Company registration number 09463516 (England and Wales)
VIDECON HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
VIDECON HOLDINGS LIMITED
COMPANY INFORMATION
Director
A Croston
Secretary
C Seddon
Company number
09463516
Registered office
Unit 1 Concept Business Park
Smithies Lane
Heckmondwike
WF16 0PN
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
VIDECON HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
VIDECON HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The director presents the strategic report for the year ended 31 August 2024.

Business review and performance for the year

The results for the year ended 31 August 2024 are set out in the attached financial statements. The group continued its principal activities in the security, fire protection and access controls sectors.

Turnover rose by over 12.3% as management continued to drive the group forward with solid sales growth across all business sectors.

The gross margin remained consistent during the year with gross profit growing in proportion to sales growth while successfully navigating foreign exchange risk. The cost base increased as a percentage of revenue and a good growth in operating profit was reported.

With the economic climate continuing to be challenging, there has been a keen focus on managing working capital effectively during the year.

Strict credit control procedures have led to an improvement in debtor days in the year and have ensured that bad debts are minimised.

Inventory levels continue to be closely managed leading to stock days improving in the year and we continue to work closely with our supply partners to ensure credit lines are maintained at desired levels.

The business performance in the year has been in line with expectations and the directors continue to be pleased with the progress made having seen a further increase in net assets in the year

We will continue to keep tight control on all operational and other costs.

Trading conditions in our industry continue to be competitive. Videcon will continue to provide first class products and services to our customers at competitive prices. This approach ensures that Videcon is well placed to benefit from any increase in demand.

We will continue to monitor the performance of the group against KPIs and forecasts on a regular basis and make changes where necessary.

Principal risks and uncertainties

Operational risk

The group has solid reporting systems and procedures and produces timely and accurate management information which is regularly reviewed by the management team.

The Group continues to take measures to manage the potential supply issues from unpredictable delivery times from overseas suppliers arising from Brexit related import delays and the continuing issues on the Red Sea. These risks have been mitigated by raising stock levels of key lines where necessary with the group having the necessary in-house skills to proactively deal with supply chain disruptions.

Price risk

The group is exposed to downward pressure on margin resulting from current economic and market conditions. The risk is mitigated by improving efficiencies and managing foreign exchange risk.

Credit risk

The credit risk is principally attributable to trade debtors. The risk is mitigated by maintaining a strict credit policy and effective credit rating of current and prospective customers.

The group has no concentration of credit risk with exposure spread over a large number of customers.

Trade creditors are managed by ensuring sufficient funds are available to meet the amounts due.

Liquidity risk

The group ensures that it has sufficient banking facilities and funding to meet its commitments. It operates a detailed cash flow forecast, has developed a strong relationship with its bank and manages its working capital closely.

VIDECON HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Financial key performance indicators

The directors consider the financial KPI’s of the business to be:

 

These are monitored on a monthly basis and corrective action taken as necessary.

Other key performance indicators

In addition, non-financial KPI’s are:

Future developments

The directors aim to continue with the management policies that have resulted in growth in sales and profitability over the last few years.

New product offerings continue to be explored to ensure we remain a competitive and desirable supply line for our customer base.

On behalf of the board

A Croston
Director
28 January 2025
VIDECON HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company and group continued to be that of the sale of security systems, fire protection and access controls.

Results and dividends

The results for the year are set out on page 8.

Ordinary interim dividends were paid amounting to £581,758. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

A Croston
Auditor

Azets Audit Services Limited deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
A Croston
Director
28 January 2025
VIDECON HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

VIDECON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VIDECON HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Videcon Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The 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:

VIDECON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VIDECON HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent 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.

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.

VIDECON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VIDECON HOLDINGS LIMITED
- 7 -

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.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Chris Woodroffe (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
7 February 2025
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
VIDECON HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
33,691,015
30,006,432
Cost of sales
(25,048,718)
(22,314,529)
Gross profit
8,642,297
7,691,903
Distribution costs
(443,007)
(456,924)
Administrative expenses
(6,135,715)
(5,629,101)
Other operating income
25,000
-
Operating profit
4
2,088,575
1,605,878
Interest payable and similar expenses
7
(631,030)
(624,509)
Profit before taxation
1,457,545
981,369
Tax on profit
8
(578,334)
(422,018)
Profit for the financial year
22
879,211
559,351
Profit and total comprehensive income for the year is attributable to:
- Owners of the parent company
870,730
559,351
- Non-controlling interests
8,481
-
879,211
559,351

The profit and loss account has been prepared on the basis that all operations are continuing operations.

