Company registration number 06251415 (England and Wales)
ILLUMINO IGNIS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
ILLUMINO IGNIS LIMITED
COMPANY INFORMATION
Directors
J P Bramley
I J Green
K E Corney
(Appointed 1 June 2023)
M J Back
(Appointed 1 June 2023)
Company number
06251415
Registered office
Ignis House
Imperial Way
Eagle Business Park
Yaxley
Cambs
PE7 3GP
Auditor
Moore
Rutland House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6PZ
ILLUMINO IGNIS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 22
ILLUMINO IGNIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
Review of the business
The results for the year are set out in the Statement of Income and Retained Earnings. The improved results for the year are reflective of the way the company has adapted to trade within what remained a difficult economic climate. Sales of £16,142,577 (2023 - £15,110,386) were achieved with a gross profit of £4,544,197 (2023 - £4,108,030) giving a 28.2% gross margin (2023 - 27.2%).
Principal risks and uncertainties
The management of the business and the nature of the company's strategy are subject to a number of risks.
The directors have set out the principle risks facing the business below. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review - where possible, processes are in measure and mitigate such risks.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
The directors have prepared forecasts to end of May 2024 and are satisfied that any funding needs can be met to service the day to day requirements of the company in addition to the company's growth and strategic objectives. Accordingly, the financial statements have been prepared on an ongoing basis.
Interest rate risk
The company finances its operations through bank borrowings and therefore they are exposed to interest rate risk on these.
Credit risk
The company's principal financial assets are bank deposits, cash and trade debtors. The counterparties involved with the cash and bank deposits have high credit rating. The principal credit risk therefore arises from the company's trade debtors.
Trade debtors have limits set based on a combination of payment history and 3rd party credit references. These limits are reviewed on a regular basis in conjunction with the debt aging, collection history and information from the 3rd party credit reference.
J P Bramley
Director
24 February 2025
ILLUMINO IGNIS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activity of the company continued to be that of the design, supply, technical assistance, installation and commissioning of fire alarms.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £66,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J P Bramley
I J Green
K E Corney
(Appointed 1 June 2023)
M J Back
(Appointed 1 June 2023)
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
ILLUMINO IGNIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
On behalf of the board
J P Bramley
Director
24 February 2025
ILLUMINO IGNIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ILLUMINO IGNIS LIMITED
- 4 -
Opinion
We have audited the financial statements of Illumino Ignis Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ILLUMINO IGNIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ILLUMINO IGNIS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
ILLUMINO IGNIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ILLUMINO IGNIS LIMITED (CONTINUED)
- 6 -
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Gemma Roger
Senior Statutory Auditor
For and on behalf of Moore
24 February 2025
Chartered Accountants
Statutory Auditor
Rutland House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6PZ
ILLUMINO IGNIS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
16,142,577
15,110,386
Cost of sales
(11,598,380)
(11,002,356)
Gross profit
4,544,197
4,108,030
Administrative expenses
(4,221,224)
(3,542,902)
Other operating income
30,000
Operating profit
3
322,973
595,128
Interest receivable and similar income
6
8,787
1,753
Interest payable and similar expenses
7
(36,825)
(29,297)
Profit before taxation
294,935
567,584
Tax on profit
8
(33,878)
(35,596)
Profit for the financial year
261,057
531,988
Retained earnings brought forward
2,236,419
1,839,431
Dividends
9
(66,000)
(135,000)
Retained earnings carried forward
2,431,476
2,236,419
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ILLUMINO IGNIS LIMITED
BALANCE SHEET
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
292,535
312,666
Investments
11
100
100
292,635
312,766
Current assets
Stocks
12
1,022,936
922,033
Debtors
13
3,571,144
2,819,952
Cash at bank and in hand
1,544,294
2,172,189
6,138,374
5,914,174
Creditors: amounts falling due within one year
14
(3,723,018)
(3,651,378)
Net current assets
2,415,356
2,262,796
Total assets less current liabilities
2,707,991
2,575,562
Creditors: amounts falling due after more than one year
15
(246,773)
(303,617)
Provisions for liabilities
Deferred tax liability
18
29,741
35,525
(29,741)
(35,525)
Net assets
2,431,477
2,236,420
Capital and reserves
Called up share capital
20
1
1
Profit and loss reserves
2,431,476
2,236,419
Total equity
2,431,477
2,236,420
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
J P Bramley
Director
Company registration number 06251415 (England and Wales)
ILLUMINO IGNIS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(353,324)
966,161
Interest paid
(36,825)
(29,297)
Income taxes (paid)/refunded
(54,350)
185
Net cash (outflow)/inflow from operating activities
(444,499)
937,049
Investing activities
Purchase of tangible fixed assets
(37,763)
(44,185)
Proceeds from disposal of tangible fixed assets
22,374
25,340
Loans made to other entities
(56,069)
Repayment of loans
56,069
Interest received
8,787
1,753
Net cash used in investing activities
(6,602)
(17,092)
Financing activities
Repayment of bank loans
(68,369)
(68,769)
Payment of finance leases obligations
(42,425)
(90,528)
Dividends paid
(66,000)
(135,000)
Net cash used in financing activities
(176,794)
(294,297)
Net (decrease)/increase in cash and cash equivalents
(627,895)
625,660
Cash and cash equivalents at beginning of year
2,172,189
1,546,529
Cash and cash equivalents at end of year
1,544,294
2,172,189
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
1
Accounting policies
Company information
Illumino Ignis Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ignis House, Imperial Way, Eagle Business Park, Yaxley, Cambs, PE7 3GP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised 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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% straight line basis
Tenants Improvement
10% straight line basis
IT equipment
33% straight line basis
Motor vehicles
25% reducing balance basis
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 or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 11 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 12 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
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.
