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COMPANY REGISTRATION NUMBER: 01952631
Zeta Alarms Limited
Financial Statements
31 October 2024
Zeta Alarms Limited
Financial Statements
Year ended 31 October 2024
CONTENTS
PAGE
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
Zeta Alarms Limited
Officers and Professional Advisers
The board of directors
Mr G M El-Hoss
Miss L El-Hoss
Mr N Jones
Mrs C M El-Hoss
Company secretary
Mrs C El-Hoss
Registered office
Detection House
72-78 Morfa Road
Swansea
SA1 2EN
Auditor
James & Uzzell Ltd
Chartered accountants & Statutory Auditor
Axis 15, Axis Court
Mallard Way
Riverside Business Park
Swansea
SA7 0AJ
Zeta Alarms Limited
Strategic Report
Year ended 31 October 2024
REVIEW OF BUSINESS The results for the year and the financial position at the year end were in line with the original expectations of the director. The company will aim to exceed the current margins throughout the year ending 31st October 2025.
PRINCIPAL RISKS AND UNCERTAINTIES The company operates in a very competitive market and has secured its position and good reputation by providing a quality service. The company trades within the UK and overseas and as a result has not been adversely affected by the current economic climate within the UK. The majority of overseas trading is not conducted with countries within the European Union and therefore Brexit did not cause an adverse affect on the company results. The Middle Eastern war risk has been considered and deemed as no risk to the company and its results.
DEVELOPMENT AND PERFORMANCE The directors aim to maintain the management policies which have resulted in the company`s growth & stability in recent years. They consider that the current year will be profitable and gross profit margins will exceed the prior year. The company operates a bonus scheme which is effective for the period from 2010. The amounts are calculated as follows:- a) Mr G El-Hoss will receive a bonus of 30% of pre tax profits annually. b) Annual bonuses as a percentage of pre tax profits have been paid during the year to the following directors:- Lydia El Hoss 3.0% Nick Jones 2.5%. c) Annual bonuses totalling 4.5% of pre tax profits will be paid to remaining staff. During the year there was a drop in the wages costs due to a movement between admin staff wages and director wages following the directors appointment of Mrs C El-Hoss in October 2023. Some of the directors wages costs are included within the company's R&D claim each year for the work undertaken by Mr G El-Hoss and Mr N Jones .
FINANCIAL KEY PERFORMANCE INDICATORS The key performance indicators are set out below:
2024 2023
Turnover (£) 12,360,315 11,531,474
Gross Profit (%) 32 34
Net Profit (%) 12 9
This report was approved by the board of directors on 14 July 2025 and signed on behalf of the board by:
MR G EL-HOSS
Mr G M El-Hoss
Director
Zeta Alarms Limited
Directors' Report
Year ended 31 October 2024
The directors present their report and the financial statements of the company for the year ended 31 October 2024 .
DIRECTORS
The directors who served the company during the year were as follows:
Mr G M El-Hoss
Miss L El-Hoss
Mr N Jones
Mrs C M El-Hoss
DIVIDENDS
Particulars of recommended dividends are detailed in note 13 to the financial statements.
FUTURE DEVELOPMENTS
The directors are optimistic regarding the future prospects of the company and consider that the current year will continue to be profitable. The company has maintained its long standing relationship with a number of customers & suppliers both in the UK and foreign markets and aims to expand its customer base in the coming year.
A new product, the Velocity range, was launched in 2023 which is expected to increase the level of turnover and margins in the coming year.
FINANCIAL INSTRUMENTS
The company's financial assets and liabilities consist of fixed assets, trade debtors and creditors and cash balances. The company's exposure to financial risk is low.
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.
QUALIFYING INDEMNITY PROVISION
The Articles of Association of the Company contain an indemnity in favour of all the Directors of the Company that, subject to law, indemnifies the Directors, out of the assets of the Company, from any liability incurred by them in defending any proceedings in which judgement is given in their favour (or otherwise disposed of without any finding or admission of any material breach of duty on their part).
DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the strategic report, 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). 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 profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE OF INFORMATION TO THE AUDITORS
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 14 July 2025 and signed on behalf of the board by:
MR G EL-HOSS
Mr G M El-Hoss
Director
Zeta Alarms Limited
Independent Auditor's Report to the Members of Zeta Alarms Limited
Year ended 31 October 2024
OPINION
We have audited the financial statements of Zeta Alarms Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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. Our evaluation of the directors' assessment of the entity's ability to continue to adopt the going concern basis of accounting included the review of financial projections prepared by the directors for the year ended 31st October 2025 and for the year ended 31st October 2026 and review of afterdate results and where relevant, post balance sheet events which may affect the company trading.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and 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 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.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal regulatory frameworks that are applicable to the company and determined that the most significant of those relate to the reporting framework (United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Stand as applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)) and the relevant tax compliance regulations, principally relating to those issued by HMRC. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being the General Data Protection Regulation, and those laws and regulations relating to health and safety and employee matters. We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through discussion with the directors and by understanding the entity level controls implemented by those charged with governance. We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered where the significant estimates and judgements are in the financial statements. We assessed the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. Based on this understanding we designed our audit procedures to identify non compliance with such laws and regulations. Our procedures involved journal entry testing, with a focus on manual journals or unusual transactions based on our understanding of the business, review of health and safety records and ensuring compliance certificates are all up to date with no evidence of non compliance. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. USE OF OUR REPORT
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
ALISON JAYNE UZZELL FCCA
(Senior Statutory Auditor)
For and on behalf of
James & Uzzell Ltd
Chartered accountants & Statutory Auditor
Axis 15, Axis Court
Mallard Way
Riverside Business Park
Swansea
SA7 0AJ
14 July 2025
Zeta Alarms Limited
Statement of Comprehensive Income
Year ended 31 October 2024
2024
2023
Note
£
£
TURNOVER
4
12,360,315
11,531,474
Cost of sales
8,413,993
7,660,077
-------------
-------------
GROSS PROFIT
3,946,322
3,871,397
Other Costs
214,847
Administrative expenses
2,592,066
2,691,069
------------
------------
OPERATING PROFIT
5
1,354,256
965,481
Other interest receivable and similar income
10
75,470
43,151
Interest payable and similar expenses
11
195
------------
------------
PROFIT BEFORE TAXATION
1,429,531
1,008,632
Tax on profit
12
94,883
( 96,232)
------------
------------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME
1,334,648
1,104,864
------------
------------
All the activities of the company are from continuing operations.
Zeta Alarms Limited
Statement of Financial Position
31 October 2024
2024
2023
Note
£
£
FIXED ASSETS
Tangible assets
14
387,679
193,081
CURRENT ASSETS
Stocks
15
5,147,762
4,795,416
Debtors
16
4,087,849
3,321,924
Cash at bank and in hand
2,990,186
3,346,292
-------------
-------------
12,225,797
11,463,632
CREDITORS: amounts falling due within one year
17
4,592,900
4,548,401
-------------
-------------
NET CURRENT ASSETS
7,632,897
6,915,231
------------
------------
TOTAL ASSETS LESS CURRENT LIABILITIES
8,020,576
7,108,312
------------
------------
NET ASSETS
8,020,576
7,108,312
------------
------------
CAPITAL AND RESERVES
Called up share capital
19
60,192
60,192
Share premium account
20
150,460
150,460
Profit and loss account
20
7,809,924
6,897,660
------------
------------
SHAREHOLDERS FUNDS
8,020,576
7,108,312
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 14 July 2025 , and are signed on behalf of the board by:
Mr G M El-Hoss
Mr G M El-Hoss
Director
Company registration number: 01952631
Zeta Alarms Limited
Statement of Changes in Equity
Year ended 31 October 2024
Called up share capital
Share premium account
Profit and loss account
Total
£
£
£
£
AT 1 NOVEMBER 2022 (AS PREVIOUSLY REPORTED)
60,192
150,460
10,243,096
10,453,748
Prior period adjustments
(4,032,053)
(4,032,053)
--------
---------
-------------
-------------
AT 1 NOVEMBER 2022 (RESTATED)
60,192
150,460
6,211,043
6,421,695
--------
---------
-------------
-------------
Profit for the year
1,104,864
1,104,864
--------
---------
-------------
-------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
1,104,864
1,104,864
Dividends paid and payable
13
( 418,247)
( 418,247)
--------
---------
-------------
-------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
( 418,247)
( 418,247)
AT 31 OCTOBER 2023
60,192
150,460
6,897,660
7,108,312
Profit for the year
1,334,648
1,334,648
--------
---------
-------------
-------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
1,334,648
1,334,648
Dividends paid and payable
13
( 422,384)
( 422,384)
----
----
---------
---------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
( 422,384)
( 422,384)
--------
---------
------------
------------
AT 31 OCTOBER 2024
60,192
150,460
7,809,924
8,020,576
--------
---------
------------
------------
Zeta Alarms Limited
Statement of Cash Flows
Year ended 31 October 2024
2024
2023
Note
£
£
Cash generated from operations
21
286,036
473,009
Interest paid
( 195)
Interest received
75,470
43,151
Tax paid
( 45,469)
( 219,596)
---------
---------
Net cash from operating activities
315,842
296,564
---------
---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets
( 249,564)
( 6,000)
Proceeds from sale of other investments
160,000
---------
---------
Net cash (used in)/from investing activities
( 249,564)
154,000
---------
---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
1,335
Dividends paid
( 422,384)
( 418,247)
---------
---------
Net cash used in financing activities
( 422,384)
( 416,912)
---------
---------
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
( 356,106)
33,652
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
3,346,292
3,312,640
------------
------------
CASH AND CASH EQUIVALENTS AT END OF YEAR
2,990,186
3,346,292
------------
------------
Zeta Alarms Limited
Notes to the Financial Statements
Year ended 31 October 2024
1. GENERAL INFORMATION
Zeta Alarms Limited is a private company limited by shares incorporated in England & Wales, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are those of fire alarm/system manufacturer and exporter.