VIDECON HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
9,267,543
6,954,654
Tangible assets
11
518,151
328,140
9,785,694
7,282,794
Current assets
Stocks
13
4,662,987
4,142,831
Debtors
14
10,310,048
10,147,207
Cash at bank and in hand
660,343
1,884,930
15,633,378
16,174,968
Creditors: amounts falling due within one year
16
(18,305,352)
(15,872,238)
Net current (liabilities)/assets
(2,671,974)
302,730
Total assets less current liabilities
7,113,720
7,585,524
Creditors: amounts falling due after more than one year
17
(399,128)
(1,220,541)
Provisions for liabilities
Provisions
18
378,000
400,000
Deferred tax liability
19
76,913
65,000
(454,913)
(465,000)
Net assets
6,259,679
5,899,983
Capital and reserves
Called up share capital
21
24,829
24,824
Share premium account
22
217,921
217,921
Profit and loss reserves
22
5,946,210
5,657,238
Equity attributable to owners of the parent company
6,188,960
5,899,983
Non-controlling interests
70,719
-
0
6,259,679
5,899,983
The financial statements were approved and signed by the director and authorised for issue on 28 January 2025
28 January 2025
A Croston
Director
Company registration number 09463516 (England and Wales)
VIDECON HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
2,429,553
2,699,503
Investments
12
17,849,670
14,472,825
20,279,223
17,172,328
Current assets
Debtors
14
12,392
218,097
Cash at bank and in hand
8,396
14,917
20,788
233,014
Creditors: amounts falling due within one year
16
(13,690,993)
(9,642,162)
Net current liabilities
(13,670,205)
(9,409,148)
Total assets less current liabilities
6,609,018
7,763,180
Creditors: amounts falling due after more than one year
17
(72,628)
(878,041)
Net assets
6,536,390
6,885,139
Capital and reserves
Called up share capital
21
24,829
24,824
Share premium account
22
217,921
217,921
Profit and loss reserves
22
6,293,640
6,642,394
Total equity
6,536,390
6,885,139

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £233,004 (2023 - £675,219 profit).

The financial statements were approved and signed by the director and authorised for issue on 28 January 2025
28 January 2025
A Croston
Director
Company registration number 09463516 (England and Wales)
VIDECON HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 September 2022
24,824
217,921
5,936,620
6,179,365
-
6,179,365
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
559,351
559,351
-
559,351
Dividends
-
-
(838,733)
(838,733)
-
(838,733)
Balance at 31 August 2023
24,824
217,921
5,657,238
5,899,983
-
0
5,899,983
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
870,730
870,730
8,481
879,211
Issue of share capital
21
5
-
0
-
5
-
5
Dividends
9
-
-
(581,758)
(581,758)
(17,358)
(599,116)
Acquisition of subsidiary
23
-
-
-
-
79,596
79,596
Balance at 31 August 2024
24,829
217,921
5,946,210
6,188,960
70,719
6,259,679
VIDECON HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
24,824
217,921
6,805,908
7,048,653
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
675,219
675,219
Dividends
-
-
(838,733)
(838,733)
Balance at 31 August 2023
24,824
217,921
6,642,394
6,885,139
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
233,004
233,004
Issue of share capital
21
5
-
0
-
5
Dividends
9
-
-
(581,758)
(581,758)
Balance at 31 August 2024
24,829
217,921
6,293,640
6,536,390
VIDECON HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,818,886
2,483,777
Income taxes paid
(578,334)
(282,773)
Net cash inflow from operating activities
1,240,552
2,201,004
Investing activities
Purchase of business
423,982
-
Purchase of tangible fixed assets
(163,876)
(215,530)
Loans made to directors & other entities
(553,018)
(134,141)
Net cash used in investing activities
(292,912)
(349,671)
Financing activities
Proceeds from issue of shares
5
-
Movement on bank loans and invoice discounting
(942,086)
472,124
Interest paid
(631,030)
(624,509)
Dividends paid to equity shareholders
(581,758)
(838,733)
Dividends paid to non-controlling interests
(17,358)
-
0
Net cash used in financing activities
(2,172,227)
(991,118)
Net (decrease)/increase in cash and cash equivalents
(1,224,587)
860,215
Cash and cash equivalents at beginning of year
1,884,930
1,024,715
Cash and cash equivalents at end of year
660,343
1,884,930
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
1
Accounting policies
Company information

Videcon Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1 Concept Business Park, Smithies Lane, Heckmondwike, WF16 0PN.

