LPM Plant Hire & Sales Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 06858070 (England and Wales)

LPM PLANT HIRE & SALES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2017

Page

Company Information

1

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

Mr J L Lucas

Mr W Butler

Mrs S M Allsopp

Mr N G Langford

Mr C J Clark

SECRETARY:

Mr J L Lucas

REGISTERED OFFICE:

7 St John Street

Mansfield

Nottinghamshire

NG18 1QH

BUSINESS ADDRESS:

Systems House

Meden Road

Maun Way

Boughton

Nottinghamshire

NG22 9ZD

REGISTERED NUMBER:

06858070 (England and Wales)

ACCOUNTANTS:

ApC

Chartered Accountants

7 St John Street

Mansfield

Nottinghamshire

NG18 1QH

BANKERS:

Barclays Bank Plc

23 Market Place

Mansfield

Nottinghamshire

NG18 1HT

FIXED ASSETS

Tangible assets

5

7,978,209

4,174,346

CURRENT ASSETS

Stocks

723,152

695,916

Debtors

6

2,289,768

911,317

Cash at bank and in hand

825,313

76,736

3,838,233

1,683,969

CREDITORS

Amounts falling due within one year

7

4,691,987

2,216,618

NET CURRENT LIABILITIES

(853,754

)

(532,649

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,124,455

3,641,697

CREDITORS

Amounts falling due after more than one year

8

(6,165,490

)

(2,694,094

)

PROVISIONS FOR LIABILITIES

(277,161

)

(129,913

)

NET ASSETS

681,804

817,690

CAPITAL AND RESERVES

Called up share capital

501,072

500,150

Retained earnings

180,732

317,540

SHAREHOLDERS' FUNDS

681,804

817,690

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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

The financial statements were approved by the Board of Directors on 25 January 2018 and were signed on its behalf by:

Mr J L Lucas - Director

Mr W Butler - Director

1.	STATUTORY INFORMATION

LPM Plant Hire & Sales Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The company has the following significant judgements and estimates:

Deferred Tax Asset:

The deferred tax asset is recognized on the unrelieved tax losses. The company has restricted the losses to

what it believes to recover against the taxable profits for the next two financial years, and has therefore

recognized the asset on this basis.

Accrued Income:

The company calculates any income on its contracts that has not been invoiced at the end of the financial year,

and makes a provision for this amount in the financial statements.

The other significant judgements and estimates are detailed in the accounting policies.

Turnover

Turnover represents the value excluding Value Added Tax of sale of machinery and hiring services supplied to

customers during the year. In respect of goods and services provided, all income is taken to profit and loss at the

same point as the right to receive consideration has been acquired. 12.59% (2016: 9.25%) of turnover relates to

exports.

Tangible fixed assets

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

Freehold property

-

20% straight line

Plant and machinery

-

12.5% on reducing balance

Motor vehicles

-

12.5% on reducing balance

Computer equipment

-

33% reducing balance calculated monthly

Stocks

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

slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 those obligations is charged to the profit and loss account over the relevant period on a

Sum of Digits basis. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Financial instruments 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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar

debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented

as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the

profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the

outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability

then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are

debited direct to equity.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 .

5.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 November 2016

76,812

4,955,925

157,892

11,769

5,202,398

Additions

-

5,929,314

123,044

4,589

6,056,947

Disposals

-

(2,166,449

)

-

(796

)

(2,167,245

)

At 31 October 2017

76,812

8,718,790

280,936

15,562

9,092,100

DEPRECIATION

At 1 November 2016

39,722

959,756

23,678

4,896

1,028,052

Charge for year

13,265

653,063

22,944

4,554

693,826

Eliminated on disposal

-

(607,987

)

-

-

(607,987

)

At 31 October 2017

52,987

1,004,832

46,622

9,450

1,113,891

NET BOOK VALUE

At 31 October 2017

23,825

7,713,958

234,314

6,112

7,978,209

At 31 October 2016

37,090

3,996,169

134,214

6,873

4,174,346

Included in the total net book value of tangible fixed assets held at 31 October 2017 was £7,954,384 (2016:

£4,137,256) in respect of assets held under hire purchase and finance lease contracts. The depreciation charge

for the year for these assets was £680,561. (31 October 2016: £445,461).

Included in the total net book value of tangible fixed assets held at 31 October 2017 was £7,713,958

(31 October 2016: £3,996,169) in respect of assets held for use in operating lease agreements. The depreciation

charge for the year for these assets was £653,063. (31 October 2016: £431,853).

6.

DEBTORS

2017

2016

£

£

Amounts falling due within one year:

Trade debtors

1,096,576

624,768

Amounts owed by related parties

315,304

-

Other debtors

57,645

-

VAT

202,503

24,257

Prepayments and accrued income

403,753

262,292

2,075,781

911,317

Amounts falling due after more than one year:

Other debtors

213,987

-

Aggregate amounts

2,289,768

911,317

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

279,160

177,874

Other loans

65,935

-

Hire purchase contracts

2,119,733

1,221,688

Trade creditors

692,983

528,207

Amounts owed to related parties

64,050

64,050

Social security and other taxes

8,561

10,011

Other creditors

2,652

-

Stocking finance creditor

1,442,944

210,961

Credit card

547

90

Wages control account

(100

)

124

Directors' current accounts

5,723

7

Accruals and deferred income

9,799

3,606

4,691,987

2,216,618

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Other loans - 2-5 years

251,749

-

Hire purchase contracts

5,744,191

2,524,544

Directors' loan accounts

169,550

169,550

6,165,490

2,694,094

9.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

279,160

177,874

Other loans

317,684

-

Hire purchase contracts

7,863,924

3,746,232

Directors loan account

169,550

169,550

Stocking finance creditor

1,442,944

210,961

10,073,262

4,304,617

The bank overdraft is secured on the trade debtors of the company. The stocking finance and HP liabilities are

secured on the fixed assets and stock of what they relate to.

The other loan is secured on the assets of what it relates to and is part funded by a loan to a related party. The

directors loan account is secured on the assets of the company.

10.	CAPITAL COMMITMENTS

The company had no capital commitments, or contingent liabilities at the balance sheet date.

11.	RELATED PARTY DISCLOSURES

The company paid dividends to directors during the period as follows:

2017

2016

£

£

Mr W Butler

37,169

31,405

Mrs L Butler

36,728

31,405

Mr J Lucas

460

-

Mr C Clarke

14,044

-

Mr N Langford

20,286

-

During the period the company traded with the following companies and businesses in which Mr J Lucas and A

G Burridge Limited are shareholders, directors or partners as follows:

Financial assistance given to/(received from):

2017

2016

£

£

Birches Building Company Ltd

(2,227

)

175,316

Cuckney Cricket Club

(15,140

)

-

Allseal

-

2,758

Premspace Ltd

-

2,283

Sherwood Innovations Ltd

-

200

Birch Tree Homes Limited

-

3,969

LPM Presitge Sales Limited

(65,915

)

-

Sold goods and services to:

Birches Building Company Ltd

-

63,767

Minster Developments Ltd

2.145

1,833

Allseal

-

-

LPM Prestige Sales Limited

451,300

-

AG Burridge Limited

332,857

-

Purchased goods and services from:

Birches Building Company Ltd

-

2,475

Allseal

-

-

Cuckney Cricket Club

-

450

Sherwood Innovations Ltd

-

-

Birch Tree Homes Limited

-

-

LPM Presitge Sales Limited

47,843

AG Burridge Limited

1,728,210

-

Loans written-off as bad debts

2017

2016

£

£

Allseal Builders

-

2,212

Birches Building Company Ltd

-

128,373

Cuckney Cricket Club

-

(972

)

Edwin Arthur Limited

-

8,583

Sherwood Innovations Ltd

-

24,400

Forge Commercial Limited

-

40,000

Premspace Limited

-

(2,329

)

At the balance sheet date, the following was owed to/(from) the above companies:

2017

2016

£

£

Birches Building Company Ltd

2,227

-

Cuckney Cricket Club

15,140

-

Allseal

-

-

Edwin Arthur Limited

-

-

Sherwood Innovations Ltd

-

-

Premspace Limited

1,156

-

Birch Tree Homes Limited

(64,050

)

(64,050

)

Minster Developments Limited

6,140

-

LPM Prestige Sales Limited

290,641

-

A G Burridge Limited

(325,399

)

-

Debtors

315,304

-

Creditors

389,449

64,050

The following amounts of directors remuneration (including employers national insurance) are as follows:

2017

2016

£

£

Directors remuneration

48,585

7,715

Directors pension

133

-

48,718

7,715

Key management personnel remuneration in the year totalled £48,718. (2016: £7,715)

The company also paid interest to Mrs J Lucas in respect of his loans amounting to £14,099. (2016: £18,492).

12.	ULTIMATE CONTROLLING PARTY

The controlling party is Mr J Lucas, who owns 51% of the Ordinary Shares