Company registration number 03640289 (England and Wales)
EURO OPTIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Monetta LLP
Chartered Accountants
EURO OPTIONS LTD
COMPANY INFORMATION
Directors
P Morley
P Doherty
P Morris
Secretary
P Morley
Company number
03640289
Registered office
Unit 5A Greenvale Business Park
Todmorden Road
Littleborough
OL15 9FG
Auditor
Monetta LLP
232 Stamford Street Central
Ashton Under Lyne
OL6 7NQ
EURO OPTIONS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
EURO OPTIONS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

BUSINESS REVIEW

The company's key performance indicators are turnover and gross profit percentage. For the year under review the company's turnover decreased by 41.1% from £51.8 million to £30.5 million. The gross profit percentage decreased by 0.1% from 12.9% to 12.8%. The directors are satisfied with the company's trading performance for the year and consider the state of the company's affairs at the balance sheet date to be satisfactory.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company uses various financial instruments including loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.

 

The main risks arising from the company's financial instruments are market risk, liquidity risk, interest rate risk, cash flow and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below.

 

Market risk

Market risk encompasses three types of risk being currency risk, interest rate risk and price risk. The company's policies for managing interest rate risk are considered along with those for managing cash flow risk and are set out in the subsection entitled "interest rate risk" below. The company receives foreign currency from its customers and pays foreign currency to its suppliers, these monies are held in separate currency accounts to hedge against any currency fluctuations.

 

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by overdraft facilities, and the use of invoice discounting in pound sterling and euro's.

 

Interest Rate risk

The company finances its operations through a mixture of retained profits and bank borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

 

Credit risk

The company's principal financial assets are trade debtors. The principal credit risk arises from its trade debtors, which are carefully monitored by the company. The company takes out credit insurance against the risk of bad debts.

By order of the board

P Morley
Secretary
9 June 2025
EURO OPTIONS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company during the year was buying and selling computer components.

Directors

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

P Morley
P Doherty
P Morris
Results and dividends

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

Ordinary dividends were paid amounting to £1,053,710. The directors do not recommend payment of a final dividend.

Auditor

The auditor Monetta LLP is 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 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.

Strategic report

The company has chosen, in accordance with Section 414C (11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out in its Strategic Report the fair review of the company's business required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) regulations 2008.

By order of the board
P Morley
Secretary
9 June 2025
EURO OPTIONS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

EURO OPTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EURO OPTIONS LTD
- 4 -
Opinion

We have audited the financial statements of Euro Options Ltd (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, 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:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

EURO OPTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EURO OPTIONS LTD (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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

EURO OPTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EURO OPTIONS LTD (CONTINUED)
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

 

 

 

 

 

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

 

 

 

 

EURO OPTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EURO OPTIONS LTD (CONTINUED)
- 7 -

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

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.

Mr Mark Platt (Senior Statutory Auditor)
For and on behalf of Monetta LLP, Statutory Auditor
Chartered Accountants
232 Stamford Street Central
Ashton Under Lyne
OL6 7NQ
11 June 2025
EURO OPTIONS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
30,525,567
51,819,017
Cost of sales
(26,633,083)
(45,112,027)
Gross profit
3,892,484
6,706,990
Distribution costs
(372,534)
(445,614)
Administrative expenses
(4,127,861)
(5,400,987)
Operating (loss)/profit
4
(607,911)
860,389
Interest receivable and similar income
8
41,834
312
Interest payable and similar expenses
9
(472)
(9,659)
(Loss)/profit before taxation
(566,549)
851,042
Tax on (loss)/profit
10
128,096
(203,111)
(Loss)/profit for the financial year
(438,453)
647,931

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

EURO OPTIONS LTD
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
302,413
297,917
Current assets
Stocks
14
5,222,408
5,687,531
Debtors
15
3,658,912
4,895,737
Cash at bank and in hand
3,219,398
4,008,910
12,100,718
14,592,178
Creditors: amounts falling due within one year
16
(2,547,210)
(3,546,997)
Net current assets
9,553,508
11,045,181
Total assets less current liabilities
9,855,921
11,343,098
Provisions for liabilities
Deferred tax liability
18
41,215
36,229
(41,215)
(36,229)
Net assets
9,814,706
11,306,869
Capital and reserves
Called up share capital
20
76,053
76,053
Share premium account
168,297
168,297
Capital redemption reserve
28,751
28,751
Profit and loss reserves
9,541,605
11,033,768
Total equity
9,814,706
11,306,869

