Caseware UK (AP4) 2021.0.152 2021.0.152 2021-12-312021-12-312021-12-312021-01-01falseThe principal activity of the group is the development and production of hydraulic lift and escalator controllers.false00false 09166246 2021-01-01 2021-12-31 09166246 2020-01-01 2020-12-31 09166246 2021-12-31 09166246 2020-12-31 09166246 2020-01-01 09166246 2 2021-01-01 2021-12-31 09166246 2 2020-01-01 2020-12-31 09166246 d:CompanySecretary1 2021-01-01 2021-12-31 09166246 d:Director1 2021-01-01 2021-12-31 09166246 d:Director2 2021-01-01 2021-12-31 09166246 d:Director2 2021-12-31 09166246 d:Director3 2021-01-01 2021-12-31 09166246 d:Director4 2021-01-01 2021-12-31 09166246 d:RegisteredOffice 2021-01-01 2021-12-31 09166246 e:PlantMachinery 2021-01-01 2021-12-31 09166246 e:MotorVehicles 2021-01-01 2021-12-31 09166246 e:FurnitureFittings 2021-01-01 2021-12-31 09166246 e:OfficeEquipment 2021-01-01 2021-12-31 09166246 e:ComputerEquipment 2021-01-01 2021-12-31 09166246 e:Goodwill 2021-01-01 2021-12-31 09166246 e:CurrentFinancialInstruments 2021-12-31 09166246 e:CurrentFinancialInstruments 2020-12-31 09166246 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 09166246 e:CurrentFinancialInstruments e:WithinOneYear 2020-12-31 09166246 e:ShareCapital 2021-01-01 2021-12-31 09166246 e:ShareCapital 2021-12-31 09166246 e:ShareCapital 2020-01-01 2020-12-31 09166246 e:ShareCapital 2020-12-31 09166246 e:ShareCapital 2020-01-01 09166246 e:CapitalRedemptionReserve 2021-01-01 2021-12-31 09166246 e:CapitalRedemptionReserve 2021-12-31 09166246 e:CapitalRedemptionReserve 2 2021-01-01 2021-12-31 09166246 e:CapitalRedemptionReserve 2020-12-31 09166246 e:CapitalRedemptionReserve 2020-01-01 09166246 e:CapitalRedemptionReserve 2 2020-01-01 2020-12-31 09166246 e:OtherMiscellaneousReserve 2021-01-01 2021-12-31 09166246 e:OtherMiscellaneousReserve 2021-12-31 09166246 e:OtherMiscellaneousReserve 2 2021-01-01 2021-12-31 09166246 e:OtherMiscellaneousReserve 2020-12-31 09166246 e:OtherMiscellaneousReserve 2020-01-01 09166246 e:OtherMiscellaneousReserve 2 2020-01-01 2020-12-31 09166246 e:MergerReserve 2021-01-01 2021-12-31 09166246 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 09166246 e:RetainedEarningsAccumulatedLosses 2021-12-31 09166246 e:RetainedEarningsAccumulatedLosses 2 2021-01-01 2021-12-31 09166246 e:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 09166246 e:RetainedEarningsAccumulatedLosses 2020-12-31 09166246 e:RetainedEarningsAccumulatedLosses 2020-01-01 09166246 e:RetainedEarningsAccumulatedLosses 2 2020-01-01 2020-12-31 09166246 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-12-31 09166246 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-12-31 09166246 d:OrdinaryShareClass1 2021-01-01 2021-12-31 09166246 d:OrdinaryShareClass1 2021-12-31 09166246 d:OrdinaryShareClass1 2020-12-31 09166246 d:OrdinaryShareClass2 2021-01-01 2021-12-31 09166246 d:OrdinaryShareClass2 2021-12-31 09166246 d:OrdinaryShareClass2 2020-12-31 09166246 d:OrdinaryShareClass3 2021-01-01 2021-12-31 09166246 d:OrdinaryShareClass3 2020-12-31 09166246 d:FRS102 2021-01-01 2021-12-31 09166246 d:Audited 2021-01-01 2021-12-31 09166246 d:FullAccounts 2021-01-01 2021-12-31 09166246 d:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 09166246 e:Subsidiary1 2021-01-01 2021-12-31 09166246 e:Subsidiary1 1 2021-01-01 2021-12-31 09166246 e:Subsidiary2 2021-01-01 2021-12-31 09166246 e:Subsidiary2 1 2021-01-01 2021-12-31 09166246 d:Consolidated 2021-12-31 09166246 d:ConsolidatedGroupCompanyAccounts 2021-01-01 2021-12-31 09166246 2 2021-01-01 2021-12-31 09166246 6 2021-01-01 2021-12-31 09166246 e:ShareCapital 2 2021-01-01 2021-12-31 09166246 e:ShareCapital 2 2020-01-01 2020-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 09166246









LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
COMPANY INFORMATION


Directors
S Davidson 
J A Beresford (resigned 5 August 2021)
B M Johnson 
M J Turner 




Company secretary
M J Phillips



Registered number
09166246



Registered office
59 Imperial Way

Croydon

London

CR0 4RR





 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10 - 11
Company balance sheet
12
Consolidated statement of changes in equity
13 - 14
Company statement of changes in equity
15
Consolidated Statement of cash flows
16 - 17
Notes to the financial statements
18 - 41


 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction
 
The directors present their strategic report of the company and the group for the year ended 31 December 2021.

Business review
 
Growth has remained steady throughout 2021 and levels have returned close to 2019. Confidence has returned
and there has been signs of many big projects being undertaken by both the Private & Public sector.
Turnover increased to £11.64m (2020 - £9.31m) but operating margins have been squeezed to 10.6% (2020 -
13.5%) These reduced margins are set to stay as supply chains have been increasing prices with little or no
notice. 
2022 has continued strongly but recent worries over the cost of living crisis will no doubt have some effect on our
market. We may not see signs of this until 2023.
Our industry remains robust but we still face many challenges in the months to come.

Principal risks and uncertainties
 
In managing the group the directors monitor the results against the budget and the previous year through monthly management reports and snapshots of the trading result following each period end. Risk management is an important issue to the group. The key risks to the business include:
Laws and regulation
We saw signs of the effects of new legislation relating to lift safety slowly impacting on our support levels internally and externally. Lift specifications are dictating a higher level of Controller features which will impact on turnover in the future, but a greater understanding all round is affecting build and test times. This again is affecting our day to day operations as we are starting to see more of a support role as the Industry “expertise” is diminishing.
Economic uncertainties
We operate across a number of market sectors in the UK and are affected by national macro-economic conditions including the effects of Brexit as well as by the investment and spending cycles that exist in many industries. Our spread across differing market sectors helps us to mitigate our exposure to short and medium term economic uncertainties.

Financial key performance indicators
 
The group regularly reviews a number of financial and non-financial key performance indicators at both board and operational levels. The group carries out monthly detailed reviews of each operational and support function at which all aspects of each business and key performance indicators are reviewed.
                                                               
    2021               2020
Turnover (£'000's)                                      11,364              9,312
Gross margin (%)                                          34.8                32.6
Average number of employees                         88                   87
Average turnover per employee (£'000's)       129                  107 

Page 1

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Other key performance indicators
 
The group reviews non-financial KPIs on a regular basis in a number of areas:
Health and safety – the group aims to achieve year-on-year improvement in accident incidence rate and remain below the Health and Safety Executive benchmark for the UK. We have achieved a significant improvement in the year.
Customer experience – the group aspires to deliver a high level of customer satisfaction which is key to supporting sustainable long-term growth in the sector. Feedback received during the year demonstrated that most of our customers are fully or mostly satisfied with our services.
Employee welfare – the group strives to attract and retain highly motivated, high-performing teams. The group’s employee turnover is low. 


