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Registered number: 00362699 BROWNINGS ELECTRIC COMPANY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
BROWNINGS ELECTRIC COMPANY LIMITED COMPANY INFORMATION
Directors | L T Galea
| S Damney
| S E Heaton
| P W French (appointed 11 July 2025)
| J Galea (appointed 11 July 2025)
Company secretary | S Damney
Registered number | 00362699
Registered office | 11 Thames Road
| Barking
| Essex
| IG11 0HG
Independent auditor | Barnes Roffe Audit Limited
| Chartered Accountants
| Leytonstone House
| 3 Hanbury Drive
| London
| E11 1GA
Bankers | Barclays Bank plc
| 1 - 2 Trinity Way
| Chingford
| London
| E4 8US
BROWNINGS ELECTRIC COMPANY LIMITED CONTENTS
| Page
Strategic report | 1
Directors' report | 2 - 3
Independent auditor's report | 4 - 7
Profit and loss account | 8
Statement of comprehensive income | 9
Balance sheet | 10
Statement of changes in equity | 11
Notes to the financial statements | 12 - 29
BROWNINGS ELECTRIC COMPANY LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The directors present their strategic report for the period 31 December 2024.
Business review
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face. The directors are pleased with the results for the year and to report a profit after tax of £1,266,905 (2023 - £1,009,750).
Principal risks and uncertainties
The business environment in which we operate continues to be challenging. However, the company continues to provide a mixture of repair, new supply and on-site services to manage the risk. The defined benefit pension scheme valuation reported a decrease in scheme liabilities, mainly due to underlying valuation assumptions. The company continues to fund the scheme in accordance with a recovery plan
Financial key performance indicators
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover which remained consistent during the year, gross profit margin being 49.1% (2023 – 44.4%). The resultant operating profit was £1,891,010 (2023 - £1,330,327).
Credit, liquidity & cashflow risk
Liquidity and cash flow risk are managed through agreeing appropriate payment terms with customers and suppliers. The company manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs with short-term flexibility provided by a sales finance facility. The company's principal financial assets are trade debtors for which credit risk is managed by directors by setting limits for customers based on a combination of payment history and reputation. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history and to ensure sales finance facility covenants are met.
Future developments
The directors continue to ensure that the highest level of service is provided to their customers and the directors expect the company to remain profitable for the subsequent year. This report was approved by the board on 16 July 2025 and signed on its behalf.
S Damney Director
Page 1
BROWNINGS ELECTRIC COMPANY 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 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.
Results and dividends
The profit for the year, after taxation, amounted to £1,266,905 (2023 - £1,009,750).
Directors
The directors who served during the year were:
B E Kemp (resigned 11 July 2025)
L T Galea
S Damney
S E Heaton
Future developments
The directors continue to ensure that the highest level of service is provided to their customers and the directors expect the company to remain profitable for the subsequent year. Page 2
BROWNINGS ELECTRIC COMPANY LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Disclosure of information to auditor
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 auditor is 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 auditor is aware of that information.
Post balance sheet events
There have been no significant events affecting the Company since the year end.
Auditor
After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its business and its successor Barnes Roffe Audit Limited was appointed by the members under s485 Companies Act 2006. This report was approved by the board on 16 July 2025 and signed on its behalf.
S Damney Director
Page 3
BROWNINGS ELECTRIC COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROWNINGS ELECTRIC COMPANY LIMITED
Opinion
We have audited the financial statements of Brownings Electric Company Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and loss account, the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity 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 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 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 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
BROWNINGS ELECTRIC COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROWNINGS ELECTRIC COMPANY LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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
BROWNINGS ELECTRIC COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROWNINGS ELECTRIC COMPANY LIMITED (CONTINUED)
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: In identifying and assessing risks of material misstatement in respect of irregularities we considered the following: ∙Obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the Company operates in and they are complying with the legal and regulatory frameworks; ∙Enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; ∙Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. All relevant laws and regulations identified at a Company level and areas susceptible to fraud that could have a material effect on the financial statements were communicated. Any instances of non-compliance with laws and regulations identified were considered in our audit approach. The most significant laws and regulations were determined as follows: ∙UK GAAP FRS 102 and Companies Act; and ∙Tax compliance regulations. Additional audit procedures performed by the audit engagement team included: ∙Review of the financial statement disclosures and testing to supporting documentation; and ∙Completion of disclosure checklists to identify areas of non-compliance. The areas that we identified as being susceptible to material misstatement due to fraud were: ∙Revenue Recognition; and ∙Management Override. Audit procedures in respect to the identified areas above: ∙Obtaining an understanding of the processes and controls around revenue recognition; ∙Substantively testing revenue via various testing including transactional, cut off and sequencing; ∙Evaluation of the appropriateness of the accounting policies; ∙Testing the appropriateness of journal entries and other adjustments; ∙Assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and ∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 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 Auditor's report. Page 6
BROWNINGS ELECTRIC COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROWNINGS ELECTRIC COMPANY 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 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. Stuart Moon (Senior statutory auditor) for and on behalf of Barnes Roffe Audit Limited Chartered Accountants Statutory Auditor Leytonstone House London E11 1GA 1 August 2025 Page 7
BROWNINGS ELECTRIC COMPANY LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 11,529,008 | 11,484,612
Cost of sales |  | (5,865,268) | (6,379,822)
Gross profit |  | 5,663,740 | 5,104,790
Distribution costs |  | (805,454) | (791,864)
Administrative expenses |  | (2,967,276) | (2,982,599)
Operating profit | 5 | 1,891,010 | 1,330,327
Interest receivable and similar income | 9 | 39,868 | 14,932
Interest payable and similar expenses | 10 | (27,408) | (27,649)
Other finance income |  | (51,000) | (68,000)
Profit before tax |  | 1,852,470 | 1,249,610
Tax on profit | 12 | (585,565) | (239,860)
Profit for the financial year |  | 1,266,905 | 1,009,750
The notes on pages 12 to 29 form part of these financial statements.
Page 8
BROWNINGS ELECTRIC COMPANY LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  |  | 2024 | 2023
|  |  |  | £ | £
Profit for the financial year |  | 1,266,905 | 1,009,750
Other comprehensive income |  |  |
Unrealised surplus on revaluation of tangible fixed assets |  | 106,756 | -
Actuarial gain on defined benefit schemes |  | 750,000 | 17,000
Movement on deferred tax relating to pension losses |  | - | (4,250)
Total comprehensive income for the year |  | 2,123,661 | 1,022,500
The notes on pages 12 to 29 form part of these financial statements.
Page 9
BROWNINGS ELECTRIC COMPANY LIMITED REGISTERED NUMBER: 00362699 BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 14 |  | 3,213,364 |  | 3,489,849
|  |  | 3,213,364 |  | 3,489,849
Current assets |  |  |  |  |
Stocks | 15 | 401,773 |  | 290,551 |
Debtors: amounts falling due within one year | 16 | 3,989,914 |  | 3,772,911 |
Cash at bank and in hand | 17 | 902,795 |  | 812,355 |
|  | 5,294,482 |  | 4,875,817 |
Creditors: amounts falling due within one year | 18 | (1,476,316) |  | (1,688,646) |
Net current assets |  |  | 3,818,166 |  | 3,187,171
Total assets less current liabilities |  |  | 7,031,530 |  | 6,677,020
Provisions for liabilities |  |  |  |  |
Deferred tax | 19 | (258,427) |  | - |
|  |  | (258,427) |  | -
Pension liability |  |  | (102,000) |  | (1,151,000)
Net assets |  |  | 6,671,103 |  | 5,526,020
Capital and reserves |  |  |  |  |
Called up share capital | 20 |  | 29,200 |  | 29,200
Revaluation reserve | 21 |  | 1,665,907 |  | 1,559,151
Profit and loss account | 21 |  | 4,975,996 |  | 3,937,669
|  |  | 6,671,103 |  | 5,526,020
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 July 2025.
S Damney | L T Galea
Director | Director
The notes on pages 12 to 29 form part of these financial statements. Page 10
BROWNINGS ELECTRIC COMPANY LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Revaluation reserve | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2023 | 29,200 | 1,559,151 | 4,123,064 | 5,711,415
Profit for the year | - | - | 1,009,750 | 1,009,750
Actuarial gains on pension scheme | - | - | 17,000 | 17,000
Deferred tax movements | - | - | (4,250) | (4,250)
Dividends: Equity capital | - | - | (1,207,895) | (1,207,895)
At 1 January 2024 | 29,200 | 1,559,151 | 3,937,669 | 5,526,020
Profit for the year | - | - | 1,266,905 | 1,266,905
Actuarial gains on pension scheme | - | - | 750,000 | 750,000
Deferred tax movements | - | - | (187,500) | (187,500)
Surplus on revaluation of freehold property | - | 106,756 | - | 106,756
Dividends: Equity capital | - | - | (791,078) | (791,078)
At 31 December 2024 | 29,200 | 1,665,907 | 4,975,996 | 6,671,103
| The notes on pages 12 to 29 form part of these financial statements.
Page 11
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Browning's Electric Company Limited ("the Company") is a Company limited by shares, incorporated in England and Wales. Its registered office is 11 Thames Road, Barking, Essex IG11 0HG. 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 (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of BEC (London) Limited as at 31 December 2024 and these financial statements may be obtained from the company's registered office. Page 12
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | 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: 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. Revenue is recognised on delivery.
| 2.4 | 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, on the following basis. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2% Straight Line
|  |  |  | Plant and machinery | - | 10% reducing balance
|  |  |  | Motor vehicles | - | 20% and 25% straight line
|  |  |  | Fixtures and fittings | - | 15% - 20% reducing balance
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 13
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.5 | Revaluation of tangible fixed assets
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
| 2.6 | 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.
| 2.7 | Debtors
Short-term debtors are measured at transaction price, less any impairment.
| 2.8 | 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.
| 2.9 | Creditors
Short-term creditors are measured at the transaction price.
| 2.10 | 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.
| 2.11 | 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. Page 14
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.12 | 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.
| 2.13 | Leased assets: the Company as lessor
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
| 2.14 | 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. Defined benefit pension plan The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan. The liability recognised in the Balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled. The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate'). The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'. Page 15
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.14 | Pensions (continued)
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises: a) the increase in net pension benefit liability arising from employee service during the period; and b) the cost of plan introductions, benefit changes, curtailments and settlements. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'. 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 the profit or loss account 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.
| 2.15 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. 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. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 16
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 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. Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument. 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. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date.. 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. Page 17
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.16 | Financial instruments (continued)
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. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions Revaluation of tangible fixed assets The directors have assessed the market value of the property. The valuation was based upon market values as at the balance sheet date on an 'open market value' basis. See note 14 for further information. Defined benefit pension scheme The company has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 22 for further information. Work in progress Work in progress consists of labour, materials and overhead costs of ongoing projects at the balance sheet date. Management estimate the value of materials and overheads based upon a percentage of the value of labour work at that time. The percentages used are based upon the managements knowledge and experience of the industry taking into account current pricing factors. The value of work in progress is £195,593 (2023 - £138,118) and is included within note 15. Page 18
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Turnover
The whole of the turnover is attributable to the one principal activity being that of electrical motor repairs and mechanical engineering.
| All turnover arose within the United Kingdom.
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Depreciation of tangible fixed assets | 70,600 | 114,215
| Other operating lease rentals | 231,363 | 175,769
| Impairment of freehold property | 400,743 | -
6. | Auditor's remuneration
| During the year, the Company obtained the following services from the Company's auditor:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditor for the audit of the Company's financial statements | 20,000 | 20,000
7. | Employees
| Staff costs were as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Company contributions to defined contribution pension schemes | 160,425 | 450,000
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Office and management | 4 | 4
Page 19
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Company contributions to defined contribution pension schemes | 160,425 | 450,000
| The directors are remunerated by Brownings Employee Services LLP, a group entity, and these costs are included within a management charge. It is not possible to split the management charge between services provided.
9. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 39,868 | 14,932
10. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other loan interest payable | 27,408 | 27,649
11. | Other finance costs
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Net interest on net defined benefit liability | 51,000 | 68,000
Page 20
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
12. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 517,420 | 258,527
| Adjustments in respect of previous periods | (3,835) | -
| Total current tax | 513,585 | 258,527
| Deferred tax |  |
| Origination and reversal of timing differences | 72,708 | (18,667)
| Adjustments in respect of previous periods | (728) | -
| Total deferred tax | 71,980 | (18,667)
|  | 585,565 | 239,860
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,852,470 | 1,249,610
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%) | 463,118 | 293,658
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 127,010 | 3,777
| Adjustments to tax charge in respect of defined benefit scheme contributions | - | (57,575)
| Adjustment from previous periods | (4,563) | -
| Total tax charge for the year | 585,565 | 239,860
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 21
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Dividends
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Dividends paid on equity shares | 791,078 | 1,207,895
14. | Tangible fixed assets
|  | Freehold land and buildings | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2024 | 3,503,970 | 675,749 | 336,990 | 298,866 | 4,815,575
| Additions | - | 6,278 | - | 11,148 | 17,426
| Revaluations | (403,970) | - | - | - | (403,970)
| At 31 December 2024 | 3,100,000 | 682,027 | 336,990 | 310,014 | 4,429,031
| Depreciation |  |  |  |  |
| At 1 January 2024 | 139,639 | 566,131 | 335,853 | 284,103 | 1,325,726
| Charge for the year on owned assets | 41,020 | 23,298 | 1,137 | 5,145 | 70,600
| On revalued assets | (180,659) | - | - | - | (180,659)
| At 31 December 2024 | - | 589,429 | 336,990 | 289,248 | 1,215,667
| Net book value |  |  |  |  |
| At 31 December 2024 | 3,100,000 | 92,598 | - | 20,766 | 3,213,364
| At 31 December 2023 | 3,364,331 | 109,618 | 1,137 | 14,763 | 3,489,849
| The net book value of land and buildings may be further analysed as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Freehold | 3,100,000 | 3,364,331
Page 22
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Cost or valuation at 31 December 2024 is as follows:
|  |  | Land and buildings
|  |  | £
|  | At cost | 1,837,199
|  | At valuation: |
|  | 31 December 2024 based on open market value | 1,262,801
|  |  | 3,100,000
| If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Cost | 1,837,199 | 1,837,199
| Accumulated depreciation | (169,975) | (158,371)
| Net book value | 1,667,224 | 1,678,828
| The valuation of the freehold land and buildings was carried out by external valuers during the year.
15. | Stocks
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Raw materials and consumables | 206,180 | 152,433
| Work in progress (goods to be sold) | 195,593 | 138,118
|  | 401,773 | 290,551
16. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade debtors | 1,906,335 | 2,059,144
| Amounts owed by group undertakings | 1,707,418 | 1,115,101
| Other debtors | 333,548 | 468,885
| Prepayments and accrued income | 42,613 | 58,052
| Deferred taxation | - | 71,729
|  | 3,989,914 | 3,772,911
Page 23
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. | Cash and cash equivalents
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Cash at bank and in hand | 902,795 | 812,355
18. | Creditors: Amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade creditors | 662,012 | 684,980
| Other taxation and social security | 350,255 | 358,802
| Other creditors | 464,049 | 644,864
|  | 1,476,316 | 1,688,646
19. | Deferred taxation
|  | 2024
|  | £
| At beginning of year | 71,729
| Charged to profit or loss | (74,750)
| Charged to other comprehensive income | (187,500)
| Utilised in year | (67,906)
| At end of year | (258,427)
Page 24
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 19.Deferred taxation (continued)
| The deferred taxation balance is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fixed asset timing differences | (17,153) | (19,923)
| Defined benefit scheme liability | 25,500 | 287,750
| Revalued tangible fixed assets | (266,774) | (196,098)
|  | (258,427) | 71,729
| Comprising: |  |
| Asset - due within one year | 25,500 | 287,750
| Liability | (283,927) | (216,021)
|  | (258,427) | 71,729
20. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 29,200 (2023 - 29,200) Ordinary shares of £1.00 each | 29,200 | 29,200
| All shares rank equally in all respects.
21. | Reserves
Revaluation reserve The revaluation reserve represents cumulative revaluation gains and losses in respect of tangible fixed assets since 2006. Profit and loss account The Profit and loss account consists of distributable reserves arising from cumulative historical profits and losses less any distributions made. Page 25
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
22. | Pension commitments
The Company operates a Defined benefit pension scheme. Defined Benefit The amounts in the financial statements for the year ended 31 December 2024, relating to defined benefit pensions, are based on a full actuarial valuation. The most recent full actuarial valuation was at 5 April 2022, which has been updated to 31 December 2024 by a qualified independent actuary. The defined benefit scheme became a closed scheme on 5 April 2005 and an alternative money purchase scheme was operated for new members and to provide benefits in respect of future service for the current members of the defined benefit scheme. The Company continues to fund the defined benefit scheme to meet the minimum funding requirements (currently 6.7% of pensionable salary) in respect of obligations to members for past service benefits earned to the date of closure. Company contributions to the money purchase scheme were 5% of pensionable salaries.
| Reconciliation of present value of plan liabilities:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Reconciliation of present value of plan liabilities |  |
| At the beginning of the year | 4,996,000 | 5,075,000
| Interest cost | 220,000 | 239,000
| Actuarial gains/losses | (711,000) | 74,000
| Benefits paid | (243,000) | (392,000)
| At the end of the year | 4,262,000 | 4,996,000
Page 26
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 22.Pension commitments (continued)
| Reconciliation of present value of plan assets:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| At the beginning of the year | 3,845,000 | 3,645,000
| Interest income | 169,000 | 171,000
| Actuarial gains/losses | 39,000 | 91,000
| Contributions | 350,000 | 330,000
| Benefits paid | (243,000) | (392,000)
| At the end of the year | 4,160,000 | 3,845,000
| Composition of plan assets:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Equities | 2,207,000 | 1,955,000
| Fixed interest | 1,090,000 | 1,139,000
| Other | 550,000 | 544,000
| Cash | 313,000 | 207,000
| Total plan assets | 4,160,000 | 3,845,000
| None of the fair value of the assets shown above include any direct investments in the Company's own financial instruments or any property occupied by, or used by, the Company.
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fair value of plan assets | 4,160,000 | 3,845,000
| Present value of plan liabilities | (4,262,000) | (4,996,000)
| Net pension scheme liability | (102,000) | (1,151,000)
Page 27
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 22.Pension commitments (continued)
| The amounts recognised in profit or loss are as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Interest on obligation | 51,000 | 68,000
| The Company expects to contribute £NIL to its Defined benefit pension scheme in 2025.
| Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
|  | 2024 | 2023
|  | % | %
| Discount rate | 5.3 | 4.4
| Future reduction in deferment | 3.0 | 2.8
| Future pension increases | 3.2 | 3.0
| Life expectancy |  |
| - for a male aged 65 now | 21.0 | 21.6
| - for a female aged 65 now | 23.2 | 23.5
| Surplus
Page 28
BROWNINGS ELECTRIC COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
23. | 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
|  |  |  |  | £ | £
| Land & buildings |  |
| Not later than 1 year | - | 22,500
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other |  |
| Not later than 1 year | 81,827 | 75,184
| Later than 1 year and not later than 5 years | 74,925 | 79,131
|  | 156,752 | 154,315
24. | Related party transactions
| The company has taken advantage of the exemption under Financial Reporting Standard 102 Section 33 'Related Party Disclosures' not to disclose transactions included in the consolidated financial statements of BEC (London) Limited, its immediate parent undertaking.
25. | Controlling party
The ultimate parent undertaking is BEC (L&W) Limited, a company incorporated in England and Wales. This company was incorporated in the year to effect a management buy out undertaken in the immediate parent company of BEC (London) Limited. The consolidated financial statements of BEC (London) Limited, the largest group of undertakings for which accounts are drawn up, are available to the public at the company's registered office.
Page 29