Certain Indexes Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 02411089 (England and Wales)

CERTAIN INDEXES LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

to

12

DIRECTORS:

Dr I R Davies

B J Mangrich

REGISTERED OFFICE:

4 Bank Court

Weldon Road

Loughborough

Leicestershire

LE11 5RF

REGISTERED NUMBER:

02411089 (England and Wales)

AUDITORS:

Essex Abel Ltd (Statutory Auditors)

4 Bank Court

Weldon Road

Loughborough

Leicestershire

LE11 5RF

FIXED ASSETS

Intangible assets

5

2

2

Property, plant and equipment

6

381,984

397,499

Investment property

7

421,199

381,000

803,185

778,501

CURRENT ASSETS

Inventories

8

912,075

973,783

Debtors

9

125,027

227,172

Cash at bank and in hand

479,657

363,847

1,516,759

1,564,802

CREDITORS

Amounts falling due within one year

10

252,496

375,480

NET CURRENT ASSETS

1,264,263

1,189,322

TOTAL ASSETS LESS CURRENT LIABILITIES

2,067,448

1,967,823

CREDITORS

Amounts falling due after more than one year

11

(4,000

)

(4,179

)

PROVISIONS FOR LIABILITIES

(64,816

)

(43,969

)

NET ASSETS

1,998,632

1,919,675

CAPITAL AND RESERVES

Called up share capital

86,100

86,100

Revaluation reserve

12

172,398

152,339

Retained earnings

12

1,740,134

1,681,236

SHAREHOLDERS' FUNDS

1,998,632

1,919,675

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 5 April 2024 and were signed on its behalf by:

Dr I R Davies - Director

1.	STATUTORY INFORMATION

Certain Indexes 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.

The financial statements are presented in Sterling (£) and rounded to the nearest pound.

The principal place of business of the company is 4 Park Road, Sileby, Loughborough, Leicestershire, LE12 7TJ.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of land and buildings measured at fair value through profit or loss.

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":

o the requirements of Section 7 Statement of Cash Flows;

o the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, which are described in the accounting policies below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates which could result in a material adjustment to the carrying amounts of assets or liabilities affected in future periods.

Judgements

In preparing these financial statements, the directors have made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Operating lease commitments - company as lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the present value of the minimum lease payments not amounting to substantially all of the fair value of the commercial property, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments; however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Revaluation of investment properties

The company carries its investment properties at fair value, with changes in fair value being recognised in the statement of profit or loss. A professional valuation has been obtained for the 2023 year end and the increase in value has been reflected in the statutory accounts. In subsequent years the directors will use their knowledge of the markets to determine if a professional valuation is needed. The valuers used observable market prices adjusted as necessary for any differences in the market conditions, location or the specific asset.

Revenue recognition

Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty.

The following criteria must also be met before revenue is recognised:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

These criteria are considered to be met when the goods are delivered to the buyer.

Rental income arising from operating leases on investment properties is accounted for on a straight line basis over the lease term.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

25% on cost, 15% on cost, 10% on cost and at varying rates on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on cost

The value of freehold land is not depreciated.

Investment property

Property is held to earn rental income, rather than for the purpose of the Company’s principal activities and is therefore classified as Investment property. Such properties are held for their long term investment potential.

Investment properties are accounted for as follows:

Investment properties are measured initially at cost, including transaction costs and any directly attributable expenditure. Subsequent to initial recognition, investment properties are stated at fair value, where such properties can be measured reliably and which reflects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment properties are included in profit or loss in the period in which they arise, including the corresponding tax effect.

Fair values are determined based on an annual evaluation by either independent professional third party valuers or the directors. No depreciation is provided in respect of investment properties.

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.

Transfers are made to (or from) investment property only when there is a change in use. For a transfer from investment property to owner-occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use. If owner-occupied property becomes an investment property, the company accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use.

Income from investment properties is disclosed in ‘Other operating income’ and details are shown in note 7 ‘Investment property’. The related operating costs are immaterial and are included within Administrative expenses.

Inventories

Inventories and work in progress are valued at the lower of cost and estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale. Inventories are recognised as an expense in the period in which the related revenue is recognised.

The cost of inventories is based on the aggregated actual cost price and includes expenditure incurred in acquiring inventory, production or conversion costs, and other costs incurred in bringing them to their existing location and condition.

The cost of work in progress and finished goods includes all production overheads and the attributable proportion of indirect overheads based on the normal level of activity.

At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale. Provision is made for obsolete, slow moving or defective items where appropriate.