This report was approved by the board and signed on its behalf.



................................................
S Davidson
Director

Date: 12 September 2022

Page 2

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,052,954 (2020 - £1,094,130).

Directors

The directors who served during the year were:

S Davidson 
J A Beresford (resigned 5 August 2021)
B M Johnson 
M J Turner 

Future developments

Development is key and is constantly being worked on. Apart from the continual product enhancements and software improvements which are working hard on the next generation of Microprocessor. There is an emphasis on using Safety Critical Components which for compliance will require extreme and rigorous testing. Our Group Destination Control is entering it’s final stage of testing and development

Page 3

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsAdler Shine LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
S Davidson
Director

Date: 12 September 2022

Page 4

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 

Opinion


We have audited the financial statements of Lester Control Systems (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 5

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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.


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 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.


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 in relation to which 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.


Page 6

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 is 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 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
 
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:
• considered the nature of the industry and sectors, control environment and business performance;
• made enquiries of management about their own identification and assessment of the risk of irregularities; 
• performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias;
• undertaken appropriate sample based testing of bank transactions;
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances of non-compliance;
• discussed matters among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 


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.


Page 7

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED (CONTINUED)


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 2006Our 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.





Alexander Chrysaphiades FCA (Senior Statutory Auditor)
  
for and on behalf of
Adler Shine LLP
 
Chartered Accountants & Statutory Auditor
  
Cornwall Avenue
London
N3 1LF

13 September 2022
Page 8

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£
£

  

Turnover
 4 
11,363,890
9,312,467

Cost of sales
  
(7,406,780)
(6,275,022)

Gross profit
  
3,957,110
3,037,445

Administrative expenses
  
(2,892,338)
(1,973,594)

Other operating income
 5 
49,961
190,940

Fair value movements
  
93,043
-

Other operating charges
  
(7,569)
-

Operating profit
  
1,200,207
1,254,791

Income from fixed assets investments
  
2,232
19,265

Amounts written off investments
  
2,869
-

Interest receivable and similar income
  
288
2,657

Interest payable and similar expenses
  
(78)
-

Profit before taxation
  
1,205,518
1,276,713

Tax on profit
 13 
(152,564)
(182,583)

Profit for the financial year
  
1,052,954
1,094,130

Profit for the year attributable to:
  

Owners of the parent Company
  
1,052,954
1,094,130

  
1,052,954
1,094,130

There were no recognised gains and losses for 2021 or 2020 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 18 to 41 form part of these financial statements.

Page 9

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
REGISTERED NUMBER: 09166246

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2021

As restated
2021
2020
Note
£
£

Fixed assets
  

Intangible assets
 15 
159,057
206,141

Tangible assets
 16 
169,682
223,274

Investments
 17 
1,136,193
565,950

  
1,464,932
995,365

Current assets
  

Stocks
 18 
1,323,829
1,470,804

Debtors: amounts falling due within one year
 19 
1,628,339
2,256,145

Cash at bank and in hand
 20 
3,584,007
3,418,573

  
6,536,175
7,145,522

Creditors: amounts falling due within one year
 21 
(2,451,765)
(2,052,083)

Net current assets
  
 
 
4,084,410
 
 
5,093,439

Total assets less current liabilities
  
5,549,342
6,088,804

Provisions for liabilities
  

Deferred taxation
 23 
(28,286)
(28,286)

Other provisions
 24 
(273,637)
(254,834)

  
 
 
(301,923)
 
 
(283,120)

Net assets
  
5,247,419
5,805,684

Page 10

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
REGISTERED NUMBER: 09166246
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021

As restated
2021
2020
Note
£
£

Capital and reserves
  

Called up share capital 
 25 
4,967
6,013

Capital redemption reserve
 26 
5,033
3,987

Other reserves
 26 
39,388
21,683

Merger reserve
 26 
(1,350,000)
(1,350,000)

Profit and loss account
 26 
6,548,031
7,124,001

Equity attributable to owners of the parent Company
  
5,247,419
5,805,684


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
S Davidson
Director

Date: 12 September 2022

The notes on pages 18 to 41 form part of these financial statements.

