Acorah Software Products - Accounts Production 16.3.350 false true true 30 September 2023 1 October 2022 false 10 June 2025 true 1 October 2023 30 September 2024 30 September 2024 03534954 Mr J T Walkinshaw Mrs C A Morris Mrs C A Morris true iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 03534954 2023-09-30 03534954 2024-09-30 03534954 2023-10-01 2024-09-30 03534954 frs-core:CurrentFinancialInstruments 2024-09-30 03534954 frs-core:Non-currentFinancialInstruments 2024-09-30 03534954 frs-core:BetweenOneFiveYears 2024-09-30 03534954 frs-core:FurnitureFittings 2024-09-30 03534954 frs-core:FurnitureFittings 2023-10-01 2024-09-30 03534954 frs-core:FurnitureFittings 2023-09-30 03534954 frs-core:NetGoodwill 2024-09-30 03534954 frs-core:NetGoodwill 2023-10-01 2024-09-30 03534954 frs-core:NetGoodwill 2023-09-30 03534954 frs-core:MotorVehicles 2024-09-30 03534954 frs-core:MotorVehicles 2023-10-01 2024-09-30 03534954 frs-core:MotorVehicles 2023-09-30 03534954 frs-core:PlantMachinery 2024-09-30 03534954 frs-core:PlantMachinery 2023-10-01 2024-09-30 03534954 frs-core:PlantMachinery 2023-09-30 03534954 frs-core:WithinOneYear 2024-09-30 03534954 frs-core:ShareCapital 2024-09-30 03534954 frs-core:RetainedEarningsAccumulatedLosses frs-core:PreviouslyStatedAmount 2023-09-30 03534954 frs-core:RetainedEarningsAccumulatedLosses 2024-09-30 03534954 frs-bus:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 03534954 frs-bus:FullAccounts 2023-10-01 2024-09-30 03534954 frs-bus:FRS102 2023-10-01 2024-09-30 03534954 frs-bus:Audited 2023-10-01 2024-09-30 03534954 frs-bus:LargeCompaniesRegimeForAccounts 2023-10-01 2024-09-30 03534954 frs-bus:LargeCompaniesRegimeForDirectorsReport 2023-10-01 2024-09-30 03534954 frs-bus:OrdinaryShareClass1 2023-10-01 2024-09-30 03534954 frs-bus:OrdinaryShareClass1 2024-09-30 03534954 1 2023-10-01 2024-09-30 03534954 frs-bus:Director1 2023-10-01 2024-09-30 03534954 frs-bus:Director2 2023-10-01 2024-09-30 03534954 frs-bus:CompanySecretary1 2023-10-01 2024-09-30 03534954 1 2023-10-01 2024-09-30 03534954 frs-countries:EnglandWales 2023-10-01 2024-09-30 03534954 frs-countries:EnglandWales 2023-10-01 2024-09-30 03534954 2022-09-30 03534954 2023-09-30 03534954 2022-10-01 2023-09-30 03534954 frs-core:CurrentFinancialInstruments 2023-09-30 03534954 frs-core:Non-currentFinancialInstruments 2023-09-30 03534954 frs-core:BetweenOneFiveYears 2023-09-30 03534954 frs-core:MotorVehicles 2022-10-01 2023-09-30 03534954 frs-core:PlantMachinery 2022-10-01 2023-09-30 03534954 frs-core:WithinOneYear 2023-09-30 03534954 frs-core:ShareCapital 2023-09-30 03534954 frs-core:RetainedEarningsAccumulatedLosses frs-core:PreviouslyStatedAmount 2022-09-30 03534954 frs-core:RetainedEarningsAccumulatedLosses 2023-09-30 03534954 frs-bus:OrdinaryShareClass1 2022-10-01 2023-09-30 03534954 1 2022-10-01 2023-09-30
Registered number: 03534954
K L H Electronics Plc
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 30 September 2024
Stubbs Parkin
55 Hoghton Street
Southport
Merseyside
PR9 0PG
Contents
Page
Strategic Report 1—2
Directors' Report 3—4
Independent Auditor's Report 5—7
Statement of Income and Retained Earnings 8
Balance Sheet 9
Statement of Cash Flows 10
Notes to the Statement of Cash Flows 11
Notes to the Financial Statements 12—21
Page 1
Strategic Report
The directors present their strategic report for the year ended 30 September 2024.
Principal Activity
The company's principal activity continues to be that of the design and manufacture of electronic components.
Review of the Business
Fair review of the business
KLH Electronics PLC, LED Lighting Solutions Ltd, Light Engines Europe Ltd and Agricultural LED Lighting Ltd have now all completed their move into our newly built premises. This now brings both manufacturing sites and the offices into one large purpose built unit located close enough to the old units to retain all members of staff.
Within the move, we have consolidated machinery and optimised production lines to maximise the efficiency of the equipment we have whilst also introducing new transport systems between the assembly equipment which speeds up processing and reduces human intervention requirements.
As part of the move, we have new servers, better infrastructure with the whole building operating on a 10Gb backbone – ensuring all data and data processing tasks are much faster and less time consuming. An improved working environment for all staff and better amenities improve the feel of the workplace.
As part of this move, the premises are powered by a Solar array capable of generating upto 250kW of energy – this meaning that the business is generally self sufficient for power throughout the week and has the benefit of selling in a considerable amount of power back to the grid during weekends. It seems likely that throughout the year, we will be a nett exporter of energy to the grid and therefore will be able to achieve an A++ EPC rating for the building and manufacturing operation. A large battery storage bank ( 240kW ) allows for storage of un-used energy or the purchase of cheap overnight energy if required.