2. STATEMENT OF COMPLIANCE
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.
3. ACCOUNTING POLICIES
Basis of preparation
These financial statements only include the results of the individual entity made up to 31 October 2024. The reporting period of these financial statements and its comparative period is 12 months. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £1. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Going concern
The company meets its day-to-day working capital requirements through its bank facilities. The company's forecasts and projections, taking into account reasonably possible changes in trading performance, showing that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore the company continues to adopt the going concern basis in preparing the financial statements.
Debtors and creditors receivable
Debtors and creditors with no stated interest rate and receivable or payable within one year recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Research & development
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.
Provisions
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with bank, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts, when applicable, are shown within borrowings in current liabilities.
Critical accounting judgements and estimation uncertainty
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful 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 conditions of the assets. See the tangible assets note for the carrying amount of the property plant and equipment, and note 3 for the useful economic lives for each class of assets. (ii) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See the debtors note for the net carrying amount of the debtors and associated impairment provision. (iii) Stock Provisioning The company sells fire alarms and its components and is subject to consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability. (iv) Going Concern The company meets its day-to-day working capital requirements through its bank facilities. The company's forecasts and projections, taking into account reasonably possible changes in trading performance, showing that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore the company continues to adopt the going concern basis in preparing the financial statements. (v) Research & Development 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. (vi) Provisions Estimates are used in determining the value of provisions when recognised. This will be based on historical information, known expectations and reasonable outcomes
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: i) Sale of Goods Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually when goods are delivered to customers. ii) Interest receivable Interest income is recognised using the effective interest method. iii) Other Income Other income is recognised on receipt of the relevant monies. All other income is reanalysed where possible.
Exceptional items
Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.
Tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.
Leases
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
Tangible assets
Tangible fixed assets are stated at cost (or deemed cost), or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land and buildings
-
2% straight line
Plant and machinery
-
20% straight line
Fixtures and fittings
-
25% straight line
Motor Vehicles
-
25% straight line
Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
4. TURNOVER
Turnover arises from:
2024
2023
£
£
Sale of goods
12,360,315
11,531,474
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
1,210,257
1,191,707
Overseas
11,150,058
10,339,767
-------------
-------------
12,360,315
11,531,474
-------------
-------------
5. OPERATING PROFIT
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
54,966
53,034
Gains on disposal of tangible assets
( 159,999)
Impairment of trade debtors
11,802
Research and development expenditure written off
105,753
130,933
Operating lease rentals
12,563
12,563
---------
---------
6. AUDITOR'S REMUNERATION
2024
2023
£
£
Fees payable for the audit of the financial statements
15,715
14,685
--------
--------
7. STAFF COSTS
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
22
24
Administrative staff
9
10
----
----
31
34
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,072,370
2,176,776
Social security costs
232,804
262,933
Other pension costs
89,912
102,824
------------
------------
2,395,086
2,542,533
------------
------------
8. DIRECTORS' REMUNERATION
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
1,216,877
993,968
Company contributions to defined contribution pension plans
72,909
------------
---------
1,289,786
993,968
------------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
4
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
828,143
737,358
Company contributions to defined contribution pension plans
3,454
---------
---------
831,597
737,358
---------
---------
9. EXCEPTIONAL ITEMS
2024
2023
£
£
Loan write offs
214,847
----
---------
The exceptional item during 2023 related to loan write offs.
10. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest on cash and cash equivalents
67,297
42,038
Interest on tax repayments
397
Other interest receivable and similar income
7,776
1,113
--------
--------
75,470
43,151
--------
--------
11. INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest payable on overdue taxes
195
----
----
12. TAX ON PROFIT
Major components of tax expense/(income)
2024
2023
£
£
Current tax:
UK current tax expense
139,955
45,072
Adjustments in respect of prior periods
( 45,072)
( 115,376)
---------
---------
Total current tax
94,883
( 70,304)
---------
---------
Deferred tax:
Origination and reversal of timing differences
( 25,928)
--------
--------
Tax on profit
94,883
( 96,232)
--------
--------
The standard rate of corporation tax is unchanged from the previous period.
