Company registration number 07137527 (England and Wales)
EM-LITE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
EM-LITE LIMITED
COMPANY INFORMATION
Directors
Mr M A Bloodworth
Mr P S Taylor
Mr R Nichols
Mr A C Payne
Mr R A Fleming
Company number
07137527
Registered office
39/43 Bridge Street
Swinton
Mexborough
South Yorkshire
S64 8AP
Auditor
TC Group
1 Rushmills
Northampton
Northamptonshire
NN4 7YB
Business address
1 Stevern Way
Peterborough
Cambridgeshire
PE1 5EL
Bankers
HSBC Bank
Sheffield & Rotherham Commercial Centre
Unit 4, Europa Court
Sheffield Business Park
Sheffield
South Yorkshire
England
S9 1XE
EM-LITE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
EM-LITE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
The directors are pleased to announce another strong year. While turnover is down on the previous year; this was expected due to the pent-up demand post Covid and component supply issues in 2022. The overall turnover and profitability for the past 3 years has been in line with our business plans.
Em-Lite Ltd has also had a strong year in terms of strategic development. Several new products have been readied for market and we expect to see the benefit of these in our sales and profitability for 2024/2025.
Despite its growth, Em-Lite Ltd has managed to keep it's operations lean with no staff increases. Overheads have increased slightly but in line with expectations. Generally, the markets we sell into are buoyant enough and can stand modest cost increases.
The market landscape is largely as we expected, although delays in some of the EV targets by government have slowed down our EV charger product sales. Long term this market will explode through mandated targets, however the pressure has been reduced due to the delay in the prohibition of ICE vehicles to 2035.
We have experienced growth in our utility sales and expect this sector to grow as we expand our customer base and into new markets.
Outlook for next year and the years to come is very positive. We expect to see growth in our core sales of metering into both Utility and Solar markets. Prepayment meter sales into the landlord market have also grown due to the increased energy costs.
Principal risks and uncertainties
The biggest risk to the business comes from political policy making. Most of the markets we work in have some form of legislative control or regulation. In some cases, this can have significant impact on our plans.
Another significant risk to mention comes from FX volatility which we have significant exposure to. The company intends to tackle this over the next 12 months in an attempt to reduce the risk and volatility in this area.
Key performance indicators
Results for the financial year have fallen from previous year, with key figures below.
Turnover has fallen by 29.14%, from £13,386,123 to £10,365,704.
Gross profit has fallen from that of the previous year, from £5,800,893 to £5,649,919 with the percentage increasing from 43.34% to 54.51%.
Net Profit before tax has increased from £4,084,786 to £4,128,070.
Shareholders funds have increased from £9,130,085 to £9,937,592.
EM-LITE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Mr P S Taylor
Director
25 March 2025
EM-LITE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company is that of the research, development and distribution of Smart Meters and other related products.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,394,611. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M A Bloodworth
Mr P S Taylor
Mr R Nichols
Mr A C Payne
Mr R A Fleming
Auditor
In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr P S Taylor
Director
25 March 2025
EM-LITE 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
EM-LITE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EM-LITE LIMITED
- 5 -
Opinion
We have audited the financial statements of EM-Lite Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
EM-LITE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EM-LITE LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UKGAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.
We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board meetings and discussions with those charged with governance.
We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.
