Company Registration No. 01169504 (England and Wales)
SEARCHLIGHT ELECTRIC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
SEARCHLIGHT ELECTRIC LIMITED
COMPANY INFORMATION
Directors
Mr. D M Hamburger
Mr. D S Hamburger
Mr. M E Hamburger
T J Boyle
S Spitzer
Secretary
Mr. D M Hamburger
Company number
01169504
Registered office
Sidney House
900 Oldham Road
Manchester
M40 2BS
Auditor
Jack Ross Limited
Barnfield House
The Approach
Manchester
M3 7BX
Business address
Sidney House
900 Oldham Road
Manchester
England
M40 2BS
SEARCHLIGHT ELECTRIC LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 33
SEARCHLIGHT ELECTRIC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Fair review of the business

The ongoing effects of high inflation and interest rates have continued to impact consumer confidence and have resulted in a slowdown in Retail, especially Homewares, and it has therefore affected our turnover this year.  The high street has continued to suffer and we have broadened our horizons to mitigate the effect of the UK Retail high street decline.  Despite this we have managed to clear through large amounts of historical overstock and remain well positioned with current stock and continue to invest in new lines both in the UK, Europe and beyond.

 

Principal risks and uncertainties

Consumer confidence driven by cost of living crisis continues and the lighting industry will become more competitive as the market has shrunk.  We continue to support our Customer base with product that meets demand and seek new opportunities and markets in the UK and further afield.

 

Currency exposure will continue to be managed with natural hedge and forward contracts that secure budgetary targets.

 

Development and performance

The core focus of our business remains the importation, assembly, and distribution of electrical light fittings.

 

Key performance indicators

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

 

2024     2023         Variance

Turnover                £20,867k    £23,339k    (11.6%)

Gross profit margin        47.5%        45.9%        1.6%

Pre-tax profit /​ (loss)        (£1,423k)    (£1,249k)    (13.9%)

Net assets at year end        £12,836k    £15,498k    (17.2%)     

On behalf of the board

Mr. D S Hamburger
Director
19 March 2025
SEARCHLIGHT ELECTRIC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company and group continued to be that of that of importation, assembly and distribution of electrical light fittings.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr. D M Hamburger
Mr. D S Hamburger
Mr. H E Hamburger (deceased)
(Deceased 3 March 2024)
Mr. M E Hamburger
Mr. D J Metcalfe
(Resigned 30 August 2024)
T J Boyle
S Spitzer
Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Financial instruments
Treasury operations and financial instruments

The group holds various financial instruments such as trade debtors and trade creditors which arise directly from the company's operations.

 

Transactions in financial instruments result in the group assuming or transferring to another party one or more of the financial risks described below.

Liquidity risk

The group manages its cash requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foreign currency risk

The group invoices in foreign currency where appropriate, which reduces their foreign currency exposure to purchases. In addition, forward currency purchase contracts are used when necessary.

Credit risk

Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary

Auditor

The auditor, Jack Ross Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

SEARCHLIGHT ELECTRIC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company and group is aware of that information.

On behalf of the board
Mr. D S Hamburger
Director
19 March 2025
SEARCHLIGHT ELECTRIC LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SEARCHLIGHT ELECTRIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEARCHLIGHT ELECTRIC LIMITED
- 5 -
Opinion

We have audited the financial statements of Searchlight Electric Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.

 

