REGISTERED NUMBER: |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
REGISTERED NUMBER: |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
CHARTERED ACCOUNTANT & STATUTORY AUDITOR |
Chancery House |
30 St Johns Road |
Woking |
Surrey |
GU21 7SA |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
BALANCE SHEET |
31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 5 |
Investments | 6 |
CURRENT ASSETS |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
RESERVES |
Revaluation reserve |
Income and expenditure account |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | STATUTORY INFORMATION |
Association of Wholesale Electrical Bulk Buyers Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention with the exception of land & buildings within tangible fixed assets, which have been revalued to their current market value. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily available from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Valuation of property |
The company carries its land and building at fair value, with changes in fair value being recognised in other comprehensive income. In the past the professional valuer used a valuation technique which took account of the market rental yield of the property. The freehold land and buildings valuation is therefore sensitive to the estimated yield. |
The directors have valued the freehold land and building on an open market basis as at the current year end, considering changes in the market since the latest valuations. |
Accrued income |
The company receives rebates from suppliers which are due to be passed on the members. This is not income of the company, but they do recognise the expected rebates as accrued income, and an associated liability due on to members. There is a degree of estimation regarding the level of rebates receivable to accrue for members. This is estimated based on known member spends and agreed percentage rebates. |
In addition to these supplier rebates, the company is also a member of the IDEE, from whom it receives rebates, as a member itself. The company does not have access to the expenditure data of the IDEE, and so accounts for the level of income based on actual receipts, on the assumption that this does not fluctuate significantly year on year. |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable, excluding discounts and value added tax. |
The company recognises turnover where the amount of revenue and related cost can be measured reliably. |
The following accounting policies relate to the key income streams:- |
- Membership and marketing subscriptions are recognised in the accounting period to which the services are covered by those subscriptions. |
- Joining fees are accounted for in full in the year in which the member has joined the association. |
- AGM contributions are paid by the members and suppliers and are recognised in the period in which the AGM takes place. |
- IDEE rebate income is recognised on receipt. |
Income and expenditure |
Where revenue and expenditure have been recognised, but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected. |
Fixed asset investments |
The company's investments at the Balance Sheet date are stated at cost and reviewed annually for impairment. |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Freehold buildings | Straight line over 50 years |
Plant & machinery | 20% on reducing balance |
Fixtures, fittings & equipment | 25% on reducing balance |
Land is not depreciated. Directors assessed that 40% of the value is attributable to land. |
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 credited or charged to profit and loss. |
Freehold property is held under the revaluation model and is carried at a revalued amount, being their fair value less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is considered to be their open market value. |
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses an impairment loss previously recognised in surplus or deficit or an impairment loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in surplus or deficit. |
A reserve transfer is recognised annually from the revaluation reserve to the retained earnings for the difference in depreciation arising on revaluation. |
Impairment of Assets |
This policy is not relevant for property assets held at valuation, which have been discussed above. |
At each reporting period end date, the company 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. |
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 revaluation reserve before being recognised in the profit or loss. |
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. |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
(i) Financial assets and liabilities |
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. |
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method: |
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate. |
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged. |
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a). |
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods. |
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law. |
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c). |
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment. |
Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. |
(ii) Investments |
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. |
In the company balance sheet, investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored. |
(iii) Equity instruments |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
3. | ACCOUNTING POLICIES - continued |
Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. |
Taxation |
The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit. |
Bank interest received falls outside of the current exemption and is subject to Corporation Tax at the prevailing tax rate. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Operating leases |
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Pension costs and other post-retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
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. |
Provisions for liabilities |
Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, 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 using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises. |
The Company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 June 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
Cost or valuation at 31 May 2024 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2013 | 44,399 | - | - | 44,399 |
Valuation in 2020 | 20,000 | - | - | 20,000 |
Cost | 180,601 | 10,257 | 25,568 | 216,426 |
245,000 | 10,257 | 25,568 | 280,825 |
The revaluations relate to the land & buildings within freehold property held in tangible fixed assets. The directors have reviewed the valuation of the freehold land and buildings at the year end, looking at the expected open market value given other property trends in the area. The review has utilised the same assumptions and bases used by BB&J Commercial Property Consultants during the valuation on 12 November 2019. |
Following this review the directors did not consider any adjustment to the property value was required. |
The aforementioned land & buildings are held jointly with Electracentre Distribution Limited, and the valuation is split 50/50 between the two companies. |
6. | FIXED ASSET INVESTMENTS |
Other |
investments |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
ASSOCIATION OF WHOLESALE ELECTRICAL BULK |
BUYERS LIMITED (REGISTERED NUMBER: 01274531) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Amounts owed by group undertakings represent amounts owed by an associate in which the company has a minority shareholding |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Tax, VAT and social security |
Other creditors |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
11. | RELATED PARTY DISCLOSURES |
The company has an unlimited cross guarantee in place over its assets in relation to all bank borrowing within Electracentre Distribution Limited. The bank borrowings of Electracentre Distribution Limited at the balance sheet date amounted to £nil (2023: £nil.) |
During the year, a management fee was paid by Electracentre Distribution Limited to the company totalling £100,000 (2023: £100,000.) There was no balance due from Electracentre Distribution Limited as at 31st May 2024 (2023: £150,001). |
Key Management Personnel Compensation |
Exemption under FRS 102 Section 1A, Paragraph 33.7 has been taken in relation to the disclosure of Key Management Personnel Compensation |
12. | MEMBERS' LIABILITY |
The company is limited guarantee, not having a share capital and consequently the liablity of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1. |