| REGISTERED NUMBER: 12932447 (England and Wales) |
| GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
| AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| FOR |
| IST POWER HOLDINGS LIMITED |
| REGISTERED NUMBER: 12932447 (England and Wales) |
| GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
| AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
| FOR |
| IST POWER HOLDINGS LIMITED |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 30 September 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Directors' Report | 3 |
| Independent Auditors' Report | 4 |
| Consolidated Statement of Income and Retained Earnings |
6 |
| Consolidated Balance Sheet | 7 |
| Company Balance Sheet | 8 |
| Consolidated Cash Flow Statement | 9 |
| Notes to the Consolidated Cash Flow Statement | 10 |
| Notes to the Consolidated Financial Statements | 11 |
| IST POWER HOLDINGS LIMITED |
| COMPANY INFORMATION |
| for the year ended 30 September 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| Statutory Auditor |
| Unit 2, Charnwood Edge Business Park |
| Syston Road |
| Leicestershire |
| LE7 4UZ |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| GROUP STRATEGIC REPORT |
| for the year ended 30 September 2024 |
| The directors present their strategic report of the company and the group for the year ended 30 September 2024. |
| REVIEW OF 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 group dealing with the manufacture of transformers, the group continues to supply to customers in the UK and abroad and to a range of different industries. The range of products that the group 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 group as a whole, these being turnover, operating profit and return on capital employed. |
| The group'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 group 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: |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| DIRECTORS' REPORT |
| for the year ended 30 September 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was 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. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group'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: |
| INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
| IST POWER HOLDINGS LIMITED |
| Opinion |
| We have audited the financial statements of IST Power Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 September 2024 and of the group's 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 group 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 group's and the 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 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company 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 HOLDINGS 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 group's and 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 directors either intend to liquidate the group or the parent 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. |
| for and on behalf of |
| Chartered Accountants |
| Statutory Auditor |
| Unit 2, Charnwood Edge Business Park |
| Syston Road |
| Leicestershire |
| LE7 4UZ |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| CONSOLIDATED |
| 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 |
| Retained earnings at beginning of year | 7,442,786 | 6,178,627 |
| Dividends | 13 | (2,500,000 | ) | (2,000,000 | ) |
| RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
8,138,543 |
7,442,786 |
| Profit attributable to: |
| Owners of the parent | 3,195,757 | 3,264,159 |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| CONSOLIDATED BALANCE SHEET |
| 30 September 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 14 | 1,195,803 | 1,172,101 |
| Investments | 15 | 1 | 1 |
| 1,195,804 | 1,172,102 |
| CURRENT ASSETS |
| Stocks | 16 | 1,896,618 | 2,106,586 |
| Debtors | 17 | 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 | 18 | (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 |
19 |
(73,648 |
) |
(102,011 |
) |
| PROVISIONS FOR LIABILITIES | 22 | (82,500 | ) | (87,000 | ) |
| NET ASSETS | 8,252,337 | 7,556,580 |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 101 | 101 |
| Capital redemption reserve | 24 | 39 | 39 |
| Merger reserves | 24 | 113,654 | 113,654 |
| Retained earnings | 24 | 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 HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| COMPANY BALANCE SHEET |
| 30 September 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 14 |
| Investments | 15 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 2,500,000 | 2,000,000 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 30 September 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 2,943,260 | 4,577,901 |
| Interest paid | (16,610 | ) | (15,901 | ) |
| Tax paid | (990,000 | ) | (848,916 | ) |
| Net cash from operating activities | 1,936,650 | 3,713,084 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (136,352 | ) | (87,318 | ) |
| Sale of tangible fixed assets | 13,300 | 2,583 |
| Interest received | 40,205 | 36,474 |
| Net cash from investing activities | (82,847 | ) | (48,261 | ) |
| Cash flows from financing activities |
| Payment of finance lease obligations | (113,274 | ) | (128,989 | ) |
| Equity dividends paid | (2,500,000 | ) | (2,000,000 | ) |
| Net cash from financing activities | (2,613,274 | ) | (2,128,989 | ) |
| (Decrease)/increase in cash and cash equivalents | (759,471 | ) | 1,535,834 |
| Cash and cash equivalents at beginning of year |
2 |
2,945,739 |
1,409,905 |
| Cash and cash equivalents at end of year | 2 | 2,186,268 | 2,945,739 |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 30 September 2024 |
| 1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit for the financial year | 3,195,757 | 3,264,159 |
| Depreciation charges | 180,105 | 173,112 |
| Profit on disposal of fixed assets | (13,300 | ) | (1,738 | ) |
| Finance costs | 16,610 | 15,901 |
| Finance income | (40,205 | ) | (36,474 | ) |
| Taxation | 1,071,824 | 866,491 |
| 4,410,791 | 4,281,451 |
| Decrease/(increase) in stocks | 209,968 | (377,018 | ) |
| Increase in trade and other debtors | (239,368 | ) | (981,156 | ) |
| (Decrease)/increase in trade and other creditors | (1,438,131 | ) | 1,654,624 |
| Cash generated from operations | 2,943,260 | 4,577,901 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 30 September 2024 |
| 30/9/24 | 1/10/23 |
| £ | £ |
| Cash and cash equivalents | 2,186,268 | 2,945,739 |
| Year ended 30 September 2023 |
| 30/9/23 | 1/10/22 |
| £ | £ |
| Cash and cash equivalents | 2,945,739 | 1,409,905 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| Other |
| non-cash |
| At 1/10/23 | Cash flow | changes | At 30/9/24 |
