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REGISTERED NUMBER: 02627422 (England and Wales)









ELECTRACENTRE DISTRIBUTION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024






ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)






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


ELECTRACENTRE DISTRIBUTION LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTORS: L J Hassell
M C Bell





REGISTERED OFFICE: Awebb House 2 Kensington Works
Hallam Fields Road
Ilkeston
Derbyshire
DE7 4BR





REGISTERED NUMBER: 02627422 (England and Wales)





AUDITORS: WP Audit Services LLP
CHARTERED ACCOUNTANT & STATUTORY AUDITOR
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 5 15,423 19,287
Tangible assets 6 236,888 238,450
252,311 257,737

CURRENT ASSETS
Stocks 1,153,485 1,038,501
Debtors 7 2,097,279 2,260,164
Cash at bank 1,596,823 754,011
4,847,587 4,052,676
CREDITORS
Amounts falling due within one year 8 1,741,474 1,366,422
NET CURRENT ASSETS 3,106,113 2,686,254
TOTAL ASSETS LESS CURRENT LIABILITIES 3,358,424 2,943,991

CAPITAL AND RESERVES
Called up share capital 89 89
Revaluation reserve 60,047 61,346
Retained earnings 3,298,288 2,882,556
3,358,424 2,943,991

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 12 February 2025 and were signed on its behalf by:





L J Hassell - Director


ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1. STATUTORY INFORMATION

Electracentre Distribution Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

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 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 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 it's 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 freehold land and building on an open market basis as at the current year end, considering changes in the market since the last valuations.

Accrued rebate income and impact on stock
In line with general industry practice, at times the company receives rebates from some suppliers in relation to purchases made. At any one time there is stock held on which rebates have been or are due to be received, which would reduce the actual unit cost of this stock below the initial amount invoiced.

To reflect the impact of these rebates on the stock value, and properly record stock at the lower of cost and net realisable value, an adjustment should be made to lower the value of stock reported. The directors have estimated the impact of the purchase rebates on stock by looking at ratios of rebates, purchases and stock and consider the impact to be immaterial. It has therefore not been adjusted for.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

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 for electrical wholesale goods 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 when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Purchases and sales rebates
Purchase rebates from suppliers are credited to the profit and loss account (against purchases) and sales rebates to customers are charged to the profit and loss account (against sales) on an accruals basis

Intangible assets
Intangible assets comprise computer software. Assets are recognised at cost less accumulated amortisation and any impairment losses.

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:

Software 25% on reducing balance

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

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 & machinery25% on reducing balance
Fixtures, fittings & equipment25% 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.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

3. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items as well as subsequent reductions to cost in relation to rebates.

Whilst stock is sold on a First In First Out basis, the cost of stock is derived using an average purchase price where applicable.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss

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.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

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

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

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

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

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

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

Foreign currencies
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.

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

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.

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.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2023 - 10 ) .

5. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 June 2023 25,716
Additions 1,242
At 31 May 2024 26,958
AMORTISATION
At 1 June 2023 6,429
Amortisation for year 5,106
At 31 May 2024 11,535
NET BOOK VALUE
At 31 May 2024 15,423
At 31 May 2023 19,287

6. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
COST OR VALUATION
At 1 June 2023 245,000 24,299 8,997 278,296
Additions - - 8,144 8,144
At 31 May 2024 245,000 24,299 17,141 286,440
DEPRECIATION
At 1 June 2023 22,700 12,103 5,043 39,846
Charge for year 4,604 3,039 2,063 9,706
At 31 May 2024 27,304 15,142 7,106 49,552
NET BOOK VALUE
At 31 May 2024 217,696 9,157 10,035 236,888
At 31 May 2023 222,300 12,196 3,954 238,450

Cost or valuation at 31 May 2024 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
Valuation in 2014 45,659 - - 45,659
Valuation in 2020 20,000 - - 20,000
Cost 179,341 24,299 17,141 220,781
245,000 24,299 17,141 286,440

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

6. TANGIBLE FIXED ASSETS - continued

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 Association of Wholesale Electrical Bulk Buyers Limited, and the valuation is split 50/50 between the two companies.

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,407,630 1,457,336
Other debtors 689,649 802,828
2,097,279 2,260,164

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,484,072 1,097,804
Amounts owed to group undertakings - 150,001
Taxation and social security 140,538 83,000
Other creditors 116,864 35,617
1,741,474 1,366,422

Amounts owed by group undertakings represents an amount owed to an associate who owns a minority shareholding in the company.

9. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mrs Stephanie Williams (Senior Statutory Auditor)
for and on behalf of WP Audit Services LLP

10. RELATED PARTY DISCLOSURES

The company has an unlimited cross guarantee in place over assets in relation to all bank borrowing within the Association of Wholesale Electrical Bulk Buyers Limited. The bank borrowings of Association of Wholesale Electrical Bulk Buyers Limited at the balance sheet date amounted to £nil (2023, £nil.)

During the year, a management fee was paid to Association of Wholesale Electrical Bulk Buyers Limited from the company totalling £100,000 (2023, £100,000.) The balance as at 31 May 2024 was £nil (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

11. ULTIMATE CONTROLLING PARTY

The company is controlled by its members. There is no ultimate controlling party. During the year end the company has adopted new Articles of Association that reflect that the company is, and has always been, controlled by its members.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

12. MOVEMENTS IN SHARE CAPITAL

Movements in share capital relate to the issuing and cancellation of shares for members of Association Of Wholesale Electrical Bulk Buyers Limited.

During the year there was an amendment to the Articles of Association of the company, which now enables Association of Wholesale Electrical Bulk Buyers Limited (AWEBB) to hold shares as treasury shares in the interim between members leaving and new members joining. This avoids the need for frequent cancellations and issues of share capital.

The current share capital of the company can be split as follows:

Shareholder No. of Ordinary B shares held
AWEBB Members 85
AWEBB 1
AWEBB held in treasury 3

Total Share Capital 89