Littlewood Fencing UK Limited - Limited company accounts 23.2

LITTLEWOOD FENCING UK LIMITED - Company Information

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REGISTERED NUMBER: 10750281 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023

FOR

LITTLEWOOD FENCING UK LIMITED

Page

Company Information

Group Strategic Report

Report of the Directors

Report of the Independent Auditors

Consolidated Statement of Comprehensive Income

Consolidated Balance Sheet

Company Balance Sheet

Consolidated Statement of Changes in Equity

Company Statement of Changes in Equity

Consolidated Cash Flow Statement

Notes to the Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements

DIRECTORS:

J M Hobden

Ms D A Symes

J Verjee

REGISTERED OFFICE:

North Trade Road

Battle

East Sussex

TN33 9LJ

REGISTERED NUMBER:

10750281 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

The directors present their strategic report of the company and the group for the year ended 31 May 2023.

REVIEW OF BUSINESS

Littlewood Fencing UK Limited acts as a holding company managing its intermediary holding company, Littlewood Holdings (Sussex) Limited and its further two wholly-owned trading subsidiaries; Littlewood Fencing Limited and Littlewood Renewables Limited.

Littlewood Fencing Limited is a well established and reputable fencing contractor which services its clients all over the UK from its head office in the South East of England and two other locations in the South West and the East Midlands.

The directors have considered the potential implications of the current economic climate, taking into account the Russia/Ukraine conflict and rising inflation, and its impact on costs.

The Directors were satisfied with the performance of the group in these tough economic conditions and are positive about the coming year's trade.

Key performance indicators for the year:

2023

2022

Turnover

30,518,012

37,295,498

Gross Profit

7,677,883

8,455,876

Operating Profit

619,851

1,814,368

Gross Assets

15,599,100

15,409,947

Net Assets

7,867,719

7,247,868

Normalised earnings before interest, tax, depreciation and amortisation ('EBITDA') for the group are shown below:

2023

2022

Operating Profit

619,851

1,814,368

Interest received

(79,235)

(8,634)

Interest paid

93,643

57,629

Tax

237,110

433,328

Depreciation

310,470

346,271

Amortisation

514,643

456,823

EBITDA

1,696,482

3,099,785

PRINCIPAL RISKS AND UNCERTAINTIES

The group operates in the construction industry and is subject to significant governmental regulation including stringent laws relating to health and safety.

Like every business, our management team is regularly monitoring our risk profile and provides clear guidelines and assurances that all social, legal and health and safety responsibilities are adhered to.

ON BEHALF OF THE BOARD:

J M Hobden - Director

21 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a holding company.

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2023.

DIRECTORS

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

J M Hobden

Ms D A Symes

J Verjee

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M Hobden - Director

21 December 2023

Opinion

We have audited the financial statements of Littlewood Fencing UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 May 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the parent 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 group or the parent 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:

Prior to engagement the following audit procedures are considered:

- Identification of laws and regulations being significant in the context of the entity;

- Understanding the entity's current activities, the scope of its authorisation and the effectiveness of its control environment where the entity is a regulated entity;

- Determining any key audit matters that require further explanation;

- In the case of a group, how the auditor addressed these matters at both at the group and component levels;

- communications with the engagement team and, where relevant, component auditors regarding non-compliance with laws and regulations and fraud.

Audit procedures performed by the engagement team to detect irregularities, including fraud from instances of non-compliance with laws and regulations included:

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

- Reading key correspondence from regulatory bodies;

- Challenging assumptions and judgements made by management in it's significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We focused on the valuation of provisions against WIP, retentions and application debtors, and the assessment of impairment of intangible and tangible assets, as well as any other estimates and provisions within the accounts;

- Consideration of recent correspondence with the companies legal advisors to ensure that it aligned with the conclusions drawn on obligations recognised in respect of uncertain legal matters;

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or those posted by unexpected users; and

- Testing all material consolidation adjustments to ensure these were appropriate in nature and magnitude;

- Communicating with component auditors any matters which arise, and disclosing any instances of

non-compliance or fraud, in addition to testing inter-group transactions and amounts owed by/(to) any group companies;

- Reviewing relevant meeting minutes including those of the board of directors

- Testing transactions entered into that are outside of the normal course of the Company's business

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors and other management (as required by auditing standards), and from inspection of the group's regulatory and legal correspondence and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.