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

SEARCHLIGHT ELECTRIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEARCHLIGHT ELECTRIC LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Umar Memon FCA (Senior Statutory Auditor)
for and on behalf of Jack Ross Limited
Statutory Auditor
Barnfield House
The Approach
Manchester
M3 7BX
Date:
19 March 2025
SEARCHLIGHT ELECTRIC LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
20,866,759
23,338,624
Cost of sales
(10,962,305)
(12,627,393)
Gross profit
9,904,454
10,711,231
Distribution costs
(6,005,006)
(6,809,095)
Administrative expenses
(5,530,424)
(5,124,857)
Other operating income
209,148
24,178
Operating loss
4
(1,421,828)
(1,198,543)
Interest receivable and similar income
8
162,261
136,606
Interest payable and similar expenses
9
(163,662)
(187,003)
Loss before taxation
(1,423,229)
(1,248,940)
Taxation
10
(1,239,284)
248,396
Loss for the financial year
(2,662,513)
(1,000,544)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive loss for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SEARCHLIGHT ELECTRIC LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
34,575
36,987
Tangible assets
12
5,342,640
5,765,905
5,377,215
5,802,892
Current assets
Stocks
16
7,008,311
9,278,344
Debtors
17
3,979,598
5,745,786
Cash at bank and in hand
5,901,415
4,908,767
16,889,324
19,932,897
Creditors: amounts falling due within one year
18
(4,630,807)
(5,034,563)
Net current assets
12,258,517
14,898,334
Total assets less current liabilities
17,635,732
20,701,226
Creditors: amounts falling due after more than one year
19
(4,800,000)
(4,802,669)
Provisions for liabilities
21
-
(400,312)
Net assets
12,835,732
15,498,245
Capital and reserves
Called up share capital
23
53,880
53,880
Share premium account
161,430
161,430
Profit and loss reserves
12,620,422
15,282,935
Total equity
12,835,732
15,498,245
The financial statements were approved by the board of directors and authorised for issue on 19 March 2025 and are signed on its behalf by:
19 March 2025
Mr. D S Hamburger
Director
SEARCHLIGHT ELECTRIC LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
34,575
36,987
Tangible assets
12
5,293,936
5,765,905
Investments
13
485
400
5,328,996
5,803,292
Current assets
Stocks
16
5,741,691
9,278,344
Debtors
17
5,687,165
5,745,786
Cash at bank and in hand
5,728,872
4,908,767
17,157,728
19,932,897
Creditors: amounts falling due within one year
18
(4,396,725)
(5,034,963)
Net current assets
12,761,003
14,897,934
Total assets less current liabilities
18,089,999
20,701,226
Creditors: amounts falling due after more than one year
19
(4,800,000)
(4,802,669)
Provisions for liabilities
21
-
0
(400,312)
Net assets
13,289,999
15,498,245
Capital and reserves
Called up share capital
23
53,880
53,880
Share premium account
161,430
161,430
Profit and loss reserves
13,074,689
15,282,935
Total equity
13,289,999
15,498,245

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,208,246 (2023 - £1,000,544 loss).

The financial statements were approved by the board of directors and authorised for issue on 19 March 2025 and are signed on its behalf by:
19 March 2025
Mr. D S Hamburger
Director
Company Registration No. 01169504
SEARCHLIGHT ELECTRIC LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2022
53,880
161,430
16,283,479
16,498,789
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
(1,000,544)
(1,000,544)
Balance at 30 June 2023
53,880
161,430
15,282,935
15,498,245
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
-
(2,662,513)
(2,662,513)
Balance at 30 June 2024
53,880
161,430
12,620,422
12,835,732
SEARCHLIGHT ELECTRIC LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2022
53,880
161,430
16,283,479
16,498,789
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
(1,000,544)
(1,000,544)
Balance at 30 June 2023
53,880
161,430
15,282,935
15,498,245
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
-
(2,208,246)
(2,208,246)
Balance at 30 June 2024
53,880
161,430
13,074,689
13,289,999
SEARCHLIGHT ELECTRIC LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
1,242,037
(613,895)
Interest paid
(152,097)
(165,335)
Income taxes refunded
1
168,028
Net cash inflow/(outflow) from operating activities
1,089,941
(611,202)
Investing activities
Purchase of intangible assets
-
(982)
Purchase of tangible fixed assets
(342,853)
(791,309)
Proceeds on disposal of tangible fixed assets
85,968
136,481
Proceeds on disposal of subsidiaries
-
400
Proceeds from other investments and loans
-
1,500,000
Interest received
162,261
136,606
Net cash (used in)/generated from investing activities
(94,624)
981,196
Financing activities
Repayment of borrowings
(2,669)
(1,197,331)
Net cash used in financing activities
(2,669)
(1,197,331)
Net increase/(decrease) in cash and cash equivalents
992,648
(827,337)
Cash and cash equivalents at beginning of year
4,908,767
5,736,104
Cash and cash equivalents at end of year
5,901,415
4,908,767
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

Searchlight Electric Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Sidney House, 900 Oldham Road, Manchester, England, M40 2BS.

 

The group consists of Searchlight Electric Limited and all of its subsidiaries.