Page 11

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
REGISTERED NUMBER: 09166246

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Investments
 17 
2,468,111
2,468,111

  
2,468,111
2,468,111

Current assets
  

Debtors: amounts falling due within one year
 19 
499,950
-

Cash at bank and in hand
 20 
43
24

  
499,993
24

Creditors: amounts falling due within one year
 21 
(87,875)
(87,875)

Net current assets/(liabilities)
  
 
 
412,118
 
 
(87,851)

Total assets less current liabilities
  
2,880,229
2,380,260

  

  

Net assets
  
2,880,229
2,380,260


Capital and reserves
  

Called up share capital 
 25 
4,967
6,013

Capital redemption reserve
 26 
5,033
3,987

Other reserves
 26 
39,388
21,683

Profit and loss account brought forward
  
2,348,577
2,445,260

Profit for the year
  
2,111,188
1,503,317

Other changes in the profit and loss account

  

(1,628,924)
(1,600,000)

Profit and loss account carried forward
  
2,830,841
2,348,577

  
2,880,229
2,380,260


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
S Davidson
Director

Date: 12 September 2022

The notes on pages 18 to 41 form part of these financial statements.

Page 12

 

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021



Called up share capital
Capital redemption reserve
Other reserves
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£
£


At 1 January 2021 (as previously stated)
6,013
3,987
21,683
(1,350,000)
6,629,823
5,311,506
5,311,506


Prior year adjustment (note 28)
-
-
-
-
494,178
494,178
494,178


At 1 January 2021 (as restated)
6,013
3,987
21,683
(1,350,000)
7,124,001
5,805,684
5,805,684



Comprehensive income for the year


Profit for the year
-
-
-
-
1,052,954
1,052,954
1,052,954



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(447,474)
(447,474)
(447,474)


Purchase of own shares
-
1,046
-
-
(1,181,450)
(1,180,404)
(1,180,404)


Shares cancelled during the year
(1,046)
-
-
-
-
(1,046)
(1,046)


Share based payments
-
-
17,705
-
-
17,705
17,705



At 31 December 2021
4,967
5,033
39,388
(1,350,000)
6,548,031
5,247,419
5,247,419



The notes on pages 18 to 41 form part of these financial statements.

Page 13

 

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020



Called up share capital
Capital redemption reserve
Other reserves
Merger reserve
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 January 2020 (as previously stated)
7,429
2,571
-
(1,350,000)
7,135,693
5,795,693


Prior year adjustment (note 28)
-
-
-
-
494,178
494,178


At 1 January 2020 (as restated)
7,429
2,571
-
(1,350,000)
7,629,871
6,289,871



Comprehensive income for the year


Profit for the year
-
-
-
-
1,094,130
1,094,130



Contributions by and distributions to owners


Purchase of own shares
-
1,416
-
-
(1,600,000)
(1,598,584)


Shares cancelled during the year
(1,416)
-
-
-
-
(1,416)


Share based payments
-
-
21,683
-
-
21,683



At 31 December 2020
6,013
3,987
21,683
(1,350,000)
7,124,001
5,805,684



The notes on pages 18 to 41 form part of these financial statements.

