Company registration number 05433050 (England and Wales)
LINT GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
LINT GROUP LIMITED
COMPANY INFORMATION
Directors
Mr T Chand
Mr R Patel OBE
Secretary
Mr T Chand
Company number
05433050
Registered office
Gabrielle House
332-336 Perth Road
Ilford
Essex
IG2 6FF
Auditor
Vision Consulting Accountants Limited
The Gherkin Building
28th Floor
30 St. Mary Axe
London
EC3A 8EP
Business address
Gabrielle House
332-336 Perth Road
Ilford
Essex
IG2 6FF
LINT GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
14
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
15 - 33
LINT GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 1 -

The directors present the strategic report for the year ended 30 September 2022.

Review of the business

The directors are satisfied to report the group's profit during a period of uncertain economic outlook and the competitive market with which it operates.

 

Looking ahead to the coming years, the Directors are aware that uncertain economic outlook will persist for a while. Despite the upheaval of the past few years, the markets are settling down and this is reflected in the group’s positive performance. The disruption caused by Covid and the emergency legislations introduced have come to an end which has triggered an improvement in the markets.

 

Previously, there was an imbalance where costs were rising but the revenues were not. As the UK moves out of the turmoil of recent years, the rents and therefore profits are increasing, but there is still a decrease in the number of properties under management which has resulted in the decrease in rental revenue during the current year.

 

The directors are delighted to have recently agreed new deals with the local authorities and other end users which will mean increased rental revenues and profits.

 

The directors are also pleased that we have managed to expand on our letting arm of the business, with an acquisition of Thomas Marsh Ltd and more acquisitions lined up for the next financial year which will add a new dynamic and increased revenues.

 

We are expecting to have significant improvements in business performance over the next five years which will filter through to enhanced profitability.

Principal risks and uncertainties

To achieve the group's business objectives, the directors regularly assess and evaluate the main risks to the group identified below. The list does not include all risks that the group faces.

 

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

 

Interest rate risk

The group is exposed to interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

 

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Development and performance

The director reports a decrease in turnover by 4.71% to £16,544,119 (2021: £17,362,241) mainly due to decrease in the number of properties under management. However, the profit before tax increased by 44.46% to £196,668 (2021: £136,134) due to implementation of cost control measures and efficiencies introduced with in the organisation.

 

The Balance Sheet shows that the Group's net assets at the year end have decreased to £4,085,856 (2021: £4,285,273).

LINT GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 2 -
Key performance indicators

The directors consider the following to be the Key Performance Indicators of the group’s business:

2022          2021              

         £              £

Turnover         16,544,119 17,362,241

Gross profit             2,914,265         3,060,845

Profit before tax               196,668         136,134

Shareholder's funds      4,085,856 4,285,273

On behalf of the board

Mr T Chand
Director
6 October 2023
LINT GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2022.

Principal activities

The principal activity of the group continued to be that of property management, development, investment, maintenance and other related activities.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £210,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr T Chand
Mr R Patel OBE
Financial instruments
Financial risk management objectives and policies

The group actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risks and cash flow associated with selling on credit and manages these risks through credit control procedures.

Auditor

In accordance with the company's articles, a resolution proposing that Vision Consulting Accountants Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LINT GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr T Chand
Director
6 October 2023
LINT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LINT GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Lint Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LINT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LINT GROUP LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Identifying and assessing potential risks related to irregularties

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

It is common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the entity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the entity’s ability to operate.

LINT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LINT GROUP LIMITED
- 7 -
Audit response to risk identified

As a result of performing the above, our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor's 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.

