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REGISTERED NUMBER: NI613347 (Northern Ireland)















LOUGH ERNE INVESTMENTS LIMITED

GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 25 DECEMBER 2021






LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 25 DECEMBER 2021




Page

Company Information 1

Group Strategic Report 2 to 4

Directors' Report 5 to 8

Independent Auditors' Report 9 to 12

Consolidated Income Statement 13

Consolidated Statement of Financial Position 14

Company Statement of Financial Position 15

Consolidated Statement of Changes in Equity 16

Company Statement of Changes in Equity 17

Consolidated Statement of Cash Flows 18

Notes to the Consolidated Statement of Cash
Flows

19


Notes to the Consolidated Financial Statements 20 to 35


LOUGH ERNE INVESTMENTS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 25 DECEMBER 2021







DIRECTORS: C Crawford
R Crawford
L Crawford
C McMenamin
M Crawford



REGISTERED OFFICE: Manor Waterhouse Farm
Lisnaskea
Co. Fermanagh
BT92 0BN



REGISTERED NUMBER: NI613347 (Northern Ireland)



INDEPENDENT AUDITORS: CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP



BANKERS: Danske Bank
Donegal Sqaure West
Belfast
Co. Antrim
BT1 6JS



SOLICITORS: J C Brady & Son
10 Belmore Street
Enniskillen
Co Fermanagh
BT74 6AA

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 25 DECEMBER 2021

The directors present their strategic report of the Company and the Group for the year ended 25 December 2021.

REVIEW OF THE GROUP'S BUSINESS
The Group trades in the business of egg processing and farming. There was no material change in the Group's business in the period under review.

The directors are satisfied with the performance of the Group in the year. Revenue has increased by 10.7% in the year, whilst gross profits have increased to £19,431,206 (2020: £15,859,220). The directors continue to monitor costs within the business to ensure profits are sustained in future periods. The Group will continue to explore future opportunities to develop new business and re-invest in its current operations.

The Group is structured and positioned in a manner that will enable it to meet the demands of the market and business environment, consequently the directors are optimistic about the future prospects of the group.

The Group's facilities are located in Lisnaskea, Co. Fermanagh, Northern Ireland and a second facility in Chesterfield, England.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors acknowledge that as well as rewards there are risks and uncertainties inherent in the food production and processing sector which must be closely monitored and controlled.
The level of activity in the food production and processing sector is affected by many factors including commodity markets, government and EU legislation and changes in international agricultural practices. The board has put in place systems and procedures which monitor these factors.
The Group works with a range of food production and processing partners with strong records of delivery and closely examines its pool of suppliers for quality and consistency of raw materials, adherence to relevant industry legislation and sufficiency of resources and solvency. This combined with excellent people, well developed supply chains and an established customer base, allows the business to consistently deliver the growth enjoyed over recent periods.

Financial risk:
The Group's operations expose it to a variety of financial risks that include price risk, foreign exchange risk, credit risk and liquidity risk. The Group has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the Group.

Price risk:
The Group is exposed to commodity price risk of its operations. However, given the size of the Group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Group's operations change in size or nature.

Foreign exchange risk:
While the majority of the Group's revenues and expenses are denominated in sterling, the Group is exposed to some foreign exchange risk in the normal course of business, principally on sales in euro. While the Group has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.

Credit risk:
The Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit which is reassessed regularly by the board.

Liquidity risk:
The Group generates sufficient cashflow to ensure it has adequate available funds for operations and planned expansions.

Covid-19:
The directors continue to monitor the situation closely and implement changes where necessary to minimise the risk of business disruptions. The Group is flexible, has adapted easily to both social distancing amongst employees and the change to its customer base.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 25 DECEMBER 2021

SECTION 172(1) STATEMENT
The directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so had regard, amongst other matters, to:

a) the likely consequences of any decision in the long term

b) the interests of the Group's employees

c) the need to foster the Group's business relationships with suppliers, customers and others

d) the impact of the Group's operations on the community and the environment

e) the desirability of the Group maintaining a reputation for high standards of business conduct

f) the need to act fairly as between members of the Group

The directors have had regard to the matters set out in sections 172(1)(a)-(f) when discharging their section 172 duties.

The Group undertakes many local community engagements and is a proud member of Business in the Community. Working together with other member companies, we are focussed on undertaking projects and initiatives that will build a better society and a more sustainable future. We also offer work placement programmes to provide students an opportunity to develop their knowledge and skillset within the working environment.

Employee welfare is at the core of the Group's values. We invest in the services of an external occupational nurse once a year for free health checks which include eye and hearing tests and fitness to work in a food environment screening. Our life assurance scheme with Legal & General is available for all employees and our Employee Assistance Programme (EAP) is a welcome platform providing information, advice, training and services to help employees deal with events and issues in everyday work and personal life.

