January 2024:
Profit for the year
-
-
6,191,499
6,191,499
Other comprehensive income:
Currency translation differences
-
-
(1,216,971)
(1,216,971)
Total comprehensive income
-
-
4,974,528
4,974,528
Dividends
13
-
-
(2,087,800)
(2,087,800)
Balance at 31 January 2024
730
670
61,071,870
61,073,270
A.C. WORLDWIDE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
730
670
7,441,884
7,443,284
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
4,651,208
4,651,208
Dividends
13
-
-
(3,129,510)
(3,129,510)
Balance at 31 January 2023
730
670
8,963,582
8,964,982
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
1,447,081
1,447,081
Dividends
13
-
-
(2,087,800)
(2,087,800)
Balance at 31 January 2024
730
670
8,322,863
8,324,263
A.C. WORLDWIDE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
35
9,193,829
4,218,068
Income taxes paid
(2,365,440)
(3,350,764)
Net cash inflow from operating activities
6,828,389
867,304
Investing activities
Purchase of intangible assets
(91,466)
-
Purchase of tangible fixed assets
(1,014,331)
(1,131,900)
Proceeds on disposal of tangible fixed assets
136,329
176,630
Receipts from joint ventures
-
551,208
Interest received
262,603
79,086
Net cash used in investing activities
(706,865)
(324,976)
Financing activities
Interest paid
(349,479)
(276,507)
Repayment of bank loans
(632,531)
(545,725)
Dividends paid to equity shareholders
(2,087,800)
(3,129,510)
Net cash used in financing activities
(3,069,810)
(3,951,742)
Net increase/(decrease) in cash and cash equivalents
3,051,714
(3,409,414)
Cash and cash equivalents at beginning of year
13,139,843
16,549,257
Cash and cash equivalents at end of year
16,191,557
13,139,843
Relating to:
Cash at bank and in hand
16,206,414
13,139,843
Bank overdrafts included in creditors payable within one year
(14,857)
-
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
1
Accounting policies
Company information

A.C. Worldwide Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Centauri House, Hillbottom Road, Sands Industrial Estate, High Wycombe, Buckinghamshire, United Kingdom, HP12 4HQ.

 

The group consists of A.C. Worldwide Group Limited and all of its subsidiaries.

 

The principal activity of the Group is a distributor of stage, studio and event lighting products for the live entertainment, worship, theatre and architectural markets.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 2).

 

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

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.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company A.C. Worldwide Group 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

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

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.

Revenue from the sale of goods is recognised upon delivery of the goods which is the point in time at which the significant risks and rewards of ownership of the goods are transferred to the customer. Revenue is valued at invoiced amounts, excluding VAT and other sales taxes and less trade discounts where relevant. Revenue from project sales are fixed price and relate to the sale of goods and implementation of the project. Revenue is recognised by reference to the stage of completion at the balance sheet date.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a straight line basis to profit or loss over its expected useful economic life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Computer software
Amortised over 5 years
Brand
Amortised over 5 years
Website
Amortised over 5 years

It is the group's policy to not amortise intangible assets in the course of construction.

1.9
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. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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
2% on cost of buildings
Fixtures and fittings
10% - 20% reducing balance method and 10% - 25% straight line method
Computer equipment
20% - 50% reducing balance method and 20% - 25% straight line method
Motor vehicles
25% reducing balance method and 25% - 30% straight line method

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.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
1.10
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 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.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

 

In the consolidated accounts, interests in jointly controlled entities are accounted for using the equity method of accounting.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

1.12
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.

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

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.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

1.13
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.

 

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

1.14
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -
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.

 

The Group only enters into financial instrument transactions which result in basic financial liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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.

1.15
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.

1.16
Taxation

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

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 23 -
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 in the countries where the company and Group operate and generate income.

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; relates to timing differences in respect of interest in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future; 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.

1.17
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.

1.18
Retirement benefits

The Group operates defined contribution plans for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid, the Group has no further payment obligations.

 

Payments of contributions to defined contribution retirement benefit schemes are charged as an expense as they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 24 -

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.