Page 14

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Capital redemption reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2020
7,429
2,571
-
2,445,260
2,455,260


Comprehensive income for the year

Profit for the year
-
-
-
1,503,317
1,503,317


Contributions by and distributions to owners

Purchase of own shares
-
1,416
-
(1,600,000)
(1,598,584)

Shares cancelled during the year
(1,416)
-
-
-
(1,416)

Share based payments
-
-
21,683
-
21,683



At 1 January 2021
6,013
3,987
21,683
2,348,577
2,380,260


Comprehensive income for the year

Profit for the year
-
-
-
2,111,188
2,111,188


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(447,474)
(447,474)

Purchase of own shares
-
1,046
-
(1,181,450)
(1,180,404)

Shares cancelled during the year
(1,046)
-
-
-
(1,046)

Share based payments
-
-
17,705
-
17,705


At 31 December 2021
4,967
5,033
39,388
2,830,841
2,880,229


The notes on pages 18 to 41 form part of these financial statements.

Page 15

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
£
£

Cash flows from operating activities

Profit for the financial year
1,052,954
1,094,130

Adjustments for:

Amortisation of intangible assets
55,326
45,680

Depreciation of tangible assets
61,270
83,207

Loss on disposal of tangible assets
(15,396)
11,091

Government grants
(49,961)
(190,940)

Interest paid
78
-

Interest received
(2,520)
(21,922)

Taxation charge
152,564
182,583

Decrease/(increase) in stocks
146,975
(4,106)

Decrease in debtors
542,821
562,394

Increase in creditors
454,350
317,212

Increase in provisions
18,803
-

Net fair value (gains)/losses recognised in P&L
(93,043)
-

Corporation tax (paid)
(72,286)
(320,433)

EMI shares granted
17,705
21,683

Net cash generated from operating activities

2,269,640
1,780,579
Page 16

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021


2021
2020

£
£




Cash flows from investing activities

Purchase of tangible fixed assets
(28,785)
(29,136)

Sale of tangible fixed assets
(24,569)
12,334

Sale of listed investments
2,869
-

Purchase of unlisted and other investments
(690,893)
(515,950)

Sale of unlisted and other investments
213,693
-

Government grants received
49,961
190,940

Interest received
288
2,657

Income from investments
2,232
19,265

Net cash from investing activities

(475,204)
(319,890)

Cash flows from financing activities

Dividends paid
(447,474)
-

Interest paid
(78)
-

Share buyback
(1,181,450)
(1,600,000)

Net cash used in financing activities
(1,629,002)
(1,600,000)

Net increase/(decrease) in cash and cash equivalents
165,434
(139,311)

Cash and cash equivalents at beginning of year
3,418,573
3,557,884

Cash and cash equivalents at the end of year
3,584,007
3,418,573


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,584,007
3,418,573

3,584,007
3,418,573


The notes on pages 18 to 41 form part of these financial statements.

Page 17

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

Lester Control Systems (Holdings) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 09166246. The registered office is 59 Imperial Way,
Croydon, England, CR0 4RR. 
The presentational currency of the financial statements is the Pound Sterling (£), rounded to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

Having considered the cash forecasts for the 12 months following the balance sheet date, the directors have, at the time of approving the financial statements, a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 18

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 19

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
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.

 
2.6

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 20

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 22

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
on reducing balance
Motor vehicles
-
25%
on reducing balance
Fixtures and fittings
-
25%
on reducing balance
Office equipment
-
25%
on reducing balance
Computer equipment
-
25%
on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 23

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.21

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
at fair value with changes recognised in the Consolidated statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each
Page 24

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)


2.21
Financial instruments (continued)

reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

  
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 25

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, the Director's are required to make judgments, estimates and assumption about the carrying values of assets and liabilities that are not readily apparent from other sources. 
The estimates and associated assumptions are based on historical experiences and other factors that are considered relevant. Actual results may differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. 
The key assumptions and other key sources of uncertainty that have a significant effect of the amount recognised in the financial statements are described below: 
Warranty provisions
Provisions for damaged or faulty products are calculated and provided for based on historic trends, managements knowledge of products and technological improvements in components. The Directors have concluded that the valuations of provisions are appropriate. 
Stock valuation
Stock is included at lower of cost and net realisable value. The Directors have reviewed the stock obsolescence policy and are satisfied that stock is fairly valued at the year end. 
Recoverability of debtors
Judgments have been made on the recoverability of trade debtors and the valuation of provisions and the Directors are satisfied that the debts are recoverable. 
Tangible and intangible fixed assets
Judgments have been made in relation to the lives of tangible and intangible assets. In particular, the valuation and the useful economic life and residual values of plant and machinery and motor vehicles. The Directors have concluded that the asset values and residual values are appropriate. 