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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -

The consolidated financial statements incorporate those of Searchlight Electric Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Searchlight Electric International Limited, a wholly owned subsidiary, was incorporated on 31 December 2023 with share capital of €100 (£86) and commenced trading on 1 February 2024. The results of this subsidiary have been consolidated from the date trading commenced, and its financial statements have been included using the purchase method of accounting.

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.

1.3
Going concern

The financial statements have been prepared on a going concern basis, which assumes that the Group and Company will continue in operational existence for the foreseeable future.

 

The directors have considered the Group's and Company's financial position, current trading performance and cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements. In making this assessment, particular consideration has been given to:

The directors note that whilst the Group has reported losses for three consecutive years, the cash reserves have increased by £992,648 during the year, primarily due to effective working capital management and a significant reduction in stock levels. The Group has no overdraft facilities and continues to maintain positive cash balances.

The loan of £4,800,000 due to the pension fund is not due for repayment until October 2026, with only interest payments required until that date. Management has confirmed with the pension fund that this arrangement remains in place.

Management has implemented a strategic plan to address the trading losses, including:

Based on the above considerations, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.4
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.

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:

Patents & licences
10% on cost
1.6
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:

Leasehold land and buildings
Straight line over the life of the lease
Plant, machinery and equipment
Straight line over the estimated useful life of 1 to 15 years
Fixtures and fittings
Straight line over estimated useful life of 1 year
Computer equipment
Straight line over estimated useful life of 1 to 8 years
Motor vehicles
25% - 35% on written down value

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.9
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 replacement cost and 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.

1.10
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.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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 though 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 group's contractual obligations expire or are discharged or cancelled.

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
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 group’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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.17
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 are included in the profit and loss account for the period.

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover
Wholesale of electrical fittings
20,866,759
23,338,624
Other significant revenue
Interest income
162,261
136,606
Turnover analysed by geographical market
2024
2023
£
£
UK
16,029,754
17,939,244
Rest of the World
4,837,005
5,399,380
20,866,759
23,338,624
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
9,269
(80,118)
Depreciation of owned tangible fixed assets
699,363
599,635
Profit on disposal of tangible fixed assets
(19,213)
(53,334)
Amortisation of intangible assets
2,412
2,542
Cost of stocks recognised as an expense
10,762,021
12,500,802
Stocks impairment losses recognised or reversed
-
0
(941,898)
Operating lease charges
1,082,507
1,094,548
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
35,882
35,550
Audit of the financial statements of the company's subsidiaries
10,242
-
46,124
35,550
For other services
Taxation compliance services
13,200
13,200
All other non-audit services
15,050
15,050
28,250
28,250
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
7
5
7
5
Administration
72
81
72
81
Sales and distribution
64
70
64
70
143
156
143
156

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,714,392
6,009,941
5,503,617
6,009,941
Social security costs
7,054
-
0
-
0
-
0
Pension costs
289,535
315,528
281,040
315,528
6,010,981
6,325,469
5,784,657
6,325,469
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
371,524
202,340
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Directors' remuneration
(Continued)
- 22 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
122,072
104,115
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
162,246
136,549
Other interest income
15
57
Total income
162,261
136,606