 

The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard, 1 February 2016, to continue to be charged over the period to the first market rent review rather than the term of the lease.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the group's net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the group’s net investment outstanding in respect of leases.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21
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.

 

The results of overseas operations are translated at the average rates of exchange during the year and the balance sheet translated into pounds sterling at the rate of exchange ruling at the balance sheet date. Exchange differences which arise from translation of the operating net assets and results of foreign subsidiary undertakings are taken to other comprehensive income.

1.22

Provisions for liabilities

Provisions are recognised when the Group has a legal or constructive present obligation as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
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.

 

The Group estimates the net realisable value of stock at the end of the reporting period taking into account the age profile of stock and expected demand from customers. The Group also assesses the likelihood of recovering outstanding balances from customers and makes a provision against these balances as required.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
55,984,534
73,518,602
Europe
20,467,792
26,038,618
Rest of the World
30,444,332
29,171,868
106,896,658
128,729,088
2024
2023
£
£
Other revenue
Interest income
262,603
79,086
Grants received
-
96

The analysis of turnover is disclosed by territory of origin, being the country of domicile of the Group undertakings making the sale.

4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
24,000
21,000
Audit of the financial statements of the company's subsidiaries
90,150
76,800
114,150
97,800
For other services
Taxation compliance services
9,850
1,750
All other non-audit services
21,000
21,750
30,850
23,500
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
94,176
(481,852)
Research and development costs
438,950
162,348
Government grants
-
(96)
Depreciation of owned tangible fixed assets
1,252,439
1,197,237
Impairment of owned tangible fixed assets
-
13,861
Profit on disposal of tangible fixed assets
(56,593)
(62,757)
Amortisation of intangible assets
54,418
147,212
Impairment of intangible assets
-
0
686,226
Operating lease charges
352,630
533,504
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Warehouse and manufacturing
100
141
-
-
Management
55
57
-
-
Sales and marketing
100
84
-
-
Technical support
41
48
-
-
Directors
2
1
2
1
Total
298
331
2
1

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
16,432,652
16,700,653
-
0
-
0
Social security costs
2,191,320
2,195,062
-
-
Pension costs
256,691
284,885
-
0
-
0
18,880,663
19,180,600
-
0
-
0
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,653,126
1,714,863
Company pension contributions to defined contribution schemes
8,333
1,132
1,661,459
1,715,995
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
870,140
921,895
Company pension contributions to defined contribution schemes
8,333
-

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
257,593
67,159
Other interest income
5,010
11,927
Total income
262,603
79,086
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
257,593
67,159
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
301,593
250,065
Other finance costs:
Other interest
47,886
26,442
Total finance costs
349,479
276,507
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,065,936
1,995,540
Adjustments in respect of prior periods
59,216
2,646
Total UK current tax
2,125,152
1,998,186
Foreign current tax on profits for the current period
67,107
872,749
Total current tax
2,192,259
2,870,935
Deferred tax
Origination and reversal of timing differences
(677,237)
91,225
Total tax charge
1,515,022
2,962,160

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
2023
£
£
Profit before taxation
7,706,521
15,514,995
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
1,851,877
2,947,849
Tax effect of expenses that are not deductible in determining taxable profit
121,488
150,112
Tax effect of income not taxable in determining taxable profit
(28,360)
(103,443)
Tax effect of utilisation of tax losses not previously recognised
-
0
(413,050)
Unutilised tax losses carried forward
28,955
-
0
Adjustments in respect of prior years
59,216
-
0
Permanent capital allowances in excess of depreciation
72,761
(85,943)
Effect of overseas tax rates
51,487
319,886
Other timing differences
-
0
12,449
Non-specific provision movements
34,835
43,075
Deferred tax
(677,237)
91,225
Taxation charge
1,515,022
2,962,160

Factors that may affect future tax charges

As part of Budget 2021 on 3 March 2021, it was announced that the UK corporation tax rate will increase to 25% from 1 April 2023. This change was substantively enacted on 24 May 2021. Prior to this change, the corporation tax rate was 19%. The effect on the company of this change has been reflected in the company's financial statements in the financial year as appropriate.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Intangible assets
14
-
686,226
Property, plant and equipment
15
-
13,861
Recognised in:
Administrative expenses
-
700,087

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account of the comparative period.