Page 26

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

4.


Turnover

An analysis of turnover by class of business is as follows:


2021
2020
£
£

Turnover
11,363,890
9,312,467

11,363,890
9,312,467


Analysis of turnover by country of destination:

2021
2020
£
£

United Kingdom
11,063,291
8,829,736

Rest of Europe
300,374
451,879

Rest of the world
225
30,852

11,363,890
9,312,467



5.


Other operating income

2021
2020
£
£

Government grants receivable
49,961
190,940

49,961
190,940


Page 27

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

6.


Operating profit

The operating profit is stated after charging:

2021
2020
£
£

Goodwill amortisation
45,680
45,680

Exchange differences
4,174
138

Other operating lease rentals
283,981
209,818

Depreciation
61,270
83,207

Impairment
-
50,000

Amortisation
55,326
45,680

Government grants
(49,961)
(190,940)

Auditors' remuneration
38,673
18,008

Defined contributions pension
160,428
121,080


7.


Auditors' remuneration

2021
2020
£
£


Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
38,673
18,008



Page 28

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Wages and salaries
3,256,271
2,850,911
17,705
21,683

Social security costs
338,945
263,162
-
-

Cost of defined contribution scheme
166,268
126,543
-
-

3,761,484
3,240,616
17,705
21,683


The average monthly number of employees, including the directors, during the year was as follows:


        2021
        2020
            No.
            No.







Average number of employees
88
87

The Company has no employees other than the Directors, who did not receive any remuneration (2020 - £NIL).


9.


Directors' remuneration

2021
2020
£
£

Directors' emoluments
471,188
456,700

471,188
456,700


During the year retirement benefits were accruing to no directors (2020 - NIL) in respect of defined contribution pension schemes.

Page 29

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

10.


Income from investments

2021
2020
£
£

Income from fixed asset investments
-
19,265

-
19,265


Income from current asset investments
(2,232)
-

(2,232)
-





11.


Interest receivable

2021
2020
£
£


Other interest receivable
288
2,657

288
2,657


12.


Interest payable and similar expenses

2021
2020
£
£


Other interest payable
78
-

78
-


13.


Taxation


2021
2020
£
£

Corporation tax


Current tax on profits for the year
152,564
182,583


Total current tax
152,564
182,583
Page 30

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2020 - lower than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:

2021
2020
£
£


Profit on ordinary activities before tax
1,205,518
1,276,713


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
229,048
242,576

Effects of:


Non-tax deductible amortisation of goodwill and impairment
8,679
8,996

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
9,218
16,614

Capital allowances for year in excess of depreciation
10,627
6,752

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
330
742

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(104,914)
(91,544)

Book profit on chargeable assets
-
2,107

Dividends from UK companies
(424)
(3,660)

Total tax charge for the year
152,564
182,583


14.


Dividends

2021
2020
£
£


Dividend analysis
447,474
-

447,474
-

Page 31

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

15.


Intangible assets

Group 





Computer software
Goodwill
Total

£
£
£



Cost


At 1 January 2021
85,640
456,799
542,439


Additions
8,242
-
8,242



At 31 December 2021

93,882
456,799
550,681



Amortisation


At 1 January 2021
46,991
289,307
336,298


Charge for the year on owned assets
9,646
45,680
55,326



At 31 December 2021

56,637
334,987
391,624



Net book value



At 31 December 2021
37,245
121,812
159,057



At 31 December 2020
38,649
167,492
206,141



Page 32

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

16.


