Company Registration No. NI017485 (Northern Ireland)
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
COMPANY INFORMATION
Director
Mr O Bellew
(Appointed 29 October 2024)
Company number
NI017485
Registered office
Unit 6 Balliniska Business Park
Springtown Industrial Estate
Londonderry
Northern Ireland
BT48 0LY
Auditor
Harbinson Mulholland
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
Bankers
Bank of Ireland
15 Strand Road
Londonderry
BT48 7BT
Solicitors
Flanagan & Co
Clooney Chambers
11 Limavady Road
Londonderry
BT47 6JU
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The director presents the strategic report for the year ended 30 June 2024.
Review of the business
Turnover has increased this year by 7.8% to £14.2m. The directors consider the profit on ordinary activities before taxation to be satisfactory. The company will continue to seek every opportunity to increase profitable turnover.
Performance in the sector is affected by general economic conditions and specific sectoral factors. The Board carries out regular informal reviews including assessments of competitor activity, market trends and customer buying patterns.
Principal risks and uncertainties
The company's financial instruments comprise bank overdraft, medium bank loans, hire purchase finance and loans from the directors. The main purpose of these financial instruments is to manager the company's funding and liquidity requirements. The company has other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.
The principal financial risks to which the company is exposed are those of liquidity, foreign currency and credit. Each of these are managed in accordance with Board approved policies.
Key performance indicators
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPIs in the statutory accounts is not necessary for an understanding of the development, performance or position of the business.
Mr O Bellew
Director
21 March 2025
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The director presents his annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company is that of wholesale electrical suppliers.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £160,522. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr B C Kyle
(Resigned 29 October 2024)
Mrs P J Kyle
(Resigned 29 October 2024)
Mr K P McAllister
(Resigned 29 October 2024)
Mr O Bellew
(Appointed 29 October 2024)
Auditor
A resolution to reappoint Harbinson Mulholland as auditor of the company will be proposed at the forthcoming annual general meeting.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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
To the knowledge and belief of the director is aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the director has taken all the steps necessary to ensure the director are aware of any relevant information and to establish that the company's auditors are 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.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
On behalf of the board
Mr O Bellew
Director
21 March 2025
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
- 4 -
Opinion
We have audited the financial statements of Cable and Accessories (Northern Ireland) Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 30 June 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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CABLE AND ACCESSORIES (NORTHERN IRELAND) 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 and the Director's 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:
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; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Director's Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.
Responsibilities of director
As explained more fully in the Director's Responsibilities Statement, the director is 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 director is 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 director 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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
we identified the laws and regulations applicable to the company through discussions with directors and/or senior management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED (CONTINUED)
- 6 -
To address the risk of fraud through management bias and override of controls, we:
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Angela Craigan (Senior Statutory Auditor)
For and on behalf of Harbinson Mulholland, Statutory Auditors
Chartered Accountants
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
21 March 2025
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
14,157,735
13,132,764
Cost of sales
(10,804,852)
(9,947,159)
Gross profit
3,352,883
3,185,605
Distribution costs
(199,336)
(203,812)
Administrative expenses
(2,030,347)
(1,962,375)
Operating profit
4
1,123,200
1,019,418
Interest receivable and similar income
7
71,885
13,616
Profit before taxation
1,195,085
1,033,034
Tax on profit
8
(282,601)
(157,256)
Profit for the financial year
912,484
875,778
The income statement has been prepared on the basis that all operations are continuing operations.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
STATEMENT OF FINANCIAL POSITION
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
4,096
Tangible assets
11
1,005,662
962,766
1,005,662
966,862
Current assets
Stocks
13
2,620,722
2,545,539
Debtors
14
2,888,291
2,603,916
Cash at bank and in hand
4,558,477
3,978,289
10,067,490
9,127,744
Creditors: amounts falling due within one year
15
(1,919,608)
(1,697,605)
Net current assets
8,147,882
7,430,139
Total assets less current liabilities
9,153,544
8,397,001
Provisions for liabilities
Deferred tax liability
16
90,323
85,742
(90,323)
(85,742)
Net assets
9,063,221
8,311,259
Capital and reserves
Called up share capital
18
5,550
5,550
Profit and loss reserves
9,057,671
8,305,709
Total equity
9,063,221
8,311,259
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 21 March 2025 and are signed on its behalf by:
Mr O Bellew
Director
Company registration number NI017485 (Northern Ireland)
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
5,000
7,565,509
7,570,509
Year ended 30 June 2023:
Profit and total comprehensive income
-
875,778
875,778
Issue of share capital
18
550
-
550
Dividends
9
-
(135,578)
(135,578)
Balance at 30 June 2023
5,550
8,305,709
8,311,259
Year ended 30 June 2024:
Profit and total comprehensive income
-
912,484
912,484
Dividends
9