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
16,142,577
15,110,386
2024
2023
£
£
Other revenue
Interest income
8,787
1,753
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(537)
162
Fees payable to the company's auditor for the audit of the company's financial statements
8,750
9,000
Depreciation of owned tangible fixed assets
105,448
85,572
Profit on disposal of tangible fixed assets
(258)
(7,288)
Operating lease charges
309,844
193,790
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
70
62
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,273,159
1,974,626
Social security costs
239,857
197,185
Pension costs
45,609
37,749
2,558,625
2,209,560
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
182,955
47,692
Company pension contributions to defined contribution schemes
3,607
1,013
186,562
48,705
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,787
1,593
Other interest income
160
Total income
8,787
1,753
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,787
1,593
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
23,368
21,031
Other finance costs:
Interest on finance leases and hire purchase contracts
12,505
8,266
Other interest
952
36,825
29,297
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
107,870
130,974
Adjustments in respect of prior periods
(68,208)
(106,963)
Total current tax
39,662
24,011
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
8
Taxation
2024
2023
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
(5,784)
11,585
Total tax charge
33,878
35,596
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
294,935
567,584
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
73,734
141,896
Tax effect of expenses that are not deductible in determining taxable profit
27,192
21,581
Adjustments in respect of prior years
(68,208)
(106,963)
Effect of change in corporation tax rate
8,365
Permanent capital allowances in excess of depreciation
16
Depreciation on assets not qualifying for tax allowances
1,160
928
Tax at marginal rate
(28,379)
Enhanced capital allowances
(1,848)
Taxation charge for the year
33,878
35,596
9
Dividends
2024
2023
£
£
Interim paid
66,000
135,000
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
10
Tangible fixed assets
Plant and machinery
Tenants Improvement
IT equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
47,689
162,485
254,307
316,413
780,894
Additions
6,449
2,966
28,348
69,670
107,433
Disposals
(88,329)
(88,329)
At 31 May 2024
54,138
165,451
282,655
297,754
799,998
Depreciation and impairment
At 1 June 2023
35,482
92,260
203,396
137,090
468,228
Depreciation charged in the year
6,461
12,465
32,924
53,598
105,448
Eliminated in respect of disposals
(66,213)
(66,213)
At 31 May 2024
41,943
104,725
236,320
124,475
507,463
Carrying amount
At 31 May 2024
12,195
60,726
46,335
173,279
292,535
At 31 May 2023
12,207
70,225
50,911
179,323
312,666
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
157,939
174,946
11
Fixed asset investments
2024
2023
£
£
Unlisted investments
100
100
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,022,936
922,033
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,524,867
2,723,603
Corporation tax recoverable
8,337
Other debtors
33,448
80,477
Prepayments and accrued income
12,829
7,535
3,571,144
2,819,952
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
68,823
68,669
Obligations under finance leases
17
36,874
21,308
Trade creditors
3,189,588
3,206,726
Corporation tax
107,949
130,974
Other taxation and social security
229,964
159,991
Other creditors
27,667
24,864
Accruals and deferred income
62,153
38,846
3,723,018
3,651,378
Included in bank loans is an amount of £7,154 (2023 £7,000) which has been personally guaranteed by the director, J P Bramley.
Included in obligations under finance leases is £36,874 of finance leases (2023 £21,308) which are secured over the assets to which they relate.
Finance lease liabilities are secured on the assets concerned.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
126,951
195,474
Obligations under finance leases
17
119,822
108,143
246,773
303,617
Included in bank loans is an amount of £96,534 (2023 £103,388) which has been personally guaranteed by the director, J P Bramley.
Included in obligations under finance leases is £119,822 of finance leases (2023 £108,143) which are secured over the assets to which they relate.
Finance lease liabilities are secured on the assets concerned.
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
195,774
264,143
Payable within one year
68,823
68,669
Payable after one year
126,951
195,474
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
36,874
21,308
In two to five years
119,822
108,143
156,696
129,451
Finance lease payments represent rentals payable by the company for certain items of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 48 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
29,741
35,525
2024
Movements in the year:
£
Liability at 1 June 2023
35,525
Credit to profit or loss
(5,784)
Liability at 31 May 2024
29,741
The deferred tax liability set out above is not expected to reverse within the next 12 month.
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,609
37,749
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
107,797
84,057
Between two and five years
96,612
76,108
204,409
160,165
23
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
261,057
531,988
Adjustments for:
Taxation charged
33,878
35,596
Finance costs
36,825
29,297
Investment income
(8,787)
(1,753)
Gain on disposal of tangible fixed assets
(258)
(7,288)
Depreciation and impairment of tangible fixed assets
105,448
85,572
Movements in working capital:
Increase in stocks
(100,903)
(78,394)
Increase in debtors
(759,529)
(535,548)
Increase in creditors
78,945
906,691
Cash (absorbed by)/generated from operations
(353,324)
966,161
ILLUMINO IGNIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
24
Analysis of changes in net funds
1 June 2023
Cash flows
New finance leases
31 May 2024
£
£
£
£
Cash at bank and in hand
2,172,189
(627,895)
-
1,544,294
Borrowings excluding overdrafts
(264,143)
68,369
-
(195,774)
Obligations under finance leases
(129,451)
42,425
(69,670)
(156,696)
1,778,595
(517,101)
(69,670)
1,191,824
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