Food safety and animal welfare are fundamental to the Group. All our sites are accredited to BRC Global Standards for Food Safety (Grade AA) and our inhouse laboratory is certified by CLAS, the leading independent accreditation scheme for the food industry. Our products are produced to exacting standards and customer specifications with the most robust and intricate supply chain systems ensuring full traceability. Our agricultural manager ensures our farmers remain educated on changing regulations within the industry and continue to supply the high-quality eggs that we, and our customers demand.

The Group is renowned for our deep-rooted commitment to caring for the environment and every year we participate in the Business in the Community Environmental Benchmarking Survey. In 2021 we aim to have a new state-of-the-art waste water treatment facility fully operational. This will ensure we remain within our environmental consent limits whilst giving us the capacity to grow our expanding customer base. The Group has also voluntarily entered into Climate Change Agreements (CCAs) at both our sites as a further commitment to meeting and exceeding energy efficiency and carbon reduction targets in exchange for CCL relief until 31 March 2025. As well as proactively working to reduce our carbon emissions year-on-year, any CCL relief received will be reinvested in energy efficiency projects.

Refer to the Principle risks and uncertainties section in the Strategic Report for further information concerning the Group's initiatives relating to the performance of the directors S172 duties.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 25 DECEMBER 2021

KEY PERFORMANCE INDICATORS
Key performance indicators
The directors consider the key performance indicators of the Group to be those that reflect the performance of the Group as a whole:

2021 2020
Revenue £64,616,383 £58,368,391
Gross profit margin 30.0% 27.2%

Non financial key performance indicators
2021 2020
Average number of employees 151 160

STRATEGY
The Group's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the Group's operations. The Group aims to increase market share within UK.

FUTURE DEVELOPMENTS
The Group is committed to long term creation of shareholder value by increasing the Group's market share in the UK and Irish markets. The economic environment continues to evolve and is making a return to relative stability and certainty. Overall in the coming year the Group aims to increase revenue and operating profits. The Group will continue to develop relations with suppliers, generate new business where possible and increase retention levels while remaining highly competitive. The Group is continually researching and developing new products and services to ensure it continues to provide a strong product to the market.

ENVIRONMENT
The Group recognises its corporate responsibility to carry out its operations whilst ensuring that there is minimal environmental impact. The directors continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce wastage wherever possible.

ON BEHALF OF THE BOARD:





C Crawford - Director


1 July 2022

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

DIRECTORS' REPORT
FOR THE YEAR ENDED 25 DECEMBER 2021

The directors present their report with the financial statements of the Company and the Group for the year ended 25 December 2021.

PRINCIPAL ACTIVITY
The principal activity of the Group is egg processing and farming.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2021 was £100,000 (2020: £100,000).

The directors do not recommend the payment of a final dividend (2020: £Nil).

RESEARCH AND DEVELOPMENT
The Group continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 26 December 2020 to the date of this report.

C Crawford
R Crawford
L Crawford
C McMenamin
M Crawford

CHARITABLE DONATIONS AND EXPENDITURE
The Group made no political donations or incurred any political expenditure during the current or prior year.

POST BALANCE SHEET EVENT
Post year end, in March 2022, Ready Egg Products Limited, a subsidiary of Lough Erne Investments Limited, acquired 100% of share capital in Skea Egg Farms Limited.

DISCLOSURES REQUIRED UNDER SCHEDULE 7
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties and future developments in the Group's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

DIRECTORS' REPORT
FOR THE YEAR ENDED 25 DECEMBER 2021

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Lough Erne Investments Limited is committed to operating a responsible business. This commitment is reflected in initiatives aimed at making a positive impact on society and the environment, through our operations and with key stakeholders including customers, colleagues, communities and suppliers. This includes the following:

Environment:
The Group is renowned for our deep-rooted commitment to caring for the environment and every year we participate in the Business in the Community Environmental Benchmarking Survey. In 2021 we aim to have a new state-of-the-art waste water treatment facility fully operational. This will ensure we remain within our environmental consent limits whilst giving us the capacity to grow our expanding customer base. The Group has also voluntarily entered into Climate Change Agreements (CCAs) at both our sites as a further commitment to meeting and exceeding energy efficiency and carbon reduction targets in exchange for CCL relief until 31 March 2025. As well as proactively working to reduce our carbon emissions year-on-year, any CCL relief received will be reinvested in energy efficiency projects.

Employee Engagement:
Training is paramount to our employees professional learning and development across all areas of the business. We continue to proactively invest in training and development to ensure our employees have an opportunity to progress and enhance their knowledge and skill base, which will in turn, further enhance our forward thinking and highly skilled workforce.

Community Engagement:
The Group undertakes many local community engagements and is a proud member of Business in the Community. Working together with other member companies, we are focussed on undertaking projects and initiatives that will build a better society and a more sustainable future. We also offer work placement programmes to provide students an opportunity to develop their knowledge and skillset within the working environment. A number of charities that benefitted from donations from the Group in the year included Cancer Connect NI, NI Deaf Youth Association, Macmillian Cancer Support and Lisnaskea and Enniskillen Foodbank.

STREAMLINED ENERGY AND CARBON REPORTING
The following Streamlined Energy and Carbon Report (SECR) provides environmental impact information in accordance with the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013.

