Orange Music Electronic Company Limited Company accounts

ORANGE MUSIC ELECTRONIC COMPANY LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 01289884

Orange Music Electronic Company Limited

Financial Statements

For the year ended

30 September 2022

Orange Music Electronic Company Limited

Financial Statements

Year ended 30 September 2022

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of income and retained earnings	10

Statement of financial position	11

Notes to the financial statements	13

Orange Music Electronic Company Limited

Officers and Professional Advisers

The board of directors	C K Cooper
	C W Cooper
	C S Cooper
	A G Emsley

Company secretary	P J Whiteford

Registered office	108 Ripon Way
	Borehamwood
	Hertfordshire
	WD6 2JA

Auditor	Streets Audit LLP
	Chartered accountants & statutory auditor
	Building 15, Gateway 1000
	Arlington Business Park
	Stevenage
	Hertfordshire
	SG1 2FP

Orange Music Electronic Company Limited

Strategic Report

Year ended 30 September 2022

Introduction The directors present the strategic report for the year ended 30 September 2022. Business review The results for the year and the financial position of the company are shown in the attached financial statements. The company’s sales this year have increased to £16.0m (2021: £13.3m) and the gross profit margin has increased to 28.4% (2021: 22.5%) coming from the large exchange rate gains seen in the year, in particular around year end with the fall in the USD at 30.09.2023. Excluding exchange rate fluctuations the gross profit margin has fallen by 2% in 2022 due to continued increases in component prices although freight cost has begun to fall. With careful management and control on costs, overheads have remained fairly consistent in 2022 at £1.6m (2021: £1.5m), excluding a charity donation made in the year of £503K. During this financial year the company has continued to manage rising prices and supply issues by working closely with its suppliers and adjust to the new market requirements. The measures the company have put in place to support its staff, to manage its supply chain and to adapt to the new requirements of its customer have all helped to contribution to the strong year of trading its seen and believe this has put them in stable position for 22/23. Principal risks and uncertainties There is a lot of change in the trading environment causing risk and uncertainty but also providing opportunities. Macroeconomic and political factors are affecting the whole distribution chain. We keep a careful eye on all the risk factors and stay focused to reach our goals. Rising inflation worldwide has the double result of increasing costs and reducing discretionary income for the end customer of our products. Worldwide shortages and price increases in core components together with shipping shortages and increased prices are creating uncertainty in future costs but we are carefully monitoring the situation. Currency rate fluctuations continue to be significant risk to the company, The company continues to match the currency it charges international customers with that of its major suppliers and regularly monitors exchanges rates, to help with mitigating this risk. Financial key performance indicators Turnover, Gross Margin, Debtor Days, Creditor Days and Stock Turnover are key performance indicators used to manage the business. 2022 2021 Turnover £16.0m £13.3m Gross Margin 28.4% 22.5% Debtor Days 23 10 Creditor Days 37 32 Stock Turnover 43 38 Other key performance indicators The company carefully monitors market share, brand awareness and social media uptake in all markets. The company measures customer feedback and all quality issues raised. The Future The company will continue to work closely with all business partners to manage the increasing pressures on supply chain, including component pricing as well as the effects we are seeing from the downturn in the economy and the increase in inflation on customer spending. The Directors are confident that the business plans of the company are robust even in these current situations. The company will continue to invest in research and development in this coming year as a key priority is still to bring innovative and current products to market to increase demand and market share within the industry.

This report was approved by the board of directors on 27 June 2023 and signed on behalf of the board by:

C S Cooper

Director

Registered office:

108 Ripon Way

Borehamwood

Hertfordshire

WD6 2JA

Orange Music Electronic Company Limited

Directors' Report

Year ended 30 September 2022

The directors present their report and the financial statements of the company for the year ended 30 September 2022 .

Directors

The directors who served the company during the year were as follows:

C K Cooper
C W Cooper
C S Cooper
A G Emsley

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 27 June 2023 and signed on behalf of the board by:

C S Cooper

Director

Registered office:

108 Ripon Way

Borehamwood

Hertfordshire

WD6 2JA

Orange Music Electronic Company Limited

Independent Auditor's Report to the Members of Orange Music Electronic Company Limited

Year ended 30 September 2022

Opinion

We have audited the financial statements of Orange Music Electronic Company Limited (the 'company') for the year ended 30 September 2022 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2022 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused 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, employment, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of 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 laws 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; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws 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 and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Day

(Senior Statutory Auditor)