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
162,246
136,549
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
273
-
0
Interest payable to group undertakings
72,212
78,873
Other interest on financial liabilities
91,177
108,130
163,662
187,003
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
111,093
(111,093)
Deferred tax
Origination and reversal of timing differences
(107,580)
(137,303)
Adjustment in respect of prior periods
1,235,771
-
0
Total deferred tax
1,128,191
(137,303)
Total tax charge/(credit)
1,239,284
(248,396)
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(1,423,229)
(1,248,940)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(355,807)
(237,299)
Tax effect of expenses that are not deductible in determining taxable profit
173,792
110,266
Unutilised tax losses carried forward
186,837
217,332
Change in unrecognised deferred tax assets
-
0
(66,955)
Adjustments in respect of prior years
111,093
-
0
Depreciation on assets not qualifying for tax allowances
707
-
0
Research and development tax credit
-
0
(111,093)
Other non-reversing timing differences
4,169
-
0
Effect of overseas tax rates
52,696
-
0
Deferred tax adjustments in respect of prior years
1,235,769
-
0
Foreign exchange differences
4,007
-
0
Capital allowances
(66,399)
(160,647)
Deferred tax
(107,580)
-
0
Taxation charge/(credit) for the year
1,239,284
(248,396)
11
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 July 2023 and 30 June 2024
49,628
Amortisation and impairment
At 1 July 2023
12,641
Amortisation charged for the year
2,412
At 30 June 2024
15,053
Carrying amount
At 30 June 2024
34,575
At 30 June 2023
36,987
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Intangible fixed assets
(Continued)
- 24 -
Company
Patents & licences
£
Cost
At 1 July 2023 and 30 June 2024
49,628
Amortisation and impairment
At 1 July 2023
12,641
Amortisation charged for the year
2,412
At 30 June 2024
15,053
Carrying amount
At 30 June 2024
34,575
At 30 June 2023
36,987
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant, machinery and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
4,024,506
4,257,530
-
0
2,466,746
915,493
11,664,275
Additions
-
0
119,509
2,814
125,139
95,391
342,853
Disposals
-
0
(2,690)
-
0
-
0
(182,560)
(185,250)
At 30 June 2024
4,024,506
4,374,349
2,814
2,591,885
828,324
11,821,878
Depreciation and impairment
At 1 July 2023
736,575
3,820,418
-
0
948,557
392,820
5,898,370
Depreciation charged in the year
25,644
158,438
1,318
348,178
165,785
699,363
Eliminated in respect of disposals
-
0
(2,297)
-
0
-
0
(116,198)
(118,495)
At 30 June 2024
762,219
3,976,559
1,318
1,296,735
442,407
6,479,238
Carrying amount
At 30 June 2024
3,262,287
397,790
1,496
1,295,150
385,917
5,342,640
At 30 June 2023
3,287,931
437,112
-
0
1,518,189
522,673
5,765,905
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 26 -
Company
Leasehold land and buildings
Plant, machinery and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
4,024,506
4,257,530
-
0
2,466,746
915,493
11,664,275
Additions
-
0
119,509
1,065
100,415
67,501
288,490
Disposals
-
0
(2,690)
-
0
-
0
(182,560)
(185,250)
At 30 June 2024
4,024,506
4,374,349
1,065
2,567,161
800,434
11,767,515
Depreciation and impairment
At 1 July 2023
736,575
3,820,418
-
0
948,557
392,820
5,898,370
Depreciation charged in the year
25,644
158,438
979
346,925
161,718
693,704
Eliminated in respect of disposals
-
0
(2,297)
-
0
-
0
(116,198)
(118,495)
At 30 June 2024
762,219
3,976,559
979
1,295,482
438,340
6,473,579
Carrying amount
At 30 June 2024
3,262,287
397,790
86
1,271,679
362,094
5,293,936
At 30 June 2023
3,287,931
437,112
-
0
1,518,189
522,673
5,765,905
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
485
400
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 July 2023
400
Additions
85
At 30 June 2024
485
Carrying amount
At 30 June 2024
485
At 30 June 2023
400
14
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Searchlight Electric International Ltd
Ireland
Wholesale of electrical light fixtures
Ordinary
100.00
0
Dot Lighting Limited
United Kingdom
Dormant
Ordinary
100.00
0
Illuma LED Lighting Limited
United Kingdom
Dormant
Ordinary
100.00
0
Illuma Lighting Limited
United Kingdom
Dormant
Ordinary
100.00
0
The Lighting Collection Limited
United Kingdom
Dormant
Ordinary
100.00
0
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,326,280
3,477,392
5,084,154
3,477,392
Carrying amount of financial liabilities
Measured at amortised cost
9,071,922
9,664,264
8,837,840
9,664,664
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Financial instruments
(Continued)
- 28 -

The carrying amounts of the Group's and Company's financial assets and liabilities, as recognised at the balance sheet date, may be categorised as follows:

 

Group

Group

Company

Company

 

2024

2023

2024

2023

 

£

£

£

£

Financial assets measured at amortised cost

 

 

 

 

Trade debtors

3,319,205

3,477,696

2,890,393

3,477,696

Other debtors

50,281

71,226

4,680

71,226

Amounts due from group undertakings

-

-

2,189,081

-

Cash at bank and in hand

5,901,415

4,908,767

5,728,872

4,908,767

Total financial assets

9,270,901

8,457,689

10,813,026

8,457,689

 

