Company registration number SC485300 (Scotland)
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 26
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr D Baird
Mr I Ferguey
Secretary
Mr D Baird
Company number
SC485300
Registered office
2 Gavell Road
Kilsyth
Glasgow
Scotland
G65 9BS
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
The directors present the strategic report for the year ended 30 November 2024.
Review of the business
The group generated an operating profit of £1,338,110 during the year (2023: £1,486,616). At the year end the group had shareholders funds of £9,854,496 (2023: £8,871,326) including distributable profits of £9,778,244 (2023: £8,795,074). The directors therefore believe the group's position to be satisfactory.
The directors have seen continuing satisfactory trading results in the year following the accounting period and expect these to continue going forward.
Principal risks and uncertainties
The directors have assessed the main risk facing the group to be the global shortage of electronic components. During 2022 and 2023 the group experienced extended lead-times for the supply of electronic components however 2024 has seen lead-times ease as manufacturers have ramped-up to meet demand. Notwithstanding, some product lines continue to provide ongoing challenges and the group continues to work closely with customers to determine their long-term needs and plan materials much further into the future than would normally be required. Planning so far in advance brings uncertainty as customers' forecasts can change very quickly and it is important that a materials pipeline is in place to allow the continued supply of products.
The group is exposed to a USD exchange rate risk in trading with foreign suppliers however the group sell to a few customers in USD which provides a natural hedge against currently fluctuations.
Key performance indicators
As with many other businesses, the Directors of the group use a number of key performance indicators to assess performance of the group. Those regularly reviewed are:
Other information and explanations
The group finances its operations through a mixture of retained profits and operational bank accounts, and where necessary to fund expansion or capital expenditure programmes through bank borrowings and hire purchase.
The management's objectives are to retain sufficient liquid funds to enable the group to meet its day to day obligations as they fall due whilst maximising returns on surplus funds;
The group is exposed to the normal credit risk associated with dealing with customers on commercial credit terms.
Mr I Ferguey
Director
17 April 2025
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Principal activities
The principal activity of the company and group continued to be that of designing, manufacturing and repairing electronic equipment.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. 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 D Baird
Mr I Ferguey
Auditor
The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 4 -
On behalf of the board
Mr I Ferguey
Director
17 April 2025
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
- 5 -
Opinion
We have audited the financial statements of Kelvinside Electronics (Number 1) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 group's and the parent company's affairs as at 30 November 2024 and of the group's 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 group and parent 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 group's and parent 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.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined 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.
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 ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the group through discussions with directors and management and from our knowledge of the regulatory environment relevant to the group.
We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the groups financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
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.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
- 7 -
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 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.
Brian Thomson BA(Hons) CA (Senior Statutory Auditor)
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
Date
17 April 2025
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,657,336
16,582,408
Cost of sales
(10,078,465)
(12,121,663)
Gross profit
4,578,871
4,460,745
Administrative expenses
(3,241,190)
(2,975,617)
Other operating income
429
1,488
Operating profit
4
1,338,110
1,486,616
Interest receivable and similar income
8
4,451
3,014
Interest payable and similar expenses
9
(10,299)
(178)
Profit before taxation
1,332,262
1,489,452
Tax on profit
10
(349,092)
(379,010)
Profit for the financial year
22
983,170
1,110,442
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 26 form part of these financial statements.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,246,666
1,308,917
Current assets
Stocks
15
6,445,545
9,995,262
Debtors
16
3,338,064
4,400,548
Cash at bank and in hand
925,866
753,842
10,709,475
15,149,652
Creditors: amounts falling due within one year
17
(2,049,673)
(7,526,679)
Net current assets
8,659,802
7,622,973
Total assets less current liabilities
9,906,468
8,931,890
Creditors: amounts falling due after more than one year
18
-
(429)
Provisions for liabilities
Deferred tax liability
19
51,972
60,135
(51,972)
(60,135)
Net assets
9,854,496
8,871,326
Capital and reserves
Called up share capital
21
6,579
6,579
Other reserves
22
69,673
69,673
Profit and loss reserves
22
9,778,244
8,795,074
Total equity
9,854,496
8,871,326
The notes on pages 14 to 26 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 17 April 2025 and are signed on its behalf by:
17 April 2025
Mr I Ferguey
Director
Company registration number SC485300 (Scotland)
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,021,583
1,044,583
Investments
13
6,579
6,579
1,028,162
1,051,162
Current assets
Debtors
16
526,183
851,183
Cash at bank and in hand
382,691
1,498
908,874
852,681
Creditors: amounts falling due within one year
17
(567,384)
(564,782)
Net current assets
341,490
287,899
Net assets
1,369,652
1,339,061
Capital and reserves
Called up share capital
21
6,579
6,579
Profit and loss reserves
22
1,363,073
1,332,482
Total equity
1,369,652
1,339,061
The notes on pages 14 to 26 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £30,591 (2023 - £31,637 profit).