The company aims to ensure the environment is left in a better condition for future generations, this strategy underlines the importance of Environmental, Social and Governance (ESG) as well as sustainability in supporting the future growth and development of the business. As a company we have made meaningful progress in the last financial year in understanding our environmental impact and developing mitigation measures.




Measure
For the year
ended 31
December
2021
For the year
ended 31
December
2020



Units
Energy consumption used to
calculate emissions

12,352,091

10,945,171

kWh
Emissions from purchased
electricity

1,067.50

1,124.73

tCO2e
Emissions from gas and fuels 1,579.50 1,288.08 tCO2e
Emissions from transportation 159.09 173.62 tCO2e
Total Gross tCO2e 2,806.09 2,586.43 tCO2e
Intensity ratio 0.059 0.060 Gross tCO2e/production tonne


Methodology

Consumption and CO2e emission data has been calculated in line with the 2019 UK Government environmental reporting guidance. The Emission Factor Databases used are consistent with the 2019 UK Government environmental reporting guidance, utilising the current published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the year to 31 December 2021.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

DIRECTORS' REPORT
FOR THE YEAR ENDED 25 DECEMBER 2021

Estimations undertaken to cover missing billing periods for properties directly invoiced to the Company were calculated on a kWh/day pro-rata basis at meter level. These estimations equated to 5% of the reported consumption. These full year estimations were applied to 2 electricity supplies and 1 gas supply for the Company.

Intensity metrics have been calculated utilising the 2021 reportable figures for units produced, and tCO2e for both individual sources and total emissions were then divided by this figure to determine the tCO2e per metric.

Energy Efficiency

The Company is committed to year on year improvements in their operational energy efficiency. As such, a register of energy efficiency measures available to the Company has been complied, with a view to implementing these measures in the next 5 years. Measures ongoing and undertaken in 2022 include the installation of new efficient equipment, replacement of lighting with LED equivalents and installation of pipework insulation to reduce heat loss. In 2022, measures prioritised for implementation include installation of a new steam boiler, replacement and relocation of solar panels, replacement of old hot water calorifiers, continuation of lighting replacement with LED equivalents, further installation of pipework insulation and installation of a heat exchanger to replace old boilers in boiling and processing.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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;
- state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's 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.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

DIRECTORS' REPORT
FOR THE YEAR ENDED 25 DECEMBER 2021


AUDITORS
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





C Crawford - Director


1 July 2022

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
LOUGH ERNE INVESTMENTS LIMITED

Opinion
We have audited the financial statements of Lough Erne Investments Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 25 December 2021 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 25 December 2021 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
LOUGH ERNE INVESTMENTS LIMITED


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 Directors' Report.

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 Directors' Responsibilities Statement set out on page seven, 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.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
LOUGH ERNE INVESTMENTS LIMITED


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- We obtained understanding of the legal and regulatory requirements applicable to the company’s
financial statements and considered the most significant are the Companies Act 2006, Financial
Reporting Standards (FRS102) and UK taxation legislation;
- We have assessed the risk of material misstatement of the financial statements, including risk of
material misstatement due to fraud and how it might occur by holding discussions with
management and those charged with governance;
- We enquired of management and those charged with governance as to any known instances of
non-compliance or suspected non-compliance with laws and regulations;
- Understanding the internal controls established to mitigate risks related to fraud or
non-compliance with laws and regulations; and
- Discussions amongst the audit engagement team regarding how fraud might occur in the financial
statements and any potential indicators of fraud. As part of this discussion we identified the
following potential areas where fraud may occur: timing of revenue recognition and management
override.

The audit response to risks identified included:

- Reviewing the financial statements disclosures and testing to supporting documentation to assess
compliance with the relevant laws and regulations above;
- Performing analytical procedures to identify any unusual or unexpected relationships that may
indicate risk of material misstatement due to fraud;
- In addressing the risk of fraud through management override of controls, testing the
appropriateness of journal entries and other adjustments, assessing whether the judgements
made in making accounting estimates are reasonable and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' Report.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
LOUGH ERNE INVESTMENTS LIMITED


Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Mr. Desmond Kelly (F.C.A) (Senior Statutory Auditor)
for and on behalf of CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

1 July 2022

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 25 DECEMBER 2021

2021 2020
Notes £ £

REVENUE 5 64,616,383 58,368,391

Cost of sales (45,185,177 ) (42,509,172 )
GROSS PROFIT 19,431,206 15,859,219

Administrative expenses (9,642,591 ) (8,506,559 )
9,788,615 7,352,660

Other operating income 116,656 78,705
OPERATING PROFIT 7 9,905,271 7,431,365

Finance income 120,144 101,407
10,025,415 7,532,772

Finance costs 8 (129,714 ) (165,471 )
PROFIT BEFORE TAXATION 9,895,701 7,367,301

Tax on profit 9 (1,235,203 ) (1,552,743 )
PROFIT FOR THE FINANCIAL YEAR 8,660,498 5,814,558

