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REGISTERED NUMBER: 02268972 (England and Wales)















E.L.C. (U.K.) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024






E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4 to 6

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12 to 13

Notes to the Financial Statements 14 to 22


E.L.C. (U.K.) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2024







DIRECTORS: Mr Mohammad Alleyassin
Mr Mohammed Tagih Rais





REGISTERED OFFICE: 4 Highlands Court
Cranmore Avenue
Solihull
West Midlands
B90 4LE





BUSINESS ADDRESS: Kirby House
Lynn Lane
Shenstone
WS14 0AT





REGISTERED NUMBER: 02268972 (England and Wales)





AUDITORS: Shareef
Statutory Auditors
4 Highlands Court
Cranmore Avenue
Solihull
West Midlands
B90 4LE

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024


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

REVIEW OF BUSINESS
The principle activity of the Company is that of the manufacture and distribution of packaging and food. It has steadily grown in the last few years and remains profitable with good margins.The profit before tax in 2024 was £243,866 a decrease of 66% on 2023, with a gross profit margin of 6.48% (2023 7.96%).

The company's net assets as at 30 June 2024 amounted to £4.213m (2023 £4.03m).

Latest management accounts for 2024/5 show profits and turnover that are, on an annual basis, likely to exceed of those for 2024.

PRINCIPAL RISKS AND UNCERTAINTIES
The company performed well during the Covid pandemic due to most of it's customers being in the takeaway sector and increased levels of performance have continued during since. The company relies on growth in the economy as a whole to fuel it's profits so current recessionary pressures may reduce income in the next few years but the directors are confident that, the company's position in the market place, will ensure that income and profits are maximised in future years.

CREDIT RISK
The company's credit risk is mostly attributable to it's trade debtors. The company's debtors are widely spread over a number of customers so there is no significant concentration of credit risk. The trade debtors figure in the accounts is shown net of allowances for bad debts.

LIQUIDITY RISK
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs, by use of working capital.

FUTURE PROSPECTS
The company's increasing turnover ensures that it can take advantage of economies of scale and it's long term relationship with many of it's customers should ensure continued growth in turnover and profitability.

KEY PERFORMANCE INDICATORS
The key performance indicators are gross profit margin of 6.48% (2023 7.96%) and operating profit margin of 0.52% (2023 1.3%).

FINANCIAL MANAGEMENT
The company's financial instruments comprise borrowings, cash and various items, such as trade debtors and trade creditors, and they are strictly controlled by the directors, who control day to day operations within the company.

ON BEHALF OF THE BOARD:





Mr Mohammad Alleyassin - Director


26 March 2025

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2024


The directors present their report with the financial statements of the company for the year ended 30 June 2024.

DIVIDENDS
No dividends will be distributed for the year ended 30 June 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Mr Mohammad Alleyassin
Mr Mohammed Tagih Rais

POLITICAL DONATIONS AND EXPENDITURE
The company paid donations in the year of £24,517, all of which were charity donations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Shareef, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr Mohammad Alleyassin - Director


26 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
E.L.C. (U.K.) LIMITED


Opinion
We have audited the financial statements of E.L.C. (U.K.) Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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.

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 Auditors' 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
E.L.C. (U.K.) LIMITED


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 Report of the Directors.

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 directors' 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and FRS 102. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of exceptional items and management bias in accounting estimates. Audit procedures performed by the engagement team included, but were not limited to: - enquiries with management, and the Company's legal counsel (internal and, where relevant, external), including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these; reading key correspondence with regulatory authorities in relation to compliance with certain employment laws and indirect tax matters; - understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities; - challenging assumptions and judgements made by management in their significant accounting estimates, in particular, in relation to accrued expenses); - identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users; There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
E.L.C. (U.K.) LIMITED


Use of our 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 a Report of the Auditors 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.




Naeem Shareef (Senior Statutory Auditor)
for and on behalf of Shareef
Statutory Auditors
4 Highlands Court
Cranmore Avenue
Solihull
West Midlands
B90 4LE

26 March 2025

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

2024 2023
Notes £    £    £    £   

TURNOVER 47,192,042 43,929,160

Cost of sales 44,131,878 40,433,307
GROSS PROFIT 3,060,164 3,495,853

Distribution costs 780,255 772,346
Administrative expenses 2,040,753 2,023,074
2,821,008 2,795,420
239,156 700,433

Other operating income 45,833 50,000
OPERATING PROFIT 4 284,989 750,433


Interest payable and similar expenses 5 41,123 33,317
PROFIT BEFORE TAXATION 243,866 717,116