The economies of the solar system are expected to reduce operating costs considerably. The added efficiency brough about by one unit is also expected to bring many as yet unseen gains in terms of reduced travelling times for staff and improved logistics in general.
The purchase of additional equipment beyond the infrastructure also allows us to process PCBs faster, new laser marking equipment, storage and handling along with the harmonisation of stores allows for better material management and allows for production and delivery optimisation.
Into 2025/26, we are attacking two or three new market areas which are showing some very promising initial signs. Whilst in early stages, the initial opportunities are significant and represent new areas of work for the business.
We are beginning to explore AI based technologies both for the operation of the business and the sales opportunities of AI based equipment which is a very exciting area and offers new area on which to employ our expertise.
We expect to see sales growth into the next few years as we exploit our new commercial advantages and efficiencies.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs
2024
2023
Turnover
£3,727,748
£4,088,308
Turnover growth
(9)%
10%
Gross profit margin
25%
24%
Profit pre tax
£508,772
£354,652
At the end of the year, net assets totalled £988,662 (2023: £978,008).
Page 1
Page 2
Principal Risks and Uncertainties
The company finances its operations through a mixture of retained profits, bank borrowings and trade credit from suppliers. Movements in interest rates on the companies facilities can impact profitability. In addition, a withdrawal of financing facilities or failure to renew them as they expire could lead to a reduction in the trading ability of the company. The utilisation of working capital is closely monitored and regular cashflow forecasts are prepared and compared to the facilities available. The company maintains relationships with several providers on finance to ensure that a comprehensive range of funding facilities is maintained.
On behalf of the board
Mr J T Walkinshaw
Director
21st May 2025
Page 2
Page 3
Directors' Report
The directors present their report and the financial statements for the year ended 30 September 2024.
Dividends
 The directors recommended a final dividend of £350,000 .
Financial Instruments
Price risk, credit risk, liquidity risk and cash flow risk
The business' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors and loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities were funds are available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Loans comprise loans from financial institutions. The interest rates and monthly repayments are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.
The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by
ensuring that there are sufficient funds to meet the payments.
Directors
The directors who held office during the year were as follows:
Mr J T Walkinshaw
Mrs C A Morris
Research and Development
The company will continue its policy of investment in research and development in order to retain a competitive
position in the market.
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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
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Statement of Directors' Responsibilities - continued
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
Mr J T Walkinshaw
Director
21st May 2025
Page 4
Page 5
Independent Auditor's Report
Opinion
We have audited the financial statements of K L H Electronics Plc for the year ended 30 September 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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/(loss) 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.
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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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or 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.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
  • We made enquiries of management to assess any instances of non-compliance with laws and regulations that have a material effect on the financial statements by reviewing minutes of board meetings between the directors.
  • Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management.
  • Designed audit procedures to incorporate unpredictability around the nature, timing or extent of our testing, and
  • Reviewing legal expense nominals to identify indicators of potential non-compliance with laws and regulations.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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 for example, forgery or intentional misrepresentations, 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mrs K E Thompson FCA (Senior Statutory Auditor)
for and on behalf of Stubbs Parkin Limited, 55 Hoghton Street, Southport, PR9 OPG , Statutory Auditor
10th June 2025
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Statement of Income and Retained Earnings
2024 2023
Notes £ £
TURNOVER 3 3,727,748 4,088,308
Cost of sales (2,790,487 ) (3,104,717 )
GROSS PROFIT 937,261 983,591