-
(160,522)
(160,522)
Balance at 30 June 2024
5,550
9,057,671
9,063,221
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
943,415
946,613
Income taxes paid
(108,538)
(299,196)
Net cash inflow from operating activities
834,877
647,417
Investing activities
Purchase of tangible fixed assets
(202,416)
(296,549)
Proceeds from disposal of tangible fixed assets
36,364
45,911
Interest received
71,885
13,616
Net cash used in investing activities
(94,167)
(237,022)
Financing activities
Proceeds from issue of shares
550
Dividends paid
(160,522)
(135,578)
Net cash used in financing activities
(160,522)
(135,028)
Net increase in cash and cash equivalents
580,188
275,367
Cash and cash equivalents at beginning of year
3,978,289
3,702,922
Cash and cash equivalents at end of year
4,558,477
3,978,289
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
Cable and Accessories (Northern Ireland) Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is Unit 6 Balliniska Business Park, Springtown Industrial Estate, Londonderry, Northern Ireland, BT48 0LY.
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 director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents net invoiced sales of goods and services, excluding value added tax.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
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.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
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:
Land
n/a
Leasehold improvements
4% straight line
Plant and machinery
10-33.33% straight line
Motor vehicles
25% straight line
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in 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 at bank and in hand
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.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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 statement of financial position 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.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
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.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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.
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.
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.
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.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is provided in respect of the tax effect of all timing differences that have originated but not reversed at the balance sheet date.
A deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on a nondiscounted basis, at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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
The pension costs charged in the financial statements represent the contribution payable by the company during the year. The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the 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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Going concern
The directors have prepared budgets and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.
Impairment of trade debtors
The company trades with a large and varied number of customers on credit terms. Some debts due will not be paid through the default of a small number of customers. The company uses estimates based on historical experience and current information in determining the level of debts for which an impairment charge is required. The level of impairment required is reviewed on an ongoing basis. The total amount of trade debtors is £2,628,240 (2023: £2,417,326).
Impairment of stocks
The company holds stocks amounting to £2,620,722 (2023: £2,545,539) at the financial year end date. The directors are of the view that an adequate charge has been made to reflect the possibility of stocks being sold at less than cost. However, this estimate is subject to inherent uncertainty.
Useful Lives of Tangible and Intangible Fixed Assets
The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial year. The net book value of Tangible Fixed Assets subject to depreciation at the financial year end date was £1,005,662 (2023: £962,766).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,839,249
9,898,060
Republic of Ireland
3,318,486
3,234,704
14,157,735
13,132,764
2024
2023
£
£
Other revenue
Interest income
71,885
13,616
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
12,857
(19,378)
Fees payable to the company's auditor for the audit of the company's financial statements
7,750
7,750
Depreciation of owned tangible fixed assets
132,706
136,869
Profit on disposal of tangible fixed assets
(9,550)
(39,523)
Amortisation of intangible assets
4,096
4,096
Operating lease charges
78,083
76,980
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Office and management
48
44
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,373,340
1,328,979
Social security costs
135,866
139,593
Pension costs
39,552
36,453
1,548,758
1,505,025
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
119,521
114,769
Company pension contributions to defined contribution schemes
8,017
8,902
127,538
123,671
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
71,885
13,616
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Interest receivable and similar income
(Continued)
- 19 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
71,885
13,616
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
256,291
94,463
Foreign current tax on profits for the current period
21,729
17,077
Total current tax
278,020
111,540
Deferred tax
Origination and reversal of timing differences
4,581
45,716
Total tax charge
282,601
157,256
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
1,195,085
1,033,034
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
298,771
211,731
Tax effect of expenses that are not deductible in determining taxable profit
3,403
(20,628)
Permanent capital allowances in excess of depreciation
(2,425)
(68,655)
Other non-reversing timing differences
16
Effect of overseas tax rates
(21,729)
(10,924)
Movement in deferred tax
4,581
45,716
Taxation charge for the year
282,601
157,256
9
Dividends
2024
2023
£
£
Interim paid
160,522
135,578
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
20,481
Amortisation and impairment
At 1 July 2023
16,385
Amortisation charged for the year
4,096
At 30 June 2024
20,481
Carrying amount
At 30 June 2024
At 30 June 2023
4,096
More information on impairment movements in the year is given in note .
