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COMPANY REGISTRATION NUMBER: 04509156
TechPoint Supply Chain Solutions Ltd
Financial Statements
For the year ended
30 July 2024
TechPoint Supply Chain Solutions Ltd
Financial Statements
Year ended 30 July 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Directors' responsibilities statement
6
Independent auditor's report to the members
7
Income statement
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14
TechPoint Supply Chain Solutions Ltd
Officers and Professional Advisers
The board of directors
J Drake (Appointed 8 January 2024)
P Duffill (Appointed 8 May 2024)
D A Croft
M G Negus (Resigned 8 January 2024)
G Mitchell (Resigned 9 April 2024)
G Wearing (Resigned 11 October 2023)
Registered office
Unit One
Mundford Road Trading Estate
Thetford
IP24 1HX
Auditor
Streets Audit LLP
Chartered accountants & statutory auditor
Enterprise House
38 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
Cambridgeshire
PE2 6LR
TechPoint Supply Chain Solutions Ltd
Strategic Report
Year ended 30 July 2024
The directors present the strategic report for the year ended 30 July 2024.
Fair review of the business
TechPoint Supply Chain Solutions Ltd was established in 2002 and became part of the TechPoint Group in June 2019. TechPoint Supply Chain Solutions Ltd focuses primarily on providing supply chain services, including kitting and sourcing from its extensive supplier base to a broad spectrum of global OEM customers. Vanilla, as the original trading entity within the Group, also incurs the costs for the Group across all central functions including Finance, HR, Sales, H&S and Marketing. The electronics market, especially within components and supply chain, was negatively impacted during FY24 following a realignment of market conditions as component pricing and lead times normalised following a period of sourcing challenges and instability post COVID. These market conditions have led to a reduction in turnover volumes at TechPoint Supply Chain Solutions Ltd which has then been felt through the financial performance for the year. The Directors have worked on a comprehensive 5 year strategy for the TechPoint Group and continue to see Supply Chain Solutions (SCaaS - "Supply Chain as a Service") as a core part of the value proposition within the Group and are seeing growth opportunities as the market recovers. Further investment into the Group infrastructure in FY24 and continuing into FY25, together with key hires in the sales and marketing functions, are already adding value and generating considerable opportunities from both existing and new customers. The wider stability of the TechPoint Group, along with strong support from investors, puts the Company in a solid position for growth in 2025 and beyond.
Principal risks and uncertainties
Inflation has continued to trend above previous normalised levels and has resulted in increases across a number of operating expenses, including energy and raw materials. The Directors have managed this risk through reducing non-core expenditure and fixing or renegotiating with suppliers where possible and from a commercial perspective requoting where appropriate to mitigate price rises. Results for the year reflect that this strategy has been effective and the risk continues to be monitored and managed through procurement and commercial controls. Interest rate Risk Interest rate decreases have been slower than anticipated so the borrowing costs remain high on the Group's main loan, however as this is begins to be paid down the risk will decrease and close management of cashflow ensures that the Group remains in a good position to meet all interest payments in full. Liquidity Risk The funding requirements of the company are monitored regularly to ensure the company has appropriate levels of funding for on-going operations whilst minimising any borrowing in the business. Foreign Currency Risk The company primarily operates in the UK, however, the exposure to foreign currency risk is often short term and where possible foreign currency inflows and outflows are matched. However, sales prices are constantly reviewed so if any marked movements in exchange rates occurs the business can react to limit any potential losses. Credit Risk Credit risk arises principally on trade receivable balances. The company has a number of policies and procedures in place to mitigate this risk including, but not limited to, using credit insurance.
Key performance indicators
The Key financial highlights are as follows: Revenue has declined by 60% year on year alongside the challenging market conditions, however despite this TechPoint Supply Chain Solutions Ltd has worked hard to stabilise margins and has managed to deliver a gross margin of 19.5% in FY24 (21.1% FY23). TechPoint Supply Chain Solutions Ltd carries the Group infrastructure costs for all central functions within the TechPoint Group and this therefore distorts the underlying financial status of the supply chain operation. For clarity we have provided further insight below around the financial performance:
2022 2023 2024
Revenue (£000s) 20,242 21,380 8,354
Gross profit (£000s) 5,205 4,507 1,630
Operating profit excluding central function costs (£000s) 2,730 2,732 144
The confidence of the Directors and the Investors has led to continued investment into Group functions, as well as maintaining a stable overhead base within Vanilla, to ensure that TechPoint Supply Chain Solutions Ltd and the wider TechPoint Group are in a fantastic position to leverage their value proposition with continued growth as the market recovers and as the TechPoint brand continues to increase its reputation within the UK EMS industry.