Reconciliation of tax expense/(income)
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,429,531
1,008,632
------------
------------
Profit on ordinary activities by rate of tax
357,383
252,158
Adjustment to tax charge in respect of prior periods
( 45,072)
( 115,376)
Effect of expenses not deductible for tax purposes
( 126,327)
( 285,917)
Effect of capital allowances and depreciation
( 48,649)
12,191
Effect of different UK tax rates on some earnings
6,662
Utilisation of tax losses
( 42,452)
59,978
Deferred Tax
(25,928)
------------
------------
Tax on profit
94,883
( 96,232)
------------
------------
Factors that may affect future tax expense
There are no tax rate changes proposed that would have an effect on the calculation of deferred tax.
13. DIVIDENDS
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
422,384
418,247
---------
---------
14. TANGIBLE ASSETS
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
282,920
374,545
221,830
9,200
888,495
Additions
104,306
145,258
249,564
Disposals
( 9,200)
( 9,200)
---------
---------
---------
---------
------------
At 31 October 2024
282,920
374,545
326,136
145,258
1,128,859
---------
---------
---------
---------
------------
Depreciation
At 1 November 2023
118,942
355,602
212,350
8,520
695,414
Charge for the year
5,659
8,690
10,897
29,720
54,966
Disposals
( 9,200)
( 9,200)
---------
---------
---------
---------
------------
At 31 October 2024
124,601
364,292
223,247
29,040
741,180
---------
---------
---------
---------
------------
Carrying amount
At 31 October 2024
158,319
10,253
102,889
116,218
387,679
---------
---------
---------
---------
------------
At 31 October 2023
163,978
18,943
9,480
680
193,081
---------
---------
---------
---------
------------
The net book value of land & buildings at 31 October 2024 comprised:
2024 2023
£ £
Freehold Land & Buildings 158,320 163,978
--------- ---------
Tangible fixed assets with a net book value of £158,320 (2023: £163,978) have been pledged as security for liabilities of the company.
15. STOCKS
2024
2023
£
£
Raw materials, consumables and finished goods
5,147,762
4,795,416
------------
------------
16. DEBTORS
2024
2023
£
£
Trade debtors
3,928,892
2,868,400
Prepayments and accrued income
8,772
6,785
Other debtors
150,185
446,739
------------
------------
4,087,849
3,321,924
------------
------------
17. CREDITORS: amounts falling due within one year
2024
2023
£
£
Trade creditors
378,137
336,005
Accruals and deferred income
4,047,979
4,010,464
Corporation tax
94,486
45,072
Social security and other taxes
58,849
145,533
Other creditors
13,449
11,327
------------
------------
4,592,900
4,548,401
------------
------------
There is a fixed and floating charge over the undertaking and all property and assets present and future including goodwill, book debts, uncalled capital, buildings, fixtures fixed, plant and machinery.
18. EMPLOYEE BENEFITS
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 89,912 (2023: £ 102,824 ).
19. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
60,192
60,192
60,192
60,192
--------
--------
--------
--------
20. RESERVES
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.
21. CASH GENERATED FROM OPERATIONS
2024
2023
£
£
Profit for the financial year
1,334,648
1,104,864
Adjustments for:
Depreciation of tangible assets
54,966
53,034
Other interest receivable and similar income
( 75,470)
( 43,151)
Interest payable and similar expenses
195
Gains on disposal of tangible assets
( 159,999)
Tax on profit
94,883
( 96,232)
Accrued expenses/(income)
37,515
( 32,537)
Changes in:
Stocks
( 352,346)
( 974,269)
Trade and other debtors
( 765,925)
513,731
Trade and other creditors
( 42,430)
107,568
------------
------------
286,036
473,009
------------
------------
22. ANALYSIS OF CHANGES IN NET DEBT
At 1 Nov 2023
Cash flows
At 31 Oct 2024
£
£
£
Cash at bank and in hand
3,346,292
(356,106)
2,990,186
------------
---------
------------
23. OPERATING LEASES
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
12,563
12,563
Later than 1 year and not later than 5 years
10,274
15,990
--------
--------
22,837
28,553
--------
--------
24. RELATED PARTY TRANSACTIONS
The company entered into the following transactions with related parties: Key management personnel
2024 2023
£ £
Balance due (to)/from key management personnel (7,104) (5,508)
------ ------
Other related parties
2024 2023
£ £
Balance due (to)/from other related parties 296,472 342,309
Sales to other related parties 1,140,594 985,775
Purchases from other related parties 117,149 109,905
No interest was charged on these balances.