Tangible fixed assets

Group






Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2021
270,117
133,246
19,165
422,528


Additions
2,142
19,795
6,848
28,785


Disposals
-
(80,845)
-
(80,845)



At 31 December 2021

272,259
72,196
26,013
370,468



Depreciation


At 1 January 2021
123,905
68,126
7,223
199,254


Charge for the year on owned assets
36,571
20,001
4,698
61,270


Disposals
-
(59,738)
-
(59,738)



At 31 December 2021

160,476
28,389
11,921
200,786



Net book value



At 31 December 2021
111,783
43,807
14,092
169,682



At 31 December 2020
146,212
65,120
11,942
223,274

Page 33

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

17.


Fixed asset investments

Group





Unlisted investments
Other fixed asset investments
Total

£
£
£



Cost or valuation


At 1 January 2021
100,000
515,950
615,950


Additions
-
690,893
690,893


Disposals
-
(213,693)
(213,693)


Revaluations
-
93,043
93,043



At 31 December 2021

100,000
1,086,193
1,186,193



Impairment


At 1 January 2021
50,000
-
50,000



At 31 December 2021

50,000
-
50,000



Net book value



At 31 December 2021
50,000
1,086,193
1,136,193



At 31 December 2020
50,000
515,950
565,950

Page 34

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2021
2,468,111



At 31 December 2021
2,468,111






Net book value



At 31 December 2021
2,468,111



At 31 December 2020
2,468,111


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Lester Control Systems Limited
93 Chatterton Road, Bromley, England BR2 9QQ
Manufacture and supply of lift control equipment
Ordinary
100%
Sarum Electronics Limited
93 Chatterton Road, Bromley, England BR2 9QQ
Manufacture and supply of heating 
and ventilation
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2021 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Lester Control Systems Limited
4,122,681
827,307

Sarum Electronics Limited
588,917
289,063

Page 35

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

18.


Stocks

Group
Group
2021
2020
£
£

Raw materials and consumables
986,974
1,127,341

Work in progress (goods to be sold)
336,855
343,463

1,323,829
1,470,804


The difference between purchase price or production cost of stocks and their replacement cost is not material.


19.


Debtors

Group

Group
As restated
Company

Company
As restated
2021
2020
2021
2020
£
£
£
£


Trade debtors
1,369,610
1,563,358
-
-

Amounts owed by group undertakings
-
-
499,950
-

Other debtors
95,773
583,857
-
-

Prepayments and accrued income
162,956
108,930
-
-

1,628,339
2,256,145
499,950
-


Details of the prior year adjustment are set out in note 28.


20.


Cash and cash equivalents

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Cash at bank and in hand
3,584,007
3,418,573
43
24

3,584,007
3,418,573
43
24


Page 36

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

21.


Creditors: Amounts falling due within one year

Group

Group
Company

Company
2021
2020
2021
2020
£
£
£
£

Trade creditors
1,814,015
1,148,198
-
-

Amounts owed to group undertakings
-
-
87,875
87,875

Corporation tax
67,579
72,286
-
-

Other taxation and social security
346,915
550,328
-
-

Other creditors
207,990
16,468
-
-

Accruals and deferred income
15,266
264,803
-
-

2,451,765
2,052,083
87,875
87,875


The Group has a security with their bank to maintain a balance of £1,500 on the current account to
cover business card limit.


22.


Financial instruments

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
3,584,007
3,418,573
43
24




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand. 
Page 37

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

23.


Deferred taxation


Group



2021
2020


£

£






At beginning of year
(28,286)
(28,286)



At end of year
(28,286)
(28,286)

Group
Group
2021
2020
£
£

Accelerated capital allowances
(28,286)
(28,286)

(28,286)
(28,286)


24.


