Company Registration No. 01425179 (England and Wales)
LOWE & SIMPSON GROUP LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
PAGES FOR FILING WITH REGISTRAR
LOWE & SIMPSON GROUP LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
LOWE & SIMPSON GROUP LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2019
30 September 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,153,197
1,185,666
Investments
4
1,001
1,001
1,154,198
1,186,667
Current assets
Stocks
294,599
250,699
Debtors
5
607,604
623,045
Cash at bank and in hand
335,949
316,521
1,238,152
1,190,265
Creditors: amounts falling due within one year
6
(749,673)
(663,036)
Net current assets
488,479
527,229
Total assets less current liabilities
1,642,677
1,713,896
Creditors: amounts falling due after more than one year
7
(200,000)
(448,327)
Provisions for liabilities
(51,162)
(53,998)
Net assets
1,391,515
1,211,571
Capital and reserves
Called up share capital
8
1,000,318
1,000,318
Capital redemption reserve
465
465
Own shares
(815,000)
(815,000)
Profit and loss reserves
1,205,732
1,025,788
Total equity
1,391,515
1,211,571
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 September 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
LOWE & SIMPSON GROUP LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2019
30 September 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 11 June 2020 and are signed on its behalf by:
Mr J S Haddon
Director
Company Registration No. 01425179
LOWE & SIMPSON GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 3 -
Share capital
Capital redemption reserve
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2017
1,000,318
465
(815,000)
909,656
1,095,439
Year ended 30 September 2018:
Profit and total comprehensive income for the year
-
-
-
116,132
116,132
Balance at 30 September 2018
1,000,318
465
(815,000)
1,025,788
1,211,571
Year ended 30 September 2019:
Profit and total comprehensive income for the year
-
-
-
221,264
221,264
Dividends
-
-
-
(41,320)
(41,320)
Balance at 30 September 2019
1,000,318
465
(815,000)
1,205,732
1,391,515
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 4 -
1
Accounting policies
Company information
Lowe & Simpson Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Vickers Close, Preston Farm Industrial Estate, Stockton on Tees, TS18 3TD.
1.1
Accounting convention
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Revenue from contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings
2.5% straight line
Plant and machinery
15% reducing balance or 20% straight line
Office and computer equipment
10% - 33.3% reducing balance
Motor vehicles
25% reducing balance
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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.
On the adoption of FRS102, the directors have decided to include buildings at "deemed cost" and depreciate accordingly. Previously the company had carried the buildings at a valuation obtained in 2013.
1.4
Fixed asset investments
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.
1.5
Impairment of fixed assets
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.
1.6
Stocks
Stocks 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 stocks to their present location and condition.
1.7
Cash and cash equivalents
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.
1.8
Financial instruments
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 balance sheet 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
Basic financial assets, which include debtors 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.
Classification of financial liabilities
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.
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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
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 profit and loss account, 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.
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 7 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that 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 reporting end date, 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. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
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 fixed 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
56
56
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 8 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2018
1,400,000
1,181,396
2,581,396
Additions
-
48,094
48,094
At 30 September 2019
1,400,000
1,229,490
2,629,490
Depreciation and impairment
At 1 October 2018
425,541
970,189
1,395,730
Depreciation charged in the year
35,000
45,563
80,563
At 30 September 2019
460,541
1,015,752
1,476,293
Carrying amount
At 30 September 2019
939,459
213,738
1,153,197
At 30 September 2018
974,459
211,207
1,185,666
4
Fixed asset investments
2019
2018
£
£
Shares in group undertakings and participating interests
1,001
1,001
Fixed asset investments not carried at market value
Fixed asset investments are carried at cost.
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 October 2018 & 30 September 2019
1,001
Carrying amount
At 30 September 2019
1,001
At 30 September 2018
1,001
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 9 -
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
581,845
582,829
Other debtors
25,759
40,216
607,604
623,045
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans
-
64,715
Trade creditors
338,148
307,944
Amounts owed to group undertakings
20,392
27,084
Corporation tax
63,221
15,205
Other taxation and social security
117,677
138,073
Other creditors
210,235
110,015
749,673
663,036
Bank loans of £nil (2018 - £64,715) are secured by the assets of the company.
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
-
248,327
Other creditors
200,000
200,000
200,000
448,327
Bank loans of £nil (2018 - £248,327) are secured by the assets of the company.
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,000,000 ordinary shares of £1 each
1,000,000
1,000,000
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
8
Called up share capital
2019
2018
£
£
(Continued)
- 10 -
Preference share capital
Issued and fully paid
316 B redeemable of £1 each
316
316
2 D redeemable of £1 each
2
2
318
318
Preference shares classified as equity
318
318
Total equity share capital
1,000,318
1,000,318
The rights attached to the shares are as follows:
Income - ordinary shares rank pari passu in relation to payment of a dividend. The B and D redeemable shares shall not be entitled to the payment of a dividend. No dividend can be declared until all B redeemable shares have been redeemed.
Voting - only the ordinary shares have voting rights except in exceptional circumstances as indicated in the Articles.
Redemption - there is no formal fixed date of redemption on the B and D redeemable shares.
Capital - on winding up repayment of capital is prioritised firstly to B redeemable shares, then D redeemable shares. Any balances remaining would then be distributed to ordinary shareholders.
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2019
2018
2019
2018
£
£
£
£
Entities over which the entity has control, joint control or significant influence
6,000
24,500
77,634
70,393
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
20,392
27,084
LOWE & SIMPSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 11 -
10
Directors' transactions
Dividends totalling £41,320 (2018 - £0) were paid in the year in respect of shares held by the company's directors.
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