Administrative expenses (360,967 ) (617,176 )
OPERATING PROFIT 4 576,294 366,415
Loss on disposal of fixed assets (34,380 ) -
Interest payable and similar charges 9 (33,142 ) (11,763 )
PROFIT BEFORE TAXATION 508,772 354,652
Tax on Profit 10 (148,119 ) (82,231 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 360,653 272,421
RETAINED EARNINGS
As at 1 October 2023 965,508 943,087
Dividends paid (350,000) (250,000)
As at 30 September 2024 976,161 965,508
The notes on pages 11 to 21 form part of these financial statements.
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Page 9
Balance Sheet
Registered number: 03534954
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 12 608,572 340,294
608,572 340,294
CURRENT ASSETS
Stocks 13 228,737 280,817
Debtors 14 2,899,491 2,457,209
3,128,228 2,738,026
Creditors: Amounts Falling Due Within One Year 15 (2,501,431 ) (2,041,747 )
NET CURRENT ASSETS (LIABILITIES) 626,797 696,279
TOTAL ASSETS LESS CURRENT LIABILITIES 1,235,369 1,036,573
Creditors: Amounts Falling Due After More Than One Year 16 (113,703 ) -
PROVISIONS FOR LIABILITIES
Deferred Taxation 18 (133,004 ) (58,564 )
NET ASSETS 988,662 978,009
CAPITAL AND RESERVES
Called up share capital 19 12,501 12,501
Profit and Loss Account 976,161 965,508
SHAREHOLDERS' FUNDS 988,662 978,009
On behalf of the board
Mr J T Walkinshaw
Director
21st May 2025
The notes on pages 11 to 21 form part of these financial statements.
Page 9
Page 10
Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 533,440 286,390
Interest paid (33,142 ) (11,763 )
Tax paid (20,366 ) (55,824 )
Net cash generated from operating activities 479,932 218,803
Cash flows from investing activities
Purchase of tangible assets (358,122 ) (10,126 )
Proceeds from disposal of tangible assets 21,215 -
Net cash used in investing activities (336,907 ) (10,126 )
Cash flows from financing activities
Equity dividends paid (350,000 ) (250,000 )
Repayment of finance leases 142,129 -
Net cash used in financing activities (207,871 ) (250,000 )
Decrease in cash and cash equivalents (64,846 ) (41,323 )
Cash and cash equivalents at beginning of year 2 (169,794 ) (128,471 )
Cash and cash equivalents at end of year 2 (234,640 ) (169,794 )
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from operations
2024 2023
£ £
Profit for the financial year 360,653 272,421
Adjustments for:
Tax on profit 148,119 82,231
Interest expense 33,142 11,763
Depreciation of tangible assets 34,249 40,184
Loss on disposal of tangible assets 34,380 -
Movements in working capital:
Decrease in stocks 52,080 88,045
Increase in trade and other debtors (442,282 ) (237,767 )
Increase in trade and other creditors 313,099 29,513
Net cash generated from operations 533,440 286,390
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Overdraft facilities repayable on demand (234,640 ) (169,794 )
3. Analysis of changes in net debt
As at 1 October 2023 Cash flows As at 30 September 2024
£ £ £
Overdraft facilities repayable on demand (169,794) (64,846) (234,640)
Finance leases - (142,129) (142,129)
(169,794) (206,975) (376,769)
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Notes to the Financial Statements
1. General Information
K L H Electronics Plc is a public company, limited by shares, incorporated in England & Wales, registered number 03534954 . The registered office is Southport Business Park, Wight Moss Way, Southport, Merseyside, PR8 4ZZ.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and 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 company's functional and presentational currency is £ GBP and no level of rounding has been used in presenting the financial statements
2.2. Going Concern Disclosure
After reviewing the company’s forecasts and projections, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore adopts the going concern basis in preparing its financial statements.
2.3. Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The Company recognises revenue when it is probable that economic benefits will flow to the company and the amount of revenue can be reliably measured.
2.4. Intangible Fixed Assets and Amortisation - Goodwill
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 10 years.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery 10% Reducing balance basis
Motor Vehicles 25% Reducing balance basis
Fixtures & Fittings 15% Reducing balance basis
2.6. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
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2.7. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.9. Financial Instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receiveable and payable, loans from banks and other third parties, and loans to related parties.
Debt instruments that are payable or receiveable within one year, typically trade payables or receiveables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.
2.10. Foreign Currencies
Monetary 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 ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.11. Taxation
The tax expense for the period comprises current and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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2.11. Taxation - continued