The financial statements were approved by the board of directors and authorised for issue on 17 April 2025 and are signed on its behalf by:
17 April 2025
Mr I Ferguey
Director
Company Registration No. SC485300
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2022
6,579
69,673
7,712,632
7,788,884
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
-
1,110,442
1,110,442
Dividends
11
-
-
(28,000)
(28,000)
Balance at 30 November 2023
6,579
69,673
8,795,074
8,871,326
Year ended 30 November 2024:
Profit and total comprehensive income for the year
-
-
983,170
983,170
Balance at 30 November 2024
6,579
69,673
9,778,244
9,854,496
The notes on pages 14 to 26 form part of these financial statements.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2022
6,579
1,328,845
1,335,424
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
31,637
31,637
Dividends
11
-
(28,000)
(28,000)
Balance at 30 November 2023
6,579
1,332,482
1,339,061
Year ended 30 November 2024:
Profit and total comprehensive income for the year
-
30,591
30,591
Balance at 30 November 2024
6,579
1,363,073
1,369,652
The notes on pages 14 to 26 form part of these financial statements.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
715,829
498,936
Interest paid
(10,299)
(178)
Income taxes paid
(500,359)
(210,399)
Net cash inflow from operating activities
205,171
288,359
Investing activities
Purchase of tangible fixed assets
(37,598)
(73,972)
Interest received
4,451
3,014
Net cash used in investing activities
(33,147)
(70,958)
Financing activities
Repayment of borrowings
-
(10,653)
Dividends paid to equity shareholders
(28,000)
Net cash used in financing activities
-
(38,653)
Net increase in cash and cash equivalents
172,024
178,748
Cash and cash equivalents at beginning of year
753,842
575,094
Cash and cash equivalents at end of year
925,866
753,842
The notes on pages 14 to 26 form part of these financial statements.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 14 -
1
Accounting policies
Company information
Kelvinside Electronics (Number 1) Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 2 Gavell Road, Kilsyth, Glasgow, Scotland, G65 9BS. The company's registration number is SC485300.
The group consists of Kelvinside Electronics (Number 1) Limited and its subsidiary.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Kelvinside Electronics (Number 1) Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 30 November 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
Merger accounting has been used to consolidate Kelvinside Electronics Limited. Any difference between the nominal value of the subsidiary shares acquired by the Company and those issued by the Company is taken to the merger reserve.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At 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.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on cost
Plant and equipment
15% on cost
Fixtures and fittings
20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.6
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
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.
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.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Work in progress
Work in progress is valued on the basis of direct material and labour costs plus attributable overheads based on a normal level of activity. No element of profit is included in the valuation of work in progress.
1.9
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Equity instruments
Equity instruments issued by the group 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 group.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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 leased asset are consumed.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
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 group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Determine the basis of recognising income. The Group recognises revenue when the amount can be measured reliably; it is probable that future economic benefit will flow to the Group and the Group has fulfilled its contractual obligations.
Determine whether leases entered into by the Group as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Determine whether there are indicators of impairment of the Group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.
Determine whether any stock provision is required via comparison of cost and net realisable value of stock on an item by item basis. Factors considered include stock obsolescence, stock turnover and stock condition.