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

8,660,498

5,814,558

Profit attributable to:
Owners of the parent 4,583,333 2,467,954
Non-controlling interests 4,077,165 3,346,604
8,660,498 5,814,558

Total comprehensive income attributable to:
Owners of the parent 4,583,333 2,467,954
Non-controlling interests 4,077,165 3,346,604
8,660,498 5,814,558

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
25 DECEMBER 2021

2021 2020
Notes £ £
NON-CURRENT ASSETS
Intangible assets 12 102,199 153,301
Property, plant and equipment 13 34,639,315 34,143,269
Investments 14 - -
34,741,514 34,296,570

CURRENT ASSETS
Inventories 15 2,317,916 2,984,605
Receivables: amounts falling due within
one year

16

15,858,862

14,567,299
Cash at bank 16,398,095 8,520,154
34,574,873 26,072,058
PAYABLES
Amounts falling due within one year 17 (9,311,654 ) (8,736,565 )
NET CURRENT ASSETS 25,263,219 17,335,493
TOTAL ASSETS LESS CURRENT
LIABILITIES

60,004,733

51,632,063

PAYABLES
Amounts falling due after more than
one year

18

(4,331,924

)

(4,531,081

)

PROVISIONS FOR LIABILITIES 23 (1,123,078 ) (995,093 )

GOVERNMENT GRANTS 24 (129,038 ) (245,694 )
NET ASSETS 54,420,693 45,860,195

CAPITAL AND RESERVES
Called up share capital 25 1,169,671 1,169,671
Share premium 10,937,761 10,937,761
Retained earnings 21,430,936 16,947,603
SHAREHOLDERS' FUNDS 33,538,368 29,055,035

NON-CONTROLLING INTERESTS 26 20,882,325 16,805,160
TOTAL EQUITY 54,420,693 45,860,195

The financial statements were approved by the Board of Directors and authorised for issue on 1 July 2022 and were signed on its behalf by:





C Crawford - Director


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

COMPANY STATEMENT OF FINANCIAL POSITION
25 DECEMBER 2021

2021 2020
Notes £ £
NON-CURRENT ASSETS
Intangible assets 12 - -
Property, plant and equipment 13 14,840,363 14,758,393
Investments 14 21,726,024 17,482,446
36,566,387 32,240,839

CURRENT ASSETS
Inventories 15 559,768 1,215,187
Receivables: amounts falling due within
one year

16

2,064,084

541,595
Cash at bank - 219,794
2,623,852 1,976,576
PAYABLES
Amounts falling due within one year 17 (1,451,845 ) (824,826 )
NET CURRENT ASSETS 1,172,007 1,151,750
TOTAL ASSETS LESS CURRENT
LIABILITIES

37,738,394

33,392,589

PAYABLES
Amounts falling due after more than
one year

18

(4,331,924

)

(4,520,555

)
NET ASSETS 33,406,470 28,872,034

CAPITAL AND RESERVES
Called up share capital 25 1,169,671 1,169,671
Share premium 10,937,761 10,937,761
Revaluation reserve 10,686,468 6,442,890
Retained earnings 10,612,570 10,321,712
SHAREHOLDERS' FUNDS 33,406,470 28,872,034

Company's profit for the financial year 390,858 1,076,203

The financial statements were approved by the Board of Directors and authorised for issue on 1 July 2022 and were signed on its behalf by:





C Crawford - Director


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 25 DECEMBER 2021

Called up
share Retained Share
capital earnings premium
£ £ £

Balance at 26 December 2019 1,169,671 14,005,638 10,937,761

Changes in equity
Dividends - (100,000 ) -
Total comprehensive income - 2,467,954 -
Transfer to retained earnings - 574,011 -
Balance at 25 December 2020 1,169,671 16,947,603 10,937,761

Changes in equity
Dividends - (100,000 ) -
Total comprehensive income - 4,583,333 -
Balance at 25 December 2021 1,169,671 21,430,936 10,937,761
Non-controlling Total
Total interests equity
£ £ £

Balance at 26 December 2019 26,113,070 15,992,450 42,105,520

Changes in equity
Dividends (100,000 ) (1,959,883 ) (2,059,883 )
Total comprehensive income 2,467,954 3,346,604 5,814,558
Transfer to retained earnings 574,011 (574,011 ) -
Balance at 25 December 2020 29,055,035 16,805,160 45,860,195

Changes in equity
Dividends (100,000 ) - (100,000 )
Total comprehensive income 4,583,333 4,077,165 8,660,498
Balance at 25 December 2021 33,538,368 20,882,325 54,420,693

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 25 DECEMBER 2021

Called up
share Retained Share Revaluation Total
capital earnings premium reserve equity
£ £ £ £ £

Balance at 26 December 2019 1,169,671 9,345,509 10,937,761 5,247,421 26,700,362

Changes in equity
Dividends - (100,000 ) - - (100,000 )
Total comprehensive income - 1,076,203 - 1,195,469 2,271,672
Balance at 25 December 2020 1,169,671 10,321,712 10,937,761 6,442,890 28,872,034