| £ | £ | £ | £ |
| Net cash |
| Cash at bank |
| and in hand | 2,945,739 | (759,471 | ) | 2,186,268 |
| 2,945,739 | (759,471 | ) | 2,186,268 |
| Debt |
| Finance leases | (198,319 | ) | 113,274 | - | (152,500 | ) |
| (198,319 | ) | 113,274 | - | (152,500 | ) |
| Total | 2,747,420 | (646,197 | ) | - | 2,033,768 |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 30 September 2024 |
| 1. | STATUTORY INFORMATION |
| IST Power Holdings Limited is a group, registered in England and Wales. Its registered office address is 64-66 Percy Road, Leicester, LE2 8FN and the registered number is 12932447. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 has taken advantage of the following disclosure exemptions in preparing these financial statements as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". |
| - the requirements of Section 7 Statement of Cash Flows; |
| - the requirement of paragraph 33.7. |
| IST Power Holdings Limited, as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company-only statement of cash flows. These consolidated financial statements include a consolidated statement of cash flows which include the cash flows of IST Power Holdings Limited. |
| Basis of consolidation |
| The consolidated financial statements incorporate those of IST Power Holdings Limited and IST Power Limited. |
| The company is the parent company to a number of dormant subsidiaries which did not trade in the current or prior year. These subsidiaries are considered to be immaterial to the group financial statements and have therefore not been consolidated. |
| 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. |
| Going concern |
| At the time of approving the financial statements, the directors have a reasonable expectation that the group 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. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| 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 HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED 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 buildings | 2% straight line |
| Long leasehold land & buildings | Over the term of the lease |
| Plant and machinery | 12.5% straight line |
| Fixtures and fittings | 33.33% straight line |
| Motor vehicles | 33.33% 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 group 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 group'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 HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED 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 group 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 HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED 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 groups 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 group 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 group 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 14 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 group. |
| 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 HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED 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 |
| 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 HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED 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 HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 September 2024 |
| 12. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| 13. | 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. |
| 14. | TANGIBLE FIXED ASSETS |
| Group |
| 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 |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 September 2024 |
| 14. | TANGIBLE FIXED ASSETS - continued |
| Group |
| 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). |
| 15. | FIXED ASSET INVESTMENTS |
| Group |
| 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 |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 October 2023 |
| and 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| 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 |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 September 2024 |
| 15. | FIXED ASSET INVESTMENTS - continued |
| 16. | STOCKS |
| Group |
| 2024 | 2023 |
| £ | £ |
| Raw materials | 1,508,574 | 1,542,273 |
| Finished goods | 388,044 | 564,313 |
| 1,896,618 | 2,106,586 |
| 17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| 2024 | 2023 |
| £ | £ |
| Trade debtors | 4,147,539 | 3,539,035 |
| Amounts recoverable on contract | 1,133,494 | 1,468,691 |
| Other debtors | 5,180 | 1,225 |
| Prepayments and accrued income | 249,582 | 287,476 |
| 5,535,795 | 5,296,427 |
| 18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 20) | 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 |
| 19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 20) | 73,648 | 102,011 |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 September 2024 |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| 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. |
| Group |
| Non-cancellable operating | leases |
| 2024 | 2023 |
| £ | £ |
| Within one year | 68,750 | 68,750 |
| Between one and five years | - | 68,750 |
| 68,750 | 137,500 |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts | 152,500 | 198,319 |
| Hire purchase contracts are secured on the assets concerned. |
| 22. | PROVISIONS FOR LIABILITIES |
| Group |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 82,500 | 87,000 |
| Group |
| 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 |
| IST POWER HOLDINGS LIMITED (REGISTERED NUMBER: 12932447) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 September 2024 |
| 22. | PROVISIONS FOR LIABILITIES - continued |
| The movement in deferred tax for the following period, based on current rates and information, is estimated to be a reduction of £25,300 to the liability. This relates to the reversal of timing differences on capital allowances. |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | 1p | 101 | 101 |
| 24. | 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. |
| 25. | PENSION COMMITMENTS |
| The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group 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. |
| 26. | CAPITAL COMMITMENTS |
| At the reporting date, the group had capital commitments of £133,341 (2023 - nil) which had been contracted for but not provided in these financial statements. |
| 27. | FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES |
| The group 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. |
| 28. | 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 |
| 29. | ULTIMATE CONTROLLING PARTY |
| The group is not controlled by any one party as at 30 September 2024. |