12
Parent company profit for the year

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent company for the year was £1,447,081 (2023: £4,651,208).

13
Dividends
2024
2023
2024
2023
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
2,860.00
4,287.00
2,087,800
3,129,510
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 30 -
14
Intangible fixed assets
Group
Goodwill
Computer software
Brand
Website
Total
£
£
£
£
£
Cost
At 1 February 2023
2,687,227
1,204,848
602,265
-
0
4,494,340
Additions
-
0
79,791
-
0
11,675
91,466
Disposals
-
0
(691,046)
-
0
-
0
(691,046)
Transfers
-
0
52,521
-
0
-
0
52,521
Exchange adjustments
-
0
(1,844)
-
0
-
0
(1,844)
At 31 January 2024
2,687,227
644,270
602,265
11,675
3,945,437
Amortisation and impairment
At 1 February 2023
2,687,227
1,169,614
572,151
-
0
4,428,992
Amortisation charged for the year
-
0
23,720
30,114
584
54,418
Disposals
-
0
(686,226)
-
0
-
0
(686,226)
Transfers
-
0
52,521
-
0
-
0
52,521
Exchange adjustments
-
0
(1,844)
-
0
-
0
(1,844)
At 31 January 2024
2,687,227
557,785
602,265
584
3,847,861
Carrying amount
At 31 January 2024
-
0
86,485
-
0
11,091
97,576
At 31 January 2023
-
0
35,234
30,114
-
0
65,348
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.

More information on impairment movements in the year is given in note 11.

The remaining estimated useful economic life of the capitalised Brand is 0 years (2023: 0.25 years). The value attributable to Goodwill arises on consolidation.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
15
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
13,753,174
3,618,486
4,470,115
906,638
22,748,413
Additions
84,213
75,322
422,277
432,519
1,014,331
Disposals
(77,599)
(119,805)
(449,681)
(198,819)
(845,904)
Transfers
-
0
-
0
(52,521)
-
0
(52,521)
Exchange adjustments
(347,057)
(93,578)
(59,241)
(3,770)
(503,646)
At 31 January 2024
13,412,731
3,480,425
4,330,949
1,136,568
22,360,673
Depreciation and impairment
At 1 February 2023
3,228,961
1,803,969
3,494,431
418,216
8,945,577
Depreciation charged in the year
507,696
200,425
325,212
219,106
1,252,439
Eliminated in respect of disposals
(5,362)
(127,676)
(440,310)
(197,640)
(770,988)
Transfers
-
0
-
0
(52,521)
-
0
(52,521)
Exchange adjustments
(76,304)
(10,744)
(50,145)
(1,617)
(138,810)
At 31 January 2024
3,654,991
1,865,974
3,276,667
438,065
9,235,697
Carrying amount
At 31 January 2024
9,757,740
1,614,451
1,054,282
698,503
13,124,976
At 31 January 2023
10,524,213
1,814,517
975,684
488,422
13,802,836
Company
Freehold land and buildings
£
Cost
At 1 February 2023 and 31 January 2024
2,925,691
Depreciation and impairment
At 1 February 2023
889,965
Depreciation charged in the year
51,636
At 31 January 2024
941,601
Carrying amount
At 31 January 2024
1,984,090
At 31 January 2023
2,035,726

More information on impairment movements in the year is given in note 11.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
15
Tangible fixed assets
(Continued)
- 32 -

Freehold land and buildings held by A.C. Worldwide Group Limited relates to commercial property occupied by trading subsidiaries. It is included at historical cost, less depreciation in the company and Group balance sheet.

 

Tangible fixed assets with a carrying value of £1,984,090 (2023: £2,035,726) are pledged as security for the Group’s bank loans.