Changes in equity
Dividends - (100,000 ) - - (100,000 )
Total comprehensive income - 390,858 - 4,243,578 4,634,436
Balance at 25 December 2021 1,169,671 10,612,570 10,937,761 10,686,468 33,406,470

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 25 DECEMBER 2021

2021 2020
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 11,700,860 9,659,822
Interest paid (129,714 ) (165,471 )
Tax paid (1,400,001 ) (933,445 )
Net cash from operating activities 10,171,145 8,560,906

Cash flows from investing activities
Purchase of tangible fixed assets (3,050,338 ) (4,960,535 )
Sale of tangible fixed assets 423,040 224,993
Interest received 120,144 101,407
Net cash from investing activities (2,507,154 ) (4,634,135 )

Cash flows from financing activities
Loan repayments in year (242,190 ) (1,338,874 )
HP repayments in year (1,309 ) -
Capital repayments in year - (22,858 )
Amount introduced by directors - 6,092
Amount withdrawn by directors - (51,262 )
Equity dividends paid (100,000 ) (2,059,883 )
Net cash from financing activities (343,499 ) (3,466,785 )

Increase in cash and cash equivalents 7,320,492 459,986
Cash and cash equivalents at
beginning of year

2

8,520,154

8,060,168

Cash and cash equivalents at end
of year

2

15,840,646

8,520,154

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 25 DECEMBER 2021

1. Reconciliation of profit before taxation to cash generated from operations
2021 2020
£ £
Profit before taxation 9,895,701 7,367,301
Depreciation charges 2,322,901 2,333,992
(Profit)/loss on disposal of fixed assets (151,619 ) 349,381
Goodwill amortisation 51,102 -
Government grants (116,656 ) (88,272 )
Finance costs 129,714 165,471
Finance income (120,144 ) (101,407 )
12,010,999 10,026,466
Decrease in inventories 666,689 123,734
(Increase)/decrease in trade and other debtors (1,291,563 ) 916,595
Increase/(decrease) in trade and other creditors 314,735 (1,406,973 )
Cash generated from operations 11,700,860 9,659,822

2. Cash and cash equivalents

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 25 December 2021
25/12/21 26/12/20
£ £
Cash and cash equivalents 16,398,095 8,520,154
Bank overdrafts (557,449 ) -
15,840,646 8,520,154
Year ended 25 December 2020
25/12/20 26/12/19
£ £
Cash and cash equivalents 8,520,154 9,160,720
Bank overdrafts - (1,100,552 )
8,520,154 8,060,168


3. Analysis of changes in net funds

At 26/12/20 Cash flow At 25/12/21
£ £ £
Net cash
Cash at bank 8,520,154 7,877,941 16,398,095
Bank overdrafts - (557,449 ) (557,449 )
8,520,154 7,320,492 15,840,646
Debt
Finance leases (27,578 ) (38,721 ) (66,299 )
Debts falling due within 1 year (564,215 ) 22,170 (542,045 )
Debts falling due after 1 year (4,520,555 ) 220,020 (4,300,535 )
(5,112,348 ) 203,469 (4,908,879 )
Total 3,407,806 7,523,961 10,931,767

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 25 DECEMBER 2021

1. General information

Lough Erne Investments Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the General Information page.

2. Statement of compliance

The financial statements of the Group for the year ended 25 December 2021 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.

3. Accounting policies

Basis of preparing the financial statements
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group's financial statements.

The financial statements are prepared in Sterling which is the functional currency of the Group, and rounded to the nearest pound (£), except when otherwise stated.

Basis of consolidation
The consolidated financial statements include the financial statements of the holding company and all its subsidiary companies made up to 25 December 2021.

Intercompany transactions, balances, income and expenses on transactions between Group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

3. Accounting policies - continued

Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.The following criteria must also be met before revenue is recognised:

Sale of service:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the significant risks and rewards of ownership have been transferred to the buyer;
- the company retains no continuing involvement or control over the goods;
- the amount of revenue can be measured reliably;
- it is probable that future economic benefits will flow through the group
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of Services:
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably
- it is probable that the group will receive the consideration due under the contract
- the stage of completion of the contract at the end of the reporting period can be measured reliably, and;
- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill
Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 10 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold Land - Nil
Freehold buildings - 5% Straight line
Plant and machinery - 5% - 33% Straight line
Fixtures, fittings and equipment - 10% - 33% Straight line

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable and is charged to the Income Statement.

Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

3. Accounting policies - continued

Financial instruments
The company and group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group companies are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

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

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and 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.

Taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

3. Accounting policies - continued

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates that have been enacted or substantively enacted by the Statement of Financial Position date.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement.

Hire purchase and leasing commitments
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the group are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement. Rentals payable under operating leases are dealt with in the Income Statement as incurred over the period of the rental agreement.

Net finance expenses
Finance expenses:
Finance expenses comprise interest payable on borrowings and leases.

Finance income:
Finance income comprises interest receivable on funds invested in loans and cash and cash equivalents. Interest is recognised in profit or loss as it accrues.

