Company registration number 02925277 (England and Wales)
STV INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
STV INTERNATIONAL LIMITED
COMPANY INFORMATION
Director
Mr E D G Allingham
Secretary
Mrs T Allingham
Company number
02925277
Registered office
Forge House
Little Cressingham
Thetford
IP25 6ND
Auditor
Ensors Accountants LLP
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
Business address
Forge House
Little Cressingham
Thetford
IP25 6ND
STV INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 25
STV INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The director presents the strategic report for the year ended 31 August 2024.
Review of the business
The results of the company for the year as set out on pages 7 to 10 show a profit on ordinary activities before tax of £1,296,522 (2023: £851,258). The shareholders’ funds total £5,636,750 (2023: £4,685,228). The directors are satisfied with the turnover and profit for the year and expect no significant changes in the new year and the company is well placed to take advantage of any future opportunities which may arise.
The directors consider that the company's key performance indicators are level of turnover, which has increased in the year from £18,550,120 to £22,244,430, and cash generated.
Principal risks and uncertainties
As with any business, the company can be affected by a number of risks and uncertainties, some of which are beyond its control. The directors consider the principal risk is around freight rates and delays and the exposure to foreign currency fluctuations.
Current world events have resulted in supply chain issues for the company, lengthening lead times, we have managed this proactively and have mitigated much of the potential risks. Inflationary increases in costs have been dealt with by passing on price increases to customers where possible and negotiating with suppliers to mitigate increases.
The company aims to minimise financial risk in its operations by the identification and mitigation of key risk areas. The other keys risks are interest rate risk, price risk and credit risk. The measures used by the directors to manage risks include the preparation of budgets and the regular monitoring of actual performance against these budgets.
Credit risk is significant with large value owed to the company at any one time. Debtors are therefore monitored on a regular basis and, if necessary, action taken as appropriate.
Development and performance
The key financial performance indicators are considered to be turnover, gross margins and cashflow. Given the straightforward nature of the business, the company's directors are of the opinion that further analysis of key performance indicators is not necessary for an understanding of the development, performance or position of the business.
Mr E D G Allingham
Director
16 May 2025
STV INTERNATIONAL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The director presents his annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of the sale and distribution of pest control products. The review of the business and principal risks has been included in the strategic report.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr E D G Allingham
Auditor
The auditor, Ensors Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect the review of the business and principal risks.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr E D G Allingham
Director
16 May 2025
STV INTERNATIONAL LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
STV INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STV INTERNATIONAL LIMITED
- 4 -
Opinion
We have audited the financial statements of STV International Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the balance sheet, 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 August 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
STV INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STV INTERNATIONAL LIMITED (CONTINUED)
- 5 -
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 director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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 audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including revenue recognition, management override of systems and control, transactions with related parties, commitments and contingencies and accounting estimates.
We also obtained an understanding of the legal and regulatory framework that the company operates in, through discussions with the directors and other management, and from our own knowledge and experience of the sector
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework both at the planning stage and reminded to remain alert throughout the audit;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;
robustly challenged accounting estimates to ensure no indication of management bias.
STV INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STV INTERNATIONAL LIMITED (CONTINUED)
- 6 -
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Malcolm McGready (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
16 May 2025
STV INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
22,244,430
18,550,120
Cost of sales
(14,519,006)
(10,890,492)
Gross profit
7,725,424
7,659,628
Distribution costs
(675,838)
(549,203)
Administrative expenses
(5,532,696)
(6,046,201)
Other operating income
50,000
Operating profit
4
1,516,890
1,114,224
Interest receivable and similar income
7
1,213
3,227
Interest payable and similar expenses
8
(221,581)
(266,193)
Profit before taxation
1,296,522
851,258
Tax on profit
9
(345,000)
(183,149)
Profit for the financial year
951,522
668,109
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STV INTERNATIONAL LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
747,774
809,956
Current assets
Stocks
12
4,151,952
5,448,222
Debtors
13
7,062,445
6,295,405
Cash at bank and in hand
134,110
171,658
11,348,507
11,915,285
Creditors: amounts falling due within one year
14
(5,746,781)
(6,892,813)
Net current assets
5,601,726
5,022,472
Total assets less current liabilities
6,349,500
5,832,428
Creditors: amounts falling due after more than one year
15
(596,750)
(1,032,200)
Provisions for liabilities
Deferred tax liability
18
116,000
115,000
(116,000)
(115,000)
Net assets
5,636,750
4,685,228
Capital and reserves
Called up share capital
20
100
100
Share premium account
21
19,435
19,435
Profit and loss reserves
22
5,617,215
4,665,693
Total equity
5,636,750
4,685,228
The financial statements were approved and signed by the director and authorised for issue on 16 May 2025
Mr E D G Allingham
Director
Company Registration No. 02925277
STV INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 September 2022
100
19,435
3,997,584
4,017,119
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
668,109
668,109
Balance at 31 August 2023
100
19,435
4,665,693
4,685,228
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
951,522
951,522
Balance at 31 August 2024
100
19,435
5,617,215
5,636,750
STV INTERNATIONAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,060,839
2,489,909
Interest paid
(221,581)
(266,193)
Income taxes refunded/(paid)
1
(101,194)
Net cash inflow from operating activities
1,839,259
2,122,522
Investing activities
Purchase of tangible fixed assets
(70)
(39,189)
Proceeds from disposal of tangible fixed assets
733
Interest received
1,213
3,227
Net cash generated from/(used in) investing activities
1,143
(35,229)
Financing activities
Increase / (decrease) in amounts due to trade faciity and factors
(1,313,260)
(1,578,171)
Repayment of bank loans
(500,000)
(500,000)
Payment of finance leases obligations
(64,690)
(36,474)
Net cash used in financing activities
(1,877,950)
(2,114,645)
Net decrease in cash and cash equivalents
(37,548)
(27,352)
Cash and cash equivalents at beginning of year
171,658
199,010
Cash and cash equivalents at end of year
134,110
171,658
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information
STV International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Forge House, Little Cressingham, Thetford, IP25 6ND. The company registration number is 02925277.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised on the despatch of goods.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Land is not depreciated. Buildings 2% on cost.