16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
4,595,749
4,595,749
Investments in joint ventures
18
80,282
3,188
-
0
-
0
Listed investments
53,626
64,988
-
0
-
0
133,908
68,176
4,595,749
4,595,749
Movements in fixed asset investments
Group
Shares in joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 February 2023
3,188
64,988
68,176
Valuation changes
78,414
(11,362)
67,052
Foreign exchange movement
(1,320)
-
(1,320)
At 31 January 2024
80,282
53,626
133,908
Carrying amount
At 31 January 2024
80,282
53,626
133,908
At 31 January 2023
3,188
64,988
68,176

The Group’s share of profits from joint ventures was £78,414 (2022: £544,439) before dividends received of £Nil (2023: £552,122).

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
4,595,749
Carrying amount
At 31 January 2024
4,595,749
At 31 January 2023
4,595,749
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 33 -
17
Subsidiaries

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

shares held
Direct
Indirect
A. C. Entertainment Technologies Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Lighting equipment
Ordinary
100.00
-
A. C. Lighting (Overseas) Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Holding company
Ordinary
100.00
-
A. C. Special Projects Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Lighting equipment
Ordinary
100.00
-
Pro UV Lamps Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Lighting equipment
Ordinary
100.00
-
LCA Lights Camera Action Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Lighting equipment
Ordinary
100.00
-
In-Motion Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Lighting equipment
Ordinary
100.00
-
Flashlight Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Lighting equipment
Ordinary
100.00
-
A. C. Entertainment Products Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Lighting equipment
Ordinary
100.00
-
A. C. Audio Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Dormant
Ordinary
100.00
-
A. C. Cables Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Dormant
Ordinary
100.00
-
A. C. Lighting Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Dormant
Ordinary
100.00
-
A. C. Rigging Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Dormant
Ordinary
100.00
-
A. C. Video Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Dormant
Ordinary
100.00
-
Primarc (Marketing) Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Dormant
Ordinary
100.00
-
A. C. Holdings (Canada) Limited
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Lighting equipment
Ordinary
-
100.00
Spectrum Manufacturing Inc.
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Lighting equipment
Ordinary
-
100.00
A. C. Lighting (Canada) Inc.
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Lighting equipment
Ordinary
-
100.00
A. C. Promedia (Canada) Inc.
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Manufacture of lighting
Ordinary
-
100.00
A. C. (Canada) Limited
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Lighting equipment
Ordinary
-
100.00
A. C. Americas (USA) Inc.
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Lighting equipment
Ordinary
-
100.00
ESL S.A.S.
982 Avenue Des Platanes Boirargues, 34970 Lattes, France
Lighting equipment
Ordinary
-
100.00
LCA Lights Camera Action France SAS
101 Avenue due General Leclerc, 75014 Paris, France
Lighting equipment
Ordinary
-
100.00
A. C. Entertainment Technologies Ireland Limited
Coliemore House, Coliemore Road, Dalkey, Co. Dublin, A96 A8D5, Republic of Ireland
Lighting equipment
Ordinary
-
100.00
A. C. Lighting Australia Pty Ltd.
Unite 2, 40 East Esplanade, Manly NSW 2095
Lighting equipment
Ordinary
-
100.00
A. C. Lighting Asia KK
Sakae Ikebukuro Mansion 102, 4-30-11 Ikebukuro, Toshima-ku, Tokyo 171-0014, Japan
Lighting equipment
Ordinary
-
100.00
A. C. Americas (Canada) Ltd
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Lighting equipment
Ordinary
-
100.00
A. C. Americas Ltd
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Lighting equipment
Ordinary
-
100.00
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
17
Subsidiaries
shares held
Direct
Indirect
(Continued)
- 34 -
A. C. Americas Holdings Ltd
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Dormant
Ordinary
-
100.00
A. C. Americas Holdings (Canada) Ltd
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Dormant
Ordinary
-
100.00
LCA Lights Camera Action Europe GmbH
Nonnendammallee 44, (Gebäude GB32), 13629 Berlin, Germany
Lighting equipment
Ordinary
-
100.00
A. C. Lighting (Holdings) Limited
Centauri House, Hillbottom Road, High Wycombe, HP12 4HQ
Dormant
Ordinary
100.00
-
A. C. Entertainment Technologies Europe  GmbH
Nonnendammallee 44 (Gebaude GB32), 13629 Berlin, Germany
Lighting equipment
Ordinary
-
100.00
A.C. North America Limited
565 Orwell Street, Mississauga, Ontario, L5A 2W4, Canada
Dormant
Ordinary
-
100.00

On 31 January 2024 A.C. Americas (USA) Inc. was formed by the merger of A.C. Lighting Inc. and A.C. Promedia Inc., American sister companies to A.C. Holdings (Canada) Limited.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 35 -
18
Joint ventures

Details of joint ventures at 31 January 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Indirect
Prolights (Import) America Limited
565 Orwell Street, Mississauga, Ontario, L5A 2W4
Lighting equipment
Ordinary
-
50.00
19
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
18,213
42,941
-
-
20
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
6,419,386
7,875,770
-
-
Work in progress
1,561,343
975,600
-
-
Finished goods and goods for resale
23,144,106
26,324,510
-
0
-
0
31,124,835
35,175,880
-
-

Stocks are stated after provision for impairment of £4,792,604 (2023: £3,975,108). The increase in slow-moving and obsolete stock provision of £817,495 (2023: £691,822) was recognised in cost of sales during the year.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 36 -
21
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
16,774,185
21,350,258
-
0
-
0
Corporation tax recoverable
190,615
374,960
-
0
-
0
Amounts owed by group undertakings
-
-
-
1,924,477
Finance leases receivable
-
756,910
-
-
Other debtors
196,968
1,848,649
-
0
-
0
Prepayments and accrued income
1,383,840
1,489,059
-
0
-
0
18,545,608
25,819,836
-
1,924,477
Deferred tax asset (note 28)
26,182
188,751
-
0
-
0
18,571,790
26,008,587
-
1,924,477
Amounts falling due after more than one year:
Deferred tax asset (note 28)
520,154
24,854
-
0
-
0
Total debtors
19,091,944
26,033,441
-
1,924,477

A decrease in the bad debt provision of £109,706 (2023: decrease of £447,677) was recognised in administrative expenditure during the year.

22
Finance lease receivables
Group
Company
2024
2023
2024
2023
£
£
£
£
Gross amounts receivable under finance leases:
Within one year
-
756,910
-
-
Unearned finance income
-
-
-
-
Present value of minimum lease payments receivable
-
756,910
-
-
The present value is receivable as follows:
Within one year
-
756,910
-
-
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
22
Finance lease receivables
(Continued)
- 37 -
Analysis of finance leases

Finance lease receivables are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Current assets
-
0
756,910
-
0
-
0

The group enters into financial leasing arrangements for stock. The average term of finance leases entered into is 1 year.

23
Current asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Loans to subsidiaries
17
-
0
-
0
1,572,462
-
0
Listed and unlisted investments
18,213
42,941
-
-
18,213
42,941
1,572,462
-
0

The market value of listed and unlisted investments held by the Group at 31 January 2024 and 31 January 2023 was equal to the carrying amount.

24
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
26
4,215,230
4,591,005
-
0
-
0
Payments received on account
350,689
353,699
-
0
-
0
Trade creditors
8,184,305
13,677,697
36,016
-
0
Amounts owed to group undertakings
-
0
-
0
3,893,364
29,163
Amounts owed to undertakings in which the group has a participating interest
63,901
1,307,283
-
0
-
0
Corporation tax payable
1,230,021
1,554,558
4,905
(13,098)
Other taxation and social security
993,719
1,732,092
5,146
21,997
Other creditors
185,098
238,636
-
0
4,083
Accruals and deferred income
2,640,640
5,264,381
23,590
88,137
17,863,603
28,719,351
3,963,021
130,282
A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 38 -
25
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
26
674,547
916,446
-
0
-
0

Bank loans and overdrafts of the company are secured by charges dated 20 February 2003 and 14 November 2016 over certain freehold property and by a debenture dated 5 July 2007 granting fixed and floating charges over all of the company’s assets.

26
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
4,874,920
5,507,451
-
0
-
0
Bank overdrafts
14,857
-
0
-
0
-
0
4,889,777
5,507,451
-
-
Payable within one year
4,215,230
4,591,005
-
0
-
0
Payable after one year
674,547
916,446
-
0
-
0

Included within bank loans payable by the Group are two mortgages payable relating to the subsidiary company A.C. Canada Limited of £3,961,481 ($2,320,500 and $4,420,000) (2023: £4,303,136 ($2,446,500 and $4,660,000)) from HSBC Bank Canada. These loans are repayable on the earlier of the bank's demand for repayment or the fifth anniversary of the drawdown. Until such demand, repayments of $10,500 and $20,000 plus interest are payable monthly and interest is charged at ‘Prime’ +0.5% and 5.63% respectively.

 

Also included within bank loans payable by the Group is a demand loan payable, due May 2025, relating to the subsidiary company, A.C. Canada Limited of £479,966 ($816,667) (2023: £524,785 ($866,667)) from HSBC Bank Canada of which $50,000 (2023: $50,000) is due within one year. Repayments of $4,167 plus interest are payable monthly until the balance is repaid. Interest is charged at 'Prime' +3.0%.

 

Bank loans of £433,472 (€501,663) (2023: £679,530 (€751,438)) are repayable by the subsidiary company ESL S.A.S., as detailed below.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 39 -
27
Securities

The company registered a mortgage deed which holds a fixed charge over its freehold property dated 20 February 2003.

 

The company registered a single debenture which holds a fixed and floating charge over its assets dated 5 July 2007.

 

The company and group is party to an omnibus guarantee and set-off agreement registered on 14 November 2016. This contains a fixed charge over its assets and a negative pledge.

28
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
186,446
506,126
-
-
Tax losses
-
-
520,126
-
Stock provisions
-
-
-
213,605
Other timing differences
-
-
26,210
-
186,446
506,126
546,336
213,605
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
292,521
-
Credit to profit or loss
(677,237)
-
Other
24,826
-
Asset at 31 January 2024
(359,890)
-

Tax losses are in respect of Spectrum Manufacturing Inc. and A.C. (Canada) Limited and are expected to be utilised in future years.

 

The Group has accumulated tax losses for which no deferred tax asset has been recognised due to the uncertainty of timing of relief of such losses amounting to £338,379. These losses are in respect of A.C. Holdings (Canada) Limited and A.C. Promedia (Canada) Inc.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 40 -
29
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
256,691
284,885

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.

Contributions totalling £43,146 (2023: £46,012) were payable to the scheme at the end of the year and are included in creditors.

30
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
730
730
730
730

Each ordinary share carries one vote, an equal right to dividends and capital (including on a winding up) and is not redeemable.

31
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
2023
2024
2023
£
£
£
£
Within one year
561,901
499,052
-
-
Between two and five years
527,154
537,773
-
-
In over five years
9,445
-
-
-
1,098,500
1,036,825
-
-
32
Events after the reporting date

After the year end certain subsidiaries in the US were amalgamated; these being A.C. Lighting (Canada) Inc, A.C. Promedia (Canada) Inc. and A.C. Americas (Canada) Ltd.

33
Related party transactions

During the year total dividends of £2,002,000 (2023: £3,000,900) were paid to D A Leggett, a director of the company.

A.C. WORLDWIDE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 41 -
34
Controlling party

The Group is controlled by D A Leggett, a director of the company.

35
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
6,191,499
12,552,835
Adjustments for:
Share of results of associates and joint ventures
(78,414)
(544,437)
Taxation charged
1,515,022
2,962,160
Finance costs
349,479
276,507
Investment income
(262,603)
(79,086)
Gain on disposal of tangible fixed assets
(56,593)
(62,757)
Amortisation and impairment of intangible assets
54,418
833,438
Depreciation and impairment of tangible fixed assets
1,252,439
1,211,098
Movements in working capital:
Decrease/(increase) in stocks
4,051,045
(13,357,779)
Decrease/(increase) in debtors
5,970,881
(2,834,603)
(Decrease)/increase in creditors
(9,793,344)
3,260,692
Cash generated from operations
9,193,829
4,218,068
36
Analysis of changes in net funds - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
13,139,843
3,066,571
16,206,414
Bank overdrafts
-
0
(14,857)
(14,857)
13,139,843
3,051,714
16,191,557
Borrowings excluding overdrafts
(5,507,451)
632,531
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