Tax on profit 6 60,436 143,987
PROFIT FOR THE FINANCIAL YEAR 183,430 573,129

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 183,430 573,129


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

183,430

573,129

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

BALANCE SHEET
30 JUNE 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 882,321 805,252
Investment property 8 1,100,030 1,100,030
1,982,351 1,905,282

CURRENT ASSETS
Stocks 9 2,261,055 2,611,511
Debtors 10 3,341,040 2,918,704
Cash at bank and in hand 1,897,010 1,856,766
7,499,105 7,386,981
CREDITORS
Amounts falling due within one year 11 4,578,296 4,559,122
NET CURRENT ASSETS 2,920,809 2,827,859
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,903,160

4,733,141

CREDITORS
Amounts falling due after more than one year 12 (385,968 ) (413,100 )

PROVISIONS FOR LIABILITIES 16 (303,892 ) (290,171 )
NET ASSETS 4,213,300 4,029,870

CAPITAL AND RESERVES
Called up share capital 17 35,100 35,100
Non distributable reserves 18 369,686 369,686
Retained earnings 18 3,808,514 3,625,084
SHAREHOLDERS' FUNDS 4,213,300 4,029,870

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2025 and were signed on its behalf by:





Mr Mohammad Alleyassin - Director


E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024

Called up Non
share Retained distributable Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 July 2022 35,100 3,051,955 369,686 3,456,741

Changes in equity
Total comprehensive income - 573,129 - 573,129
Balance at 30 June 2023 35,100 3,625,084 369,686 4,029,870

Changes in equity
Total comprehensive income - 183,430 - 183,430
Balance at 30 June 2024 35,100 3,808,514 369,686 4,213,300

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 562,103 1,397,121
Interest paid (27,492 ) (21,874 )
Interest element of hire purchase payments
paid

(13,631

)

(11,443

)
Tax paid (77,143 ) (80,581 )
Net cash from operating activities 443,837 1,283,223

Cash flows from investing activities
Purchase of tangible fixed assets (279,344 ) (466,720 )
Sale of tangible fixed assets 13,640 11,295
Net cash from investing activities (265,704 ) (455,425 )

Cash flows from financing activities
Loan repayments in year (27,323 ) (30,121 )
Capital repayments in year 22,408 103,049
Amount withdrawn by directors - (5,404 )
Amounts due from connected companies (57,289 ) (42,465 )
Net cash from financing activities (62,204 ) 25,059

Increase in cash and cash equivalents 115,929 852,857
Cash and cash equivalents at beginning of
year

2

1,472,129

619,272

Cash and cash equivalents at end of year 2 1,588,058 1,472,129

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2024 2023
£    £   
Profit before taxation 243,866 717,116
Depreciation charges 191,838 236,866
Profit on disposal of fixed assets (3,202 ) (6,369 )
Finance costs 41,123 33,317
473,625 980,930
Decrease in stocks 350,456 259,461
Increase in trade and other debtors (365,049 ) (286,174 )
Increase in trade and other creditors 103,071 442,904
Cash generated from operations 562,103 1,397,121

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 1,897,010 1,856,766
Bank overdrafts (308,952 ) (384,637 )
1,588,058 1,472,129
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 1,856,766 619,272
Bank overdrafts (384,637 ) -
1,472,129 619,272


E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank and in hand 1,856,766 40,244 1,897,010
Bank overdrafts (384,637 ) 75,685 (308,952 )
1,472,129 115,929 1,588,058
Debt
Finance leases (220,403 ) (22,408 ) (242,811 )
Debts falling due within 1 year (30,122 ) 2,063 (28,059 )
Debts falling due after 1 year (305,968 ) 25,261 (280,707 )
(556,493 ) 4,916 (551,577 )
Total 915,636 120,845 1,036,481

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024


1. STATUTORY INFORMATION

E.L.C. (U.K.) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates
There are a number of significant judgements and estimates, which affect various figures in the accounts. These relate to stocks and fixed assets.All estimates are considered to be reasonable.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other creditors and bank loans 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 receipts discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are 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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,132,635 1,034,144
Social security costs 82,605 60,342
Other pension costs 11,531 10,690
1,226,771 1,105,176

The average number of employees during the year was as follows:
2024 2023

Administration and distribution 58 57

2024 2023
£    £   
Directors' remuneration 52,000 52,000

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 34,000 24,000
Depreciation - owned assets 95,636 118,376
Depreciation - assets on hire purchase contracts 96,201 118,490
Profit on disposal of fixed assets (3,202 ) (6,369 )
Auditors' remuneration 7,000 6,000
Stocks recognised as an expense 44,110,517 40,465,774