 

 

 

 

Financial liabilities measured at amortised cost

 

 

 

 

Trade creditors

1,463,767

1,693,620

1,405,194

1,693,620

Other borrowings (pension fund loan)

4,800,000

4,802,669

4,800,000

4,802,669

Other creditors

1,897,079

1,985,498

1,896,655

1,985,498

Amounts due to group undertakings

-

-

400

400

Accruals

911,076

1,182,477

735,591

1,182,477

Total financial liabilities

9,071,922

9,664,264

8,837,840

9,664,664

Financial Risk Management

The Group's activities expose it to a variety of financial risks, including credit risk, liquidity risk, interest rate risk and foreign exchange risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance.

Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group is mainly exposed to credit risk from credit sales. Credit verification procedures are undertaken for all customers who wish to trade on credit terms, and trade debtors are reviewed on a regular basis.

The carrying amount of financial assets recorded in the financial statements represents the Group's maximum exposure to credit risk. The Group does not hold any collateral or other credit enhancements to cover this risk. At 30 June 2024, the Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer.

Management believes that the unimpaired amounts that are past due are still collectible in full, based on historical payment behaviour and analysis of customer credit risk.

 

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Financial instruments
(Continued)
- 29 -

Liquidity Risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.

Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the Group's income or the value of its holdings of financial instruments.

Foreign Currency Risk

The Group is exposed to currency risk on sales, purchases and cash holdings that are denominated in a currency other than pounds sterling (GBP), primarily euros (EUR) and US dollars (USD).

The summary of quantitative data about the Group's exposure to currency risk is as follows:

The Group manages foreign currency risk through natural hedging where possible (matching foreign currency income with foreign currency expenditure) and through the use of forward currency purchase contracts. At the year end, the Group had entered into forward currency purchase agreements totalling £944,361 (2023: £2,374,981) that mature after the year end.

Interest Rate Risk

The Group's interest rate risk arises from its borrowings and cash deposits. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. Cash deposits at variable rates expose the Group to cash flow interest rate risk.

The Group manages its interest rate risk by maintaining an appropriate mix between fixed and floating rate borrowings and investments.

Fixed rate instruments

2024

2023

Financial liabilities (pension fund loan)

4,800,000

4,800,000

 

 

 

Variable rate instruments

2024

2023

Financial assets (cash deposits)

5,901,415

5,728,872

A change of 100 basis points in interest rates during the year would have increased/(decreased) profit or loss by £59,014 (2023: £49,088).

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
69,567
10,936
69,567
10,936
Finished goods and goods for resale
6,938,744
9,267,408
5,672,124
9,267,408
7,008,311
9,278,344
5,741,691
9,278,344
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,319,205
3,477,696
2,890,393
3,477,696
Corporation tax recoverable
57,867
168,961
57,867
168,961
Amounts due from group undertakings
-
-
2,189,081
-
Other debtors
50,281
71,226
4,680
71,226
Prepayments and accrued income
552,245
499,400
545,144
499,400
3,979,598
4,217,283
5,687,165
4,217,283
Deferred tax asset (note 21)
-
0
1,528,503
-
0
1,528,503
3,979,598
5,745,786
5,687,165
5,745,786
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
1,463,767
1,693,620
1,405,194
1,693,620
Amounts due to group undertakings
-
0
-
0
400
400
Other taxation and social security
358,885
172,968
358,885
172,968
Other creditors
1,897,079
1,985,498
1,896,655
1,985,498
Accruals and deferred income
911,076
1,182,477
735,591
1,182,477
4,630,807
5,034,563
4,396,725
5,034,963
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
20
4,800,000
4,802,669
4,800,000
4,802,669
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
4,800,000
4,802,669
4,800,000
4,802,669
Payable after one year
4,800,000
4,802,669
4,800,000
4,802,669
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
20
Loans and overdrafts
(Continued)
- 31 -

Other borrowings amounting to £4,800,000 (2023: £4,802,669) are secured with fixed charges over the leasehold property of the company.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
-
400,312
-
-
Tax losses
-
-
-
1,528,503
-
400,312
-
1,528,503
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
400,312
-
-
Tax losses
-
-
-
1,528,503
-
400,312
-
1,528,503
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(asset) at 1 July 2023
(1,128,191)
(1,128,191)
Charge to profit or loss
1,128,191
1,128,191
Liability at 30 June 2024
-
-

During the year ended 30 June 2024, the Group and Company reassessed the recoverability of the deferred tax asset previously recognised in respect of accumulated tax losses.

