Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-312024-01-0123falsefalseThe company's principal activity during the year continued to be that of dealing in electronic products.24falsefalse 00895822 2024-01-01 2024-12-31 00895822 2023-01-01 2023-12-31 00895822 2024-12-31 00895822 2023-12-31 00895822 2023-01-01 00895822 5 2024-01-01 2024-12-31 00895822 5 2023-01-01 2023-12-31 00895822 d:Director1 2024-01-01 2024-12-31 00895822 d:Director2 2024-01-01 2024-12-31 00895822 d:RegisteredOffice 2024-01-01 2024-12-31 00895822 d:Agent1 2024-01-01 2024-12-31 00895822 e:PlantMachinery 2024-01-01 2024-12-31 00895822 e:PlantMachinery 2024-12-31 00895822 e:PlantMachinery 2023-12-31 00895822 e:PlantMachinery e:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00895822 e:MotorVehicles 2024-01-01 2024-12-31 00895822 e:MotorVehicles 2024-12-31 00895822 e:MotorVehicles 2023-12-31 00895822 e:MotorVehicles e:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00895822 e:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00895822 e:CurrentFinancialInstruments 2024-12-31 00895822 e:CurrentFinancialInstruments 2023-12-31 00895822 e:Non-currentFinancialInstruments 2024-12-31 00895822 e:Non-currentFinancialInstruments 2023-12-31 00895822 e:CurrentFinancialInstruments e:WithinOneYear 2024-12-31 00895822 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 00895822 e:Non-currentFinancialInstruments e:AfterOneYear 2024-12-31 00895822 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 00895822 e:ReportableOperatingSegment1 2024-01-01 2024-12-31 00895822 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 00895822 f:UnitedKingdom 2024-01-01 2024-12-31 00895822 f:UnitedKingdom 2023-01-01 2023-12-31 00895822 f:RestEuropeOutsideUK 2024-01-01 2024-12-31 00895822 f:RestEuropeOutsideUK 2023-01-01 2023-12-31 00895822 f:RestWorldOutsideUK 2024-01-01 2024-12-31 00895822 f:RestWorldOutsideUK 2023-01-01 2023-12-31 00895822 e:UKTax 2024-01-01 2024-12-31 00895822 e:UKTax 2023-01-01 2023-12-31 00895822 e:ShareCapital 2024-01-01 2024-12-31 00895822 e:ShareCapital 2024-12-31 00895822 e:ShareCapital 2023-01-01 2023-12-31 00895822 e:ShareCapital 2023-12-31 00895822 e:ShareCapital 2023-01-01 00895822 e:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2024-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2023-12-31 00895822 e:RetainedEarningsAccumulatedLosses 2023-01-01 00895822 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-12-31 00895822 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 00895822 d:OrdinaryShareClass1 2024-01-01 2024-12-31 00895822 d:OrdinaryShareClass1 2024-12-31 00895822 d:OrdinaryShareClass1 2023-12-31 00895822 d:FRS102 2024-01-01 2024-12-31 00895822 d:Audited 2024-01-01 2024-12-31 00895822 d:FullAccounts 2024-01-01 2024-12-31 00895822 d:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 00895822 e:WithinOneYear 2024-12-31 00895822 e:WithinOneYear 2023-12-31 00895822 2 2024-01-01 2024-12-31 00895822 g:PoundSterling 2024-01-01 2024-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 00895822









LUSO ELECTRONIC PRODUCTS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
COMPANY INFORMATION


Directors
David Zelkha 
Keith Zelkha 




Registered number
00895822



Registered office
595 Salisbury House
London Wall

London

EC2M 5QQ




Independent auditors
Pers & Co London LLP
Chartered Accountants and Statutory Auditor

3 The Shrubberies

George Lane

London

E18 1BG




Bankers
Barclays Bank Plc
Level 27

1 Churchill Place

London

E14 5QQ





 
LUSO ELECTRONIC PRODUCTS LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 24


 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors present the strategic report and financial statements for the year ended 31 December 2024.