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.12. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
3. Turnover
Analysis of turnover by class of business is as follows:
2024 2023
£ £
Sales 3,727,748 4,088,308
4. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Research and Development Costs 28,074 47,353
Depreciation of tangible fixed assets 34,249 40,184
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 5,875 5,400
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6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 432,812 339,902
Social security costs 37,411 21,469
Other pension costs 23,204 17,575
493,427 378,946
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 8 8
Manufacturing 7 7
15 15
8. Directors' remuneration
2024 2023
£ £
Emoluments 38,480 35,080
Company contributions to money purchase pension schemes 16,500 12,000
54,980 47,080
9. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 15,942 10,520
Foreign exchange charges 15,066 230
Other finance charges 2,134 1,013
33,142 11,763
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10. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 25.0% 73,679 87,035
Deferred Tax
Deferred taxation 74,440 (4,804 )
Total tax charge for the period 148,119 82,231
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 508,772 354,652
Tax on profit at 25% (UK standard rate) 127,193 88,663
Expenses not deductible for tax purposes 2,367 3,806
Capital allowances (55,881 ) 6,398
Difference in tax rates - (11,832 )
Deferred tax relating to changes in tax rates or laws 74,440 (4,804 )
Total tax charge for the period 148,119 82,231
11. Intangible Assets
Goodwill
£
Cost
As at 1 October 2023 90,000
As at 30 September 2024 90,000
Amortisation
As at 1 October 2023 90,000
As at 30 September 2024 90,000
Net Book Value
As at 30 September 2024 -
As at 1 October 2023 -
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12. Tangible Assets
Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £
Cost
As at 1 October 2023 698,220 - 161,030 859,250
Additions 283,289 65,815 9,018 358,122
Disposals (184,068 ) - (16,061 ) (200,129 )
As at 30 September 2024 797,441 65,815 153,987 1,017,243
Depreciation
As at 1 October 2023 394,252 - 124,704 518,956
Provided during the period 28,077 1,371 4,801 34,249
Disposals (134,953 ) - (9,581 ) (144,534 )
As at 30 September 2024 287,376 1,371 119,924 408,671
Net Book Value
As at 30 September 2024 510,065 64,444 34,063 608,572
As at 1 October 2023 303,968 - 36,326 340,294
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
2024 2023
£ £
Plant & Machinery 108,792 -
Motor Vehicles 64,444 -
173,236 -
13. Stocks
2024 2023
£ £
Materials 228,737 280,817
14. Debtors
2024 2023
£ £
Due within one year
Trade debtors 518,731 735,609
Other debtors 2,380,760 1,721,600
2,899,491 2,457,209
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15. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 28,426 -
Trade creditors 637,062 494,607
Bank loans and overdrafts 234,640 169,794
Amounts owed to participating interests 1,241,900 1,067,940
Other creditors 47,386 8,138
Corporation tax 140,348 87,035
Taxation and social security 157,617 198,729
Accruals and deferred income 14,052 15,504
2,501,431 2,041,747
The bank overdraft is secured by a debenture over all company assets.
16. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 113,703 -
17. Obligations Under Finance Leases and Hire Purchase
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year 28,426 -
Later than one year and not later than five years 113,703 -
142,129 -
142,129 -
Obligations under finance lease and hire purchases are denominated in £ with a nominal interest rate of 8.5%, and the final instalment is due on 30 September 2029.
The obligations under finance lease and hire purchases are secured against the assets.
18. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences 133,004 58,564
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19. Share Capital
2024 2023
Allotted, called up and fully paid £ £
12,501 Ordinary Shares of £ 1.00 each 12,501 12,501
20. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2024 2023
£ £
Not later than one year 1,220 2,440
Later than one year and not later than five years - 1,220
1,220 3,660
The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,456 (2022 - £4,143).
21. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £23,204 (2023: £17,575).
At the balance sheet date contributions of £1,510 (2023: £1,041) were due to the fund and are included in creditors.
22. Dividends
2024 2023
£ £
On equity shares:
Interim dividend paid 350,000 250,000
23. Reserves
Called-up share capital
This reserve represents the nominal value of shares that have been issued.
Profit and loss account
This reserve includes all current and prior period retained profits and losses less dividends voted.
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24. Related Party Disclosures
Loans to other related parties
2024
2023
£
£
At start of period 
1,703,019
1,679,906
Advanced/ (Repaid)
657,409
image
23,113
image
At end of period
2,360,428
image