This report was approved by the board of directors on 25 April 2025 and signed on behalf of the board by:
J Drake
Director
TechPoint Supply Chain Solutions Ltd
Directors' Report
Year ended 30 July 2024
The directors present their report and the financial statements of the company for the year ended 30 July 2024 .
Principal activities
The principal activity of the company during the year was sourcing and supply of electronics components.
Directors
The directors who served the company during the year were as follows:
D A Croft
J Drake
(Appointed 8 January 2024)
P Duffill
(Appointed 8 May 2024)
M G Negus
(Resigned 8 January 2024)
G Mitchell
(Resigned 9 April 2024)
G Wearing
(Resigned 11 October 2023)
Dividends
The directors do not recommend payment of a final dividend.
Events after the end of the reporting period
On 3 February 2025, the company changed its name from Vanilla Electronics Limited to TechPoint Supply Chain Solutions Ltd .
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 25 April 2025 and signed on behalf of the board by:
J Drake
Director
TechPoint Supply Chain Solutions Ltd
Directors' Responsibilities Statement
Year ended 30 July 2024
The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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.
TechPoint Supply Chain Solutions Ltd
Independent Auditor's Report to the Members of TechPoint Supply Chain Solutions Ltd
Year ended 30 July 2024
Opinion
We have audited the financial statements of TechPoint Supply Chain Solutions Ltd (the 'company') for the year ended 30 July 2024 which comprise the income statement, statement of financial position, statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 July 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the 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.
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 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 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, 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: - the engagement partner 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation. - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 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.
Jonathan Day
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered accountants & statutory auditor
Enterprise House
38 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
Cambridgeshire
PE2 6LR
28 April 2025
TechPoint Supply Chain Solutions Ltd
Income Statement
Year ended 30 July 2024
2024
2023
(restated)
Note
£
£
Turnover
4
8,353,740
21,380,036
Cost of sales
( 6,723,507)
( 16,872,754)
------------
-------------
Gross profit
1,630,233
4,507,282
Administrative expenses
( 4,268,268)
( 4,344,158)
Other operating income
5
129,632
735,508
------------
------------
Operating (loss)/profit
6
( 2,508,403)
898,632
Other interest receivable and similar income
10
35,731
11,960
Interest payable and similar expenses
11
( 149,030)
( 127,121)
------------
------------
(Loss)/profit before taxation
( 2,621,702)
783,471
Tax on (loss)/profit
12
390,842
86,238
------------
---------
(Loss)/profit for the financial year
( 2,230,860)
869,709
------------
---------
All the activities of the company are from continuing operations.
The company has no other recognised items of income and expenses other than the results for the year as set out above.
TechPoint Supply Chain Solutions Ltd
Statement of Financial Position
30 July 2024
2024
2023
(restated)
Note
£
£
Fixed assets
Tangible assets
13
346,089
602,974
Current assets
Stocks
14
765,329
1,435,589
Debtors
15
11,973,772
10,710,139
Cash at bank and in hand
757,415
120,644
-------------
-------------
13,496,516
12,266,372
Creditors: amounts falling due within one year
16
10,735,854
7,485,346
-------------
-------------
Net current assets
2,760,662
4,781,026
------------
------------
Total assets less current liabilities
3,106,751
5,384,000
Provisions
17
274,433
320,822
------------
------------
Net assets
2,832,318
5,063,178
------------
------------
Capital and reserves
Called up share capital
22
12,000
12,000
Capital redemption reserve
23
19,000
19,000
Profit and loss account
23
2,801,318
5,032,178
------------
------------
Shareholders funds
2,832,318
5,063,178
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 25 April 2025 , and are signed on behalf of the board by:
J Drake
Director
Company registration number: 04509156
TechPoint Supply Chain Solutions Ltd
Statement of Changes in Equity
Year ended 30 July 2024
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 August 2022
12,000
19,000
4,162,469
4,193,469
Profit for the year
869,709
869,709
--------
--------
------------
------------
Total comprehensive income for the year
869,709
869,709
At 31 July 2023
12,000
19,000
5,032,178
5,063,178
Loss for the year
( 2,230,860)
( 2,230,860)
--------
--------
------------
------------
Total comprehensive income for the year
( 2,230,860)
( 2,230,860)
--------
--------
------------
------------
At 30 July 2024
12,000
19,000
2,801,318
2,832,318
--------
--------
------------
------------
TechPoint Supply Chain Solutions Ltd
Notes to the Financial Statements
Year ended 30 July 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit One, Mundford Road Trading Estate, Thetford, IP24 1HX.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basisThe financial statements are prepared in sterling, which is the functional currency of the entity. Going concern The company has reported a loss for the period but has net assets. In considering the appropriateness of the going concern basis the directors have reviewed the current trading position of the business, the order book and sales and cashflow forecasts. These all indicate the company has the ability to operate within agreed funding facilities and has adequate resources to continue in operational existence for the foreseeable future. As such the company continues to adopt the going concern basis in in preparing its financial statements. Disclosure exemptions The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of TechPoint Group Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel. 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 year in which the estimate is revised where the revision affects any that year, or in the year of the revision and future periods where the revision affects both current and future periods. Key sources of estimation uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. 1) Depreciation charge The annual depreciation charge for each class of tangible fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors. 2) Stock provision The company sells products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provision required. When calculating the provision, management considers the nature and age of the stock as well as applying assumptions around anticipated saleability of stock. 3) Dilapidation provision A provision for dilapidation costs has been included based on the best estimate of costs to be incurred at the end of the lease to reinstate the condition of the company's leased premises. This has been based on third party surveyor reports and discounting to amortised cost applying an appropriate rate. 4) Warranty provision A warranty provision for finished goods is included in the financial statements based on expected returns. Revenue recognition Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Foreign currencies Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Tangible assets Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property - To break point in the lease
Plant and machinery - 15% straight line
Fixtures and fittings - 25% straight line
Motor vehicles - 25% straight line
Equipment - 25 % straight line
Impairment of fixed assets At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised under the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
(restated)
£
£
Sale of goods
8,353,740
21,380,036
------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
(restated)
£
£
United Kingdom
7,889,778
18,492,052
Europe
298,757
855,891
Rest of the World
165,205
2,032,093
------------
-------------
8,353,740
21,380,036
------------
-------------
5. Other operating income
2024
2023
(restated)
£
£
Government grant income
949
12,858
Other operating income
128,683
722,650
---------
---------
129,632
735,508
---------
---------
Other operating income relates to amounts received in line with settlement agreements in place during the year.
6. Operating (loss)/profit
Operating profit or loss is stated after charging:
2024
2023
(restated)
£
£
Depreciation of tangible assets
276,481
154,683
Impairment of trade debtors
82,649
14,342
Foreign exchange differences
3,292
49,017
Operating lease charges
84,500
---------
---------
7. Auditor's remuneration
2024
2023
(restated)
£
£
Fees payable for the audit of the financial statements
12,875
15,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
13
18
Administrative staff
42
44
----
----
55
62
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
(restated)
£
£
Wages and salaries
2,889,880
2,634,272
Social security costs
295,886
304,654
Other pension costs
104,103
120,888
------------
------------
3,289,869
3,059,814
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
(restated)
£
£
Remuneration
480,738
493,100
Company contributions to defined contribution pension plans
64,653
73,857
---------
---------
545,391
566,957
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
(restated)
£
£
Aggregate remuneration
133,100
160,700
Company contributions to defined contribution pension plans
51,663
35,067
---------
---------
184,763
195,767
---------
---------
10. Other interest receivable and similar income
2024
2023
(restated)
£
£
Interest on cash and cash equivalents
35,731
11,960
--------
--------
11. Interest payable and similar expenses
2024
2023
(restated)
£
£
Other interest payable and similar charges
149,030
127,121
---------
---------
12. Tax on (loss)/profit
Major components of tax income
2024
2023
(restated)
£
£
Current tax:
UK current tax income
( 125,729)
Deferred tax:
Origination and reversal of timing differences
( 390,842)
39,491
---------
--------
Tax on (loss)/profit
( 390,842)
( 86,238)
---------
--------
Reconciliation of tax income
The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 21 %).
2024
2023
(restated)
£
£
(Loss)/profit on ordinary activities before taxation
( 2,621,702)
783,471
------------
---------
(Loss)/profit on ordinary activities by rate of tax
( 655,425)
164,572
Effect of expenses not deductible for tax purposes
5,130
1,121
Effect of capital allowances and depreciation
2,859
( 14,976)
Effect of revenue exempt from tax
( 237)
( 2,701)
Effect of different UK tax rates on some earnings
16,329
Utilisation of tax losses
296,356
( 164,518)
Other adjustment
(2,074)
Adjustments in respect of prior periods
(125,729)
Transfer pricing adjustments
(37,451)
39,664
------------
---------
Tax on (loss)/profit
( 390,842)
( 86,238)
------------
---------
13. Tangible assets
Short leasehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Computer
Total
£
£
£
£
£
£
Cost
At 1 Aug 2023 (as restated)
335,476
166,316
961,854
29,590
136,607
1,629,843
Additions
38,334
15,000
43,732
53,550
150,616
Disposals
( 166,316)
( 166,316)
---------
---------
------------
--------
---------
------------
At 30 Jul 2024
373,810
15,000
1,005,586
29,590
190,157
1,614,143
---------
---------
------------
--------
---------
------------
Depreciation
At 1 Aug 2023
18,664
871,717
25,687
110,801
1,026,869
Charge for the year
167,258
17,195
71,503
3,903
16,622
276,481
Disposals
( 35,296)
( 35,296)
---------
---------
------------
--------
---------
------------
At 30 Jul 2024
167,258
563
943,220
29,590
127,423
1,268,054
---------
---------
------------
--------
---------
------------
Carrying amount
At 30 Jul 2024
206,552
14,437
62,366
62,734
346,089
---------
---------
------------
--------
---------
------------
At 31 Jul 2023
335,476
147,652
90,137
3,903
25,806
602,974
---------
---------
------------
--------
---------
------------
Within short leasehold property there are additions of £24,089 relating to assets under construction.
14. Stocks
2024
2023
(restated)
£
£
Work in progress
350,882
350,737
Finished goods and goods for resale
414,447
1,084,852
---------
------------
765,329
1,435,589
---------
------------
15. Debtors
2024
2023
(restated)
£
£
Trade debtors
1,203,634
2,524,905
Amounts owed by group undertakings
9,956,317
7,463,496
Deferred tax asset
343,351
Prepayments and accrued income
112,258
97,730
Corporation tax repayable
229,081
204,081
Other debtors
129,131
419,927
-------------
-------------
11,973,772
10,710,139
-------------
-------------
Included in trade debtors are debts of £1,203,634 (2023 - £2,524,905) which are subject to a financing facility with Investec Bank Limited.
16. Creditors: amounts falling due within one year
2024
2023
(restated)
£
£
Bank loans and overdrafts
941,646
1,091,395
Trade creditors
1,199,215
1,942,687
Amounts owed to group undertakings
7,939,860
3,726,948
Accruals and deferred income
351,315
280,000
Social security and other taxes
110,557
255,265
Other creditors
193,261
189,051
-------------
------------
10,735,854
7,485,346
-------------
------------
Bank loans relate to invoice factoring which is secured over the trade debtors of the company.
17. Provisions
Warranties
Deferred tax (note 18)
Dilapidation
Total
£
£
£
£
At 1 August 2023 (as restated)
72,431
47,491
200,900
320,822
Additions
1,102
1,102
Charge against provision
( 47,491)
( 47,491)
--------
--------
---------
---------
At 30 July 2024
73,533
200,900
274,433
--------
--------
---------
---------
Within provisions is an amount for dilapidations for leasehold premises which has been calculated at the present value by third party chartered surveyors. The current lease expires in 2030, and has a break clause in 2025.
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
(restated)
£
£
Included in debtors (note 15)
343,351
Included in provisions (note 17)
( 47,491)
---------
--------
343,351
( 47,491)
---------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
(restated)
£
£
Accelerated capital allowances
10,003
51,829
Unused tax losses
( 351,626)
Pension plan obligations
( 1,728)
( 4,338)
---------
--------
(343,351)
47,491
---------
--------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 104,103 (2023: £ 120,888 ).
20. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2024
2023
(restated)
£
£
Recognised in other operating income:
Government grants recognised directly in income
949
12,858
----
--------
21. Prior period adjustments
Prior period adjustments have been included totalling £1,092,559 less corporation tax of £207,586 for dilapidation, warranty and stock provisions.
22. Called up share capital
Issued, called up and fully paid
2024
2023
(restated)
No.
£
No.
£
Ordinary shares of £ 1 each
12,000
12,000
12,000
12,000
--------
--------
--------
--------
23. Reserves
The profit and loss account includes all current and prior period retained profit and losses. The capital redemption reserve relates to the par value of the shares.
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
(restated)
£
£
Not later than 1 year
84,500
84,500
Later than 1 year and not later than 5 years
77,458
--------
---------
84,500
161,958
--------
---------
25. Financial commitments, guarantees and contingent liabilities
The company together with the following fellow group members Pod Bidco Limited, TechPoint Manufacturing Solutions (Melksham) Limited, TechPoint Fast Track Solutions Limited, Golledge Electronics Limited, Bela Electronic Design Holdings Limited and Gemini Tec Limited have entered a cross guarantee with Investec Bank in respect of a fixed and floating charge over the assets of the companies. At 30 July 2024 the total amount covered by the cross guarantee amounted to £11,667,394 (2023 - £13,683,644).
26. Related party transactions
The company has taken advantage of the exemption available under FRS102 from reporting transactions with members of the group that are wholly owned.
27. Controlling party
The immediate parent company is considered to be Pod Bidco Limited, a company registered in England and Wales. The ultimate parent company is considered to be Literacy Capital PLC a company incorporated in England and Wales. TechPoint Group Limited is the smallest company in the group that produces group consolidated accounts.