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United kingdom
14,657,336
15,784,740
Overseas
-
797,668
14,657,336
16,582,408
2024
2023
£
£
Other significant revenue
Interest income
4,451
3,014
Grants received
429
1,488
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(43,614)
(179,170)
Government grants
(429)
(1,488)
Depreciation of owned tangible fixed assets
99,849
124,172
Operating lease charges
49,150
29,564
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,500
2,500
Audit of the financial statements of the company's subsidiaries
21,300
18,100
23,800
20,600
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production staff
34
56
-
-
Administrative staff
20
7
-
-
Management staff
7
2
-
-
Total
61
65
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,955,001
2,048,703
Social security costs
201,093
208,696
-
-
Pension costs
213,854
106,648
2,369,948
2,364,047
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
233,402
192,000
Company pension contributions to defined contribution schemes
60,000
-
293,402
192,000
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
122,230
N/A
Company pension contributions to defined contribution schemes
60,000
N/A
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
4,451
3,014
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
10,299
178
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
363,262
365,950
Adjustments in respect of prior periods
(6,005)
1,486
Total current tax
357,257
367,436
Deferred tax
Origination and reversal of timing differences
(8,165)
11,574
Total tax charge
349,092
379,010
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
1,332,262
1,489,452
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.00%)
333,066
342,574
Tax effect of expenses that are not deductible in determining taxable profit
30,196
23,376
Under/(over) provided in prior years
(6,005)
1,486
Deferred tax movement
(8,165)
11,574
Taxation charge
349,092
379,010
From April 2023 onwards, the main rate of Corporation Tax rose from 19% to 25%. Companies with profits of £50,000 or less continued to be taxed at 19% which was a new small profits rate. The tax rate utilised in the current year is 25% (2023: 23%). Deferred tax has been calculated at a rate of 25%.
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
28,000
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 22 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 December 2023
1,150,000
2,311,193
309,457
3,770,650
Additions
29,646
7,952
37,598
At 30 November 2024
1,150,000
2,340,839
317,409
3,808,248
Depreciation and impairment
At 1 December 2023
105,417
2,060,830
295,486
2,461,733
Depreciation charged in the year
23,000
70,603
6,246
99,849
At 30 November 2024
128,417
2,131,433
301,732
2,561,582
Carrying amount
At 30 November 2024
1,021,583
209,406
15,677
1,246,666
At 30 November 2023
1,044,583
250,363
13,971
1,308,917
Company
Freehold land and buildings
£
Cost
At 1 December 2023 and 30 November 2024
1,150,000
Depreciation and impairment
At 1 December 2023
105,417
Depreciation charged in the year
23,000
At 30 November 2024
128,417
Carrying amount
At 30 November 2024
1,021,583
At 30 November 2023
1,044,583
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
6,579
6,579
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
13
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2023 and 30 November 2024
6,579
Carrying amount
At 30 November 2024
6,579
At 30 November 2023
6,579
14
Subsidiaries
Details of the company's subsidiaries at 30 November 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Kelvinside Electronics Limited
Gavell Road, Kilsyth, Glasgow, G65 9BS
Design, manufacture and repair of electronics
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
3,698,675
8,214,987
-
-
Work in progress
40,500
52,451
-
-
Finished goods and goods for resale
2,706,370
1,727,824
6,445,545
9,995,262
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,287,509
4,296,991
Amounts owed by group undertakings
-
-
526,183
851,183
Prepayments and accrued income
50,555
103,557
3,338,064
4,400,548
526,183
851,183
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 24 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
687,310
5,732,813
Corporation tax payable
178,259
321,363
32,498
29,896
Other taxation and social security
497,525
772,109
-
-
Other creditors
534,886
534,886
534,886
534,886
Accruals and deferred income
151,693
165,508
2,049,673
7,526,679
567,384
564,782
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Government grants
429
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
51,972
60,135
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 December 2023
60,135
-
Credit to profit or loss
(8,163)
-
Liability at 30 November 2024
51,972
-
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 25 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
213,854
106,648
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
6,579
6,579
6,579
6,579
22
Reserves
Equity reserve
Other reserves represents the merger reserve.
23
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
25,238
14,181
-
-
Between two and five years
21,802
6,886
-
-
47,040
21,067
-
-
KELVINSIDE ELECTRONICS (NUMBER 1) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 26 -
24
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
No further transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
25
Ultimate controlling party
The group was under the control of D Baird throughout the current and previous year by virtue of his interest in the issued share capital.
26
Cash generated from group operations
2024
2023
£
£
Profit after taxation
983,170
1,110,442
Adjustments for:
Taxation charged
349,092
379,010
Finance costs
10,299
178
Investment income
(4,451)
(3,014)
Depreciation and impairment of tangible fixed assets
99,849
124,172
Movements in working capital:
Decrease/(increase) in stocks
3,549,717
(1,061,443)
Decrease/(increase) in debtors
1,062,484
(1,858,555)
(Decrease)/increase in creditors
(5,333,902)
1,809,634
Decrease in deferred income
(429)
(1,488)
Cash generated from operations
715,829
498,936
27
Analysis of changes in net funds - group
1 December 2023
Cash flows
30 November 2024
£
£
£
Cash at bank and in hand
753,842
172,024
925,866
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