Business review
 
The directors are pleased to report an 11% increase in turnover over the previous, but were disappointed with the reduction on gross profit over the same period. This was due to very challenging times at the microwave division. At the time of writing of this report the directors are pleased to see a gradual increase in business for the microwave division and hope that as 2025 progresses business will return to a more sustainable footing. For the other divisions the directors were pleased with their progress and growth which  (stripping out the Microwave division, growth would have been in the low teens).

Principal risks and uncertainties
 
Since the year end the US elected a new President who has initiated what he said he would do with the introduction of additional tariffs (levelling up tariffs) on imports. For the last 30+ years trade was based on globalisation and the building  of flexible supplies routes across the world. There is no doubt this helped the company grow. The directors are unable to say at this time what the implications will be to the company going forward but will take decisions as and when they see the necessity.
In addition the new UK government, (nearly 12 months in government)  although elected on a programme of promoting domestic growth appears to be on a typical Labour party programme of increasing taxes and spending on the public sector. The increased taxes have disproportionally fallen on the business community.
Despite the current uncertainty the first quarter showed small growth on the corresponding period in 2024 but a slowdown is expected and margins could come under pressure.
The directors will continue to monitor order input, overheads, margins and expenses and will react to any slowdown that may affect the company. The directors will also seek new opportunities for growth

Financial key performance indicators
 
Due to issues in the microwave division (previously mentioned) there was a decline in gross profit for the year ending 2024. The division is now on a better footing and even though there is much uncertainty the directors expect to see an improvement in gross profit in 2025. The challenge for the company is to maintain efficiency and continue to promote the wellbeing of our staff.

Other key performance indicators
 
The directors are committed to promoting the health, safety and welfare of their staff and continue to ensure appropriate measures are undertaken in this regard.
The directors are mindful of environmental issues and have sought to minimise the impact of the company's activities on the environment.


This report was approved by the board on 28 August 2025 and signed on its behalf.



David Zelkha
Director

Page 1

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £397,162 (2023 - £456,396).

Dividends were paid during the year amounting to £150,000 (2023: £135,000).

Directors

The directors who served during the year were:

David Zelkha 
Keith Zelkha 

Future developments

The company expects to continue to offer its high quality products and services to its customers.

Page 2

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsPers & Co London LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 August 2025 and signed on its behalf.
 




David Zelkha
Director

Page 3

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED
 

Opinion


We have audited the financial statements of Luso Electronic Products Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters 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 set out on page 2, 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.


Page 5

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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:
- the engagement partner ensured sufficient appropriate competence, skills and capabilities in audit team to identify or recognise non-compliance with applicable laws and regulations;
- we identified applicable laws and regulations to the company through discussions with the director and other management, and from our commercial knowledge and experience;
- we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety legislation; and
- we assessed the extent of compliance with the law and regulations identified above through making enquires of management and inspecting applicable legal correspondence.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with law and regulations.
To address the risk of fraud through management bias and override of controls, we
- performed analytical procedures to identify any unusual or unexpected relationships;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigate the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with law and regulations, we designed procedures which included, but were not limited to:
-  agreeing financial statement disclosures to underlying supporting documentation;
-  reading the minutes of meetings of those charged with governance;
-  enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including Health and Safety Executive, and the       company's legal advisors.
We were appointed auditors after the year end and therefore did not attend the year end stocktake. However we were able to carry our alternative audit procedures, including accessing and relying on stocktake attendances by the former auditors to obtain sufficient audit evidence in this area.