1,703,019
image
Loans from Parent company
2024
2023
£
£
At start of period
(1,067,940)
(1,203,590)
(Advanced)/ Repaid
(173,960)
image
135,650
image
At end of period
(1,241,900)
image
(1,067,940)
image
LED Lighting Solutions LimitedRelated by the virtue of being under common controlThe company trades services and goods with KLH Electronics Plc, amounting to £480,000 in 2024 (£719,000 in 2023).

LED Lighting Solutions Limited

Related by the virtue of being under common control

The company trades services and goods with KLH Electronics Plc, amounting to £480,000 in 2024 (£719,000 in 2023).

Mountain Ash Investments LimitedRelated by the virtue of being the parent companyThe company leases a property to KLH Electronics Plc

Mountain Ash Investments Limited

Related by the virtue of being the parent company

The company leases a property to KLH Electronics Plc

Light Engines Europe LimitedRelated by the virtue of being under common controlThe company trades services and goods with KLH Electronics Plc, amounting to £485,880 in 2024 (£nil in 2023).

Light Engines Europe Limited

Related by the virtue of being under common control

The company trades services and goods with KLH Electronics Plc, amounting to £485,880 in 2024 (£nil in 2023).

Agricultural LED Lighting LimitedRelated by the virtue of being under common controlThe company trades services and goods with KLH Electronics Plc.

Agricultural LED Lighting Limited

Related by the virtue of being under common control

The company trades services and goods with KLH Electronics Plc.

Amounts owed from/ to related parties are unsecured, interest free, have no fixed date of repayment and are payable on demand.
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25. Controlling Parties
The company's immediate parent undertaking is Mountain Ash Investments Ltd .
The ultimate parent undertaking is Mountain Ash Investments Ltd (incorporated in England & Wales). Its registered office is Southport Business Park, Wight Moss Way, Southport, PR8 4ZZ .
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