We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
EM-LITE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EM-LITE LIMITED
- 7 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Senior statutory auditor
Antonia Aldridge-Brown FCCA
For and on behalf of TC Group
1 Rushmills
Northampton
Northamptonshire
NN4 7YB
27 March 2025
EM-LITE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
£
£
Turnover
3
10,365,704
13,386,123
Cost of sales
(4,715,785)
(7,585,230)
Gross profit
5,649,919
5,800,893
Administrative expenses
(1,545,295)
(1,714,654)
Operating profit
4
4,104,624
4,086,239
Interest receivable and similar income
8
49,064
16,859
Interest payable and similar expenses
9
(25,618)
(18,312)
Profit before taxation
4,128,070
4,084,786
Tax on profit
10
(925,952)
(675,100)
Profit for the financial year
3,202,118
3,409,686
Retained earnings brought forward
9,127,285
8,815,401
Dividends
11
(2,394,611)
(3,097,802)
Retained earnings carried forward
9,934,792
9,127,285
EM-LITE LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,709,197
1,767,997
Investments
13
286,440
286,440
1,995,637
2,054,437
Current assets
Stocks
2,307,470
2,813,455
Debtors
16
2,183,973
1,967,589
Cash at bank and in hand
5,728,336
5,449,452
10,219,779
10,230,496
Creditors: amounts falling due within one year
17
(1,766,765)
(2,616,435)
Net current assets
8,453,014
7,614,061
Total assets less current liabilities
10,448,651
9,668,498
Creditors: amounts falling due after more than one year
18
(326,725)
(343,119)
Provisions for liabilities
Deferred tax liability
20
184,334
195,294
(184,334)
(195,294)
Net assets
9,937,592
9,130,085
Capital and reserves
Called up share capital
22
2,800
2,800
Profit and loss reserves
9,934,792
9,127,285
Total equity
9,937,592
9,130,085
The financial statements were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
Mr P S Taylor
Director
Company Registration No. 07137527
EM-LITE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
2,800
8,815,401
8,818,201
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
3,409,686
3,409,686
Dividends
11
-
(3,097,802)
(3,097,802)
Balance at 30 June 2023
2,800
9,127,285
9,130,085
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
3,202,118
3,202,118
Dividends
11
-
(2,394,611)
(2,394,611)
Balance at 30 June 2024
2,800
9,934,792
9,937,592
EM-LITE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
3,730,827
2,696,555
Interest paid
(25,618)
(18,312)
Income taxes paid
(979,048)
(138,822)
Net cash inflow from operating activities
2,726,161
2,539,421
Investing activities
Purchase of tangible fixed assets
(85,491)
(412,841)
Interest received
49,064
16,859
Net cash used in investing activities
(36,427)
(395,982)
Financing activities
Repayment of bank loans
(16,394)
(18,375)
Dividends paid
(2,394,611)
(3,097,802)
Net cash used in financing activities
(2,411,005)
(3,116,177)
Net increase/(decrease) in cash and cash equivalents
278,729
(972,738)
Cash and cash equivalents at beginning of year
5,448,005
6,420,741
Cash and cash equivalents at end of year
5,726,734
5,448,005
Relating to:
Cash at bank and in hand
5,728,336
5,449,452
Bank overdrafts included in creditors payable within one year
(1,602)
(1,447)
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
EM-Lite Limited is a private company limited by shares incorporated in England and Wales. The registered office is 39/43 Bridge Street, Swinton, Mexborough, South Yorkshire, S64 8AP.
The company's registered number and place of business can be found on the Company Information page.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings
2% Straight Line
Plant and machinery
15% Reducing Balance/33% Straight Line
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
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
Financial instruments
Basic financial assets
The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade debtors and other debtors and creditors, loans from bank and other third parties, loan's to related parties and investments in ordinary shares.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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.
Short term debtors and creditors are measured at the transaction price. Other financial instruments,including loans, are measured initially ar fair value, net of transaction costs, and are measured subsequently at amorised cost using the effective interest method, less any impairment.
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.
Other financial liabilities
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 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 company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
9,830,213
12,446,712
Tepco recharge
44,414
219,808
Royalties
195,710
424,236
Technical maintenance
295,367
295,367
10,365,704
13,386,123
2024
2023
£
£
Turnover analysed by geographical market
Japan
535,491
939,411
Ireland
103,849
37,350
Australia
1,301
71,167
United Kingdom
9,725,063
12,338,195
10,365,704
13,386,123
2024
2023
£
£
Other revenue
Interest income
49,064
16,859
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
56,099
192,411
Fees payable to the company's auditor for the audit of the company's financial statements
9,450
6,000
Depreciation of owned tangible fixed assets
144,292
121,434
5
Auditor's remuneration
Audit of the financial statements of the company
12,500
10,800
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
5
5
Production
17
17
Admin
5
5
Total
27
27
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
850,116
742,885
Social security costs
76,742
67,463
Pension costs
88,890
91,685
1,015,748
902,033
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
59,400
57,200