Improvements to property
Over the term of the lease
Plant and machinery
20% on cost
Computer equipment
33.33% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -
1.6
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).
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
1.9
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 balance sheet 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
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 balance sheet 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.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
The company has arrangements whereby it factors its debts on a recourse basis. Accordingly, the gross amount of debts factored is included within trade debtors, and the cash advanced thereon is shown within other creditors. Interest and administration charges arising from factoring are charged to the profit the loss account when incurred.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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.
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 provisioning required. When calculating the provision, management considers the nature and age of the stock as well as applying assumptions around anticipated saleability of stock. Using these factors, a slow-moving provision of £328,931 (2023: £563,559) has been made in these accounts.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
22,244,430
18,550,120
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,643,679
13,733,665
Export EU
579,941
721,891
Export Non EU
6,020,810
4,094,564
22,244,430
18,550,120
2024
2023
£
£
Other significant revenue
Interest income
1,213
3,227
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(33,076)
(86,172)
Research and development costs
213,827
197,151
Fees payable to the company's auditor for the audit of the company's financial statements
27,475
27,250
Depreciation of owned tangible fixed assets
129,936
150,473
Depreciation of tangible fixed assets held under finance leases
104,122
67,073
Profit on disposal of tangible fixed assets
-
(733)
Operating lease charges
367,367
181,584
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and distribution
55
65
Administration
13
15
Total
68
80
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,201,895
2,125,228
Social security costs
221,084
231,731
Pension costs
35,145
39,311
2,458,124
2,396,270
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
322,502
241,172
Company pension contributions to defined contribution schemes
1,321
1,321
323,823
242,493
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
323,823
242,493
The director is considered to be key management.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,213
3,227
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,213
3,227
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
55,157
74,103
Interest on invoice finance arrangements
124,456
179,392
179,613
253,495
Other finance costs:
Interest on finance leases and hire purchase contracts
20,096
12,864
Other interest
21,872
(166)
221,581
266,193
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
344,000
178,000
Adjustments in respect of prior periods
1,102
Total current tax
344,000
179,102
Deferred tax
Origination and reversal of timing differences
1,000
4,047
Total tax charge
345,000
183,149
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,296,522
851,258
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
324,131
183,149
Tax effect of expenses that are not deductible in determining taxable profit
10,217
1,485
Permanent capital allowances in excess of depreciation
(4,166)
Deferred tax adjustments in respect of prior years
9,000
Other adjustments
1,652
2,681
Taxation charge for the year
345,000
183,149
The UK Corporation tax rates was 19% until 31st March 2023, from 1 April 2023 the corporation tax rate increased to 25%. Deferred taxes for both the previous and current year have been calculated using the rates enacted at the date, being 25%.