Employee benefits
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

Investments in subsidiaries
Investments held are revalued annually, surpluses or deficits arising thereon being credited or debited to the revaluation reserve. Permanent deficits are charged to the Income Statement if not exceeded by previous revaluation surpluses.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

3. Accounting policies - continued

Distributions to equity holders
Dividends and other distributions to the group's shareholders are recognised as a liability in the
financial statements in the period in which the dividends and other distributions are approved by the
group's shareholders. These amounts are recognised in the statement of changes in equity.

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Preference Share Capital
The dividend rights of the preference shares are non-cumulative and payment is at the discretion of the group. The preference shares carry voting rights at meetings. Based on their characteristics the preference shares are considered to be presented as equity and not liabilities. There is no option to redeem the preference shares.

4. Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the entity's accounting policies
There are no critical judgements in applying the entity's accounting policies.

b) Key accounting estimates and assumptions
There are no critical accounting estimates and assumptions.

5. Revenue

An analysis of revenue by class of business and geographical market is not given as, in the opinion of the Directors, this would be seriously prejudicial to the Group's interest.

6. Employees and directors

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

Number of employees
The average number of persons employed (including directors) during the year was as follows:
Staff costs, including directors' remuneration, were as follows:
2021 2020
£    £   
Wages and salaries 3,704,789 3,469,055
Social security costs 374,818 317,600
Other pension costs 86,908 112,827
4,166,515 3,899,482

The average number of employees, including directors employed during the year, was as follows:
2021 2020
Production and processing staff 135 143
Admin staff 16 17
151 160



Director's remuneration: 2021 2020
£ £

Remuneration 68,328 66,060

During the year, retirement benefits were accruing to 1 director (2020: 1) in respect of defined benefit pension schemes. The directors are considered to be key management.

7. Operating profit

The operating profit is stated after charging/(crediting):

2021 2020
£ £
Operating lease payments 49,899 87,471
Depreciation - owned assets 2,322,901 2,282,890
(Profit)/loss on disposal of fixed assets (151,619 ) 349,381
Goodwill amortisation 51,102 51,102
Auditors' remuneration 17,750 17,000
Taxation compliance services 1,400 1,650
Taxation advisory services 78,350 30,445
Foreign exchange differences 122,089 (195,178 )
Discounts received (2,738 ) (4,901 )
Amortisation of Government Grants (116,656 ) (88,272 )

8. Finance costs
2021 2020
£ £
Bank interest 129,714 165,471

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

9. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2021 2020
£ £
Current tax:
UK corporation tax 1,414,929 1,688,876
Prior year tax adjustment (307,711 ) -
Total current tax 1,107,218 1,688,876

Deferred tax 127,985 (136,133 )
Tax on profit 1,235,203 1,552,743

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£ £
Profit before tax 9,895,701 7,367,301
Profit multiplied by the standard rate of corporation tax in the UK
of 19 % (2020 - 19 %)

1,880,183

1,399,787

Effects of:
Expenses not deductible for tax purposes 13,585 80,896
Income not taxable for tax purposes (77,812 ) (17,578 )
Capital allowances in excess of depreciation (85,779 ) (60,373 )
Adjustments to tax charge in respect of previous periods (307,712 ) 143,507
Deferred Tax 127,985 (136,133 )

Research & Development Relief (274,911 ) (38,000 )
Consolidation adjustment (64,554 ) 180,637
Non trading loan relationships 24,218 -
Total tax charge 1,235,203 1,552,743

10. Individual income statement

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


11. Dividends
2021 2020
£ £
Ordinary shares of 1 each
Interim 45,000 45,000
Preference shares of 1 each
Interim 55,000 55,000
100,000 100,000

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

12. Intangible fixed assets

Group
Goodwill
£
COST
At 26 December 2020
and 25 December 2021 511,015
AMORTISATION
At 26 December 2020 357,714
Amortisation for year 51,102
At 25 December 2021 408,816
NET BOOK VALUE
At 25 December 2021 102,199
At 25 December 2020 153,301

13. Property, plant and equipment

Group
Freehold Fixtures
land and Plant and and
property machinery fittings Totals
£ £ £ £
COST
At 26 December 2020 27,240,421 21,901,061 206,158 49,347,640
Additions 1,358,979 1,731,389 - 3,090,368
Disposals (125,000 ) (262,627 ) - (387,627 )
At 25 December 2021 28,474,400 23,369,823 206,158 52,050,381
DEPRECIATION
At 26 December 2020 4,882,472 10,132,109 189,790 15,204,371
Charge for year 755,334 1,552,864 14,703 2,322,901
Eliminated on disposal - (116,206 ) - (116,206 )
At 25 December 2021 5,637,806 11,568,767 204,493 17,411,066
NET BOOK VALUE
At 25 December 2021 22,836,594 11,801,056 1,665 34,639,315
At 25 December 2020 22,357,949 11,768,952 16,368 34,143,269

Included above are assets held under finance leases or hire purchase contracts as follows:

