Company registration number 04290072 (England and Wales)
Sercon Limited
Unaudited financial statements
For the year ended 30 September 2024
Sercon Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
Sercon Limited
Balance sheet
As at 30 September 2024
30 September 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
390,421
217,742
Investments
5
146,308
9,836
536,729
227,578
Current assets
Stocks
1,320,089
1,917,780
Debtors
6
297,835
415,615
Cash at bank and in hand
586,215
769,757
2,204,139
3,103,152
Creditors: amounts falling due within one year
7
(1,394,816)
(2,106,435)
Net current assets
809,323
996,717
Total assets less current liabilities
1,346,052
1,224,295
Creditors: amounts falling due after more than one year
8
(8,333)
(44,566)
Provisions for liabilities
9
(493,483)
(462,766)
Net assets
844,236
716,963
Capital and reserves
Called up share capital
10
56
56
Capital redemption reserve
950
950
Profit and loss reserves
843,230
715,957
Total equity
844,236
716,963
Sercon Limited
Balance sheet (continued)
As at 30 September 2024
30 September 2024
- 2 -
For the financial year ended 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 12 February 2025 and are signed on its behalf by:
Mr M A O'Connor
Director
Company registration number 04290072 (England and Wales)
Sercon Limited
Notes to the financial statements
For the year ended 30 September 2024
- 3 -
1
Accounting policies
Company information
Sercon Limited is a private company limited by shares incorporated in England and Wales. The registered office is Europa House, Coppicemere Drive, Crewe, CW1 6GZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
1.3
Research and development expenditure
Research expenditure is written off against profits 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.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.
1.5
Intangible fixed assets other than goodwill
Acquired intellectual property is written off in equal annual instalments over its estimated useful economic life.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
over the period of the lease
Plant and machinery
25% straight line
Fixtures and fittings
10% straight line
Office equipment
20% straight line
Motor vehicles
25% straight line
Sercon Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 4 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Stocks
Stocks are stated at the lower of cost and net realisable value.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Sercon Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 5 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 profit or loss 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 profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Sercon Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 6 -
1.16
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
18
16
3
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
30,000
30,000
60,000
Amortisation and impairment
At 1 October 2023 and 30 September 2024
30,000
30,000
60,000
Carrying amount
At 30 September 2024
At 30 September 2023
Sercon Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2023
66,388
440,288
506,676
Additions
246,479
3,424
249,903
Disposals
(54,000)
(54,000)
At 30 September 2024
312,867
389,712
702,579
Depreciation and impairment
At 1 October 2023
64,763
224,171
288,934
Depreciation charged in the year
228
46,246
46,474
Eliminated in respect of disposals
(23,250)
(23,250)
At 30 September 2024
64,991
247,167
312,158
Carrying amount
At 30 September 2024
247,876
142,545
390,421
At 30 September 2023
1,625
216,117
217,742
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
9,931
9,836
Loans to group undertakings and participating interests
136,377
146,308
9,836
Sercon Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
5
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Shares in subsidiaries
Loans to subsidiaries
Total
£
£
£
Cost or valuation
At 1 October 2023
9,836
-
9,836
Additions
100
136,377
136,477
Disposals
(5)
-
(5)
At 30 September 2024
9,931
136,377
146,308
Carrying amount
At 30 September 2024
9,931
136,377
146,308
At 30 September 2023
9,836
-
9,836
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
214,814
335,611
Other debtors
83,021
80,004
297,835
415,615
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
10,000
10,000
Trade creditors
255,051
259,094
Taxation and social security
108,491
42,258
Other creditors
1,021,274
1,795,083
1,394,816
2,106,435
Obligations under finance leases are secured on the assets purchased.
Sercon Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 9 -
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
8,333
18,333
Other creditors
26,233
8,333
44,566
9
Provisions for liabilities
2024
2023
£
£
Warranty provision
448,353
425,615
Deferred tax liabilities
45,130
37,151
493,483
462,766
Movements on provisions apart from deferred tax liabilities:
Warranty provision
£
At 1 October 2023
425,615
Additional provisions in the year
22,738
At 30 September 2024
448,353
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50
100
50
50
A Ordinary shares of £1 each
6
6
6
6
56
106
56
56
Sercon Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 10 -
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
35,158
21,553
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