ANGLIA_COMPONENTS_PLC - Accounts

The directors present the strategic report for the year ended 31 December 2023.

The turnover for the year ended 31 December 2023 amounted to £98,901,856.

A review of the year is given in the CEO's statement.

The key financial highlights are as follows;-

Year to 31.12.2023 Year to 31.12.2022 Year to 31.12.2021

Turnover £98,901,856 £91,929,462 £76,876,775

Gross profit margin 18.3% 22.9% 22.4%

Operating profit £4,991,389 £9,466,498 £7,151,567

Treasury operations and financial instruments

The group and company's financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans. The main purpose of these instruments is to raise funds and finance the company's operations. Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

Liquidity risk

The liquidity risk in respect of bank balances is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. In respect of loans from financial institutions and parent undertaking the interest rate and monthly repayments are variable. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

Foreign currency risk

The company is exposed to foreign currency risk on sales and purchases that are denominated in currencies other than sterling. The currencies giving rise to this risk are primarily the Euro and US Dollar.

Credit risk

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The directors in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider what, in good faith, would be most likely to promote the success of the Company for the benefit of its members, and in doing so have regard, amongst other matters, to the:

• Likely consequences of any decision in the long term.

• Interests of the company’s employees.

• Need to foster the company’s business relationships with suppliers, customers and others.

• Impact of the company’s operations on the community and the environment.

• Desirability of the company maintaining a reputation for high standards of business conduct.

• Need to act fairly between members of the company.

Stakeholders Engagement

The company’s business strategy is focused on achieving success for the Company in the long term. In setting this strategy, the Board takes into account their duty to promote the success of the company for the benefit of its shareholders whilst having regard to other stakeholders.

The board regularly discusses issues concerning employees, customers, suppliers, community and environment, and its shareholders. All of these are taken into account in its discussions and in its decision-making process.

In addition to this, the board seeks to understand the interests and views of the Company’s stakeholders by engaging with them directly when required.

The following section summarises the key stakeholders and how we engage with each:

Employees

Our employees contribute to a positive working culture and healthy working environment. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our teams to ascertain the training and development opportunities that should be made available to improve productivity and our individual employee’s potential within the business.

Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued for their hard work.

Customers

By partnering with our customers, we create solutions for the future. It is essential that we can consistently provide high quality products to new and existing customers at an accessible price. In doing so we will build our brand value and loyalty.

We are in regular contact with our customers in order to understand their requirements and ensure that service levels are maintained to a high standard. This communication includes regular update calls or face to face meetings depending on the customers preference and location.

We actively encourage customer feedback as a means to further improve our service levels.

Suppliers

As a global business, we work with a wide range of suppliers both in the UK and globally. We remain committed to being fair and transparent in our dealings with all of our suppliers.

Our suppliers are fundamental to the quality of our products. Having a range of suppliers that constitute successful partnerships ensures value for the business and provides resilience in case of supply chain disruption.

The company has systems and processes in place to ensure suppliers are paid in a timely manner. Creditor days at the year end were 48 days.

Community and Environment

The boards approach to social responsibility, diversity and the community is of high importance.

Regulators

We work with our trade bodies and the government in an open and proactive manner.

The boards intention is to behave responsibly and to ensure that the management team operates the business in a responsible manner, acting with the high standards and good governance expected of a business like ours. In doing so, we believe we will achieve our long-term business strategy and further develop our reputation in our sector.

We have a number of documented procedures to ensure that the Company complies with all legal and regulatory requirements relating to the provision of products to our customers and sourcing of materials from suppliers.

Shareholders

The board also seeks to behave in a responsible manner towards our shareholders. The Board regularly communicates information relevant to its shareholders, such as financial reporting, capex requirements and business growth strategies.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2023.

The company is principally engaged as a distributor of electronic components.

