Commercial Lighting Systems Ltd. - Limited company accounts 20.1

REGISTERED NUMBER: 02615882 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

Commercial Lighting Systems Ltd.

Page

Company Information

1

Report of the Directors

2

Statement of Income and Retained Earnings

3

Statement of Financial Position

4

Notes to the Financial Statements

6

DIRECTORS:

P Cutting

DD Falstein

H Lawrence

SECRETARY:

D Falstein

REGISTERED OFFICE:

Unit 17, Chandlers Way

Parkgate Business Centre

Swanwick

Hampshire

SO31 1FQ

REGISTERED NUMBER:

02615882 (England and Wales)

ACCOUNTANTS:

Parry Hancock

Chartered Accountants

Webb House

20 Bridge Road

Park Gate

Southampton

Hampshire

SO31 7GE

SOLICITORS:

Shoosmiths

Russell House

1550 Parkway

Whiteley

Fareham

Hampshire

PO15 7AG

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

PRINCIPAL ACTIVITY

Despite this not being a mandatory disclosure, we wish to state that the principle activity of the company in the year

under review was that of manufacture and distribution of lighting products.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this

report.

P Cutting

DD Falstein

H Lawrence

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

D Falstein - Secretary

16 June 2020

TURNOVER

2,328,536

2,333,364

Cost of sales

1,337,025

1,336,704

GROSS PROFIT

991,511

996,660

Distribution costs

67,459

64,332

Administrative expenses

886,591

823,087

954,050

887,419

37,461

109,241

Other operating income

3,383

3,278

OPERATING PROFIT

40,844

112,519

Interest receivable and similar income

4,866

1,137

PROFIT BEFORE TAXATION

45,710

113,656

Tax on profit

8,972

21,933

PROFIT FOR THE FINANCIAL YEAR

36,738

91,723

Retained earnings at beginning of year

747,623

655,900

Dividends

(15,000

)

-

RETAINED EARNINGS AT END OF YEAR

769,361

747,623

FIXED ASSETS

Tangible assets

4

125,103

65,739

CURRENT ASSETS

Stocks

487,068

505,054

Debtors

5

125,145

361,928

Cash at bank and in hand

518,915

430,461

1,131,128

1,297,443

CREDITORS

Amounts falling due within one year

6

230,895

372,279

NET CURRENT ASSETS

900,233

925,164

TOTAL ASSETS LESS CURRENT LIABILITIES

1,025,336

990,903

PROVISIONS FOR LIABILITIES

16,000

3,305

NET ASSETS

1,009,336

987,598

CAPITAL AND RESERVES

Called up share capital

38,501

38,501

Share premium

201,474

201,474

Retained earnings

769,361

747,623

SHAREHOLDERS' FUNDS

1,009,336

987,598

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 16 June 2020 and were signed on its behalf by:

P Cutting - Director

1.	STATUTORY INFORMATION

Commercial Lighting Systems Ltd. is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue recognition

Revenue - described as turnover - is the value of goods (net of VAT) provided to customers during the year, plus

the value of work (net of VAT) performed during the year with respect to services.

Revenue is recognised on the sale of goods when the goods are delivered and title has passed. Revenue is

recognised on the provision of services on a percentage degree of completion basis calculated by reference to the

time expended compared to the anticipated time.

Tangible fixed assets

The cost of tangible fixed assets includes only expenditure directly incurred in bringing the assets into working

condition for their intended use. Both the cost of replacing major components and the cost of major inspections

are capitalised. Borrowing costs are not capitalised. Depreciation is provided at the following annual rates in

order to allocate the depreciable amount of each asset over its estimated useful life.

Plant and machinery - 20% on cost and 4% on cost

Fixtures and fittings - 33.3% on cost and 20% on cost

Motor vehicles - 25% on cost

Assets held under finance leases are depreciated in the same way as owned assets.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine

whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the

recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable

amount of the cash-generating unit to which the asset belongs.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow-moving items. Cost includes any expenditure incurred in bringing stock to its present location and

condition. An average cost basis is used. Borrowing costs are not capitalised. Where consignment stock is in

substance an asset of the company, it is recognised as such on the balance sheet.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the

related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of

stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any

reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an

expense in the period in which the reversal occurs.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to

related parties and investments in non-puttable ordinary shares.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and

Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or

directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution scheme. The assets of the scheme are held separately from the

assets of the company in an independently administered fund. The pensions costs charge represents contributions

payable for the period by the company to the fund.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the

balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where

material, provisions are calculated on a discounted basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2018 - 28 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 January 2019

333,850

233,694

61,856

629,400

Additions

1,568

450

97,650

99,668

At 31 December 2019

335,418

234,144

159,506

729,068

DEPRECIATION

At 1 January 2019

311,959

220,331

31,371

563,661

Charge for year

8,772

5,505

26,027

40,304

At 31 December 2019

320,731

225,836

57,398

603,965

NET BOOK VALUE

At 31 December 2019

14,687

8,308

102,108

125,103

At 31 December 2018

21,891

13,363

30,485

65,739

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Trade debtors

51,875

305,511

Other debtors

73,270

56,417

125,145

361,928

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

£

£

Payments on account

62,762

108,541

Trade creditors

53,905

123,326

Taxation and social security

89,657

118,949

Other creditors

24,571

21,463

230,895

372,279

7.	GUARANTEES CONTINGENCIES AND OTHER FINANCIAL COMMITMENTS

At 31 December 2019, the company had total commitments under non-cancellable operating leases over the

remaining life of those leases of £9,333 (2018: £65,333).

8.	OTHER FINANCIAL COMMITMENTS

The company entered into a new operating lease for its business premises on 1st March 2020. Commitments

under this non-cancellable lease at that date amounted to £324,000.

9.	EVENTS AFTER THE REPORTING DATE

Coronavirus

As at the company's year-end, 31 December 2019, China had alerted the World Health Organisation (WHO) of

several cases of an unusual form of pneumonia in Wuhan. However, substantive information about what has now

been identified as coronavirus (or COVID-19) only came to light in early 2020. The directors do not consider

that any adjustments are necessary to the financial statements as a result of the existence of the Covid-19 virus.

On 25th March 2020 the company's employees were placed on furlough under the Coronavirus Job Retention

Scheme. Operations have resumed now that it is safe to do so.

The directors believe that the company will continue to trade profitably beyond the current crisis, given its

significant cash resources together with the Government's measures under the Covid-19: Support for Business

initiative