L.S. Transmission Consultancy Limited - Limited company accounts 23.2

REGISTERED NUMBER: 04191630 (England and Wales)

L.S. Transmission Consultancy

Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2023

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

N Minns

M J Straker

P Papanastasiou

J R Shipley

J Crew

K Marawanyika

SECRETARY:

J R Shipley

REGISTERED OFFICE:

Yorkshire House

York Road

Little Driffield

Driffield

East Yorkshire

YO25 5XA

REGISTERED NUMBER:

04191630 (England and Wales)

AUDITORS:

Baines Jewitt Limited

Statutory Auditor

Spitfire House

19 Falcon Court

Preston Farm Industrial Estate

Stockton on Tees

TS18 3TU

The directors present their strategic report for the year ended 30 June 2023.

The company's principal business activity is to provide engineering professional services to the electricity sector. Its focus is on the design and survey of overhead lines, underground cables and substation systems from low voltage to extra high voltage in the UK and internationally.

REVIEW OF BUSINESS

2023 was a year of further consolidation for the group as whole following the formation of a new management team, together with existing members of management, and the successful acquisition by LSTC Group Limited of the entire issued share capital of the company via a Management Buy-Out on 30 June 2022. Trading performance of the company as a whole remained relatively consistent with turnover increasing by 3.4% to £9.8m (2022: £9.5m) with gross profit of £2.4m (2022: £2.4m) and operating profit of £1.5m (2022: £1.56m). Whilst efficiencies were made, changes in the mix of work together with internal restructuring costs resulted in slightly reduced gross and operating profit margins at 24% (2022: 25%) and 15.3% (2022: 16.4%). Overall, the directors are happy with the performance of the company during the period under review.

Key Performance Indicators

The group tightly manages its cash flow and working capital and uses several KPI's to further monitor its performance. These include a range of financial and operational ratios as follows:

- Gross profit/turnover

- Operating profit/turnover

- Debtor days

- Work in progress days

- Cash balance

- Staff utilisation

- Order book profile

The operational performance indicators are commercially sensitive and have not been disclosed.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors are aware of the various risks inherent in the business and meet regularly to consider them. The key business risks are:

Competition risk:

The business is impacted by the supply of professional services into the electricity sector. The risk is mitigated by the relationships in place at all levels with the major suppliers to the sector and offering an extensive range of engineer services.

Credit risk:

The group operates a strict policy of credit checking and reviewing all new and existing commercial customers.

Cash Flow/Liquidity risk:

Cash flow and liquidity are monitored regularly against forecasts and available finance facilities to ensure the group has sufficient headroom. The group actively maintains a mixture of long-term and short-term committed facilities which are designed to ensure the group has sufficient available funds for operations and planned investment equivalent to at least one year's forecast requirements at all times. The group continues to be well supported by HSBC Bank plc.

Staff risk:

The group could be exposed to a lack of supply of skilled labour and mitigates this risk by providing a clear career plan and training programme for all levels of staff from graduates through to directors. The management buyout has also helped with retention of key employees.

FUTURE DEVELOPMENTS

The company is constantly looking to enhance its service offering to enable it to generate increased revenue opportunities.

RESEARCH AND DEVELOPMENT ACTIVITIES

With the implementation of greater loads, expectations of the network, the drive toward electricity being the key to green energies tackling climate change and achieving Net Zero by 2050, the group is continually working on projects to upgrade capabilities for delivering electricity through the network of structures, conductors, and components which, at the moment, are undefined and, once delivered, can be adopted by the industry and used going forward to future proof the network.

BANKING FACILITIES

We continue to be well supported by HSBC Bank plc, with the management buyout in part funded through medium term borrowing with them.

ON BEHALF OF THE BOARD:

J R Shipley - Director

28 March 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of engineering related scientific and technical consultancy.