Ghulam Alahi (Senior Statutory Auditor)
For and on behalf of Vision Consulting Accountants Limited
6 October 2023
Chartered Accountants
Statutory Auditor
The Gherkin Building
28th Floor
30 St. Mary Axe
London
EC3A 8EP
LINT GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
16,544,119
17,362,241
Cost of sales
(13,629,854)
(14,301,396)
Gross profit
2,914,265
3,060,845
Administrative expenses
(2,379,227)
(2,625,410)
Other operating income
15,282
63,881
Operating profit
4
550,320
499,316
Interest receivable and similar income
8
738
73
Interest payable and similar expenses
9
(351,494)
(327,392)
Amounts written off investments
10
(2,896)
(35,863)
Profit before taxation
196,668
136,134
Tax on profit
11
(186,085)
79,512
Profit for the financial year
10,583
215,646
Profit for the financial year is all attributable to the owners of the parent company.
LINT GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 9 -
2022
2021
£
£
Profit for the year
10,583
215,646
Other comprehensive income
-
-
Total comprehensive income for the year
10,583
215,646
Total comprehensive income for the year is all attributable to the owners of the parent company.
LINT GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
13
327,007
436,008
Tangible assets
14
172,722
213,124
Investment property
15
14,825,000
8,075,000
15,324,729
8,724,132
Current assets
Stocks
18
-
6,750,000
Debtors
19
2,957,660
3,241,868
Cash at bank and in hand
462,814
511,191
3,420,474
10,503,059
Creditors: amounts falling due within one year
22
(3,721,521)
(3,805,745)
Net current (liabilities)/assets
(301,047)
6,697,314
Total assets less current liabilities
15,023,682
15,421,446
Creditors: amounts falling due after more than one year
20
(8,025,185)
(8,001,066)
Provisions for liabilities
Provisions
26
2,808,060
3,028,060
Deferred tax liability
23
104,581
107,047
(2,912,641)
(3,135,107)
Net assets
4,085,856
4,285,273
Capital and reserves
Called up share capital
27
14
14
Other reserves
28
364,779
380,275
Profit and loss reserves
3,721,063
3,904,984
Total equity
4,085,856
4,285,273
The financial statements were approved by the board of directors and authorised for issue on 6 October 2023 and are signed on its behalf by:
06 October 2023
Mr T Chand
Director
Company registration number 05433050 (England and Wales)
LINT GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2020
14
380,275
3,689,338
4,069,627
Year ended 30 September 2021:
Profit and total comprehensive income
-
-
215,646
215,646
Balance at 30 September 2021
14
380,275
3,904,984
4,285,273
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
10,583
10,583
Dividends
12
-
-
(210,000)
(210,000)
Other movements
-
(15,496)
15,496
-
Balance at 30 September 2022
14
364,779
3,721,063
4,085,856
LINT GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2020
14
51,087
51,101
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
37,915
37,915
Balance at 30 September 2021
14
89,002
89,016
Year ended 30 September 2022:
Profit and total comprehensive income
-
263,098
263,098
Dividends
12
-
(210,000)
(210,000)
Balance at 30 September 2022
14
142,100
142,114
LINT GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 13 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
755,337
529,328
Interest paid
(351,494)
(327,392)
Income taxes paid
(126,106)
(82,471)
Net cash inflow from operating activities
277,737
119,465
Investing activities
Purchase of intangible assets
-
(545,007)
Purchase of tangible fixed assets
(12,347)
(8,652)
Proceeds from disposal of subsidiaries, net of cash disposed
(100)
-
Repayment of loans
(2,796)
(35,847)
Interest received
738
73
Net cash used in investing activities
(14,505)
(589,433)
Financing activities
Repayment of borrowings
-
(89,096)
Proceeds from new bank loans
-
128,000
Repayment of bank loans
(76,901)
(94,635)
Dividends paid to equity shareholders
(210,000)
-
0
Net cash used in financing activities
(286,901)
(55,731)
Net decrease in cash and cash equivalents
(23,669)
(525,699)
Cash and cash equivalents at beginning of year
(468,463)
57,236
Cash and cash equivalents at end of year
(492,132)
(468,463)
Relating to:
Cash at bank and in hand
462,814
511,191
Bank overdrafts included in creditors payable within one year
(954,946)
(979,654)
LINT GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2022
30 September 2022
- 14 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
16
554,760
554,760
Current assets
Debtors
19
14,277
30,000
Cash at bank and in hand
3,213
2,521
17,490
32,521
Creditors: amounts falling due within one year
22
(430,136)
(498,265)
Net current liabilities
(412,646)
(465,744)
Net assets
142,114
89,016
Capital and reserves
Called up share capital
27
14
14
Profit and loss reserves
142,100
89,002
Total equity
142,114
89,016

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £263,098 (2021 - £37,915 profit).

The financial statements were approved by the board of directors and authorised for issue on 6 October 2023 and are signed on its behalf by:
06 October 2023
Mr T Chand
Director
Company registration number 05433050 (England and Wales)
LINT GROUP LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2022
30 September 2022
- 15 -
1
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Investment properties are based on fair value measurement. The valuation was performed by directors and their opinion of fair value was primarily derived using comparable recent market value, see note 15 for valuation.