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £1,148,240. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The beginning of 2024 saw us expand our Anglia Live eCommerce platform to Europe, following a major investment in our logistics infrastructure and website. We are now offering a two day, Delivered Duty Paid delivery service from our UK distribution centre. This provides a great opportunity for the future expansion of the business.

We will further improve, enhance and add resource to our processes and procedures to ensure continued compliance with all international regulations regarding sanctions and dual-use products.

Further investment will be made in providing development boards to customers. This will allow them to easily create prototypes and try out new ideas. It also allows us to support our customers from their initial concept phase through to mass production.

The ongoing economic situation with inflation, higher interest costs and increased energy costs are also things which could hinder growth within the sector. Cost management will be key for everyone.

We are constantly searching for innovative ways in which we might be able to grow our business. This may be by organic growth, improved processes and customer service or by acquisition should the right opportunity present itself.

During 2024 we will look to add to our supplier portfolio to increase the range and quality of offerings to our customers.

A resolution to reappoint GBAC Limited as auditor of the company will be proposed at the forthcoming annual general meeting.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time employee, the recommended ratio for the sector.

We have increased video conferencing technology for staff meetings, to reduce the need for travel between sites. LED lighting has been installed throughout the premises in order to improve efficiency.

So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.

Anglia Components Plc is committed to taking our Corporate and Social Responsibility (CSR) seriously at all times, and fully recognise our responsibilities towards our employees, suppliers, customers, the environment and the communities we all operate in. We demonstrate our commitment to CSR by developing practices and procedures that align our business values resulting in responsible and ethical principles relevant to our business of selling and distributing electronic components. Anglia operates an equal opportunities environment for all present and future employees. Staff are recruited and trained to a very high standard, and with their commitment and professionalism strive to ensure, with a continuous improvement ethos, that we grow and develop the business, supporting any individual or third party involved in any part of our processes.

We have developed and published comprehensive policies to ensure we sustain and improve on all factors including but not limited to the legal and ethical factors affecting the Health & Safety welfare of our employees and visiting guests, the environment, and the community.

We support local charities, which are nominated by our employees and details are published on our corporate website each year. Policies implemented define the framework in which we operate to an exceptional standard. They are found in our Employee Contracts,

Company Handbook and where relevant on our Corporate website:

• Code of Conduct

• Social, Environment & Ethical Policy

• Environmental Policy

• Quality Policy

• Anti-Bribery Policy

• Modern Slavery Statement

• Health & Safety Policy

• RoHS, Reach & Conflict Mineral Statements

We recognise that our social, environmental and ethical conduct has an impact on our reputation, therefore the Anglia Management team takes overall responsibility to ensure our commitments are met.

The company recorded sales of £98.9M for the year, an increase of 7.58% over 2022.

The increase in sales can be attributed to several factors. The beginning of the year saw an easing of inventory supply which allowed outstanding customer orders to be fulfilled and new customers were gained through the year.

Our large UK inventory holding meant that we were able to satisfy this demand after prioritising our loyal customers. 2023 saw us investing further in preparing for Anglia Live to become a Europe-wide online presence for us in 2024.

During the year we expanded our supplier base by engaging with Lumileds (LEDs), Digi International Inc (wireless modules), EPC (Efficient Power Conversions, power management) and Cliff Electronics (connectors).

As validated by ECSN data for UK and Eire, ECSN reported an increase of 6.70% in sales for the year. We significantly outperformed this with our growth in UK and Eire being 16.50% and our market share was 6.10% compared to 5.59%, December 2022. Our aim has always been to prioritise our loyal customers.

An increase in sales revenue and effective cost control to partially offset increase in interest rates meant that profitably was maintained. Profit for the financial year decreased by 69%. Margins fell by 4.60% in part because of supply of product returning to the market and therefore pricing became more competitive.

The last several years have been challenging for differing reasons including COVID and market shortages. Sustained profitability and growth would not have been possible without the fortitude and dedication of our people, the service provided to us by our suppliers and the loyalty of our customers.