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Company pension contributions to defined contribution schemes
76,667
80,000
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
49,064
16,859
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
49,064
16,859
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
25,618
18,312
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
934,871
578,424
Adjustments in respect of prior periods
2,041
Total current tax
936,912
578,424
Deferred tax
Origination and reversal of timing differences
(10,960)
96,676
Total tax charge
925,952
675,100
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 18 -
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
4,128,070
4,084,786
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
1,032,018
837,381
Effect of change in corporation tax rate
4,103
Double tax relief
(61,811)
Depreciation on assets not qualifying for tax allowances
36,073
24,893
Research and development tax credit
(111,432)
(126,075)
Capital allowances
(21,788)
(100,066)
Deferred tax movement
(10,960)
96,675
Prior year adjustment
2,411
Interest repayable
(370)
Taxation charge for the year
925,952
675,100
11
Dividends
2024
2023
£
£
Final paid
2,394,611
3,097,802
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
12
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 July 2023
1,056,038
1,465,399
80,808
2,602,245
Additions
77,347
8,144
85,491
At 30 June 2024
1,056,038
1,542,746
88,952
2,687,736
Depreciation and impairment
At 1 July 2023
78,423
706,943
48,881
834,247
Depreciation charged in the year
13,302
122,772
8,218
144,292
At 30 June 2024
91,725
829,715
57,099
978,539
Carrying amount
At 30 June 2024
964,313
713,031
31,853
1,709,197
At 30 June 2023
977,615
758,456
31,926
1,767,997
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in joint ventures
14
286,440
286,440
14
Participating Interest
Details of the company's participating interests at 30 June 2024 are as follows:
Name of undertaking
Registered office
Interest
% Held
held
Direct
Prudence Meter Limited
Room 805-6, 8/F.Tai Yau Building, 181 JOhnston Road, Wanchai, Hong Kong
Ordinary shares
35.00
As venturer, we shall recognise distributions received from the investment as income, without regard to whether the distributions are from accumulated profits of the jointly controlled entity arising before or after the date of acquistion.
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
15
Stocks
2024
2023
£
£
Work in progress
110,471
17,112
Finished goods and goods for resale
2,196,999
2,796,343
2,307,470
2,813,455
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,966,800
1,761,582
Other debtors
178,261
154,219
Prepayments and accrued income
38,912
51,788
2,183,973
1,967,589
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
11,864
11,709
Trade creditors
797,105
1,718,845
Corporation tax
529,628
571,764
Other taxation and social security
380,327
257,674
Other creditors
(28,476)
(26,660)
Accruals and deferred income
76,317
83,103
1,766,765
2,616,435
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
326,725
343,119
The HSBC Bank hold security in the form of a debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 14 April 2016.
First Legal Charge dated 01 June 2016 over Freehold Property known as Unit 1, Reynolds Industrial Park, Stevern Way, Peterborough.
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Creditors: amounts falling due after more than one year
(Continued)
- 21 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
266,531
311,020
19
Loans and overdrafts
2024
2023
£
£
Bank loans
336,987
353,381
Bank overdrafts
1,602
1,447
338,589
354,828
Payable within one year
11,864
11,709
Payable after one year
326,725
343,119
The mortgage detailed above with the HSBC bank is secured by way of a fixed charge over the freehold property that is detailed in the fixed asset note to these accounts.
20
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:
£
£
Accelerated capital allowances
184,334
195,294
2024
Movements in the year:
£
Liability at 1 July 2023
195,294
Credit to profit or loss
(10,960)
Liability at 30 June 2024
184,334
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.
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,890
91,685
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.
22
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
2,800 Ordinary shares of £1 each
2,800
2,800
2,800
2,800
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
344,265
327,961
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2024
2023
£
£
Royalties
195,710
438,490
Technical maintenance
295,367
295,367
Dividends paid to Directors
1,318,718
1,780,838
1,809,795
2,514,695
At the year end £100,988 (2023 - £72,013) was due from companies under common control.
EM-LITE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
24
Ultimate Controlling Party
The directors consider that there is no ultimate controlling party
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,202,118
3,409,686
Adjustments for:
Taxation charged
925,952
675,100
Finance costs
25,618
18,312
Investment income
(49,064)
(16,859)
Depreciation and impairment of tangible fixed assets
144,292
121,434
Movements in working capital:
Decrease/(increase) in stocks
505,985
(1,288,704)
Increase in debtors
(216,384)
(1,018,709)
(Decrease)/increase in creditors
(807,689)
796,295
Cash generated from operations
3,730,828
2,696,555
26
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
5,449,452
278,884
5,728,336
Bank overdrafts
(1,447)
(155)
(1,602)
5,448,005
278,729
5,726,734
Borrowings excluding overdrafts
(353,381)
16,394
(336,987)
5,094,624
295,123
5,389,747
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