Provisions


Group



Warranty provision
Dilapidations 
provision
Total

£
£
£





At 1 January 2021
204,834
50,000
254,834


Charged to profit or loss
(91,197)
110,000
18,803



At 31 December 2021
113,637
160,000
273,637

Page 38

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

25.


Share capital

2021
2020
£
£
Allotted, called up and fully paid



4,467 (2020 - 4,467) Ordinary shares of £1.00 each
4,467
4,467
500 (2020 - 500) Ordinary 'B' shares of £1.00 each
500
500
Nil (2020 - 1,046) Ordinary 'C' shares of £1.00 each
-
1,046

4,967

6,013

During the year, the Company completed the purchase of 1,046 (2020 - 1,416) of its own Ordinary C shares for £1,181,450 (2020 - £1,600,000). These shares were subsequently cancelled.



26.


Reserves

Capital redemption reserve

A non-distributable reserve into which amounts are transferred following the redemption or purchase of a Company's own shares

Other reserves

Other reserves relate to the fair value of options granted under the Enterprise Management Incentive Scheme. The reserve is non-distributable.

Merger Reserve

Merger reserve represents the difference between the value of shares issued by the Company in exchange for the value of shares acquired in respect of the acquisition of subsidiaries.

Profit and loss account

Profit and loss account represents retained profits and losses. 

Page 39

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

27.


Share based payments

The Group has an Enterprise Management Incentive Scheme set up during the prior year for two Directors of the Company. Options are exercisable at a pre-determined price and have vested at the year end date. The options do not include any performance conditions. The options are settled in equity once exercised. The options lapse if they remain unexercised after a period of 10 years from the date of the grant. Options are forfeited if the Director leaves the Group before the options are exercised.
Details of the changes during the year and value of options at the balance sheet date are as follows:

Weighted average exercise price (pence)
2021
Number
2021
Weighted average exercise price
(pence)
2020
Number
2020

Outstanding at the beginning of the year

100

480

 
-
 
Granted during the year


-

100
 
480
 
Outstanding at the end of the year
100

480

100
 
480
 

The assumptions used in the fair value of the share options outstanding are as follows:
The fair value has been calculated assuming that there will be no dividend yield.
Volatility was determined by reference to the standard deviation of expected share price returns based on a statistical analysis of daily share prices over a 1 year period to grant date of the market.

2021
2020
Option pricing model used



Black Scholes
 
Weighted average share price (pence)



100
 
Exercise price (pence)



100
 
Expected volatility



16%
 
Risk-free interest rate



42.82%
 



28.


Prior year adjustment

In the year to 31 December 2016, amounts totalling £494,178 loaned to the Directors were incorrectly charged to the Profit and loss account. The prior year adjustment has resulted in a reversal of this charge through the Statement of changes in equity and an adjustment to directors loan account, in other debtors.
These loans were repaid during the current year.

Page 40

 
LESTER CONTROL SYSTEMS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

29.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. 
The pension cost charge represents contributions payable by the Group  to the fund and amounted to £166,268 (2020 - £126,543). Contributions totalling £13,843 (2020 - £10,078) were payable to the fund at the balance sheet date and are included in creditors.


30.


Commitments under operating leases

At 31 December 2021 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2021
2020
£
£

Not later than 1 year
177,363
221,605

Later than 1 year and not later than 5 years
698,683
749,180

Later than 5 years
757,500
100,516

1,633,546
1,071,301

31.


Transactions with directors

At the balance sheet date, £1,046 (2020 - £504,088, after prior year restatement, see note 26) was due
from the directors in respect of advances provided. 


32.


Related party transactions

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102
'The Financial Reporting Standard applicable in the UK and Republic of Ireland, not to disclose related
party transactions with wholly owned subsidiaries within the group. 
At the balance sheet date, £175,162 (2020 - £nil) was due to the directors.


33.


Controlling party

The ultimate controlling party is Mr S Davidson, a Director.

 
Page 41