10
Tangible fixed assets
Freehold land and buildings
Improvements to property
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
160,181
286,346
798,254
197,406
223,046
1,665,233
Additions
32,492
40,701
18,438
80,245
171,876
Disposals
(28,765)
(28,765)
At 31 August 2024
160,181
318,838
838,955
215,844
274,526
1,808,344
Depreciation and impairment
At 1 September 2023
26,667
159,407
381,724
172,161
115,318
855,277
Depreciation charged in the year
2,000
38,623
127,069
14,508
51,858
234,058
Eliminated in respect of disposals
(28,765)
(28,765)
At 31 August 2024
28,667
198,030
508,793
186,669
138,411
1,060,570
Carrying amount
At 31 August 2024
131,514
120,808
330,162
29,175
136,115
747,774
At 31 August 2023
133,514
126,939
416,530
25,245
107,728
809,956
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Tangible fixed assets
(Continued)
- 20 -
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 machinery
308,612
201,574
11
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
6,704,237
5,939,684
Carrying amount of financial liabilities
Measured at amortised cost
4,992,355
7,066,298
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
4,151,952
5,448,222
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,002,738
5,578,252
Other debtors
701,499
361,432
Prepayments and accrued income
284,023
261,083
6,988,260
6,200,767
2024
2023
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
74,185
94,638
Total debtors
7,062,445
6,295,405
Included in trade debtors are debts of £5,741,166 (2023: £5,360,312) which have been assigned to HSBC Bank.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
500,000
500,000
Obligations under finance leases
17
86,862
44,296
Other borrowings
16
2,029,493
3,342,753
Trade creditors
983,762
1,509,779
Corporation tax
654,872
331,324
Other taxation and social security
696,304
527,391
Other creditors
159,592
Accruals and deferred income
795,488
477,678
5,746,781
6,892,813
Included within other borrowings is an amount of £Nil (2023: £1,731,438) which is secured against trade debtors. Also included within other borrowings is a import trade loan facility with an outstanding balance at the year end of £2,029,493 (2023: £1,611,315).
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
375,000
875,000
Obligations under finance leases
17
221,750
157,200
596,750
1,032,200
Obligations under finance lease are secured on the assets to which they relate.
16
Loans and overdrafts
2024
2023
£
£
Bank loans
875,000
1,375,000
Other loans
2,029,493
3,342,753
2,904,493
4,717,753
Payable within one year
2,529,493
3,842,753
Payable after one year
375,000
875,000
The bank loan is secured by a fixed and floating charge over the assets of the company.
Within the bank loans and overdrafts balance is an amount of £875,000 (2023: £1,375,000), Interest is payable at 3.99% above base rate. The UK government guarantees 80% of the finance to the lender and has agreed to pay interest and any fees in the first 12 months.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Loans and overdrafts
(Continued)
- 22 -
Other loans consist of an import line facility, which incurs interest at the bank's variable rate and is secured by a fixed and floating charge over the assets of the company and amounts advanced from debt factoring and is secured against trade debtors.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
86,862
44,296
In two to five years
221,750
157,200
308,612
201,496
Finance lease payments represent rentals payable by the company for a motor vehicle. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of this asset. The lease term is between 3 to 5 years. The lease is on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
116,000
134,000
Other
-
(19,000)
116,000
115,000
2024
Movements in the year:
£
Liability at 1 September 2023
115,000
Charge to profit or loss
1,000
Liability at 31 August 2024
116,000
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances and interest accrual that are expected to mature within the same period.
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,145
39,311
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
21
Share premium account
The share premium account represents the excess paid over the nominal value of the shares.
22
Profit and loss reserves
The profit and loss account includes all current and prior period retained profits and losses.
23
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
175,000
175,000
Between two and five years
700,000
700,000
In over five years
525,000
700,000
1,400,000
1,575,000
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
49,800
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
25
Events after the reporting date
In September 2024 the company obtained £1,375,000 additional finance in order to repurchase the ordinary share capital held by the minority shareholder.
26
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
214,513
168,858
Other related parties
281,880
164,986
108,285
102,791
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
3,442
15,148
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
237,245
217,751
Other related parties
21,303
24,044
Other information
Amounts due from related parties are interest free and are repayable on demand.
27
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan
-
36,130
235,721
(206,306)
65,545
36,130
235,721
(206,306)
65,545
28
Ultimate controlling party
STV INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
28
Ultimate controlling party
(Continued)
- 25 -
The company was under the control of Mr E Allingham through the current and previous year. Mr E Allingham is the sole director and majority shareholder.
29
Cash generated from operations
2024
2023
£
£
Profit after taxation
951,522
668,109
Adjustments for:
Taxation charged
345,000
183,149
Finance costs
221,581
266,193
Investment income
(1,213)
(3,227)
Gain on disposal of tangible fixed assets
-
(733)
Depreciation and impairment of tangible fixed assets
234,058
217,546
Movements in working capital:
Decrease in stocks
1,296,270
1,195,994
(Increase)/decrease in debtors
(787,493)
116,895
Decrease in creditors
(198,886)
(154,017)
Cash generated from operations
2,060,839
2,489,909
30
Analysis of changes in net debt
1 September 2023
Cash flows
New finance leases
31 August 2024
£
£
£
£
Cash at bank and in hand
171,658
(37,548)
-
134,110
Borrowings excluding overdrafts
(4,717,753)
1,813,260
-
(2,904,493)
Obligations under finance leases
(201,496)
64,690
(171,806)
(308,612)
(4,747,591)
1,840,402
(171,806)
(3,078,995)
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