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 9 June 2025 and are signed on its behalf by:
P Morley
Director
Company registration number 03640289 (England and Wales)
EURO OPTIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
72,978
69,278
28,751
13,471,712
13,642,719
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
647,931
647,931
Issue of share capital
20
3,075
99,019
-
-
102,094
Dividends
11
-
-
-
(3,085,875)
(3,085,875)
Balance at 30 September 2023
76,053
168,297
28,751
11,033,768
11,306,869
Year ended 30 September 2024:
Loss and total comprehensive income
-
-
-
(438,453)
(438,453)
Dividends
11
-
-
-
(1,053,710)
(1,053,710)
Balance at 30 September 2024
76,053
168,297
28,751
9,541,605
9,814,706
EURO OPTIONS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
369,495
8,692,613
Interest paid
(472)
(9,659)
Income taxes paid
(68,798)
(1,094,150)
Net cash inflow from operating activities
300,225
7,588,804
Investing activities
Purchase of tangible fixed assets
(79,452)
(155,996)
Interest received
41,834
312
Net cash used in investing activities
(37,618)
(155,684)
Financing activities
Proceeds from issue of shares
-
0
3,075
Dividends paid
(1,053,710)
(3,085,875)
Net cash used in financing activities
(1,053,710)
(3,082,800)
Net (decrease)/increase in cash and cash equivalents
(791,103)
4,350,320
Cash and cash equivalents at beginning of year
4,005,036
(345,284)
Cash and cash equivalents at end of year
3,213,933
4,005,036
Relating to:
Cash at bank and in hand
3,219,398
4,008,910
Bank overdrafts included in creditors payable within one year
(5,465)
(3,874)
EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information

Euro Options Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5A Greenvale Business Park, Todmorden Road, Littleborough, OL15 9FG.

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 directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

 

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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
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
10% on a reducing balance basis
Fixtures and fittings
25% on a reducing balance basis
Computers
25% on a reducing balance basis

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.

EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises the cost of goods plus import duty and freight charges for goods purchased from overseas plus other costs 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.

There is no material difference between the replacement cost of stocks and the amounts stated above.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's 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.

EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.

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.

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.

EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.

EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.12
Retirement benefits

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

1.13
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.14
Leases
As lessee

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

Invoice discounting agreement

The company has entered into an invoice discounting agreement. Debts approved by the invoice discounting company are assigned to it with 100% recourse to the company. Refundable advances are made to the company by the invoice discounting company in respect of 85% of the debt assigned. The balance with the invoice discounting company is reflected within bank loans and overdrafts.

EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sales of computer components
30,525,567
51,819,017
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
16,564,826
23,155,180
Overseas
13,960,741
28,663,837
30,525,567
51,819,017
2024
2023
£
£
Other revenue
Interest income
41,834
312
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(153,707)
(220,302)
Depreciation of owned tangible fixed assets
70,973
66,159
Loss on disposal of tangible fixed assets
3,983
2,216
Impairment of stocks recognised or reversed
539,251
1,225,375
Share-based payments
-
99,019
Operating lease charges
109,127
97,262
EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,500
11,500
For other services
All other non-audit services
2,000
2,000
6
Employees

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

2024
2023
Number
Number
41
41

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,475,918
3,279,925
Social security costs
291,340
478,823
Pension costs
36,491
36,433
2,803,749
3,795,181
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
515,176
550,706
Company pension contributions to defined contribution schemes
1,290
1,182
516,466
551,888

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
397,483
434,808
Company pension contributions to defined contribution schemes
645
591
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,995
-
0
Other interest income
18,839
312
Total income
41,834
312
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
174
842
Interest on invoice finance arrangements
298
8,817
472
9,659
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(133,000)
194,216
Adjustments in respect of prior periods
(82)
(2,850)
Total current tax
(133,082)
191,366
Deferred tax
Origination and reversal of timing differences
4,986
11,745
Total tax (credit)/charge
(128,096)
203,111
EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 20 -