 

The group consists of Videcon Holdings Limited and all of its subsidiaries.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Videcon Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods sold in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 to 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Straight line over the life of the lease
Plant and equipment
25% to 33.3% straight line
Fixtures and fittings
20% to 25% straight line
Motor vehicles
20% 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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

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.

1.11
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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 or , 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.

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.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 or 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.

1.16
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.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -
1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the 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.

Recoverability of receivables

The group establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the director considers factors such as the ageing of the receivables, past experience of recoverability, and the credit profile individual or groups of customers.

Warranty provision

Provision is made for predicted future warranty costs. The estimate is based on the historical return rate of products sold during the year adjusted for an exceptional returns, anomalies, and the ageing profile on which the products were initially sold.

Stock provision

Provision is made for stock which is slow moving or not usable. The estimate is based on approximations of the length of time it would take to sell the year end stock holding by reference to sale volumes in the financial year. Provision is also made for returned stock items which have not yet been fully inspected and reprocessed.

Determining useful economic life of intangible assets

The group amortise intangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on management's assessment of the period over which the asset is expected to generate future economic benefit for the group. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, consumer trends and other external factors such as brand reputation and economic conditions.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Product sales
33,691,015
30,006,432
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
3
Turnover
(Continued)
- 21 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
33,298,077
29,438,561
Rest of Europe
392,938
567,871
33,691,015
30,006,432
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(34,233)
(1,262)
Depreciation of owned tangible fixed assets
102,450
83,824
Amortisation of intangible assets
745,571
694,597
Operating lease charges
433,772
393,944
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,000
12,900
Audit of the financial statements of the company's subsidiaries
34,500
31,700
49,500
44,600
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
1
1
1
1
Other staff
67
63
-
-
Total
68
64
1
1
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,556,945
2,243,744
-
0
-
0
Social security costs
264,290
239,375
-
-
Pension costs
200,951
163,610
-
0
-
0
3,022,186
2,646,729
-
0
-
0
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
631,030
602,540
Other interest
-
21,969
Total finance costs
631,030
624,509
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
581,921
366,000
Adjustments in respect of prior periods
1,413
20,359
Total current tax
583,334
386,359
Deferred tax
Origination and reversal of timing differences
(5,000)
35,659
Total tax charge
578,334
422,018
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Taxation
(Continued)
- 23 -

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
1,457,545
981,369
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
364,386
211,191
Tax effect of expenses that are not deductible in determining taxable profit
26,923
25,466
Tax effect of income not taxable in determining taxable profit
-
0
(595)
Permanent capital allowances in excess of depreciation
477
(32)
Amortisation on assets not qualifying for tax allowances
186,395
149,477
Under/(over) provided in prior years
1,413
20,359
Other differences
(1,260)
16,152
Taxation charge
578,334
422,018

Deferred tax has been provided at 25%, being the rate at which timing differences are expected to reverse, using the rate of corporation tax that had been substantively enacted at the balance sheet date.

9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
581,758
838,733
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2023
12,031,090
Additions
3,058,460
At 31 August 2024
15,089,550
Amortisation and impairment
At 1 September 2023
5,076,436
Amortisation charged for the year
745,571
At 31 August 2024
5,822,007
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Intangible fixed assets
(Continued)
- 24 -
Carrying amount
At 31 August 2024
9,267,543
At 31 August 2023
6,954,654
Company
Goodwill
£
Cost
At 1 September 2023 and 31 August 2024
2,699,503
Amortisation and impairment
At 1 September 2023
-
0
Amortisation charged for the year
269,950
At 31 August 2024
269,950
Carrying amount
At 31 August 2024
2,429,553
At 31 August 2023
2,699,503