DIVIDENDS

The total distribution of dividends for the year ended 30th June 2023 will be £480,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

N Minns

M J Straker

P Papanastasiou

J R Shipley

Other changes in directors holding office are as follows:

R A K Salter - resigned 9 June 2023

J Crew - appointed 26 September 2022

K Marawanyika - appointed 26 September 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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 and then apply them consistently;

-	make judgements 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Baines Jewitt Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J R Shipley - Director

28 March 2024

Opinion

We have audited the financial statements of L.S. Transmission Consultancy Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 30 June 2023 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 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.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to Health & Safety and Employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We evaluated management's opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

-

discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

-

evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

-

challenging assumptions and judgements made by management in their significant accounting estimates; and

-

identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Donald Adams FCA (Senior Statutory Auditor)

for and on behalf of Baines Jewitt Limited

Statutory Auditor

Spitfire House

19 Falcon Court

Preston Farm Industrial Estate

Stockton on Tees

TS18 3TU

28 March 2024

TURNOVER

3

9,816,409

9,491,696

Cost of sales

(7,433,085

)

(7,098,585

)

GROSS PROFIT

2,383,324

2,393,111

Administrative expenses

(950,510

)

(913,695

)

1,432,814

1,479,416

Other operating income

68,033

78,826

OPERATING PROFIT

5

1,500,847

1,558,242

Interest receivable and similar income

405

42,418

1,501,252

1,600,660

Gain/loss on revaluation of investment property

-

22,517

1,501,252

1,623,177

Interest payable and similar expenses

6

(1,010

)

(1,020

)

PROFIT BEFORE TAXATION

1,500,242

1,622,157

Tax on profit

7

(277,491

)

57,429

PROFIT FOR THE FINANCIAL YEAR

1,222,751

1,679,586

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,222,751

1,679,586

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

257,033

314,599

Investments

11

1,797,721

1,797,721

Investment property

12

-

192,517

2,054,754

2,304,837

CURRENT ASSETS

Stocks

13

3,574

3,520

Debtors

14

7,834,978

6,694,260

Cash at bank and in hand

427,437

336,156

8,265,989

7,033,936

CREDITORS

Amounts falling due within one year

15

(2,211,373

)

(2,025,615

)

NET CURRENT ASSETS

6,054,616

5,008,321

TOTAL ASSETS LESS CURRENT LIABILITIES

8,109,370

7,313,158

CREDITORS

Amounts falling due after more than one year

16

(9,807

)

-

PROVISIONS FOR LIABILITIES

19

(43,654

)

-

NET ASSETS

8,055,909

7,313,158

CAPITAL AND RESERVES

Called up share capital

20

300

300

Revaluation reserve

21

-

22,918

Fair value reserve

21

-

22,848

Retained earnings

21

8,055,609

7,267,092

SHAREHOLDERS' FUNDS

8,055,909

7,313,158

The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by:

J R Shipley - Director

Called up

Fair

share

Retained

Revaluation

value

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 July 2021

300

5,605,354

22,918

5,000

5,633,572

Changes in equity

Total comprehensive income

-

1,661,738

-

17,848

1,679,586

Balance at 30 June 2022

300

7,267,092

22,918

22,848

7,313,158

Changes in equity

Dividends

-

(480,000

)

-

-

(480,000

)

Total comprehensive income

-

1,268,517

(22,918

)

(22,848

)

1,222,751

Balance at 30 June 2023

300

8,055,609

-

-

8,055,909

1.	STATUTORY INFORMATION

L.S. Transmission Consultancy Limited 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value.

The financial statements have been prepared on a going concern basis. The directors have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessments in determining that this is the appropriate basis of preparation of the financial statements and have considered a number of factors. This has specifically included reviewing banking facilities in place and detailed forecasting using sensitivity analysis to ensure that the worst case scenario situation does not put the going concern concept at risk.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about L.S. Transmission Consultancy Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, LSTC Group Ltd, Yorkshire House York Road, Little Driffield, Driffield, United Kingdom, YO25 5XA.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services

Turnover represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of that consideration due. Where a contract has only been partially completed at the balance sheet date turnover represents the value of the services provided to date based on a proportion of the total expected consideration at completion.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2004, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes those costs that are directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

25% on reducing balance

Motor vehicles

25% straight line

Plant & Machinery

50% on reducing balance

Computer equipment

50% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment for diminution in value.