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.

Stephen James Moore (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

21 December 2023

TURNOVER

30,518,012

37,295,498

Cost of sales

(22,840,129

)

(28,839,622

)

GROSS PROFIT

7,677,883

8,455,876

Administrative expenses

(6,806,514

)

(6,160,192

)

871,369

2,295,684

Other operating income

1,007

871,369

2,296,691

Interest receivable and similar income

79,235

8,634

950,604

2,305,325

Interest payable and similar expenses

(93,643

)

(57,629

)

PROFIT BEFORE TAXATION

856,961

2,247,696

Tax on profit

(237,110

)

(433,328

)

PROFIT FOR THE FINANCIAL YEAR

619,851

1,814,368

OTHER COMPREHENSIVE

Revaluation

Income tax relating to other
comprehensive

OTHER COMPREHENSIVE FOR THE
YEAR, NET OF INCOME TAX

TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

619,851

1,814,368

Profit attributable to:

Owners of the parent

619,851

1,814,368

Total comprehensive income attributable to:

Owners of the parent

619,851

1,814,368

FIXED ASSETS

Intangible assets

2,930,009

2,866,447

Tangible assets

4,016,504

4,055,575

Investments

6,946,513

6,922,022

CURRENT ASSETS

Stocks

183,557

286,464

Debtors

6,062,743

5,354,825

Cash at bank and in hand

2,406,287

2,846,636

8,652,587

8,487,925

CREDITORS

Amounts falling due within one year

(5,662,150

)

(5,838,884

)

NET CURRENT ASSETS

2,990,437

2,649,041

TOTAL ASSETS LESS CURRENT
LIABILITIES

9,936,950

9,571,063

CREDITORS

Amounts falling due after more than one
year

(1,298,405

)

(1,509,143

)

PROVISIONS FOR LIABILITIES

(770,826

)

(814,052

)

NET ASSETS

7,867,719

7,247,868

CAPITAL AND RESERVES

Called up share capital

100,000

Share premium

33,998

Revaluation reserve

1,574,483

Capital redemption reserve

Retained earnings

6,159,198

5,539,347

SHAREHOLDERS' FUNDS

7,867,719

7,247,868

The financial statements were approved by the Board of Directors and authorised for issue on 21 December 2023 and were signed on its behalf by:

J M Hobden - Director

FIXED ASSETS

Intangible assets

Tangible assets

Investments

12,334,781

11,756,576

12,334,781

11,756,576

CURRENT ASSETS

Debtors

3,500

1,800

Cash at bank

7,825

3,947

11,325

5,747

CREDITORS

Amounts falling due within one year

(11,197,405

)

(10,514,931

)

NET CURRENT LIABILITIES

(11,186,080

)

(10,509,184

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,148,701

1,247,392

CREDITORS

Amounts falling due after more than one
year

(1,131,669

)

(1,230,154

)

NET ASSETS

17,032

17,238

CAPITAL AND RESERVES

Called up share capital

100,000

Retained earnings

(82,968

)

(82,762

)

SHAREHOLDERS' FUNDS

17,032

17,238

Company's loss for the financial year

(206

)

(262

)

The financial statements were approved by the Board of Directors and authorised for issue on 21 December 2023 and were signed on its behalf by:

J M Hobden - Director

Called up

Retained

capital

earnings

premium

Balance at 1 June 2021

100,000

3,724,979

33,998

Changes in equity

Total comprehensive income

1,814,368

Balance at 31 May 2022

100,000

5,539,347

33,998

Changes in equity

Total comprehensive income

619,851

Balance at 31 May 2023

100,000

6,159,198

33,998

Capital

Revaluation

redemption

Total

reserve

equity

Balance at 1 June 2021

1,574,483

5,433,500

Changes in equity

Total comprehensive income

1,814,368

Balance at 31 May 2022

1,574,483

7,247,868

Changes in equity

Total comprehensive income

619,851

Balance at 31 May 2023

1,574,483

7,867,719

Called up

Retained

Total

capital

earnings

equity

Balance at 1 June 2021

100,000

(82,500

)

17,500

Changes in equity

Total comprehensive loss

(262

)

(262

)

Balance at 31 May 2022

100,000

(82,762

)

17,238

Changes in equity

Total comprehensive loss

(206

)

(206

)

Balance at 31 May 2023

100,000

(82,968

)

17,032

Cash flows from operating activities

Cash generated from operations

1,379,823

4,708,374

Interest paid

(70,169

)

(36,332

)

Interest element of hire purchase
payments paid

(23,474

)

(21,297

)

Tax paid

(665,012

)

(195,891

)

Deferred tax movement

(43,226

)

37,171

Government grant income

1,007

Net cash from operating activities

577,942

4,493,032

Cash flows from investing activities

Purchase of intangible fixed assets

(578,205

)

(375,514

)

Purchase of tangible fixed assets

(488,745

)

(477,081

)

Sale of tangible fixed assets

223,028

53,428

Interest received

79,235

8,634

Net cash from investing activities

(764,687

)

(790,533

)

Cash flows from financing activities

New loans in year

1,403,402

Loan repayments in year

(108,740

)

(3,903,058

)

New Hire purchases in year

182,769

321,319

Capital repayments in year

(327,633

)

(297,202

)

Net cash from financing activities

(253,604

)

(2,475,539

)

(Decrease)/increase in cash and cash equivalents

(440,349

)

1,226,960

Cash and cash equivalents at
beginning of year

2,846,636

1,619,676

Cash and cash equivalents at end of
year

2,406,287

2,846,636

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

Profit before taxation

856,961

2,247,696

Depreciation charges

825,113

803,094

Profit on disposal of fixed assets

(5,683

)

(22,993

)

(Increase)/Decrease in AROC

869,067

1,098,640

Government grants

(1,007

)

Finance costs

93,643

57,629

Finance income

(79,235

)

(8,634

)

2,559,866

4,174,425

Decrease in stocks

102,907

45,229

(Increase)/decrease in trade and other debtors

(1,576,985

)

1,870,473

Increase/(decrease) in trade and other creditors

294,035

(1,381,753

)

Cash generated from operations

1,379,823

4,708,374

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2023

31.5.23

1.6.22

Cash and cash equivalents

2,406,287

2,846,636

Year ended 31 May 2022

31.5.22

1.6.21

Cash and cash equivalents

2,846,636

1,619,676

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.22

Cash flow

At 31.5.23

Net cash

Cash at bank and in hand

2,846,636

(440,349

)

2,406,287

2,846,636

(440,349

)

2,406,287

Debt

Finance leases

(568,747

)

144,864

(423,883

)

Debts falling due within 1 year

(120,273

)

10,255

(110,018

)

Debts falling due after 1 year

(1,230,154

)

98,485

(1,131,669

)

(1,919,174

)

253,604

(1,665,570

)

Total

927,462

(186,745

)

740,717

1.	STATUTORY INFORMATION

Littlewood Fencing UK 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 General 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 as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, 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

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

2% on cost

Plant and machinery

25% on cost and 15% on reducing balance

Fixtures and fittings

15% on reducing balance

Motor vehicles

25% on reducing balance

Stocks

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

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, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

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 profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only 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 Consolidated 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

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

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made 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.

4.	EMPLOYEES AND DIRECTORS

2023

2022

Wages and salaries

14,092,964

7,296,872

Social security costs

886,173

825,534

Other pension costs

171,864

154,937

15,151,001

8,277,343

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

2023

2022

Direct

111

118

Indirect

193

194

2023

2022

Directors' remuneration

149,540

145,000

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

Bank interest

70,169

36,332

Hire purchase

23,474

21,297

93,643

57,629

6.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2023

2022

Hire of plant and machinery

2,169,700

7,435

Depreciation - owned assets

101,826

158,208

Depreciation - assets on hire purchase contracts

208,645

188,061

Profit on disposal of fixed assets

(5,683

)

(22,993

)

Goodwill amortisation

514,643

456,823

Auditors' remuneration

21,825

21,600

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2023

2022

Current tax:

UK corporation tax

276,818

461,642

Prior year tax

(13,005

)

(65,485

)

Corporation tax interest

16,523

Total current tax

280,336

396,157

Deferred tax

(43,226

)

37,171

Tax on profit

237,110

433,328

Reconciliation of total tax charge included in profit and loss

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

2023

2022

Profit before tax

856,961

2,247,696

Profit multiplied by the standard rate of corporation tax in the UK of
20.003 % (2022 - 19 %)

171,418

427,062

Effects of:

Expenses not deductible for tax purposes

3,208

1,900

Depreciation in excess of capital allowances

100,548

32,971

Utilisation of tax losses

(342

)

Adjustments to tax charge in respect of previous periods

3,445

(65,484

)

Deferred tax movement

(43,226

)

37,171

Other adjustments

1,676

Total tax charge

237,110

433,328

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 May 2023.

2022

Gross

Tax

Net

Revaluation

8.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.

9.	INTANGIBLE FIXED ASSETS

Group

Goodwill

COST

At 1 June 2022

4,793,227

Additions

578,205

At 31 May 2023

5,371,432

AMORTISATION

At 1 June 2022

1,926,780

Amortisation for year

514,643

At 31 May 2023

2,441,423

NET BOOK VALUE

At 31 May 2023

2,930,009

At 31 May 2022

2,866,447

10.	TANGIBLE FIXED ASSETS

Group

Improvements

Freehold

Plant and

property

machinery

COST OR VALUATION

At 1 June 2022

2,668,032

1,270,187

Additions

211,568

27,844

Disposals

(157,652

)

At 31 May 2023

2,668,032

211,568

1,140,379

DEPRECIATION

At 1 June 2022

178,032

813,139

Charge for year

4,232

70,447

Eliminated on disposal

(131,024

)

At 31 May 2023

178,032

4,232

752,562

NET BOOK VALUE

At 31 May 2023

2,490,000

207,336

387,817

At 31 May 2022

2,490,000

457,048

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

COST OR VALUATION

At 1 June 2022

366,957

2,255,126

6,560,302

Additions

42,164

189,345

17,824

488,745

Disposals

(219,831

)

(352,608

)

(789

)

(730,880

)

At 31 May 2023

189,290

2,091,863

17,035

6,318,167

DEPRECIATION

At 1 June 2022

131,746

1,381,810

2,504,727

Charge for year

(5,291

)

240,246

837

310,471

Eliminated on disposal

(71,504

)

(310,984

)

(23

)

(513,535

)

At 31 May 2023

54,951

1,311,072

814

2,301,663

NET BOOK VALUE

At 31 May 2023

134,339

780,791

16,221

4,016,504

At 31 May 2022

235,211

873,316

4,055,575

The Company's freehold property at North Trade Road was valued by Peter Sudworth of Vail Williams LLP Property Consultants on a vacant possession basis at £2,220,000 on 10th October 2017.

The Company's freehold property at North Trade Road was valued by Vail Williams LLP Property Consultants on a vacant possession basis at £2,490,000 on 24th June 2020.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

COST OR VALUATION

At 1 June 2022

188,925

984,778

1,173,703

Additions

189,345

Disposals

(20,734

)

(20,734

)

Transfer to ownership

(188,925

)

(60,028

)

(248,953

)

At 31 May 2023

1,093,361

DEPRECIATION

At 1 June 2022

74,216

321,364

395,580

Charge for year

17,160

191,485

208,645

Eliminated on disposal

(8,089

)

(8,089

)

Transfer to ownership

(91,376

)

(24,298

)

(115,674

)

At 31 May 2023

480,462

NET BOOK VALUE

At 31 May 2023

612,899

At 31 May 2022

114,709

663,414

778,123

11.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertaking

COST

At 1 June 2022

11,756,576

Additions

578,205

At 31 May 2023

12,334,781

NET BOOK VALUE

At 31 May 2023

12,334,781

At 31 May 2022

11,756,576

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Littlewood Fencing ltd

Registered office: North Trade Road, Battle, East Sussex,TN33 9LJ

Nature of business: Fencing Contractor

Class of shares:

holding

Ordinary

100.00

2023

2022

Aggregate capital and reserves

13,718,431

12,705,907

Profit for the year

1,012,524

2,135,219

Littlewood Holdings (Sussex) ltd

Registered office: North Trade Road, Battle, East Sussex, TN33 9LJ

Nature of business: Holding Company

Class of shares:

holding

Ordinary A,B,C,D

100.00

2023

2022

Aggregate capital and reserves

3,537,188

3,415,013

Profit for the year

122,175

136,235

Littlewood Renewables ltd

Registered office: North Trade Road, Battle, East Sussex, TN33 9LJ

Nature of business: Dormant Company

Class of shares:

holding

Ordinary

100.00

12.

STOCKS

Group

2023

2022

Stocks

183,557

286,464

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2023

2022

2023

2022

Trade debtors

4,380,755

2,468,586

Amounts recoverable on contract

1,303,477

2,172,544

Other debtors

15,611

7,389

3,500

1,800

VAT

140,768

462,268

Prepayments and accrued income

222,132

244,038

6,062,743

5,354,825

3,500

1,800

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2023

2022

2023

2022

Bank loans and overdrafts (see note 16)

110,018

120,273

110,018

120,273

Hire purchase contracts (see note 17)

257,147

289,758

Trade creditors

4,303,522

4,038,129

Amounts owed to group undertakings

11,079,632

10,390,714

Tax

220,677

648,580

Social security and other taxes

224,791

220,969

VAT

4,255

2,144

Other creditors

41,161

20,369

Accrued expenses

504,834

500,806

3,500

1,800

5,662,150

5,838,884

11,197,405

10,514,931

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2023

2022

2023

2022

Bank loans (see note 16)

1,131,669

1,230,154

1,131,669

1,230,154

Hire purchase contracts (see note 17)

166,736

278,989

1,298,405

1,509,143

1,131,669

1,230,154

16.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2023

2022

2023

2022

Amounts falling due within one year or on

demand:

Bank loans

110,018

120,273

110,018

120,273

Amounts falling due between one and two

years:

Bank loans - 1-2 years

117,854

124,737

117,854

124,737

Amounts falling due between two and five

years:

Bank loans - 2-5 years

406,362

402,686

406,362

402,686

Amounts falling due in more than five

years:

Repayable by instalments

Bank loans more 5 yr by instal

607,453

702,731

607,453

702,731

17.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase contracts

2023

2022

Net obligations repayable:

Within one year

257,147

289,758

Between one and five years

166,736

278,989

423,883

568,747

Group

Non-cancellable

operating leases

2023

2022

Within one year

124,725

135,533

Between one and five years

106,171

83,300

230,896

218,833

18.	PROVISIONS FOR LIABILITIES

Group

2023

2022

Deferred tax

770,826

814,052

Group

Deferred

tax

Balance at 1 June 2022

814,052

Provided during year

(43,226

)

Balance at 31 May 2023

770,826

19.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

25,001

Ordinary A

£1

25,001

74,999

Ordinary B

£1

74,999

100,000

20.

RESERVES

Group

Capital

Retained

Revaluation

redemption

earnings

premium

reserve

Totals

At 1 June 2022

5,539,347

33,998

1,574,483

7,147,868

Profit for the year

619,851

At 31 May 2023

6,159,198

33,998

1,574,483

7,767,719

Company

Retained

earnings

At 1 June 2022

(82,762

)

Deficit for the year

(206

)

At 31 May 2023

(82,968

)

21.	CONTINGENT LIABILITIES

Depending on the Earnings Before Interest and Tax performance criteria Littlewood Fencing (UK) Limited has a maximum contingent liability payable to the previous owners of Littlewood Holdings (Sussex) Limited of £1,580,699.

These liabilities will crystallise, depending on the performance criteria, in installments over the next few years from 31 May 2023.