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 to/from related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments 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 outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

A provision for impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of debtors. The amount of the provision is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows, and is recognised in the profit & loss in operating expenses.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Taxation

The taxation expense for the year comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is also recognised in the other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the prior period.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exemptions. 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. Unrelieved tax losses and other deferred tax assets are only recognised when 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 rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing differences.

Research and development

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

Foreign currencies

Functional currency and presentation currency

The financial statements of the company are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the financial statements, the results and financial position are presented in Sterling (£).

Transactions and balances

In preparing the financial statements, transactions in currencies other than the functional currency of the company (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss within 'administrative expenses'. All other foreign exchange gains and losses are presented in profit or loss within 'cost of sales'.

Pension costs and other post-retirement benefits

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

The contributions are recognised as an expense in the Statement of Comprehensive Income 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 an independently administered fund.

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 23 (2022 - 23 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2023

and 31 December 2023

60,377

AMORTISATION

At 1 January 2023

and 31 December 2023

60,375

NET BOOK VALUE

At 31 December 2023

2

At 31 December 2022

2

6.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2023

and 31 December 2023

409,235

274,774

49,970

5,625

739,604

DEPRECIATION

At 1 January 2023

44,774

244,999

47,129

5,203

342,105

Charge for year

6,606

6,817

1,987

105

15,515

At 31 December 2023

51,380

251,816

49,116

5,308

357,620

NET BOOK VALUE

At 31 December 2023

357,855

22,958

854

317

381,984

At 31 December 2022

364,461

29,775

2,841

422

397,499

Included in cost of land and buildings is freehold land of £ 78,942 (2022 - £ 78,942 ) which is not depreciated.

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2023

381,000

Revaluations

40,199

At 31 December 2023

421,199

NET BOOK VALUE

At 31 December 2023

421,199

At 31 December 2022

381,000

The valuation of the investment property was carried out by a RICS chartered surveyor, on an open market basis at 31 December 2023.

Fair value at 31 December 2023 is represented by:

£

Valuation in 2018

13,289

Valuation in 2019

171,000

Valuation in 2023

40,199

Cost

196,711

421,199

If investment property had not been revalued it would have been included at the following historical cost:

2023

2022

£

£

Cost

196,711

196,711

8.	INVENTORIES

2023

2022

£

£

Stocks

906,156

955,275

Payments on account

5,919

18,508

912,075

973,783

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

17,151

79,013

Amounts owed by group undertakings

58,168

81,757

Other debtors

49,708

66,402

125,027

227,172

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

86,593

135,056

Taxation and social security

40,512

35,967

Other creditors

125,391

204,457

252,496

375,480

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Other creditors

4,000

4,179

12.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 January 2023

1,681,236

152,339

1,833,575

Profit for the year

78,957

78,957

Investment property revaluation

(20,059

)

20,059

-

At 31 December 2023

1,740,134

172,398

1,912,532

Revaluation reserve - the aggregate surplus on re-measurement of investment properties, net of associated deferred tax, is transferred to a separate non-distributable revaluation reserve in order to assist with the identification of profits available for distribution.

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mr Jason Mark Oram FCCA (Senior Statutory Auditor)

for and on behalf of Essex Abel Ltd (Statutory Auditors)

14.	PENSION COMMITMENTS

The company does not operate a defined benefit pension scheme but a defined contribution pension scheme. The company makes contributions to its pension scheme for employees, including directors when required. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date, unpaid contributions of £3,135 (2022 - £3,219) were due to the fund. They are included in other creditors.

15.	OTHER FINANCIAL COMMITMENTS

There is a fixed and floating charge over all of the assets of the company in favour of Byline Bank.

There is a fixed and floating charge over all of the assets of the company in favour of Brookside Mezzanine Fund IV L.P.

16.	OFF-BALANCE SHEET ARRANGEMENTS

Operating lease agreements where the company is lessor

The company holds surplus office and manufacturing buildings as investment properties, as disclosed in note 7, which are let to third parties. These non-cancellable leases have remaining terms of between 1 and 5 years. Future minimum rentals receivable under non-cancellable operating leases are £47,077.

17.	RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption conferred by FRS 102 Section 33 Related Party Disclosures paragraph 33.1A not to disclose transactions with group companies on the grounds that 100% of the voting rights in the company are controlled by the group.

18.	ULTIMATE CONTROLLING PARTY

The controlling party is Lafayette Instruments Company, Inc..

The company is a wholly owned subsidiary and copies of the parent company and group consolidated accounts can be obtained from their registered office at Lafayette Instrument Acquisition LLC., 3700 Sagamore Pkwy N Lafayette, IN 47904, United States.

The ultimate controlling party is Branford Castle Inc. who owns a controlling interest in the parent company.