During the prior year the company completed hiving up the trade and assets of the subsidiary entities and has therefore transferred the acquisition cost to goodwill.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
500,107
93,043
511,677
7,469
1,112,296
Additions
86,917
11,576
65,383
-
0
163,876
Business combinations
76,493
8,990
43,102
-
0
128,585
At 31 August 2024
663,517
113,609
620,162
7,469
1,404,757
Depreciation and impairment
At 1 September 2023
478,735
50,762
251,796
2,863
784,156
Depreciation charged in the year
6,287
10,261
84,408
1,494
102,450
At 31 August 2024
485,022
61,023
336,204
4,357
886,606
Carrying amount
At 31 August 2024
178,495
52,586
283,958
3,112
518,151
At 31 August 2023
21,372
42,281
259,881
4,606
328,140
The company had no tangible fixed assets at 31 August 2024 or 31 August 2023.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
28
-
0
-
0
17,849,670
14,472,825
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023
14,472,825
Additions
3,376,845
At 31 August 2024
17,849,670
Carrying amount
At 31 August 2024
17,849,670
At 31 August 2023
14,472,825
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
4,662,987
4,142,831
-
0
-
0
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,903,422
7,325,560
-
0
-
0
Corporation tax recoverable
607,524
505,159
-
0
-
0
Other debtors
1,091,057
1,827,156
12,392
218,097
Prepayments and accrued income
708,045
489,332
-
0
-
0
10,310,048
10,147,207
12,392
218,097
15
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
6,930,158
7,856,244
508,393
1,311,067
Other loans
326,500
342,500
-
0
-
0
7,256,658
8,198,744
508,393
1,311,067
Payable within one year
6,857,530
6,978,203
435,765
433,026
Payable after one year
399,128
1,220,541
72,628
878,041

The bank loan is secured by a fixed and floating charge over certain assets of the group and by a personal guarantee given by a director.

 

The bank loan is further secured by an unlimited multilateral guarantee by the company, Videcon Limited, and Dynamic Fire Protection Limited.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
15
6,857,530
6,978,203
435,765
433,026
Trade creditors
6,914,189
6,826,798
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
13,255,228
9,209,136
Corporation tax payable
1,192,535
666,000
-
0
-
0
Other taxation and social security
600,289
570,787
-
-
Other creditors
1,892,632
74,523
-
0
-
0
Accruals and deferred income
848,177
755,927
-
0
-
0
18,305,352
15,872,238
13,690,993
9,642,162

Included within 'bank loans' is an invoice discounting facility of £4,810,071 (2023: £5,001,541), which is secured against the group's trade debtors. The remaining balance relates to a trade loan facility which is secured by a fixed and floating charge over certain assets of the group.

 

The bank loan and invoice discounting are further secured by an unlimited multilateral guarantee by the group.

 

Amounts owed to group undertakings are interest free and repayable on demand.

17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
15
72,628
878,041
72,628
878,041
Other borrowings
15
326,500
342,500
-
0
-
0
399,128
1,220,541
72,628
878,041

The other borrowings of £326,500 (2023: 342,500) is secured by a fixed and floating charge over certain assets of the group and by a personnal guarantee given by a director.

18
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Warranty provision
378,000
400,000
-
-
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
18
Provisions for liabilities
(Continued)
- 28 -
Movements on provisions:
Warranty provision
Group
£
At 1 September 2023
400,000
Reversal of provision
(22,000)
At 31 August 2024
378,000

A provision is included for warranty and credit notes which will cover against future costs of servicing and repairs arising from claims against prior sales.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
84,913
68,000
Short term timing differences
(8,000)
(3,000)
76,913
65,000
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
65,000
-
Credit to profit or loss
(5,000)
-
Other
16,913
-
Liability at 31 August 2024
76,913
-

The deferred tax movement of £16,913 relates to the Remotewatch acquisition.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 29 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
200,951
163,610

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

As at the year end the group had unpaid pension contributions totalling £15,295 (2023 - £12,948).

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
24,643
24,643
24,643
24,643
Ordinary A share of £1 each
1
1
1
1
Ordinary B share of £1 each
1
1
1
1
Ordinary C share of £1 each
1
1
1
1
Ordinary D share of £1 each
1
1
1
1
Ordinary E share of £1 each
1
1
1
1
Ordinary F shares of £1 each
176
176
176
176
Ordinary G shares of 0p each
1
-
1
-
Ordinary H shares of £1 each
1
-
1
-
Ordinary I shares of £1 each
1
-
1
-
Ordinary J shares of £1 each
1
-
1
-
Ordinary K shares of £1 each
1
-
1
-
24,829
24,824
24,829
24,824

Ordinary shares are entitled to one vote in any circustances, and entitled pari passu to dividend payments or other distributions. Each share is entitled to participate in a distribution arising from a sale. The shares are not redeemable.

 

Ordinary A, B, C, D, E, G, H, I , J & K shares have rights to dividends but carry no voting rights and are non-participating in the event of a sale or winding up of the company. The holders of such shares are only entitled to the par value of the shares held in such eventuality but do not rank ahead of other shareholders.

 

Ordinary F shares are not entitled to dividends, do not carry voting rights and can participate in a distribution on sale where proceeds received exceed a hurdle amount.