Investment property

Investment properties are measured at fair value at each reporting date. Changes in fair value are recognised directly in the profit and loss account.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Contract work in progress is included in debtors stated at net realisable value. Cumulative turnover (i.e. the total turnover recorded in respect of the contract in the profit and loss accounts of all accounting periods since inception of the contract) is compared with total payments on account. If turnover exceeds payments on account an "amount recoverable on contracts" is established and separately disclosed within debtors. If payments on account are greater than turnover to date, the excess is classified within creditors.

Payments on account include all direct expenditure and an appropriate proportion of fixed and variable overheads.

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 accounts receivable and payable and loans from banks and other third parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income statement.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date.

Deferred tax

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

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Operating lease rentals

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3.

TURNOVER

The turnover and profit before tax are attributable to the principal activity of the company wholly within the UK.

4.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

4,372,086

3,509,992

Social security costs

451,185

370,900

Other pension costs

186,523

341,982

5,009,794

4,222,874

The average number of employees during the year was as follows:

2023

2022

Average Employees (including directors)

87

83

2023

2022

£

£

Directors' remuneration

589,904

402,028

Directors' pension contributions to money purchase schemes

28,879

208,371

Compensation to director for loss of office

223,804

-

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

5

5

Information regarding the highest paid director is as follows:

2023

2022

£

£

Emoluments etc

122,634

121,742

Pension contributions to money purchase schemes

7,854

67,462

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023

2022

£

£

Depreciation - owned assets

167,840

146,738

Profit on disposal of fixed assets

(638

)

(12,114

)

Auditors' remuneration

12,750

10,000

Operating leases - rent

113,316

112,718

Exceptional items

236,687

-

The operating profit is stated after charging exceptional staff restructuring and associated costs totalling £236,687.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

£

£

Bank interest

748

638

Bank loan interest

262

382

1,010

1,020

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2023

2022

£

£

Current tax:

UK corporation tax

136,673

-

Tax under/(over) provided in

prior years

28,855

-

Group relief charge

43,583

(8,065

)

Total current tax

209,111

(8,065

)

Deferred tax

68,380

(49,364

)

Tax on profit

277,491

(57,429

)

UK corporation tax has been charged at 20% (2022 - 19%).

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

£

£

Profit before tax

1,500,242

1,622,157

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

285,046

308,210

Effects of:

Expenses not deductible for tax purposes

152

97

Utilisation of tax losses

-

(15,653

)

Group relief credit

-

(4,968

)

R&D enhanced deduction

(129,160

)

(335,330

)

Enhanced capital allowances

(3,490

)

(13,011

)

Change in rate of tax

15,263

3,226

Adjustment to Deferred Tax losses

80,825

-

Under provision of Corporation Tax

28,855

-

Total tax charge/(credit)

277,491

(57,429

)

In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase to 25%. This was substantively enacted on 24 May 2021. The effects of this have been reflected in the financial position at 30 June 2023.

The expected net reversal of deferred tax assets and liabilities in 2024 is £36,399 this is due to the reversal of accelerated capital allowances and short term timing differences.

The aggregate amount of research and development expenditure recognised during the year as an expense was £571,107 (2022: £928,954).Trading losses resulting from R&D tax claims that have been surrendered for payable tax credits are included within debtors.

8.

DIVIDENDS

2023

2022

£

£

Ordinary shares of £1 each

Interim

480,000

-

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 July 2022

and 30 June 2023

21,154

AMORTISATION

At 1 July 2022

and 30 June 2023

21,154

NET BOOK VALUE

At 30 June 2023

-

At 30 June 2022

-