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REGISTERED NUMBER: 02614179 (England and Wales)












STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

FOR

IST POWER LIMITED

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 30 September 2024










Page

Company Information 1

Strategic Report 2

Directors' Report 3

Independent Auditors' Report 4

Statement of Income and Retained Earnings 6

Balance Sheet 7

Notes to the Financial Statements 8


IST POWER LIMITED

COMPANY INFORMATION
for the year ended 30 September 2024







DIRECTORS: Mr M G Fazakarley
Mr H Szywala





SECRETARY: Mr M G Fazakarley





REGISTERED OFFICE: 64-66 Percy Road
Leicester
Leicestershire
LE2 8FN





REGISTERED NUMBER: 02614179 (England and Wales)





AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

STRATEGIC REPORT
for the year ended 30 September 2024


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

REVIEW OF THE BUSINESS
We aim to present a balanced summary of the performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties that we face.

As a company dealing with the manufacture of transformers, the company continues to supply to customers in the UK and abroad and to a range of different industries. The range of products that the company supplies is ever expanding and is serviced from our two business locations in Leicester and Manchester.

KEY PERFORMANCE INDICATORS
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, operating profit and return on capital employed.

The company's turnover has increased to £18,379,744 from £16,873,466. Operating profit has increased to £4,243,986 from £4,110,077 and profit before tax has increased to £4,267,581 from £4,130,650.

Return on capital employed has increased to 45.77% (2023 - 43.20%). Return on capital employed is calculated as profit after tax and interest, divided by capital employed (net assets).

We are pleased to report another positive set of year end results.

As at the date of signing this report, our business continues to show growth year on year and we believe that we are well placed as a business to continue this trajectory. We look forward to reporting continued progress when we report again next year.

PRINCIPAL RISKS AND UNCERTAINTIES
As for many businesses of our size, the environment in which we operate continues to be challenging. Margins continue to be tight in very competitive markets and the company is at risk from the vagaries of exchange rates. When appropriate exchange rate protection policies are adopted.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

Despite the supply chain disruptions and rapid rises in material costs the business remains in a strong position. The Directors have assessed and prepared for the rapid changes in trading conditions and are confident that with the strong controls already established within the business that it will continue to operate profitably.

ON BEHALF OF THE BOARD:





Mr M G Fazakarley - Director


17 June 2025

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

DIRECTORS' REPORT
for the year ended 30 September 2024


The directors present their report with the financial statements of the company for the year ended 30 September 2024.

PRINCIPAL ACTIVITY
The principal activity of the company continues to be that of the manufacture of transformers.

DIVIDENDS
Dividends of £2,500,000 were declared during the year.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

Mr M G Fazakarley
Mr H Szywala

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr M G Fazakarley - Director


17 June 2025

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
IST POWER LIMITED


Opinion
We have audited the financial statements of IST Power Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
IST POWER LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 Auditors' 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:

Based on our understanding of the group and the industry, we have identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and breaches with the General Data Protection Regulation, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included:

- Enquiries with management for consideration of known or suspected instances of non-compliance with laws and
regulations and fraud;
- Challenging assumptions made by management in their accounting estimates, in particular in relation to
recognising stock provisions, work in progress and estimating the useful lives of assets; and
- Identifying and testing material journal entries, in particular those journal entries posted with unusual account
combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific
defined descriptions.

There are inherent limitations in the audit procedures described above. The more removed non-compliance with laws and regulations is, from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by forgery or intentional misrepresentation, for example, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.




Paul Orton FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

17 June 2025

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

STATEMENT OF INCOME AND
RETAINED EARNINGS
for the year ended 30 September 2024

2024 2023
Notes £    £   

TURNOVER 4 18,379,744 16,873,466

Cost of sales (11,039,652 ) (9,935,796 )
GROSS PROFIT 7,340,092 6,937,670

Distribution costs (100,290 ) (109,418 )
Administrative expenses (2,995,816 ) (2,718,175 )
OPERATING PROFIT 4,243,986 4,110,077

Interest receivable and similar income 7 40,205 36,474
4,284,191 4,146,551

Interest payable and similar expenses 8 (16,610 ) (15,901 )
PROFIT BEFORE TAXATION 9 4,267,581 4,130,650

Tax on profit 11 (1,071,824 ) (866,491 )
PROFIT FOR THE FINANCIAL YEAR 3,195,757 3,264,159

Retained earnings at beginning of year 7,442,786 6,178,627

Dividends 12 (2,500,000 ) (2,000,000 )

RETAINED EARNINGS AT END OF YEAR 8,138,543 7,442,786

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

BALANCE SHEET
30 September 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 13 1,195,803 1,172,101
Investments 14 1 1
1,195,804 1,172,102