2021 2021 2020 2020

Carrying
Amount
Depreciation
Charge
Carrying
Amount
Depreciation
Charge
£ £ £ £

Plant & Machinery 7,777 16,822 24,599 16.822

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

13. Property, plant and equipment - continued

Company
Freehold
land and Plant and
property machinery Totals
£ £ £
COST
At 26 December 2020 14,601,651 1,362,540 15,964,191
Additions 538,247 85,805 624,052
Disposals (125,000 ) (262,627 ) (387,627 )
At 25 December 2021 15,014,898 1,185,718 16,200,616
DEPRECIATION
At 26 December 2020 503,656 702,142 1,205,798
Charge for year 149,424 121,237 270,661
Eliminated on disposal - (116,206 ) (116,206 )
At 25 December 2021 653,080 707,173 1,360,253
NET BOOK VALUE
At 25 December 2021 14,361,818 478,545 14,840,363
At 25 December 2020 14,097,995 660,398 14,758,393

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

14. Fixed asset investments

Company


Shares in
group
undertakings
£
Opening carrying value as at 26 December 2020 17,482,446
Increase in value in the year 4,243,578
Closing carrying value as at 25 December 2021 21,726,024

If fixed asset investments had not been revalued they would have been included at the following historical cost:

2021 2020
£ £
Cost 7,172,535 7,172,535

Fixed asset Investments were valued on an open market basis on 25 December 2021 by the Directors.

The company's principal subsidiary is:

Name
Country of
incorporation

Principal Activity

Share %

Ownership Class
Ready Egg
Products Limited

Northern Ireland

Egg processing

51

Ordinary Shares

The registered address of the subsidiary is 116 Crom Road, Milltate, Lisnaskea, Co. Fermanagh, BT92 0BN.

The aggregate capital, reserves and results of the company's subsidiary undertaking for the year were:

2021 2020
£ £
Capital and reserves
Ready Egg Products Limited 42,638,048 34,317,306

Profit for financial year
Ready Egg Products Limited 8,320,742 6,829,574

The directors believe that the carrying value of the investments is supported by their underlying net assets.

15. Stocks

Group Company
2021 2020 2021 2020
£ £ £ £
Raw materials 1,313,058 1,636,774 - -
Finished goods 1,004,858 1,347,831 559,768 1,215,187
2,317,916 2,984,605 559,768 1,215,187

The replacement cost of inventories did not differ significantly from the figures shown.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

16. Receivables: amounts falling due within one year

Group Company
2021 2020 2021 2020
£ £ £ £
Trade receivables 12,367,765 11,823,602 32,890 64,697
Amounts owed by group undertakings - - 489,546 -
Other receivables 1,524,177 590,418 1,524,177 382,690
VAT 302,114 264,901 - 81,159
Prepayments 1,664,806 1,888,378 17,471 13,049
15,858,862 14,567,299 2,064,084 541,595

17. Payables: amounts falling due within one year

Group Company
2021 2020 2021 2020
£ £ £ £
Bank loans and overdrafts (see note 19)
1,099,494

564,215

1,039,091

564,215
Hire purchase contracts (see note 20) 34,910 17,052 25,805 -
Trade payables 4,806,601 5,835,979 104,463 170,946
Amounts owed to participating interests 96,291 135,468 - -
Tax 999,533 1,292,316 - -
Social security and other taxes 147,298 74,636 52,414 2,479
Other payables 158,379 - 158,379 -
Directors' current accounts 43,588 42,578 43,588 42,578
Accruals and deferred income 1,925,560 774,321 28,105 44,608
9,311,654 8,736,565 1,451,845 824,826

18. Payables: amounts falling due after one year

Group Company
2021 2020 2021 2020
£ £ £ £
Bank loans (see note 19) 4,300,535 4,520,555 4,300,535 4,520,555
Hire purchase contracts (see note 20) 31,389 10,526 31,389 -
4,331,924 4,531,081 4,331,924 4,520,555

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

19. Loans

An analysis of the maturity of loans is given below:

Group Company
2021 2020 2021 2020
£ £ £ £
Amounts falling due within one year or on demand:
Bank overdrafts 557,449 - 497,046 -
Bank loans 542,045 564,215 542,045 564,215
1,099,494 564,215 1,039,091 564,215
Amounts falling due between one and two years:
Bank loans - 1-2 years 542,326 564,216 542,326 564,216
Amounts falling due between two and five years:
Bank loans - 2-5 years 1,626,978 1,692,647 1,626,978 1,692,647
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 2,131,231 2,263,692 2,131,231 2,263,692

Bank loans due more than five years are repaid by 3 monthly installments and the interest is charged at 2.1%.