22
Reserves
Share premium

The share premium represents the amount paid above the par value for shares.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -
23
Acquisition of a business

On 30 June 2024 the group acquired 80% shareholding of Remotewatch Monitoring Ltd.

Fair Value
Net assets acquired
£
Property, plant and equipment
128,585
Trade and other recievables
322,139
Cash and cash equivalents
423,982
Trade and other payables
(176,813)
Tax liabilities
(282,999)
Deferred tax
(16,913)
Total identifiable net assets
397,981
Non-controlling interests
(79,596)
Goodwill
3,058,460
Total consideration
3,376,845
The consideration was satisfied by:
£
Directors' loan account
3,376,845
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
329,529
Profit after tax
42,405
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
359,109
306,397
-
-
Between two and five years
1,333,746
1,184,374
-
-
In over five years
1,782,000
1,942,661
-
-
3,474,855
3,433,432
-
-
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -
25
Related party transactions

During the year, the group paid rent and and service charges of £320,494 (2023: £290,618) to a company with a director in common in respect of premises from which they operate.

 

On 15 July 2021, 176 shares were issued at a premium of £1,238 per share. Share capital was issued to the director and two other related parties. The amount of £12,392 (2023: £217,921) is outstanding at the year end and is included within other debtors.

 

Included within other debtors at year end is a balance of £616,772 (2023 - £62,290) due from other connected companies.

26
Directors' transactions

Dividends totalling £581,758 were paid in the year in respect of shares held by the company's directors.

 

During the year, the Company had loan balances owed by directors. The balances outstanding at the year end totalled £404,025 (2023: £1,538,879). The maximum loan balance oustanding during the year was £404,025 (2023: £1,538,879). The loans are interest free and repayable on demand.

27
Controlling party

The ultimate controlling party is A Croston.

28
Subsidiaries

Details of the company's subsidiaries at 31 August 2024 are as follows:

Name of undertaking
Country
Nature of business
Class of
% Held
shares held
Direct
Videcon Ltd (1)
England & Wales
Security systems service activities
Ordinary
100.00
Dynamic Fire Protection Ltd (1)
England & Wales
Dormant
Ordinary
100.00
Remotewatch Monitoring Ltd (2)
England & Wales
Security systems service activities
Ordinary
80.00

Registered office addresses (all UK unless otherwise indicated):

1
Unit 1 Concept Business Park, Smithies Lane, Heckmondwike, West Yorkshire, WF16 0PN
2
Morgan Verne Armytage Road, Wakefield Road Ind. Est, Brighouse, West Yorkshire, HD6 1UJ

Exemption has been taken by Dynamic Fire Protection Limited (Company Number 07238972) and Remotewatch Monitoring Ltd (Company Number 05750272) from the requirements relating to the audit of accounts under section 479A of the Companies Act 2006.

 

A parent company guarantee has been provided by Videcon Holdings Limited to Dynamic Fire Protection Limited and Remotewatch Monitoring Ltd.

VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -
29
Other financial commitments

The group's bankers have issued a guarantee for ongoing VAT liabilities of £150,000 (2023: £150,000) in favour of HM Revenue & Customs with recourse to Videcon Limited. At the balance sheet date all VAT payments are up to date.

30
Share based payments

On 21st July 2021, options over shares in Videcon Holdings Limited, were granted to certain employees of Videcon Limited. However, on grounds of materiality and given uncertainty over the exact vesting period and vesting likelihood, the directors have not deemed it necessary to provide for this in the financial statements, and accordingly there is no impact on the reported profits arising from the grant of these share options.

31
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
10,632
43,922
Company pension contributions to defined contribution schemes
9,100
766
19,732
44,688

During the year retirement benefits were accruing to 1 director (2023 - 1) in respect to defined contribution pension schemes.

32
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
879,211
559,351
Adjustments for:
Taxation charged
578,334
422,018
Finance costs
631,030
624,509
Amortisation and impairment of intangible assets
745,571
694,597
Depreciation and impairment of tangible fixed assets
102,450
83,824
Decrease in provisions
(22,000)
(42,000)
Movements in working capital:
(Increase)/decrease in stocks
(520,156)
584,455
Increase in debtors
(966,643)
(1,070,660)
Increase in creditors
391,089
627,683
Cash generated from operations
1,818,886
2,483,777
VIDECON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 33 -
33
Analysis of changes in net debt - group
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
1,884,930
(1,224,587)
660,343
Borrowings excluding overdrafts
(8,198,744)
942,086
(7,256,658)
(6,313,814)
(282,501)
(6,596,315)
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