Registered number:
For the Year Ended
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Seebeck 136 Limited
Company Information
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Seebeck 136 Limited
Contents
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Seebeck 136 Limited
Group Strategic Report
For the Year Ended 31 October 2024
The directors present their Group Strategic Report and the financial statements for the year ended 31 October 2024.
Group The Group’s principal activity during the year was the wholesale distribution and support of clinical equipment, lens edging machinery and ophthalmology technology to retail opticians, the NHS and eye clinics in the UK and Ireland. Irish distribution is through Birmingham Optical Ireland Ltd ('BOIL'), a wholly owned subsidiary of Seebeck 136 and established in 2021 purely to facilitate post Brexit sales to Irish customers. Turnover and profitability in the financial year ended October 2024 was not impacted by any supply challenges. Lead times are ahead of pre-pandemic level across almost all product lines. The mix of service-related work increased significantly during the year as customers sought to extend the life of the product and defer replacement equipment purchases. This has a positive impact on margin, and negative impact on comparable sales against the previous year. Group turnover totalled £17.97m (2023: £18.65m). The Group has also witnessed growth in its gross margin percentage (from 43% in FY23 to 48% in FY24) through an improved blended foreign exchange rate against last year. The Group’s hedging policy will always result in a delayed benefit of the full in-year exchange movement. Birmingham Optical Ireland Ltd (BOIL) remains a key strategic focus for the business and has witnessed increased profitability during the year, though the revenue has remained static. With costs well controlled, the benefit was derived through the margin – a reflection of a higher mix of service revenue, medical sales and an improved exchange rate against the prior year. Administrative expenses plus Distribution costs have fallen against the prior year by 4% (down by £244k to £6.6m) through our continual focus on our cost controls. This fall in costs is satisfying, given the Group experienced continued price increases in many categories of costs. The Group has eliminated non-customer value adding activity to help reduce the cost base, yet maintained its exceptional customer service levels. This has all been achieved through a continual learning approach to its cost base, ensuring we can protect our customers from any unnecessary costs to serve. Group operating profit of just over £1.9m is higher than the prior year (2023: £0.9m) and demonstrates a level of success the strategic pathways are delivering. This has been achieved despite a small drop in group turnover. The interest charges arise from the way the Group's main trading subsidiary, Birmingham Optical Group Limited, is financed through an external loan, and these have dropped slightly year on year (£821k in 2023, £779k in 2024) but remain a considerable cost for the Group to cover. The directors are delighted to see the Group achieve a consolidated profit, before taxation, of £1.2m (2023: £115k). Group EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) increased from £1.7m in 2022/23 to £2.6m in 2023/24. EBITDAE (Earnings before Interest, Tax, Depreciation, Amortisation and Exceptional items) has increased from £1.9m to £2.6m. Total comprehensive income for the year totalled £1m, and this has led to the Group's net liabilities falling from £2.6m at 31 October 2023 to £1.6m at 31 October 2024. Net current assets totalled £0.4m at 31 October 2024 (2023: £4.3m net current liabilities).
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Seebeck 136 Limited
Group Strategic Report (continued)
For the Year Ended 31 October 2024
The Group is expecting a stronger performance in the coming year, with new products, new markets and existing products to new markets, driving the initiatives during the year across the medical and optical divisions and with it the sense of optimism for 2024/25. Whilst the macro-economics within the UK will cause a degree of caution, we are confident that with the equipment and/ or service proposition we have a solution that could meet any customers’ needs, budget or vision.
The continued strength of GBP versus JPY means GM% is expected to remain above prior year levels, offsetting continued supplier inflationary price increases. The Gross Margin is also expected to improve due to the mix of Medical and Services sales. We will also continue to focus on our cost base and stock controls throughout the year. The order pipeline remains buoyant, giving management confidence for the near future and beyond. Principal risks and uncertainties The principal risks and uncertainties facing the Group are broadly grouped as competitive and financial instrument risk. Competitive risks The Group operates in a highly competitive market and manages to remain competitive by providing value added services, having fast response times, and maintaining strong relationships with its customers. In addition, the strength of the business is underpinned by the strong relationship with key suppliers from around the world providing premium products in all market sectors. Interest rate risks The loans used to fund the Group’s operations are fixed, thereby reducing any exposure to macro economic effects. Inflation risks Cost price inflation has been high as these accounts are finalised, with pressure on energy costs, expenses and goods for resale. However, the Group attempts to counter any increases through a continual lean approach to all existing processes. In 2025, the Group will launch its carbon target plan as it continues to work on energy efficient projects and initiatives. Expenses and wage inflation is being managed through careful cost management, with annual staff pay reviews striving to balance the opposing pressures of cost inflation and staff retention. Financial instrument risks The Group takes a very pro-active view to minimise exchange fluctuations on account of its global supplier relationships. Use of derivatives The Group has established a foreign exchange committee of senior executives to evaluate the strategic Forex policy on a quarterly basis. The committee has a variety of tools at its disposal to balance the existing and emerging risks against the Group’s attitude towards the identified risks. The principal financial risk is foreign currency movement as the majority of the Group’s supplies are secured in Japanese Yen.
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Seebeck 136 Limited
Group Strategic Report (continued)
For the Year Ended 31 October 2024
Credit risk is the risk that one party to a financial instrument will cause 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 be only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. 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 and applying cash collection targets. Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability. The Group manages this risk, where significant, by use of derivatives as explained above.
The Group's financial KPIs focus on a number of critical areas. Gross margin and EBITDA remain the major factors in shaping the future success of the business and are referred to in the Business review above.
Business liquidity runs in parallel with margins and is closely monitored through both debtor and creditor management. Other financial KPIs are as follows: - Working capital analysis - Cash flow forecasting - Review of turnover: actual v forecast - Analysis of overhead expenditure: actual v forecast
Non financial key performance indicators are numerous but centre on the following:
- Health & Safety, including accidents and sick leave. Results remain in line with the previous year and show nil accidents reported in the last 12 months, whilst recorded absence remains low. - Employee workforce management, including productivity measures around breakdowns and installations, witnessed a swing in volume from installation towards breakdown as customers extended the life of equipment. - Customer feedback meaures, rating each interaction between our team and the customer store staff remain consistently high at 9/10 and in line with previous years. - Service Level Agreement dashboards, reporting how well the Group responds to agreed response times are monitored monthly with our customers, and the Group is delighted to report a high level of adherence to the agreed thresholds.
This report was approved by the board and signed on its behalf.
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Seebeck 136 Limited
Directors' Report
For the Year Ended 31 October 2024
The directors present their report and the financial statements for the year ended 31 October 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £812,957 (2023 - loss £35,478).
The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
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Seebeck 136 Limited
Directors' Report (continued)
For the Year Ended 31 October 2024
Group
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion. The Group has net liabilities of £1,613,593 at 31 October 2024 (2023: £2,598,843) and net current assets totalling £381,844 (2023: Net current liabilities £4,285,867). Loan covenant compliance The Group was fully compliant with the Loan covenants for the year ended 31 October 2024. FY25 trading The Group is expecting a stronger performance in the coming year, with new products, new markets and existing products to new markets, driving the initiatives during the year across the medical and optical divisions and with it the sense of optimism for 2024/25. Whilst the macro-economics within the UK will cause a degree of caution, we are confident that with the equipment and/ or service proposition we have a solution that could meet any customers’ needs, budget or vision. The continued strength of GBP versus JPY means GM% is expected to remain above prior year levels, offsetting continued supplier inflationary price increases. The Gross Margin is also expected to improve due to the mix of Medical and Services sales. We will also continue to focus on our cost base and stock controls throughout the year. The order pipeline remains buoyant, giving management confidence for the near future and beyond. Future Developments We are working with suppliers to connect the visions of our customers who are looking for innovative thinking to help solve new and old challenges, as the UK seeks to take care of an ageing population. Streamlining and outsourcing will continue to add operational efficiencies and are helping to mitigate upwards inflationary pressures. Operational efficiencies remain central to business priorities, with considerable focus and investment in digital transformation of our business systems and processes. This focus is enabling continued growth without significant step changes in overhead costs, and sets the business up well for the future. Management has prepared forecasts (including cashflow) which cover the period to 31 October 2026. The forecasts indicates that the Group will be able to meet its liabilities as they fall due in the next 12 months and beyond. Company The Company relies on financial support from its main trading subsidiary, Birmingham Optical Group Limited, to enable it to continue operating and meet its liabilities as they fall due. Such financial support is confirmed by the subsidiary undertaking and management therefore considers it appropriate to prepare the financial statements on a going concern basis.
The Group's activities in the field of Research and Development are primarily focused on Development of third party research into saleable products and services. These include data conversion and new products to facilitate remote eye care. Additionally, internal developments in business platforms and systems have been undertaken in the year.
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Seebeck 136 Limited
Directors' Report (continued)
For the Year Ended 31 October 2024
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Seebeck 136 Limited
Independent Auditors' Report to the Members of Seebeck 136 Limited
We have audited the financial statements of Seebeck 136 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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Seebeck 136 Limited
Independent Auditors' Report to the Members of Seebeck 136 Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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Seebeck 136 Limited
Independent Auditors' Report to the Members of Seebeck 136 Limited (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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 engagement partner's assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's: • Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation; • Knowledge of the industry in which the entity operates; • Understanding of the legal and regulatory requirements specific to the entity. We identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • The nature of the industry and sector in which the Group operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. • The outcome of enquiries of management, including whether management was aware of any instances of non- compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. • Supporting documentation relating to the Group's policies and procedures for: - Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud • The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. • The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. • The legal and regulatory framework in which the Group operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group, including General Data Protection requirements, and Anti-bribery and Corruption.
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Seebeck 136 Limited
Independent Auditors' Report to the Members of Seebeck 136 Limited (continued)
Audit response to risks identified
Our procedures to respond to the risks identified included the following: • Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements. • Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. • Evaluation of management’s controls designed to prevent and detect irregularities. • Enquiring of management about any actual and potential litigation and claims. • Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud. We have also considered the risk of fraud through management override of controls by: • Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error. • Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and • Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
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Seebeck 136 Limited
Consolidated Statement of Comprehensive Income
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Registered number: 09892803
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 42 form part of these financial statements.
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Seebeck 136 Limited
Registered number: 09892803
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 42 form part of these financial statements.
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Seebeck 136 Limited
Consolidated Statement of Changes in Equity
For the Year Ended 31 October 2024
Consolidated Statement of Changes in Equity
For the Year Ended 31 October 2023
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Seebeck 136 Limited
Company Statement of Changes in Equity
For the Year Ended 31 October 2024
Company Statement of Changes in Equity
For the Year Ended 31 October 2023
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Seebeck 136 Limited
Consolidated Statement of Cash Flows
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Consolidated Statement of Cash Flows (continued)
For the Year Ended 31 October 2024
Consolidated Analysis of Net Debt
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
Seebeck 136 Limited is a private company limited by shares and incorporated in England and Wales, company number 09892803. The address of the registered office and principal place of business is Unit 4, Gravelly Industrial Estate, Birmingham, B24 8HZ.
The Group's principal activity is the wholesale distribution and support of edger machinery and clinical equipment to retail opticians in the UK and Ireland. The nature of the Company's operation and principal activity is that of a holding company.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and 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 judgment in applying the Group's accounting policies (see note 3).
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.
Parent Company disclosure exemptions
In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
∙No Statement of Cash Flows has been presented for the parent Company;
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
Group
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion. The Group has net liabilities of £1,613,593 at 31 October 2024 (2023: £2,598,843) and net current assets totalling £381,844 (2023: Net current liabilities £4,285,867). Loan covenant compliance The Group was fully compliant with the Loan covenants for the year ended 31 October 2024. FY25 trading The Group is expecting a stronger performance in the coming year, with new products, new markets and existing products to new markets, driving the initiatives during the year across the medical and optical divisions and with it the sense of optimism for 2024/25. Whilst the macro-economics within the UK will cause a degree of caution, we are confident that with the equipment and/ or service proposition we have a solution that could meet any customers’ needs, budget or vision. The continued strength of GBP versus JPY means GM% is expected to remain above prior year levels, offsetting continued supplier inflationary price increases. The Gross Margin is also expected to improve due to the mix of Medical and Services sales. We will also continue to focus on our cost base and stock controls throughout the year. The order pipeline remains buoyant, giving management confidence for the near future and beyond. Future Developments We are working with suppliers to connect the visions of our customers who are looking for innovative thinking to help solve new and old challenges, as the UK seeks to take care of an ageing population. Streamlining and outsourcing will continue to add operational efficiencies and are helping to mitigate upwards inflationary pressures. Operational efficiencies remain central to business priorities, with considerable focus and investment in digital transformation of our business systems and processes. This focus is enabling continued growth without significant step changes in overhead costs, and sets the business up well for the future. Management has prepared forecasts (including cashflow) which cover the period to 31 October 2026. The forecasts indicates that the Group will be able to meet its liabilities as they fall due in the next 12 months and beyond. Company The Company relies on financial support from its main trading subsidiary, Birmingham Optical Group Limited, to enable it to continue operating and meet its liabilities as they fall due. Such financial support is confirmed by the subsidiary undertaking and management therefore considers it appropriate to prepare the financial statements on a going concern basis.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
Bill and hold sales, in which delivery is delayed at the buyer’s request but the buyer takes title and accepts billing In these circumstances, revenue is recognised by the Company when the buyer takes title, provided that the following conditions are satisfied: (a) it is probable that delivery will be made; (b) the item is on hand, identified and ready for delivery to the buyer at the time the sale is recognised; (c) the buyer specifically acknowledges the deferred delivery instructions; and (d) the usual payment terms apply. Revenue is not recognised when there is simply an intention to acquire or manufacture the goods in time for delivery. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: • the amount of revenue can be measured reliably; • it is probable that the Company will receive the consideration due under the contract; • the stage of completion of the contract at the end of the reporting period can be measured reliably; and • the costs incurred and the costs to complete the contract can be measured reliably. Rental of equipment Revenue from a contract to provide equipment under the terms of a rental contract is recognised on a straight-line basis over the lease term.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful life of the software, website and product development is 5 years.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
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.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
With the exception of forward currency contracts, the Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
2.Accounting policies (continued)
year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
The Directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amount of the assets and liabilities within the next financial year.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
Analysis of turnover by country of destination:
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.
The other loan is secured with a fixed and floating charge over the assets of the company.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
Capital redemption reserve
The capital redemption reserve is a non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares. Cashflow hedge reserve The cashflow hedge reserve includes all gains and losses made on forward contracts. Profit and loss account Profit and loss account includes all current retained profit and losses.
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
Page 41
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Seebeck 136 Limited
Notes to the Financial Statements
For the Year Ended 31 October 2024
A guarantee exists in favour of a supplier for £50,000 (2023: £50,000).
A guarantee exists in favour of HM Revenue & Customs for £20,000 (2023: £20,000).
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £89,043 (2023 - £68,026) . Contributions totalling £24,439 (2023 - £11,646) were payable to the fund at the balance sheet date and are included in creditors.
There is no overall controlling party.
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