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(566,549)
851,042
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
(141,637)
187,229
Tax effect of expenses that are not deductible in determining taxable profit
9,528
8,668
Permanent capital allowances in excess of depreciation
(4,551)
(5,056)
Depreciation on assets not qualifying for tax allowances
3,246
3,173
Other non-reversing timing differences
414
202
Under/(over) provided in prior years
(82)
(2,850)
Deferred tax movement
4,986
11,745
Taxation (credit)/charge for the year
(128,096)
203,111
11
Dividends
2024
2023
£
£
Interim paid
1,053,710
3,085,875
EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 October 2023
309,333
465,635
281,989
1,056,957
Additions
-
0
74,132
5,320
79,452
Disposals
-
0
(507)
(21,531)
(22,038)
At 30 September 2024
309,333
539,260
265,778
1,114,371
Depreciation and impairment
At 1 October 2023
160,174
396,891
201,975
759,040
Depreciation charged in the year
14,916
35,648
20,409
70,973
Eliminated in respect of disposals
-
0
(222)
(17,833)
(18,055)
At 30 September 2024
175,090
432,317
204,551
811,958
Carrying amount
At 30 September 2024
134,243
106,943
61,227
302,413
At 30 September 2023
149,159
68,744
80,014
297,917
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,056,907
4,490,478
Carrying amount of financial liabilities
Measured at amortised cost
2,425,427
3,275,630
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,222,408
5,687,531
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,861,343
4,257,205
Corporation tax recoverable
447,664
245,784
Other debtors
195,814
233,273
Prepayments and accrued income
154,091
159,475
3,658,912
4,895,737
EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
Debtors
(Continued)
- 22 -

Included in other debtors above are loans to shareholders of £25,230 (2023 - £30,000).

16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
5,465
3,874
Trade creditors
1,462,787
1,961,866
Taxation and social security
121,783
271,367
Other creditors
-
0
1,166,346
Accruals and deferred income
957,175
143,544
2,547,210
3,546,997
17
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
5,465
3,874
Payable within one year
5,465
3,874

The bank overdraft facility is secured by an unscheduled mortgage debenture dated 22 September 2000 incorporating a fixed and floating charge over all current and future assets of the company.

 

Also included in bank loans and overdrafts is a balance of £nil (2023 - £nil) representing invoice discounting advances from Royal Bank of Scotland Finance Limited. This is secured by trade debtors and a floating charge over the company's assets.

 

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
41,215
36,229
EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
18
Deferred taxation
(Continued)
- 23 -
2024
Movements in the year:
£
Liability at 1 October 2023
36,229
Charge to profit or loss
4,986
Liability at 30 September 2024
41,215
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
36,491
36,433

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 A Shares of £1 each
788
788
788
788
Ordinary B Shares of £1 each
75,265
75,265
75,265
75,265
76,053
76,053
76,053
76,053

The Ordinary A and B shares rank pari passu in all respects except that the holders of the Ordinary B shares do not have any voting rights at any general meetings of the company.

21
Operating lease commitments
As 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 1 year
96,290
37,783
Years 2-5
202,697
73,000
298,987
110,783
EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
515,176
550,706
Transactions with related parties

During the year ended 30 September 2024, the company had the following transactions with entities over which the company has control, joint control or significant influence:

 

Sales during the year of £6,859,689 (2023 - £14,117,593).

Purchases during the year of £5,881,781 (2023 - £12,190,266).

Expenses incurred during the year of £535,557 (2023 - £587,202).

 

At 30 September 2024 the company had the following balances with entities over which the company has control, joint control or significant influence:

 

Trade debtors of £nil (2023 - £1,351,397).

Other debtors of £1,019 (2023 - £31,366).

 

Trade creditors of £nil (2023 - £676,775).

Other creditors of £nil (2023 - £nil).

 

At 30 September 2024 the company had the following balances with shareholders:

 

Other debtors of £25,230 (2023 - £30,000).

Other creditors of £nil (2023 - £1,116,346).

 

23
Directors' transactions

Dividends totalling £1,001,014 (2023 - £2,931,541) were paid in the year in respect of shares held by the company's directors and their families.

24
Ultimate controlling party

During the year ended 30 September 2024 the ultimate controlling party was A G Morris, the majority shareholder of the company.

EURO OPTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
25
Cash generated from operations
2024
2023
£
£
(Loss)/profit after taxation
(438,453)
647,931
Adjustments for:
Taxation (credited)/charged
(128,096)
203,111
Finance costs
472
9,659
Investment income
(41,834)
(312)
Loss on disposal of tangible fixed assets
3,983
2,216
Depreciation and impairment of tangible fixed assets
70,973
66,159
Equity settled share based payment expense
-
99,019
Movements in working capital:
Decrease in stocks
465,123
6,965,311
Decrease in debtors
1,438,705
2,559,613
Decrease in creditors
(1,001,378)
(1,860,094)
Cash generated from operations
369,495
8,692,613
26
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
4,008,910
(789,512)
3,219,398
Bank overdrafts
(3,874)
(1,591)
(5,465)
4,005,036
(791,103)
3,213,933
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