 

Stocks are stated in line with FRS 102 which requires stocks to be measured at the lower of cost and estimated selling price less costs to complete and sell, see note 18 for stock value.

 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. The assets are estimated to lose their value at the following rates:

 

Land and buildings leasehold        Straight line over the life of the lease

Fixtures, fittings and equipment         20% reducing balance

Computer equipment            20% reducing balance

 

Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is five years, see note 13 for goodwill.

2
Accounting policies
Company information

Lint Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Gabrielle House, 332-336 Perth Road, Ilford, Essex, IG2 6FF.

 

The group consists of Lint Group Limited and all of its subsidiaries.

2.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Accounting policies
(Continued)
- 16 -

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

2.2
Business combinations

In the consolidated financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

2.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Lint Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Accounting policies
(Continued)
- 17 -
2.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors do not consider the current Coronavirus pandemic will have a significant impact on the group. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

2.5
Turnover

Turnover represents amounts receivable for rents, management fees, maintenance fees, commissions and other income net of VAT.

 

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business.

2.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is five years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

2.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
Straight line over the life of the lease
Fixtures, fittings & equipment
20% Reducing balance
Computer equipment
20% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

2.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

2.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Accounting policies
(Continued)
- 18 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

2.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

2.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

2.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Accounting policies
(Continued)
- 19 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Accounting policies
(Continued)
- 20 -
Other financial liabilities

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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

2.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

2.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Accounting policies
(Continued)
- 21 -
2.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

2.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Rent receivable
14,690,550
15,518,275
Maintenance fees receivable
1,140,547
969,075
Other income
20,845
107,465
Block management commission
342,521
499,152
Letting commission
210,491
182,956
Selling commission
20,551
10,100
Insurance commission
118,614
75,218
16,544,119
17,362,241
2022
2021
£
£
Other revenue
Interest income
738
73
Grants received
-
63,881
Sundry income
15,282
-
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 22 -
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(63,881)
Depreciation of owned tangible fixed assets
52,749
57,330
(Profit)/loss on disposal of tangible fixed assets
-
1,698
Amortisation of intangible assets
109,001
131,904
Operating lease charges
180,071
164,890
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,500
2,500
Audit of the financial statements of the company's subsidiaries
20,500
25,100
23,000
27,600
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Directors
2
2
2
2
Administration
14
14
-
-
Sales
43
36
-
-
Total
59
52
2
2

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
1,483,659
1,732,229
-
0
-
0
Social security costs
152,843
174,906
-
-
Pension costs
34,547
49,652
-
0
-
0
1,671,049
1,956,787
-
0
-
0
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 23 -
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
-
137,178
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
738
73
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
339,360
321,996
Other interest on financial liabilities
8,655
4,843
Other interest
3,479
553
Total finance costs
351,494
327,392
10
Amounts written off investments
2022
2021
£
£
Amounts written off current loans
(2,796)
(35,863)
Other gains and losses
(100)
-
(2,896)
(35,863)
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
63,219
(21,229)
Adjustments in respect of prior periods
125,331
(53,966)
Total current tax
188,550
(75,195)
Deferred tax
Origination and reversal of timing differences
(2,465)
(4,317)
Total tax charge/(credit)
186,085
(79,512)
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
11
Taxation
(Continued)
- 24 -

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
196,668
136,134
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
37,367
25,865
Tax effect of expenses that are not deductible in determining taxable profit
-
0
35,698
Tax effect of income not taxable in determining taxable profit
(2,663)
(39,988)
Adjustments in respect of prior years
125,331
2,322
Group relief
6
-
0
Permanent capital allowances in excess of depreciation
4,852
5,264
Amortisation on assets not qualifying for tax allowances
20,710
25,062
Research and development tax credit
-
0
(146,274)
Other permanent differences
482
12,539
Taxation charge/(credit)
186,085
(79,512)

Finance No. 2 Bill 2021 became substantively enacted on 24 May 2021. As a result, deferred tax for timing differences that are forecast to unwind on or after 1 April 2023 will need to be re-measured and recognised at 25% if the company profits are expected to be in excess of £250,000 (or at the marginal rate if profits are expected to be between £50,000 and £250,000) with an adjustment recognised in the 2021 total tax charge.