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


Page 6

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LUSO ELECTRONIC PRODUCTS LIMITED (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Pers Aswani (Senior statutory auditor)
  
for and on behalf of
Pers & Co London LLP
 
Chartered Accountants and Statutory Auditor
  
3 The Shrubberies
George Lane
London
E18 1BG

28 August 2025
Page 7

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 3 
17,777,613
15,964,520

Cost of sales
  
(15,120,953)
(12,924,519)

Gross profit
  
2,656,660
3,040,001

Distribution costs
  
(92,404)
(101,396)

Administrative expenses
  
(1,886,159)
(2,232,055)

Operating profit
 4 
678,097
706,550

Interest receivable and similar income
 8 
1,151
4,021

Interest payable and similar expenses
 9 
(141,751)
(110,774)

Profit before tax
  
537,497
599,797

Tax on profit
 10 
(140,335)
(143,401)

Profit for the financial year
  
397,162
456,396

Other comprehensive income for the year
  

Total comprehensive income for the year
  
397,162
456,396

The notes on pages 13 to 24 form part of these financial statements.

Page 8

 
LUSO ELECTRONIC PRODUCTS LIMITED
REGISTERED NUMBER: 00895822

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
29,906
39,875

  
29,906
39,875

Current assets
  

Stocks
 13 
2,202,548
2,226,160

Debtors: amounts falling due within one year
 14 
6,556,166
6,511,364

Cash at bank and in hand
 15 
603,803
670,554

  
9,362,517
9,408,078

Creditors: amounts falling due within one year
 16 
(2,511,221)
(2,608,978)

Net current assets
  
 
 
6,851,296
 
 
6,799,100

Total assets less current liabilities
  
6,881,202
6,838,975

Creditors: amounts falling due after more than one year
  
(917,640)
(1,122,575)

  

Net assets
  
5,963,562
5,716,400


Capital and reserves
  

Called up share capital 
 19 
2,000
2,000

Profit and loss account
 20 
5,961,562
5,714,400

  
5,963,562
5,716,400


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2025.



David Zelkha
Director

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
LUSO ELECTRONIC PRODUCTS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
2,000
5,393,004
5,395,004


Comprehensive income for the year

Profit for the year
-
456,396
456,396
Total comprehensive income for the year
-
456,396
456,396


Contributions by and distributions to owners

Dividends: Equity capital
-
(135,000)
(135,000)


Total transactions with owners
-
(135,000)
(135,000)



At 1 January 2024
2,000
5,714,400
5,716,400


Comprehensive income for the year

Profit for the year
-
397,162
397,162
Total comprehensive income for the year
-
397,162
397,162


Contributions by and distributions to owners

Dividends: Equity capital
-
(150,000)
(150,000)


Total transactions with owners
-
(150,000)
(150,000)


At 31 December 2024
2,000
5,961,562
5,963,562


The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
LUSO ELECTRONIC PRODUCTS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
397,162
456,396

Adjustments for:

Depreciation of tangible assets
9,969
11,572

Interest paid
141,751
110,774

Interest received
(1,151)
(4,021)

Taxation charge
140,335
143,401

Decrease/(increase) in stocks
23,612
(345,258)

(Increase)/decrease in debtors
(44,802)
399,342

(Decrease) in creditors
(897,871)
(23,515)

Corporation tax (paid)
(143,401)
(121,185)

Net cash generated from operating activities

(374,396)
627,506


Cash flows from investing activities

Purchase of tangible fixed assets
-
(4,279)

Interest received
1,151
4,021

Net cash from investing activities

1,151
(258)

Cash flows from financing activities

New secured loans
210,043
59,154

Dividends paid
(150,000)
(135,000)

Interest paid
(141,751)
(110,774)

Net cash used in financing activities
(81,708)
(186,620)

Net (decrease)/increase in cash and cash equivalents
(454,953)
440,628

Cash and cash equivalents at beginning of year
670,554
229,926

Cash and cash equivalents at the end of year
215,601
670,554


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
603,803
670,554

Bank overdrafts
(388,202)
-

215,601
670,554


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
LUSO ELECTRONIC PRODUCTS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

670,554

(66,751)

603,803

Bank overdrafts

-

(388,202)

(388,202)

Debt due within 1 year

(458,198)

(210,043)

(668,241)


212,356
(664,996)
(452,640)

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Luso Electronic Products Limited is a private company limited by shares and incorporated in England and Wales. The registered office is 595 Salisbury House, London Wall, London EC2M 5QQ..

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The company has continued to grow and trade well and the directors have reviewed the 12 month forecast. In addition the directors expect continuing support from the fellow group company. This information gives the directors a reasonable expectation that the company will continue in operational existance for the foreseeable future hence the accounts should continue to be prepared on a going concern basis.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.


 
2.11

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
Straight Line
Motor vehicles
-
25%
Straight Line

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

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

Page 15

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Page 16

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
 

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Page 17

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Turnover

2024
2023
£
£

Turnover
17,777,613
15,964,520

17,777,613
15,964,520


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
5,688,836
5,108,646

Rest of Europe
8,888,807
7,982,260

Rest of the world
3,199,970
2,873,614

17,777,613
15,964,520



4.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(159,914)
131,257

Other operating lease rentals
131,091
125,846

Page 18

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
14,000
13,000

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,338,912
1,373,725

Social security costs
105,029
111,172

Cost of defined contribution scheme
34,824
93,646

1,478,765
1,578,543


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
14
15



Sales
9
9

23
24


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
196,966
209,066

196,966
209,066


The highest paid director received remuneration of £132,054 (2023 - £122,945).

Page 19

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Interest receivable

2024
2023
£
£


Other interest receivable
1,151
4,021

1,151
4,021


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
141,751
110,774

141,751
110,774


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
140,335
143,401


140,335
143,401


Total current tax
140,335
143,401

Deferred tax

Total deferred tax
-
-


140,335
143,401
Page 20

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

2024
2023
£
£


Profit on ordinary activities before tax
537,497
599,797


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
134,374
149,949

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,961
(6,548)

Total tax charge for the year
140,335
143,401


Factors that may affect future tax charges

There were no factors that may affect future tax charges.




11.


Dividends

2024
2023
£
£


Dividends
150,000
135,000

150,000
135,000

Page 21

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Total

£
£
£



Cost or valuation


At 1 January 2024
492,939
16,991
509,930



At 31 December 2024

492,939
16,991
509,930



Depreciation


At 1 January 2024
453,064
16,991
470,055


Charge for the year on owned assets
9,969
-
9,969



At 31 December 2024

463,033
16,991
480,024



Net book value



At 31 December 2024
29,906
-
29,906



At 31 December 2023
39,875
-
39,875


13.


Stocks

2024
2023
£
£

Finished goods and goods for resale
2,202,548
2,226,160

2,202,548
2,226,160



14.


Debtors

2024
2023
£
£


Trade debtors
6,343,902
6,371,376

Other debtors
172,477
139,988

Prepayments and accrued income
39,787
-

6,556,166
6,511,364


Page 22

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
603,803
670,554

Less: bank overdrafts
(388,202)
-

215,601
670,554



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
388,202
-

Bank loans
668,241
458,198

Trade creditors
926,446
1,777,797

Corporation tax
140,335
143,401

Other taxation and social security
50,884
54,717

Accruals and deferred income
337,113
174,865

2,511,221
2,608,978



17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Other creditors
917,640
1,122,575

917,640
1,122,575



18.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
603,803
670,554




Financial assets measured at fair value through profit or loss comprise cash at bank.

Page 23

 
LUSO ELECTRONIC PRODUCTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,000 (2023 - 2,000) Ordinary shares of £1.00 each
2,000
2,000



20.


Reserves

Profit and loss account

The movement in retained profit comprises retained profit of the year, after dividends, amounting to £349,187.


21.


Pension commitments

Contributions to defined contribution plans are expensed to the period in which they relate.


22.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
43,840
43,840

43,840
43,840


23.


Related party transactions

The ultimate controlling party is Mr David Zelkha. Included in other creditors more than one year is an amount of £917,640 (2023: £1,122,575) due to a director with no interest.

 
Page 24