 

In accordance with FRS 102 paragraph 29.7, 'unrelieved tax losses and other deferred tax assets shall be recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits'.

 

The directors have determined that, in light of the Group and Company having incurred losses for three consecutive financial years (2022-2024) and the continuing economic challenges facing the lighting industry, there is no longer sufficient evidence to support the probability of future taxable profits against which the accumulated tax losses could be utilised.

 

Consequently, the previously recognised deferred tax asset of £1,235,771 has been derecognised.

SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
289,535
315,528

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
53,880 Ordinary shares of £1 each
53,880
53,880
24
Financial commitments, guarantees and contingent liabilities

During the course of the year the Company entered into forward currency purchase agreements in the sum of £944,361 (2023: £2,374,981) that expired after the year end.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
157,767
180,030
157,767
180,030
Between two and five years
291,667
449,433
291,667
449,433
449,434
629,463
449,434
629,463
26
Events after the reporting date

On 30 August 2024, David Metcalfe resigned as the Finance Director of the company. On 3 March 2025, Andy Holt was appointed as the company's Director of Finance.

27
Related party transactions
Transactions with related parties
SEARCHLIGHT ELECTRIC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
27
Related party transactions
(Continued)
- 33 -

In the year to 30 June 2024 the company incurred interest of £91,177 (2023: £108,129) on the credit balances of the current accounts of the directors of £1,774,346 (2023: £1,905,983). The interest was calculated at commercial rates on the outstanding balances on a day to day basis.

 

The interest had not been paid at the balance sheet date and is included in the financial statements in accruals.

 

Included in other borrowings is an amount of £4,800,000 (2023: £4,802,669) due to a pension scheme controlled by some of the directors.

 

No guarantees have been given or received.

28
Controlling party

The ultimate controlling interest is held by the Hamburger family members of the Board of Directors.

29
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(2,662,513)
(1,000,544)
Adjustments for:
Taxation charged/(credited)
1,239,284
(248,396)
Finance costs
163,662
187,003
Investment income
(162,261)
(136,606)
Gain on disposal of tangible fixed assets
(19,213)
(53,334)
Amortisation and impairment of intangible assets
2,412
2,542
Depreciation and impairment of tangible fixed assets
699,363
599,635
Movements in working capital:
Decrease/(increase) in stocks
2,270,033
(401,373)
Decrease in debtors
55,061
1,576,657
(Decrease) in creditors
(343,791)
(1,139,479)
Cash generated from/(absorbed by) operations
1,242,037
(613,895)
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itureFittingsbus:Consolidated2023-07-012024-06-3001169504core:ComputerEquipmentbus:Consolidated2023-07-012024-06-3001169504core:MotorVehiclesbus:Consolidated2023-07-012024-06-3001169504core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-07-012024-06-3001169504core:Subsidiary12023-07-012024-06-3001169504core:Subsidiary22023-07-012024-06-3001169504core:Subsidiary32023-07-012024-06-3001169504core:Subsidiary42023-07-012024-06-3001169504core:Subsidiary52023-07-012024-06-300116950422023-07-012024-06-3001169504core:CurrentFinancialInstrumentsbus:Consolidated2024-06-3001169504core:CurrentFinancialInstrumentsbus:Consolidated2023-06-3001169504core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-06-3001169504core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-3001169504core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3001169504core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3001169504core:Non-currentFinancialInstrumentsbus:Consolidated2024-06-3001169504core:Non-currentFinancialInstrumentsbus:Consolidated2023-06-3001169504core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-06-3001169504core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-06-3001169504core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-3001169504core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3001169504bus:PrivateLimitedCompanyLtd2023-07-012024-06-3001169504bus:FRS1022023-07-012024-06-3001169504bus:Audited2023-07-012024-06-3001169504bus:ConsolidatedGroupCompanyAccounts2023-07-012024-06-3001169504bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP