Company registration number 01585274 (England and Wales)
HACEL LIGHTING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HACEL LIGHTING LIMITED
COMPANY INFORMATION
Directors
D Cockburn
S Cockburn
P Wallace
Secretary
C Neal
Company number
01585274
Registered office
Hacel House
Kittiwake Close
Wallsend
Tyne & Wear
NE28 9ND
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
HACEL LIGHTING LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Income statement
10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 29
HACEL LIGHTING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Principal activities
The principal activity of the company is the manufacture and sale of lighting products to the commercial sector. There have not been any significant changes in the company's principal activity in the year under review.
Fair Review of the Business
Business in 2024, in terms of sales, continues to be challenging. The uncertainty of the economy, remains, has not been helped by the government change during the year, and has contributed greatly to a lack of client confidence to proceed with projects.
Throughout the year the Company was involved in many prestigious and high value projects that did not proceed as expected. Higher than expected building, refurbishment or financial costs have delayed or put on hold the placing of orders.
Large orders that were placed had long delivery dates and unfortunately did not contribute to our 2024 performance but will benefit the companies order book going forward into 2025.
New products we had been developing did not arrive until too late in the year for sales to be placed though initial reaction to them was favourable with high volumes already specified.
Following on from 2023 the company was once again accredited with ISO 9001 and 14001 and PAS 2060 certification. This certification is a necessity when dealing with blue chip companies and will be beneficial in the future.
The company's key financial and other performance indicators during the year were as follows:
Unit 2024 2023
Gross profit margin % 42.07 42.92
Operating profit margin % 0.39 0.34
Trade Debtor Days Days 37.19 31.13
Trade Creditor Days Days 23.54 34.20
HACEL LIGHTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
Carbon Footprint
The company’s target to become net zero overall by 2030 is well on track. The directors expect the company’s carbon journey and credentials to continue to assist in winning new projects in the future. Directly attributable scope 1, 2 and direct scope 3 net carbon has already reached net zero excluding scope 3 category 11 and was independently certified to PAS2060 at the end of 2023. Similar certification for 2024 was achieved in Q1 2025. Please refer to our company website which also includes our environmental objectives.
Future Developments
The directors expect the level of activity to continue to recover towards historical pre COVID levels.
HACEL LIGHTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
D Cockburn
Director
6 May 2025
HACEL LIGHTING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £100,000. 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:
D Cockburn
S Cockburn
P Wallace
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Financial instruments
See disclosures in the Strategic Report in respect of the financial risk management of the company.
Research and development
During 2024 the company continued its ongoing program of product development. Research expenditure is written off as incurred.
Future developments
See disclosures within the Strategic Report regarding future developments of the company.
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Environmental Matters
Hacel Lighting Limited recognises the importance of its environmental responsibilities and designs its products to be as efficient and hence environmentally friendly as possible. In addition, the company also supports initiatives aimed at reducing the company's impact on the environment and is registered as a producer under the Waste Electrical and Electronic Equipment Directive (WEEE). The company is always looking at component design and material sourcing to minimise effects on climate change through transportation, local suppliers, materials and packaging. See also disclosures within the Strategic Report.
HACEL LIGHTING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
On behalf of the board
D Cockburn
Director
6 May 2025
HACEL LIGHTING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed an explained in the financial statements; and
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.
HACEL LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HACEL LIGHTING LIMITED
- 7 -
Opinion
We have audited the financial statements of Hacel Lighting Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
HACEL LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HACEL LIGHTING LIMITED
- 8 -
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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements; Health and Safety (include Waste Electrical and Electronic Equipment Recycling (WEEE) regulations); employment law (including the Working Time Directive); and compliance with the UK Companies Act.
HACEL LIGHTING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HACEL LIGHTING LIMITED
- 9 -
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 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.
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 Laidlaw BA CA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
6 May 2025
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
HACEL LIGHTING LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
9,337,688
8,270,838
Cost of sales
(5,408,909)
(4,721,002)
Gross profit
3,928,779
3,549,836
Distribution costs
(1,717,589)
(1,502,049)
Administrative expenses
(2,174,430)
(2,019,577)
Operating profit
4
36,760
28,210
Interest receivable and similar income
8
60,525
50,434
Interest payable and similar expenses
9
(38,436)
(39,562)
Profit before taxation
58,849
39,082
Tax on profit
10
(34,927)
19,592
Profit for the financial year
23,922
58,674
The income statement has been prepared on the basis that all operations are continuing operations.
HACEL LIGHTING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
23,922
58,674
Other comprehensive income
Revaluation of tangible fixed assets
433,576
Tax relating to other comprehensive income
(28,936)
Other comprehensive income for the year
404,640
Total comprehensive income for the year
428,562
58,674
HACEL LIGHTING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,668,066
2,311,479
Current assets
Stocks
13
1,761,447
1,803,989
Debtors
14
2,952,253
2,523,564
Cash at bank and in hand
1,805,087
2,073,046
6,518,787
6,400,599
Creditors: amounts falling due within one year
15
(1,066,848)
(918,081)
Net current assets
5,451,939
5,482,518
Total assets less current liabilities
8,120,005
7,793,997
Creditors: amounts falling due after more than one year
16
(261,337)
(280,108)
Provisions for liabilities
Provisions
19
164,401
148,184
(164,401)
(148,184)
Net assets
7,694,267
7,365,705
Capital and reserves
Called up share capital
21
15,326
15,326
Revaluation reserve
1,422,431
1,017,791
Capital redemption reserve
16,083
16,083
Profit and loss reserves
6,240,427
6,316,505
Total equity
7,694,267
7,365,705
The financial statements were approved by the board of directors and authorised for issue on 6 May 2025 and are signed on its behalf by:
D Cockburn
Director
Company Registration No. 01585274
HACEL LIGHTING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
15,326
1,017,791
16,083
6,457,831
7,507,031
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
58,674
58,674
Dividends
11
-
-
-
(200,000)
(200,000)
Balance at 31 December 2023
15,326
1,017,791
16,083
6,316,505
7,365,705
Year ended 31 December 2024:
Profit for the year
-
-
-
23,922
23,922
Other comprehensive income:
Revaluation of tangible fixed assets
-
433,576
-
-
433,576
Tax relating to other comprehensive income
-
(28,936)
-
(28,936)
Total comprehensive income for the year
-
404,640
-
23,922
428,562
Dividends
11
-
-
-
(100,000)
(100,000)
Balance at 31 December 2024
15,326
1,422,431
16,083
6,240,427
7,694,267
HACEL LIGHTING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(186,479)
1,239,573
Interest paid
(38,436)
(39,562)
Income taxes refunded/(paid)
298,256
(116,997)
Net cash inflow from operating activities
73,341
1,083,014
Investing activities
Purchase of tangible fixed assets
(105,514)
(221,261)
Director's loan (increased)/repaid
(171,527)
(59,111)
Interest received
60,525
50,434
Net cash used in investing activities
(216,516)
(229,938)
Financing activities
Repayment of bank loans
(18,771)
(17,811)
Payment of finance leases obligations
(6,013)
(7,216)
Dividends paid
(100,000)
(200,000)
Net cash used in financing activities
(124,784)
(225,027)
Net (decrease)/increase in cash and cash equivalents
(267,959)
628,049
Cash and cash equivalents at beginning of year
2,073,046
1,444,997
Cash and cash equivalents at end of year
1,805,087
2,073,046
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information
Hacel Lighting Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hacel House, Kittiwake Close, Wallsend, Tyne & Wear, NE28 9ND.
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, modified to include the revaluation of certain fixed assets. The principal accounting policies adopted are set out below.
1.2
Going concern
The company’s forecasts and projections for the next twelve months show that the company is able to continue in operational existence for that period and beyond, taking into account reasonable possible changes in trading performancetrue. This also considers the effectiveness of available measures to assist in mitigating the impact.
In the directors' assessment of possible changes, they have considered a fall in customer revenue and potential cost savings which are reflective of their business continuity plan.
The forecasts prepared support the ability of the company to remain a going concern and to be able to trade and meet its debts as they fall due.
Based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least 12 months from the date of signing the financial statements and therefore, the directors believe it remains appropriate to prepare the financial statements on a going concern.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Long leasehold property is stated in the statement of financial position at fair value less any accumulated impairment losses. Revaluations were performed in accordance with the RICS Appriasal and Valuation Manual.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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:
Leasehold land and buildings
Straight line over lease term
Plant and equipment
10 - 20% straight line
Fixtures and fittings
15 - 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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 company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
There are no critical judgements which would have a significant impact on the financial statements.
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.
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
Key sources of estimation uncertainty
Stock provision
The company has made an assumption of writing down the value of stock on items in which they expect the cost to exceed the net realisable value before it is fully sold/utilised. This assumption has involved looking at the historic sales patterns and expected sales in future years.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
9,337,688
8,270,838
2024
2023
£
£
Turnover analysed by geographical market
UK
9,094,370
8,060,195
Europe
243,318
210,643
9,337,688
8,270,838
2024
2023
£
£
Other revenue
Interest income
60,525
50,434
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
4,605
6,585
Depreciation of owned tangible fixed assets
182,503
180,187
Operating lease charges
205,438
161,339
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 company
15,200
15,000
For other services
Taxation compliance services
1,850
6,450
All other non-audit services
1,000
2,850
6,450
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
36
40
Administration and support
25
24
Sales
17
17
Total
78
81
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,603,003
3,244,310
Social security costs
401,030
366,159
Pension costs
76,983
71,631
4,081,016
3,682,100
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
553,573
518,177
Company pension contributions to defined contribution schemes
14,046
11,095
567,619
529,272
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
274,960
255,619
Company pension contributions to defined contribution schemes
1,321
1,321
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
60,525
50,434
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,325
4,286
Dividends on redeemable preference shares not classified as equity
34,289
34,289
37,614
38,575
Other finance costs:
Interest on finance leases and hire purchase contracts
822
987
38,436
39,562
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
47,619
(31,160)
Adjustments in respect of prior periods
27
(3,801)
Total current tax
47,646
(34,961)
Deferred tax
Origination and reversal of timing differences
(12,719)
15,369
Total tax charge/(credit)
34,927
(19,592)
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 23 -
The actual charge/(credit) 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
58,849
39,082
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
14,712
9,192
Tax effect of expenses that are not deductible in determining taxable profit
16,832
17,840
Adjustments in respect of prior years
27
(34,960)
Effect of change in corporation tax rate
909
Research and development tax credit
(55,788)
Fixed asset differences
4,197
4,641
Losses carried back and brought back
38,574
Marginal relief
(841)
Taxation charge/(credit) for the year
34,927
(19,592)
In addition to the amount charged/(credited) to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
28,936
-
11
Dividends
2024
2023
£
£
Final paid
100,000
200,000
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 January 2024
1,700,000
1,624,998
1,391,704
4,716,702
Additions
12,590
92,924
105,514
Disposals
(3,775)
(16,076)
(19,851)
Revaluation
400,000
400,000
At 31 December 2024
2,100,000
1,633,813
1,468,552
5,202,365
Depreciation and impairment
At 1 January 2024
16,788
1,219,913
1,168,522
2,405,223
Depreciation charged in the year
16,788
59,805
105,910
182,503
Eliminated in respect of disposals
(3,775)
(16,076)
(19,851)
Revaluation
(33,576)
(33,576)
At 31 December 2024
1,275,943
1,258,356
2,534,299
Carrying amount
At 31 December 2024
2,100,000
357,870
210,196
2,668,066
At 31 December 2023
1,683,212
405,085
223,182
2,311,479
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
49,308
65,340
Land and buildings with a carrying amount of £2,100,000 were revalued at 31st December 2024 by Lambert Smith Hampton, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Leasehold land and buildings
2024
2023
£
£
Cost
1,092,949
1,092,949
Accumulated depreciation
(531,171)
(525,496)
Carrying value
561,778
567,453
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
13
Stocks
2024
2023
£
£
Raw materials and consumables
1,530,048
1,473,038
Work in progress
109,574
189,269
Finished goods and goods for resale
121,825
141,682
1,761,447
1,803,989
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
951,521
705,336
Corporation tax recoverable
345,633
Other debtors
1,659,451
1,232,872
Prepayments and accrued income
341,281
239,723
2,952,253
2,523,564
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
19,360
19,360
Obligations under finance leases
18
6,013
Trade creditors
348,816
442,357
Corporation tax
16,486
Other taxation and social security
344,106
246,578
Other creditors
175,085
65,759
Accruals and deferred income
162,995
138,014
1,066,848
918,081
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
32,746
51,517
Other borrowings
17
228,591
228,591
261,337
280,108
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
52,106
70,877
Preference shares
228,591
228,591
280,697
299,468
Payable within one year
19,360
19,360
Payable after one year
261,337
280,108
The long-term loans are secured by fixed charges over a fixed floating charge over the property and assets of the company.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
6,013
19
Provisions for liabilities
2024
2023
£
£
Deferred tax
164,401
148,184
Movements on provisions:
Deferred tax
£
At 1 January 2024
148,184
Additional provisions in the year
16,217
At 31 December 2024
164,401
Deferred tax
Deferred tax assets and liabilities are offset only where the company has a legally enforceable right to do so and where the assets and liabilities relate to income taxed levied by the same taxation authority on the same taxable entity or another entity within the company.
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
76,983
71,631
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £11,342 (2023 - £15,418) were payable to the scheme at the end of the year and are included in creditors.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
15,326
15,326
15,326
15,326
Redeemable preference shares
The 15% Cumulative redeemable preference shares, disclosed in creditors, are redeemable at the option of the company. They are redeemable at £1 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive in priority to any other classes of shares, the sum of £1 per share together with any arrears of dividend. Winding up value for redeemable preference shares is £1.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
105,284
99,352
Between two and five years
79,986
97,516
185,270
196,868
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
24
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
D Cockburn - Unsecured, interest free and repayable on demand
-
1,165,412
192,144
(29,047)
1,328,509
S Cockburn - Unsecured, interest free and repayable on demand
-
6,990
11,051
(2,621)
15,420
1,172,402
203,195
(31,668)
1,343,929
25
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
23,922
58,674
Adjustments for:
Taxation charged/(credited)
34,927
(19,592)
Finance costs
38,436
39,562
Investment income
(60,525)
(50,434)
Depreciation and impairment of tangible fixed assets
182,503
180,187
Increase/(decrease) in provisions
16,217
(24,631)
Movements in working capital:
Decrease in stocks
42,542
279,826
(Increase)/decrease in debtors
(602,795)
847,607
Increase/(decrease) in creditors
138,294
(71,626)
Cash (absorbed by)/generated from operations
(186,479)
1,239,573
26
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
2,073,046
(267,959)
1,805,087
Borrowings excluding overdrafts
(299,468)
18,771
(280,697)
Obligations under finance leases
(6,013)
6,013
-
1,767,565
(243,175)
1,524,390
HACEL LIGHTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
27
Ultimate controlling party
The ultimate controlling party is Mr D Cockburn, a director of the company, as a result of controlling 75% of the issued share capital of the company.
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100D CockburnS CockburnP WallaceC Neal015852742024-01-012024-12-3101585274bus:Director12024-01-012024-12-3101585274bus:Director22024-01-012024-12-3101585274bus:Director32024-01-012024-12-3101585274bus:CompanySecretary12024-01-012024-12-3101585274bus:RegisteredOffice2024-01-012024-12-31015852742024-12-31015852742023-01-012023-12-3101585274core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3101585274core:RetainedEarningsAccumulatedLosses2024-01-012024-12-3101585274core:RevaluationReserve2024-01-012024-12-31015852742023-12-3101585274core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-12-3101585274core:PlantMachinery2024-12-3101585274core:FurnitureFittings2024-12-3101585274core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3101585274core:PlantMachinery2023-12-3101585274core:FurnitureFittings2023-12-3101585274core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3101585274core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3101585274core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3101585274core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3101585274core:CurrentFinancialInstruments2024-12-3101585274core:CurrentFinancialInstruments2023-12-3101585274core:Non-currentFinancialInstruments2024-12-3101585274core:Non-currentFinancialInstruments2023-12-3101585274core:ShareCapital2024-12-3101585274core:ShareCapital2023-12-3101585274core:RevaluationReserve2024-12-3101585274core:RevaluationReserve2023-12-3101585274core:CapitalRedemptionReserve2024-12-3101585274core:CapitalRedemptionReserve2023-12-3101585274core:RetainedEarningsAccumulatedLosses2024-12-3101585274core:RetainedEarningsAccumulatedLosses2023-12-3101585274core:ShareCapital2022-12-3101585274core:RevaluationReserve2022-12-3101585274core:CapitalRedemptionReserve2022-12-3101585274core:RetainedEarningsAccumulatedLosses2022-12-3101585274core:ShareCapitalOrdinaryShareClass12024-12-3101585274core:ShareCapitalOrdinaryShareClass12023-12-310158527412024-01-012024-12-310158527412023-01-012023-12-31015852742023-12-31015852742022-12-3101585274core:LandBuildingscore:LongLeaseholdAssets2024-01-012024-12-3101585274core:PlantMachinery2024-01-012024-12-3101585274core:FurnitureFittings2024-01-012024-12-3101585274core:UKTax2024-01-012024-12-3101585274core:UKTax2023-01-012023-12-310158527422024-01-012024-12-310158527422023-01-012023-12-310158527432024-01-012024-12-310158527432023-01-012023-12-3101585274core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3101585274core:PlantMachinery2023-12-3101585274core:FurnitureFittings2023-12-3101585274core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-012024-12-3101585274core:FinancialLiabilitiesHeldForTradingcore:FinancialInstrumentsHeldForSale2024-12-3101585274core:WithinOneYear2024-12-3101585274core:WithinOneYear2023-12-3101585274bus:OrdinaryShareClass12024-01-012024-12-3101585274bus:OrdinaryShareClass12024-12-3101585274bus:OrdinaryShareClass12023-12-3101585274core:BetweenTwoFiveYears2024-12-3101585274core:BetweenTwoFiveYears2023-12-3101585274bus:PrivateLimitedCompanyLtd2024-01-012024-12-3101585274bus:FRS1022024-01-012024-12-3101585274bus:Audited2024-01-012024-12-3101585274bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP