Littlewood Fencing UK Limited - Limited company accounts 18.2

REGISTERED NUMBER: 10750281 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2018

FOR

LITTLEWOOD FENCING UK LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

J M Hobden

Ms D A Symes

J Verjee

REGISTERED OFFICE:

Kingfisher House

Radford Way

Billericay

Essex

CM12 0EQ

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 2018.

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 were pleased with the performance of the group in tough economic conditions and are positive

about the coming year's trade.

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

31 January 2019

The directors present their report with the financial statements of the company and the group for the year

ended 31 May 2018.

INCORPORATION

The group was incorporated on 2 May 2017 and commenced trading on 1 December 2017.

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 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2017 to the date of

this report.

J M Hobden

Ms D A Symes

J Verjee

All the directors, being eligible, offer themselves for election at the forthcoming first Annual General Meeting.

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

31 January 2019

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 2018 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 2018 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 there is a

material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion 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 three, 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.

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

31 January 2019

TURNOVER

14,359,246

Cost of sales

(10,900,230

)

GROSS PROFIT

3,459,016

Administrative expenses

(2,392,271

)

1,066,745

Interest payable and similar expenses

5

(47,918

)

PROFIT BEFORE TAXATION

6

1,018,827

Tax on profit

7

(289,285

)

PROFIT FOR THE FINANCIAL YEAR

729,542

OTHER COMPREHENSIVE INCOME

Revaluation

1,099,268

Income tax relating to other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,099,268

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,828,810

Profit attributable to:

Owners of the parent

729,542

Total comprehensive income attributable to:

Owners of the parent

1,828,810

FIXED ASSETS

Intangible assets

9

3,092,668

Tangible assets

10

3,384,827

Investments

11

-

6,477,495

CURRENT ASSETS

Stocks

12

251,024

Debtors

13

5,776,571

Cash at bank and in hand

770,583

6,798,178

CREDITORS

Amounts falling due within one year

14

(4,317,959

)

NET CURRENT ASSETS

2,480,219

TOTAL ASSETS LESS CURRENT LIABILITIES

8,957,714

CREDITORS

Amounts falling due after more than one year

15

(6,475,843

)

PROVISIONS FOR LIABILITIES

18

(426,977

)

NET ASSETS

2,054,894

CAPITAL AND RESERVES

Called up share capital

19

100,000

Share premium

20

33,998

Revaluation reserve

20

1,432,278

Capital redemption reserve

20

40

Retained earnings

20

488,578

SHAREHOLDERS' FUNDS

2,054,894

The financial statements were approved by the Board of Directors on 31 January 2019 and were signed on its

behalf by:

J Verjee - Director

FIXED ASSETS

Intangible assets

9

-

Tangible assets

10

-

Investments

11

10,415,480

10,415,480

CURRENT ASSETS

Debtors

13

19,502

Cash at bank

41,871

61,373

CREDITORS

Amounts falling due within one year

14

(4,142,636

)

NET CURRENT LIABILITIES

(4,081,263

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,334,217

CREDITORS

Amounts falling due after more than one year

15

(6,315,417

)

NET ASSETS

18,800

CAPITAL AND RESERVES

Called up share capital

19

100,000

Retained earnings

20

(81,200

)

SHAREHOLDERS' FUNDS

18,800

Company's loss for the financial year

(81,200

)

The financial statements were approved by the Board of Directors on 31 January 2019 and were signed on its behalf by:

J Verjee - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Changes in equity

Issue of share capital

100,000

-

-

Total comprehensive income

-

729,542

-

Balance at 31 May 2018

100,000

729,542

-

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Changes in equity

Issue of share capital

-

-

100,000

Total comprehensive income

1,099,268

-

1,828,810

Balance at 31 May 2018

1,099,268

-

1,928,810

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100,000

-

100,000

Total comprehensive loss

-

(81,200

)

(81,200

)

Balance at 31 May 2018

100,000

(81,200

)

18,800

Cash flows from operating activities

Cash generated from operations

1

(1,402,200

)

Interest paid

(40,440

)

Interest element of hire purchase payments paid

(7,478

)

Tax paid

(2,097

)

Net cash from operating activities

(1,452,215

)

Cash flows from investing activities

Purchase of intangible fixed assets

(3,227,131

)

Purchase of tangible fixed assets

(995,028

)

Sale of tangible fixed assets

33,140

Sale of investment property

(505,333

)

Net cash from investing activities

(4,694,352

)

Cash flows from financing activities

New loans in year

6,900,000

Loan repayments in year

(116,917

)

Share issue

100,000

Share premium

33,998

Other reserves

40

Net cash from financing activities

6,917,121

Increase in cash and cash equivalents

770,554

Cash and cash equivalents at beginning of year

2

-

Cash and cash equivalents at end of year

2

770,554

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

£

Profit before taxation

1,018,827

Depreciation charges

327,552

Profit on disposal of fixed assets

(3,098

)

Finance costs

47,918

1,391,199

Increase in stocks

(251,024

)

Increase in trade and other debtors

(2,987,378

)

Increase in trade and other creditors

445,003

Cash generated from operations

(1,402,200

)

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 2018

31.5.18

1.6.17

£

£

Cash and cash equivalents

770,583

-

Bank overdrafts

(29

)

-

770,554

-

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

£

Wages and salaries

2,951,628

Social security costs

361,370

Other pension costs

36,228

3,349,226

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

Direct

118

Indirect

50

168

The average number of employees by undertakings that were proportionately consolidated during the

year was 171 .

£

Directors' remuneration

171,043

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

£

Bank loan interest

40,440

Hire purchase

7,478

47,918

6.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

£

Hire of plant and machinery

296,272

Depreciation - owned assets

178,050

Depreciation - assets on hire purchase contracts

87,641

Profit on disposal of fixed assets

(3,098

)

Goodwill amortisation

134,463

Auditors' remuneration

15,033

7.

TAXATION

Analysis of the tax charge

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

£

Current tax:

UK corporation tax

291,124

Prior year tax

2,097

Total current tax

293,221

Deferred tax

(3,936

)

Tax on profit

289,285

Tax effects relating to effects of other comprehensive income

Gross

Tax

Net

£

£

£

Revaluation

1,099,268

-

1,099,268

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 2017

225,000

Additions

3,227,131

At 31 May 2018

3,452,131

AMORTISATION

At 1 June 2017

225,000

Amortisation for year

134,463

At 31 May 2018

359,463

NET BOOK VALUE

At 31 May 2018

3,092,668

At 31 May 2017

-

10.	TANGIBLE FIXED ASSETS

Group

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 June 2017

-

1,019,061

120,221

1,333,731

2,473,013

Additions

-

44,417

5,378

269,934

319,729

Disposals

-

(33,075

)

-

(31,146

)

(64,221

)

Revaluations

1,384,884

-

-

-

1,384,884

Reclassification/transfer

966,255

-

-

-

966,255

At 31 May 2018

2,351,139

1,030,403

125,599

1,572,519

5,079,660

DEPRECIATION

At 1 June 2017

-

458,504

62,742

814,163

1,335,409

Charge for year

3,227

84,901

8,972

168,591

265,691

Eliminated on disposal

-

(7,137

)

-

(27,042

)

(34,179

)

Reclassification/transfer

127,912

-

-

-

127,912

At 31 May 2018

131,139

536,268

71,714

955,712

1,694,833

NET BOOK VALUE

At 31 May 2018

2,220,000

494,135

53,885

616,807

3,384,827

At 31 May 2017

-

560,557

57,479

519,568

1,137,604