CURRENT ASSETS
Stocks 15 1,896,618 2,106,586
Debtors: amounts falling due within one year 16 5,535,795 5,296,427
Cash at bank and in hand 2,186,268 2,945,739
9,618,681 10,348,752
CREDITORS
Amounts falling due within one year 17 (2,406,000 ) (3,775,263 )
NET CURRENT ASSETS 7,212,681 6,573,489
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,408,485

7,745,591

CREDITORS
Amounts falling due after more than one
year

18

(73,648

)

(102,011

)

PROVISIONS FOR LIABILITIES 21 (82,500 ) (87,000 )
NET ASSETS 8,252,337 7,556,580

CAPITAL AND RESERVES
Called up share capital 22 101 101
Capital redemption reserve 23 39 39
Merger reserves 23 113,654 113,654
Retained earnings 23 8,138,543 7,442,786
SHAREHOLDERS' FUNDS 8,252,337 7,556,580

The financial statements were approved by the Board of Directors and authorised for issue on 17 June 2025 and were signed on its behalf by:





Mr M G Fazakarley - Director


IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 September 2024


1. STATUTORY INFORMATION

IST Power Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is 64-66 Percy Road, Leicester, LE2 8FN and the registered number is 02614179.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 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:

- Section 7 ‘Statement of Cash Flows’ - Presentation of a statement of cash flow and related notes and
disclosures;
- Section 33 ‘Related Party Disclosures’ - Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of IST Power Holdings Limited consolidated financial statements. These are available from its registered office, 64-66 Percy Street, Leicester, United Kingdom, LE2 8FN.

Going concern
At 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.


Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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.

Revenue is also recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of the work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

Freehold buildings2% straight line
Long leasehold land & buildingsOver the term of the lease
Plant and machinery12.5% straight line
Fixtures and fittings33.33% straight line
Motor vehicles33.33% straight line

The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Investments in subsidiaries
The company carries the investment in its subsidiaries at cost less accumulated impairment losses. In the event of an impairment being recognised, the loss is recognised in the P&L in the year in which the impairment relates.

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. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

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.

Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.


IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


2. ACCOUNTING POLICIES - continued
Taxation
The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Research and development
Expenditure on research and development is written off in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

Employee benefits and pension costs
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.

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


3. CRITICAL ACCOUNTING 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.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provisioning
The company has products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision, management considers the nature, age and condition of the stock, as well as applying assumptions around the saleability/useability of the stock.

Work in progress
The company uses the percentage of completion method to account for its revenue on work in progress stock.

Significant assumptions are required to estimate the total costs and the recoverable variation works that will affect the stage of completion and the revenue respectively. In making these estimates, management has relied on past experiences.

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property plant and equipment, and note 2 for the useful economic lives for each class of assets.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Sale of goods 18,379,744 16,873,466
18,379,744 16,873,466

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 10,342,991 7,713,407
Europe 145,136 346,142
Rest of World 7,891,617 8,813,917
18,379,744 16,873,466

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,652,540 3,281,167
Social security costs 351,997 318,885
Other pension costs 111,001 93,401
4,115,538 3,693,453

The average number of employees during the year was as follows:
2024 2023

Management 2 2
Administration 29 26
Production 67 66
98 94

6. DIRECTORS' EMOLUMENTS
2024 2023
£    £   
Directors' remuneration 288,303 268,597
Directors' pension contributions to money purchase schemes 7,681 7,160

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 147,953 135,041
Pension contributions to money purchase schemes 4,024 3,672

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Bank interest received 40,205 36,474

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Hire purchase interest payable 16,610 15,901

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


9. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 8,676 5,584
Other operating leases 66,125 66,100
Depreciation - owned assets 121,950 98,447
Depreciation - assets on hire purchase contracts 58,155 74,665
Profit on disposal of fixed assets (13,300 ) (1,738 )
Foreign exchange differences 3,958 101,911

10. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

18,000

17,250

11. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 1,076,324 858,955
Adjustment to prior years - (6,389 )
Total current tax 1,076,324 852,566

Deferred tax (4,500 ) 13,925
Tax on profit 1,071,824 866,491

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 4,267,581 4,130,650
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 22%)

1,066,895

908,743

Effects of:
Expenses not deductible for tax purposes 830 530
Capital allowances in excess of depreciation - (5,044 )
Depreciation in excess of capital allowances 8,599 -
Adjustments to tax charge in respect of previous periods - (6,389 )
Research and development tax credit - (45,274 )
Deferred tax origination and reversal of timing differences (4,500 ) 13,925
rate applied
Total tax charge 1,071,824 866,491

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


12. DIVIDENDS

Dividends of £2,500,000 (2023 - £2,000,000) were declared in the year with £3,700,000 (2023 - £800,000) being paid during the year.