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 5,318 6,077
Bank loan interest 22,174 15,797
Hire purchase 13,631 11,443
41,123 33,317

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 46,715 77,143

Deferred tax 13,721 66,844
Tax on profit 60,436 143,987

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 243,866 717,116
Profit multiplied by the standard rate of corporation tax in the UK of
24.530% (2023 - 20.496%)

59,820

146,980

Effects of:
Expenses not deductible for tax purposes - 52
Change in tax rates used for deferred tax calculations 616 (3,045 )
capital allowance assets
increase in value of
Total tax charge 60,436 143,987

7. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST OR VALUATION
At 1 July 2023 630,985 32,808 1,536,151 32,941 2,232,885
Additions - - 279,344 - 279,344
Disposals - - (32,983 ) - (32,983 )
At 30 June 2024 630,985 32,808 1,782,512 32,941 2,479,246
DEPRECIATION
At 1 July 2023 452,683 31,747 911,389 31,814 1,427,633
Charge for year 27,331 699 163,525 282 191,837
Eliminated on disposal - - (22,545 ) - (22,545 )
At 30 June 2024 480,014 32,446 1,052,369 32,096 1,596,925
NET BOOK VALUE
At 30 June 2024 150,971 362 730,143 845 882,321
At 30 June 2023 178,302 1,061 624,762 1,127 805,252

Cost or valuation at 30 June 2024 is represented by:

Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
Cost 630,985 32,808 1,782,512 32,941 2,479,246

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


7. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 July 2023 973,405
Additions 279,344
Disposals (32,983 )
At 30 June 2024 1,219,766
DEPRECIATION
At 1 July 2023 617,937
Charge for year 96,201
Eliminated on disposal (22,545 )
At 30 June 2024 691,593
NET BOOK VALUE
At 30 June 2024 528,173
At 30 June 2023 355,468

8. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 July 2023
and 30 June 2024 1,100,030
NET BOOK VALUE
At 30 June 2024 1,100,030
At 30 June 2023 1,100,030

Fair value at 30 June 2024 is represented by:
£   
Valuation in 2003 131,558
Valuation in 2005 95,000
Valuation in 2022 242,190
Cost 631,282
1,100,030

The revalued amount of the investment property has been determined by the directors, based upon sales values of similar properties in the local area.

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


9. STOCKS
2024 2023
£    £   
Finished goods 2,261,055 2,611,511

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,339,704 2,030,080
Amounts owed by connected companies 829,589 772,302
Other debtors 33,109 33,109
VAT 20,456 9,006
Prepayments and accrued income 118,182 74,207
3,341,040 2,918,704

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 337,011 414,759
Hire purchase contracts (see note 14) 137,550 113,271
Trade creditors 3,878,219 3,811,135
Corporation tax 46,715 77,143
Social security and other taxes 18,818 18,280
Other creditors 5,188 5,009
Pensions 9,560 4,140
Directors' current accounts 3,596 3,596
Accrued expenses 141,639 111,789
4,578,296 4,559,122

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 280,707 305,968
Hire purchase contracts (see note 14) 105,261 107,132
385,968 413,100

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 308,952 384,637
Bank loans 28,059 30,122
337,011 414,759

Amounts falling due between one and two years:
Bank loans - 1-2 years 29,571 31,006

Amounts falling due between two and five years:
Bank loans - 2-5 years 69,220 80,483

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 181,916 194,479

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 137,550 113,271
Between one and five years 105,261 107,132
242,811 220,403

15. SECURED DEBTS

The bank loan and overdrafts are secured on the company's investment property.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 196,335 197,750
Other timing differences 107,557 92,421
303,892 290,171

E.L.C. (U.K.) LIMITED (REGISTERED NUMBER: 02268972)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 July 2023 290,171
Charge to Income Statement during year 13,721
Balance at 30 June 2024 303,892

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
35,100 Ordinary £1 35,100 35,100

The ordinary shares of the company are all of the same class and they all have the same rights to dividends and distribution of capital.

18. RESERVES
Non
Retained distributable
earnings reserves Totals
£    £    £   

At 1 July 2023 3,625,084 369,686 3,994,770
Profit for the year 183,430 183,430
At 30 June 2024 3,808,514 369,686 4,178,200

19. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 52,000 (2023 - £ 52,000 ) was paid.