12
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
210,000
-
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2021 and 30 September 2022
659,524
Amortisation and impairment
At 1 October 2021
223,516
Amortisation charged for the year
109,001
At 30 September 2022
332,517
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
13
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 30 September 2022
327,007
At 30 September 2021
436,008
The company had no intangible fixed assets at 30 September 2022 or 30 September 2021.
14
Tangible fixed assets
Group
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 October 2021
271,408
789,998
1,042
1,062,448
Additions
-
0
12,347
-
0
12,347
At 30 September 2022
271,408
802,345
1,042
1,074,795
Depreciation and impairment
At 1 October 2021
184,029
664,891
404
849,324
Depreciation charged in the year
25,131
27,491
127
52,749
At 30 September 2022
209,160
692,382
531
902,073
Carrying amount
At 30 September 2022
62,248
109,963
511
172,722
At 30 September 2021
87,379
125,107
638
213,124
The company had no tangible fixed assets at 30 September 2022 or 30 September 2021.
15
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 October 2021 and 30 September 2022
8,075,000
-
Transfers from inventories
6,750,000
-
At 30 September 2022
14,825,000
-

Investment property comprises commercial and residential properties. The valuation was made by the directors on an open market value basis by reference to market evidence of transaction prices for similar properties.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 26 -
16
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
554,760
554,760
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2021 and 30 September 2022
554,760
Carrying amount
At 30 September 2022
554,760
At 30 September 2021
554,760
17
Subsidiaries

Details of the company's subsidiaries at 30 September 2022 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Acecrest Limited
England and Wales
Heating maintenance
Ordinary shares
100.00
Aqua Properties Limited
England and Wales
Property letting
Ordinary shares
100.00
Letting International Limited
England and Wales
Property management
Ordinary shares
100.00
Lint (Redington Road) Limited
England and Wales
Property development
Ordinary shares
100.00
Lint Estate Management Limited
England and Wales
Property management
Ordinary shares
100.00
Lint Broker Services Limited
England and Wales
Insurance agents and brokers
Ordinary shares
100.00

Secure Estate Letting Limited ceased trading on 30 November 2021 as the operations were transferred to fellow subsidiary. Secure Estate letting Limited was dissolved on 14 February 2023.

18
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
-
0
6,750,000
-
0
-
0
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 27 -
19
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,472,192
1,611,058
-
0
-
0
Corporation tax recoverable
266,908
286,573
-
0
-
0
Amounts owed by group undertakings
-
-
14,277
30,000
Other debtors
1,179,101
1,230,099
-
0
-
0
Prepayments and accrued income
39,459
114,138
-
0
-
0
2,957,660
3,241,868
14,277
30,000
20
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
21
8,025,185
8,001,066
-
0
-
0
21
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
8,040,998
8,117,899
-
0
-
0
Bank overdrafts
954,946
979,654
-
0
-
0
Other loans
968,691
968,691
-
0
-
0
9,964,635
10,066,244
-
-
Payable within one year
1,939,450
2,065,178
-
0
-
0
Payable after one year
8,025,185
8,001,066
-
0
-
0

Bank loans and overdrafts are secured by a fixed and floating charge over the assets of the group. In addition, the directors have also provided additional personal guarantees.

Other loans represents unsecured loans from a connected trust in which a subsidiary Letting International ltd is a trustee.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 28 -
22
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
21
970,759
1,096,487
-
0
-
0
Other borrowings
21
968,691
968,691
-
0
-
0
Tenant's deposits
50,615
147,766
-
0
-
0
Trade creditors
632,815
635,648
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
369,965
363,093
Corporation tax payable
113,321
70,541
-
0
-
0
Other taxation and social security
157,172
142,253
-
-
Deferred income
24
-
0
29,250
-
0
-
0
Other creditors
510,730
386,096
60,171
135,172
Accruals and deferred income
317,418
329,013
-
0
-
0
3,721,521
3,805,745
430,136
498,265
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
19,016
21,482
Investment property
85,565
85,565
104,581
107,047
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 October 2021
107,047
-
Credit to profit or loss
(2,466)
-
Liability at 30 September 2022
104,581
-
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 29 -
24
Deferred income
Group
Company
2022
2021
2022
2021
£
£
£
£
Other deferred income
-
29,250
-
-
25
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,547
49,652

A defined contribution pension scheme is operated for all qualifying employees and directors. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Provision for PAYE and NIC
2,808,060
3,028,060
-
-
Movements on provisions:
Provision for PAYE and NIC
Group
£
At 1 October 2021
3,028,060
Payments in the year
(220,000)
At 30 September 2022
2,808,060

The provision relates to PAYE and NIC liabilities for prior years, following accelerated payment notifications (APN) received from HMRC.

