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Company Registration number: SC246380

L.I.P. Construction Limited

Annual Report and Unaudited
Financial Statements


for the Year Ended 30 April 2023

 

L.I.P. Construction Limited

Contents

Pages

Balance sheet

1 to 2

Notes to the financial statements

3 to 9

 

L.I.P. Construction Limited

Balance Sheet as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

758,945

801,324

Current assets

 

Stocks

5

930,541

1,033,852

Debtors

6

170,353

165,411

 

1,100,894

1,199,263

Creditors: Amounts falling due within one year

7

(561,147)

(717,114)

Net current assets

 

539,747

482,149

Total assets less current liabilities

 

1,298,692

1,283,473

Creditors: Amounts falling due after more than one year

7

(316,668)

(464,334)

Provisions for liabilities

(51,362)

(57,029)

Net assets

 

930,662

762,110

Capital and reserves

 

Called up share capital

100

2

Retained earnings

930,562

762,108

Shareholders' funds

 

930,662

762,110

 

L.I.P. Construction Limited

Balance Sheet as at 30 April 2023 (continued)

For the financial year ending 30 April 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Company registration number: SC246380

Approved and authorised by the Board on 27 June 2023 and signed on its behalf by:
 

.........................................
Mr S Lowther
Director

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2023

1

GENERAL INFORMATION

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Cherrybank
Waterbeck
Lockerbie
DG11 3JR

These financial statements were authorised for issue by the Board on 27 June 2023.

2

ACCOUNTING POLICIES

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Tax

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

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% reducing balance

Motor vehicles

25% reducing balance

Office equipment

25% reducing balance

Leasehold property improvements

40 years straight line

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2023 (continued)

2

ACCOUNTING POLICIES (continued)

Financial instruments

Classification
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
 Recognition and measurement
Basic financial instruments are initially recognised at the transaction price.
 Impairment
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

3

STAFF NUMBERS

The average number of persons employed by the company (including directors) during the year, was 30 (2022 - 24).

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2023 (continued)

4

TANGIBLE ASSETS

Leasehold property improvements
£

Motor vehicles
 £

Office equipment
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 May 2022

500,622

235,778

20,008

430,762

1,187,170

Additions

-

46,000

8,688

18,567

73,255

Disposals

-

(74,440)

-

(136,576)

(211,016)

At 30 April 2023

500,622

207,338

28,696

312,753

1,049,409

Depreciation

At 1 May 2022

18,591

102,907

6,915

257,434

385,847

Charge for the year

8,860

32,395

3,784

28,826

73,865

Eliminated on disposal

-

(71,148)

-

(98,100)

(169,248)

At 30 April 2023

27,451

64,154

10,699

188,160

290,464

Carrying amount

At 30 April 2023

473,171

143,184

17,997

124,593

758,945

At 30 April 2022

482,031

132,872

13,093

173,328

801,324

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2023 (continued)

5

STOCKS

2023
£

2022
£

Stock and work in progress

930,541

1,033,852

6

DEBTORS

Current

2023
£

2022
£

Trade debtors

168,762

158,303

Prepayments

789

1,307

Other debtors

802

5,801

 

170,353

165,411

7

CREDITORS

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

8

258,428

276,057

Trade creditors

 

235,732

337,792

Taxation and social security

 

61,081

97,314

Accruals and deferred income

 

4,235

4,000

Other creditors

 

1,671

1,951

 

561,147

717,114

Creditors include bank loans and overdrafts £215,520 (2022 - £227,521) and net obligations under finance lease and hire purchase contracts which are secured of £42,908 (2022 - £48,536).

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

316,668

464,334

Creditors include bank loans and overdrafts £203,811 (2022 - £339,070) and net obligations under finance lease and hire purchase contracts which are secured of £112,857 (2022 - £125,264).

 

L.I.P. Construction Limited

Notes to the financial statements for the Year Ended 30 April 2023 (continued)

8

LOANS AND BORROWINGS

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

203,811

339,070

Hire purchase contracts

112,857

125,264

316,668

464,334

2023
£

2022
£

Current loans and borrowings

Bank borrowings

134,108

151,398

Bank overdrafts

81,412

76,123

Hire purchase contracts

42,908

48,536

258,428

276,057