11
Tangible fixed assets
Land
Leasehold improvements
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
555,839
236,955
521,983
529,010
1,843,787
Additions
22,741
179,675
202,416
Disposals
(78,490)
(92,695)
(171,185)
At 30 June 2024
555,839
236,955
466,234
615,990
1,875,018
Depreciation and impairment
At 1 July 2023
169,914
398,124
312,983
881,021
Depreciation charged in the year
9,478
34,623
88,605
132,706
Eliminated in respect of disposals
(77,312)
(67,059)
(144,371)
At 30 June 2024
179,392
355,435
334,529
869,356
Carrying amount
At 30 June 2024
555,839
57,563
110,799
281,461
1,005,662
At 30 June 2023
555,839
67,041
123,859
216,027
962,766
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,856,238
2,562,376
Carrying amount of financial liabilities
Measured at amortised cost
1,511,634
1,402,605
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,620,722
2,545,539
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,628,240
2,417,326
Other debtors
227,998
145,050
Prepayments and accrued income
32,053
41,540
2,888,291
2,603,916
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,332,796
1,181,126
Corporation tax
261,398
91,916
Other taxation and social security
146,576
203,084
Other creditors
60,884
44,302
Accruals and deferred income
117,954
177,177
1,919,608
1,697,605
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
90,323
85,742
2024
Movements in the year:
£
Liability at 1 July 2023
85,742
Charge to profit or loss
4,581
Liability at 30 June 2024
90,323
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
16
Deferred taxation
(Continued)
- 22 -
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,552
36,453
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.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
5,000
5,000
5,000
5,000
Ordinary A Shares of £1 each
550
550
550
550
5,550
5,550
5,550
5,550
All shares carry equal rights to voting, dividends and to capital distribution upon winding up.
19
Contingent liabilities
Bank facilities are secured by way of an all monies debenture with a fixed charge over all book debts owing or payable to the company.
20
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
20,091
16,875
Between two and five years
66,847
86,938
16,875
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
21
Capital commitments
2024
2023
£
£
Acquisition of tangible fixed assets
-
16,354
Capital commitments at year end relate to amounts contracted for but not provided in the financial statements.
22
Related party transactions
Remuneration of key management personnel
Key management personnel and the directors are considered to be the same.
Transactions with related parties
The company rented properties owned by two directors, BC Kyle and PJ Kyle, during the period of their directorship. Total rent payable was £11,667 (2023: £35,000).
23
Directors' transactions
Directors received dividends of £160,522 (2023 - £135,578 ) during the year.
24
Ultimate controlling party
During the year ended 30 June 2024, BC Kyle and PJ Kyle jointly controlled the company by virtue of holding 90.9% of the issued share capital.
Following the year end there was a change in ownership. The immediate parent company at the time of signing these accounts is Finn Bidco UK Limited.
CABLE AND ACCESSORIES (NORTHERN IRELAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
912,484
875,778
Adjustments for:
Taxation charged
282,601
157,256
Finance costs
1
Investment income
(71,885)
(13,616)
Gain on disposal of tangible fixed assets
(9,550)
(39,523)
Amortisation and impairment of intangible assets
4,096
4,096
Depreciation and impairment of tangible fixed assets
132,706
136,869
Movements in working capital:
Increase in stocks
(75,183)
(101,086)
Increase in debtors
(284,375)
(206,775)
Increase in creditors
52,521
133,613
Cash generated from operations
943,415
946,613
26
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
3,978,289
580,188
4,558,477
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