2023 saw us introducing a range of new employee benefits including free healthcare, increased holiday entitlement and moving to a four and a half day working week with no reduction in salary. We also gained a place in The Sunday Times Best Places to Work award. This celebrates organisations who have a high employee engagement and well-being levels, something which we, as an organisation are proud of.

We also marked another milestone in our investment for the future with the opening of our expanded Distribution Centre. What was previously unused space has been transformed into a state-of-the-art storage facility, which represents a 40% expansion of our Distribution Centre capacity.

The introduction of standardised, recyclable packaging and tapes is another step in our efforts to minimise waste and environmental impact. The paper tape also has on it a Climate Impact QR code which enables customers to find more details on what we are doing to reduce and offset our carbon footprint.

Charity Support

During 2023 the business donated a total of £14,652 to Charitable causes. The East Anglian Air Ambulance and East Anglia Childrens Hospice received £6,826 each and Wisbech Museum £1,000.

The directors are responsible for preparing the annual 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 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• 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.

We have audited the financial statements of Anglia Components Plc (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 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 other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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 remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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.

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 auditors' 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.

• 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 determined the principle laws and regulations applicable to the company through discussions with management and directors, and from our knowledge of the sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operation of the company including, Companies Act 2006, local tax laws and regulations, employment and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management;

• 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 and 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 internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risks of fraud through management bias and override 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 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 those charged with governance;

• enquiring of management as to actual and potential litigation and claims.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occuring due to fraud rather than error, as fraud involves intentional concealement, forgery, collusion, ommission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

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 auditors' 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.

The income statement has been prepared on the basis that all operations are continuing operations.

Anglia Components Plc is a private company limited by shares incorporated in England and Wales. The registered office is Sandall Road, Wisbech, Cambridgeshire, PE13 2PS.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group.

The financial statements of the company are consolidated in the financial statements of Anglia Components Investments Limited. These consolidated financial statements are available from its registered office, Old Linen Court, 83-85 Shambles Street, Barnsley, South Yorkshire, S70 2SB.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

An analysis of turnover destination by geographical market has not been provided on the grounds that, in the opinion of the Directors, it would be seriously prejudicial to the interests of the company.

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.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

For the year ended 31 December 2022 the company operated a defined contribution scheme, contributions to which are charged to the profit and loss account for the year in which they are payable.

For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At the balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the year.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the valuation model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

The expense in relation to options over the company's shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The stock provision is based on items over two years old using an industry accepted methodology.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Details of the company's subsidiaries at 31 December 2023 are as follows:

Registered office addresses (all UK unless otherwise indicated):

The bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company.

The bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company.

Included in bank loans and overdrafts is a £615,135 loan which currently has repayments of £21,599 per month. Interest is charged at a rate of 2.25% margin over bank offered rate and associated cost rate. The loan is due to be fully repaid in May 2026.

The bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company.

Included in bank loans and overdrafts is a £615,135 loan which currently has repayments of £21,599 per month. Interest is charged at a rate of 2.25% margin over bank offered rate and associated cost rate. The loan is due to be fully repaid in May 2026.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company operates an employee share scheme for senior employees. The scheme requires the employees to remain in employment for the whole of the term of the scheme which ends on 31 December 2026 and is subject to performance criteria being met.

Anglia Components Plc does not have any obligation to settle these share based payments. The obligation lies with a group shareholder.

The fair value of the services provided has been calculated based on a percentage of the value of the company to which the employees have vested rights accruing. No charge in relation to these options has been recognised in the profit and loss account in the year ended 31 December 2023 as the directors consider that any charge would not be material.

Operating lease payments represent rentals payable by the company for the premises that the company trades from. The company has a lease agreement for 20 years which expires on 14 March 2042.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The remuneration of key management personnel is as follows.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

No guarantees have been given or received.

At the year end, the directors regard Anglia Components Investments Limited, as the ultimate holding company. Mr S G Rawlins is considered to have a controlling interest in that company.