13. TANGIBLE FIXED ASSETS
Long
Freehold leasehold
land & land & Plant and
buildings buildings machinery
£    £    £   
COST
At 1 October 2023 364,188 573,958 1,639,755
Additions - - 85,978
Disposals - - -
At 30 September 2024 364,188 573,958 1,725,733
DEPRECIATION
At 1 October 2023 42,188 213,977 1,208,895
Charge for year 7,000 11,479 95,548
Eliminated on disposal - - -
At 30 September 2024 49,188 225,456 1,304,443
NET BOOK VALUE
At 30 September 2024 315,000 348,502 421,290
At 30 September 2023 322,000 359,981 430,860

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 October 2023 304,799 256,456 3,139,156
Additions 10,197 107,632 203,807
Disposals - (48,495 ) (48,495 )
At 30 September 2024 314,996 315,593 3,294,468
DEPRECIATION
At 1 October 2023 287,640 214,355 1,967,055
Charge for year 12,800 53,278 180,105
Eliminated on disposal - (48,495 ) (48,495 )
At 30 September 2024 300,440 219,138 2,098,665
NET BOOK VALUE
At 30 September 2024 14,556 96,455 1,195,803
At 30 September 2023 17,159 42,101 1,172,101

The net carrying value of tangible fixed assets includes assets held under finance leases or hire purchase contracts with a net book value of £215,795 (2023 - £302,453). The depreciation charged in respect of these assets was £58,155 (2023 - £74,665).

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


14. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 October 2023
and 30 September 2024 1
NET BOOK VALUE
At 30 September 2024 1
At 30 September 2023 1

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Evengold Properties Ltd
Registered office: 64-66 Percy Road, Leicester, LE2 8FN, UK
Nature of business: Dormant subsidiary
%
Class of shares: holding
Ordinary 100.00

Ernest Lee Holdings Limited
Registered office: Longley Lane, Sharston Industrial Area, Manchester, England, M22 4RU, UK
Nature of business: Dormant subsidiary
%
Class of shares: holding
Ordinary 100.00

Ernest Lee (Electrical Services) Limited
Registered office: Longley Lane, Wythenshawe, Manchester, M22 4RU, UK
Nature of business: Dormant subsidiary
%
Class of shares: holding
Ordinary 50.00

15. STOCKS
2024 2023
£    £   
Raw materials and consumables 1,508,574 1,542,273
Finished goods 388,044 564,313
1,896,618 2,106,586

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 4,147,539 3,539,035
Amounts recoverable on contracts 1,133,494 1,468,691
Other debtors 5,180 1,225
Prepayments 249,582 287,476
5,535,795 5,296,427

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 19) 78,852 96,308
Trade creditors 1,045,394 1,393,637
Amounts owed to group undertakings 30,002 30,002
Corporation tax 625,279 538,955
Social security and other taxes 102,623 74,858
VAT 238,762 115,235
Other creditors 41,014 1,234,983
Accruals 244,074 291,285
2,406,000 3,775,263

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 19) 73,648 102,011

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 78,852 96,308
Between one and five years 73,648 102,011
152,500 198,319

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The lease terms vary between 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases.

Non-cancellable operating leases
2024 2023
£    £   
Within one year 68,750 68,750
Between one and five years - 68,750
68,750 137,500

20. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Hire purchase contracts 152,500 198,319

Hire purchase contracts are secured on the assets concerned.

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


21. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 82,500 87,000

Deferred
tax
£   
Balance at 1 October 2023 87,000
Credit to Statement of Comprehensive Income during year (4,500 )
Balance at 30 September 2024 82,500

The movement in deferred tax for the following period, based on current rates and information, is estimated to be an reduction of £25,300 to the liability. This relates to the reversal of timing differences on capital allowances.

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
10,080 Ordinary 1p 101 101

23. RESERVES

Merger reserve
Includes all balances arising on previous business combinations which were accounted for using merger accounting. All amounts are non-distributable.

Capital redemption reserve
The statutory, non-distributable reserve into which amounts were transferred following the redemption of the Company's own shares.

Retained earnings
Includes all current and prior period retained profits and losses. All amounts are distributable.

24. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £111,001 (2023 - £93,401) were paid in the year in respect of the defined contribution scheme. At 30 September 2024 contributions amounting to £26,981 (2023 - £20,950) were payable to the scheme.

25. CAPITAL COMMITMENTS

At the reporting date, the company had capital commitments of £133,341 (2023 - £nil) which had been contracted for but not provided in these financial statements.

26. FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES

The company offers warranties on its products ranging from 12 to 24 months. Due to the complexity and diversity of the products that the company sells it is not feasible to reliably estimate the potential liability that may arise should a product have a fault.

The directors review the post year end period to ensure any material warranty claims are included as appropriate.

IST POWER LIMITED (REGISTERED NUMBER: 02614179)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 September 2024


27. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2024 2023
£    £   
Amount due to related party 30,002 30,002

28. ULTIMATE CONTROLLING PARTY

IST Power Holdings Limited is the parent company. The group is not controlled by any one party.