20. Leasing agreements

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2021 2020
£ £
Net obligations repayable:
Within one year 34,910 17,052
Between one and five years 31,389 10,526
66,299 27,578

Company
Hire purchase contracts
2021 2020
£ £
Net obligations repayable:
Within one year 25,805 -
Between one and five years 31,389 -
57,194 -

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

21. Secured debts

The following secured debts are included within creditors:

Group Company
2021 2020 2021 2020
£ £ £ £
Bank overdraft 557,449 - 497,046 -
Bank loans 4,842,580 5,084,770 4,842,580 5,084,770
Hire purchase contracts 66,299 27,578 - -
5,466,328 5,112,348 5,339,626 5,084,770

The bank loans of the Parent above are secured over any land holdings by the Company greater than 20 acres, a personal guarantee of £600,000 from Mr Charles Crawford and a floating charge over all present and future freehold / leasehold property and any rights attaching thereto, all rents, fixtures and fittings, plant, machinery, equipment, furniture, licences, goodwill, uncalled capital, choses in action, claims, intellectual property, debts, credit balances, negotiable instruments, insurances and other property.

The bank facilities of the subsidiary are secured by fixed charges over the property of Ready Egg Products Limited and a floating charge over the assets of the Company

Hire purchase liabilities are secured against the asset to which they relate.

22. Financial instruments

2021 2020
£ £
Carrying amount of financial assets in the Group
Measured at fair value through the income statement 13,891,942 20,901,775

Carrying amount of financial liabilities in the Group
Measured at amortised cost 12,496,747 11,578,738

23. Provisions for liabilities

Group
2021 2020
£ £
Deferred tax
Accelerated capital allowances 1,123,078 995,093

Group
Deferred tax
£
Balance at 26 December 2020 995,093
Provided during year 127,985
Balance at 25 December 2021 1,123,078

24. Government grants

Group
2021 2020
£ £
Deferred government grants 129,038 245,694

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

25. Called up share capital



Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £ £
69,671 Ordinary 1 69,671 69,671
1,100,000 Preference 1 1,100,000 1,100,000
1,169,671 1,169,671

26. Non-controlling interests

2021 2020
£ £

Balance at start of year 16,805,160 15,992,451
Share of profit for the year 4,077,165 3,346,604
Dividend paid in the year - (1,959,883 )
Transfer to retained earnings - (574,011 )
Balance at end of year 20,882,325 16,805,161

27. Contingent liabilities

There is a contingent liability to repay certain government grants received under the terms of letters of offer from Invest Northern Ireland if the Company fails to honour certain undertakings and commitments. In the opinion of the directors the terms of the letters of offer have been complied with and no loss is expected.

28. Capital commitments
2021 2020
£ £
Contracted but not provided for in the
financial statements 530,557 148,786

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

29. Financial commitments

Group

Total future minimum lease payments under non-cancellable operating leases are as follows:


Land and
buildings
Land and
buildings
2021 2020
£ £
Due:
Within one year 30,000 30,000
30,000 30,000
Company

Total future minimum lease payments under non-cancellable operating leases are as follows:


Land and
buildings
Land and
buildings
2021 2020
£ £
Due:
Within one year 30,000 30,000
30,000 30,000

30. Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the years ending 25 December 2021 and 25 December 2020.
2021 2020
£ £
Directors
Balance outstanding at the start of year (42,578 ) (87,748 )
Amounts advanced - 51,262
Amounts repaid (1,010 ) (6,092 )
Balance outstanding at end of year (43,588 ) (42,578 )

31. Related party disclosures

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 25 DECEMBER 2021

Entities with control, joint control or significant influence over the entity

The group has identified the following transactions with non-wholly owned subsidiaries, which must be disclosed.

Ready Egg Products Limited is regarded as a related party as Lough Erne Investments Limited hold 51% of the share capital in this entity. During the year the following transactions were conducted under normal commercial terms with Ready Egg Products Limited.






Nature of
transaction


Amount of
transaction


Amount of
transaction
Amount
owed
from/(to
related party



)
Amount
owed
from/(to
related party



)
2021 2020 2021 2020
£    £    £    £   
Ready Egg
Products
Ltd


Sales


-


860,778


489,546


-
Purchases (500,942 ) (1,029,808 ) - (7,728 )




Mr Charles Crawford is regarded as a related party due to his position in the company. As disclosed in note 22, Mr Crawford has provided personal guarantee to the bank.

The dividends of £100,000 were paid to directors by virtue of their shareholding in the company.

Greenfield Foods Limited, a Company established in Northern Ireland, owns 35.6% of the issued share capital of Ready Egg Products Limited and the companies have common directors, and as such is regarded as a related party. The following transactions were carried out under normal commercial terms with Greenfield Foods Limited in the year.







Nature of
transaction


Amount of
transaction


Amount of
transaction
Amount
owed
from/(to
related party



)
Amount
owed
from/(to
related party



)
2021 2020 2021 2020
£    £    £    £   
Greenfield
Foods
Limited


Sales


-


860,778


-


-
Purchases (1,789,814 ) (1,029,808 ) (96,291 ) (135,468 )

32. Post balance sheet events

Post year end, in March 2022, Ready Egg Products Limited, a subsidiary of Lough Erne Investments Limited, acquired 100% of share capital in Skea Egg Farms Limited.

33. Ultimate controlling party

The ultimate controlling party is Mr Charles Crawford.