27
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
14
14
14
14
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 30 -
28
Other reserves
2022
2021
Group
£
£
At the beginning of the year
380,275
380,275
Other movements
(15,496)
-
At the end of the year
364,779
380,275
2022
2021
Company
£
£
At the beginning and end of the year
-
-

Other reserves represents fair value gains net of deferred tax on revaluation of investment property.

29
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
81,964
119,964
-
-
Between two and five years
191,031
272,995
-
-
272,995
392,959
-
-
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
133,000
125,000
-
-
Between two and five years
180,000
125,000
-
-
In over five years
90,000
-
-
-
403,000
250,000
-
-

The group owns investments properties for rental purposes. Net rental income earned during the year was £201,522. The properties are expected to generate yields of 3.40 per cent on an ongoing basis. All of the properties have committed tenants for the next 1-11 years. All operating lease contracts contain market review clauses in the event that the lessee exercises its option to renew. The lessee does not have an option to purchase the property at the expiry of the lease period.

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 31 -
30
Events after the reporting date

The group acquired a new subsidiary Thomas Marsh Limited on 1 April 2023.

31
Related party transactions

Other related parties

 

Group

Connected companies

 

Included within other debtors, there is an amount of £858,081 (2021: £1,001,143) owed by connected companies in which Mr T Chand and Mr R Patel are directors.

 

Also, included within other creditors, there is an amount of £347,423 (2021: £109,031) owed to connected companies in which Mr T Chand and Mr R Patel are directors.

 

The group occupies premises owned by its pension scheme. Rent of £76,000 was payable during the year.

 

Company

Connected companies

 

Included within other creditors, there is an amount of £50,000 (2021: £50,000) owed to a connected company in which Mr T Chand and Mr R Patel are the directors.

 

32
Directors' transactions

Group

 

Included within the sales and cost of sales of the group for the year is rental income and expenses arising from properties owned by the directors and connected companies of the directors as follows:

 

Sales - rent demanded:

 

2022 2021

£ £

Mr. R Patel 503,595 555,184

Mr. T Chand 1,048,792      1,046,969

 

Cost of sales - rent paid:

 

2022 2021

£ £

Mr. R Patel 479,615         528,746

Mr. T Chand 998,849      997,114

 

Also, included within other creditors, there are amounts of £7,807 (2021 : £46,349) and £7,604 (2021: £38,435) owed to Mr. T Chand and Mr. R Patel respectively, the directors of the group.

 

Company

 

Included within other creditors, there is an amount of £5,086 (2021: £5,086) and £5,086 (2021: £5,086) owed to Mr T Chand and Mr R Patel respectively, the directors of the company.

 

LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 32 -
33
Reclassification of prior year presentation

Certain prior year amounts have been reclassified for consistency with the current year presentation. An adjustment has been made to the Group Profit and Loss Account to reclassify the rent receivable in other income as rent receivable in turnover.

 

Also for consistency with the current year presentation, prior year "Turnover analysed by class of business" (note 3) has been reclassified.

 

These reclassifications had no effect on the reported results of operations.

34
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
10,583
215,646
Adjustments for:
Taxation charged/(credited)
186,085
(79,512)
Finance costs
351,494
327,392
Investment income
(738)
(73)
(Gain)/loss on disposal of tangible fixed assets
-
1,698
Amortisation and impairment of intangible assets
109,001
131,904
Depreciation and impairment of tangible fixed assets
52,749
57,329
Other gains and losses
2,896
35,863
Decrease in provisions
(220,000)
(201,032)
Movements in working capital:
Decrease/(increase) in debtors
264,543
(233,953)
Increase in creditors
27,974
244,816
(Decrease)/increase in deferred income
(29,250)
29,250
Cash generated from operations
755,337
529,328
LINT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 33 -
35
Analysis of changes in net debt - group
2022
£
Opening net debt
Cash and cash equivalents
(468,463)
Loans
(9,086,590)
(9,555,053)
Changes in net debt arising from:
Cash flows of the entity
53,232
Closing net debt as analysed below
(9,501,821)
Closing net debt
Cash and cash equivalents
(492,132)
Loans
(9,009,689)
(9,501,821)
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