For and on behalf of

Streets Audit LLP

Chartered accountants & statutory auditor

Building 15, Gateway 1000

Arlington Business Park

Stevenage

Hertfordshire

SG1 2FP

28 June 2023

Orange Music Electronic Company Limited

Statement of Income and Retained Earnings

Year ended 30 September 2022

		2022	2021
Note		£	£
Turnover	4	15,997,426	13,277,302

Cost of sales	11,452,625	10,289,527
	-------------	-------------
Gross profit	4,544,801	2,987,775

Administrative expenses		2,150,066	1,475,123
Other operating income	5	35,337	21,548
		------------	------------
Operating profit	6	2,430,072	1,534,200

Other interest receivable and similar income		3,157	1,160
Interest payable and similar expenses	10	109	206
		------------	------------
Profit before taxation		2,433,120	1,535,154

Tax on profit	11	379,599	305,552
		------------	------------
Profit for the financial year and total comprehensive income		2,053,521	1,229,602
		------------	------------

Dividends paid and payable	12	–	( 353,467)

Retained earnings at the start of the year	9,086,725	8,210,590
	-------------	------------
Retained earnings at the end of the year	11,140,246	9,086,725
	-------------	------------

All the activities of the company are from continuing operations.

Orange Music Electronic Company Limited

Statement of Financial Position

30 September 2022

	2022		2021
Note	£	£	£

Fixed assets

Tangible assets	13	33,702	61,606
Investments	14	25,000	25,000
		--------	--------
		58,702	86,606

Current assets

Stocks	15	1,339,964	1,065,869
Debtors	16	8,245,684	6,199,049
Cash at bank and in hand		3,326,651	3,109,211
		-------------	-------------
		12,912,299	10,374,129

Creditors: amounts falling due within one year	17	1,821,755		1,347,958
		-------------		-------------
Net current assets			11,090,544	9,026,171
			-------------	------------
Total assets less current liabilities			11,149,246	9,112,777

Provisions

Taxation including deferred tax	18	–	17,052
		-------------	------------
Net assets		11,149,246	9,095,725
		-------------	------------

Orange Music Electronic Company Limited

Statement of Financial Position (continued)

30 September 2022

	2022		2021
Note	£	£	£

Capital and reserves

Called up share capital	22	9,000	9,000
Profit and loss account		11,140,246	9,086,725
		-------------	------------
Shareholders funds		11,149,246	9,095,725
		-------------	------------

These financial statements were approved by the board of directors and authorised for issue on 27 June 2023 , and are signed on behalf of the board by:

C S Cooper

Director

Company registration number: 01289884

Orange Music Electronic Company Limited

Notes to the Financial Statements

Year ended 30 September 2022

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 108 Ripon Way, Borehamwood, Hertfordshire, WD6 2JA.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of (enter name of group financial statements) which can be obtained from (enter detail). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The judgements and accounting estimates that management have made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as disclosed in the accounting policies and notes to these financial statements.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Short leasehold property	-	10% straight line
Plant and machinery	-	25% to 33% Straight line
Fixtures and fittings	-	25% to 33% Straight line
Motor vehicles	-	33% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Financial instruments

The company only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Turnover

Turnover arises from:

	2022	2021
	£	£
Sale of goods	15,997,426	13,277,302
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2022	2021
	£	£
United Kingdom	1,787,068	1,526,602
Overseas	14,210,358	11,750,700
	-------------	-------------
	15,997,426	13,277,302
	-------------	-------------

5. Other operating income

	2022	2021
	£	£
Government grant income	–	764
Other operating income	35,337	20,784
	--------	--------
	35,337	21,548
	--------	--------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	2022	2021
	£	£
Depreciation of tangible assets	34,366	41,570
Gains on disposal of tangible assets	–	( 977)
Impairment of trade debtors	171	12
Foreign exchange differences	(1,093,974)	190,949
Other operating lease rentals	–	162,797
	------------	---------

7. Auditor's remuneration

	2022	2021
	£	£
Fees payable for the audit of the financial statements	24,000	26,450
	--------	--------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2022	2021
	No.	No.
Production staff	4	4
Administrative staff	11	11
Management staff	4	4
	----	----
	19	19
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2022	2021
	£	£
Wages and salaries	959,979	740,826
Social security costs	96,405	73,648
Other pension costs	31,036	24,243
	------------	---------
	1,087,420	838,717
	------------	---------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2022	2021
	£	£
Remuneration	130,392	113,768
	---------	---------

10. Interest payable and similar expenses

	2022	2021
	£	£
Other interest payable and similar charges	109	206
	----	----

11. Tax on profit

Major components of tax expense

	2022	2021
	£	£

Current tax:

UK current tax expense	518,758	304,947

Deferred tax:

Origination and reversal of timing differences	( 139,159)	605
	---------	---------
Tax on profit	379,599	305,552
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2021: higher than) the standard rate of corporation tax in the UK of 19 % (2021: 19 %).

	2022	2021
	£	£
Profit on ordinary activities before taxation	2,433,120	1,535,154
	------------	------------
Profit on ordinary activities by rate of tax	462,293	291,679
Effect of expenses not deductible for tax purposes	( 36,794)	13,873
Group relief	(45,900)	–
	------------	------------
Tax on profit	379,599	305,552
	------------	------------

12. Dividends

	2022	2021
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	–	353,467
	----	---------

13. Tangible assets

	Short leasehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost
At 1 October 2021	114,759	27,304	269,353	411,416
Additions	–	4,636	1,826	6,462
Disposals	–	–	( 35,220)	( 35,220)
	---------	--------	---------	---------
At 30 September 2022	114,759	31,940	235,959	382,658
	---------	--------	---------	---------
Depreciation
At 1 October 2021	102,081	13,621	234,108	349,810
Charge for the year	1,452	4,174	28,740	34,366
Disposals	–	–	( 35,220)	( 35,220)
	---------	--------	---------	---------
At 30 September 2022	103,533	17,795	227,628	348,956
	---------	--------	---------	---------
Carrying amount
At 30 September 2022	11,226	14,145	8,331	33,702
	---------	--------	---------	---------
At 30 September 2021	12,678	13,683	35,245	61,606
	---------	--------	---------	---------

14. Investments

	Other investments other than loans
	£
Cost
At 1 October 2021 and 30 September 2022	25,000
	--------
Impairment
At 1 October 2021 and 30 September 2022	–
	--------

Carrying amount
At 30 September 2022	25,000
	--------
At 30 September 2021	25,000
	--------

15. Stocks

	2022	2021
	£	£
Raw materials and consumables	1,339,964	1,065,869
	------------	------------

16. Debtors

	2022	2021
	£	£
Trade debtors	1,019,127	372,274
Amounts owed by group undertakings	6,839,394	5,614,156
Deferred tax asset	122,107	–
Prepayments and accrued income	212,482	190,308
Other debtors	52,574	22,311
	------------	------------
	8,245,684	6,199,049
	------------	------------

17. Creditors: amounts falling due within one year

	2022	2021
	£	£
Trade creditors	1,153,536	888,650
Accruals and deferred income	252,463	194,571
Social security and other taxes	337,906	199,997
Other creditors	77,850	64,740
	------------	------------
	1,821,755	1,347,958
	------------	------------

18. Provisions

	Deferred tax (note 19)
	£
At 1 October 2021	17,052
Additions	( 17,052)
	--------
At 30 September 2022	–
	--------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2022	2021
	£	£
Included in debtors (note 16)	122,107	–
Included in provisions (note 18)	–	( 17,052)
	---------	--------
	122,107	( 17,052)
	---------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2022	2021
	£	£
Accelerated capital allowances	6,543	17,052
Unpaid charitable donations	(128,650)	–
	---------	--------
	(122,107)	17,052
	---------	--------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 31,036 (2021: £ 24,243 ).

21. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2022	2021
	£	£

Recognised in other operating income:

Government grants recognised directly in income	–	764
	----	----

22. Called up share capital

Issued, called up and fully paid

	2022		2021
	No.	£	No.	£
Ordinary shares of £ 1 each	9,000	9,000	9,000	9,000
	-------	-------	-------	-------

23. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2022	2021
	£	£
Not later than 1 year	106,668	106,612
Later than 1 year and not later than 5 years	–	106,343
	---------	---------
	106,668	212,955
	---------	---------

24. Related party transactions

The company has taken advantage of the exemptions available under FRS102 section 33.1A relating to the disclosure of related party transactions with other members of the OMEC (Holdings) Limited group. Purchases from a director during the year totalled £141,203 (2021 £69,588). At year end amounts owed to the director totalled £14,293 (2021 £615), this balance is included in trade creditors. During the year, purchases of £124,024 (2021: £77,975) were made from companies with common directors.

25. Controlling party

The company is a subsidiary of OMEC (Holdings) Limited, a company incorporated in England & Wales. OMEC (Holdings) Limited prepare group accounts. The address of the registered office 108 Ripon Way, Borehamwood, Hertfordshire, United Kingdom, WD6 2JA. The ultimate controlling party is C S Cooper .