Company registration number 07960455 (England and Wales)
LONDON MINING ASSOCIATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
LONDON MINING ASSOCIATES LIMITED
COMPANY INFORMATION
Directors
Mr M Harvey
Mr P A Alexander
Secretary
Ruskin House Company Services Limited
Company number
07960455
Registered office
Unit 4, Invicta Park
New Hythe Lane
Larkfield
Aylesford
Kent
ME20 7FG
Auditor
Knill James LLP
One Bell Lane
Lewes
East Sussex
BN7 1JU
LONDON MINING ASSOCIATES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
LONDON MINING ASSOCIATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The directors present the strategic report for the year ended 28 February 2023.

Review of the business

The business turn-over has grown significantly in the past year, both through increased recycling tonnage, as well as through higher commodity prices. Our gross profit remained stable due to an increase in the costs of sales, mainly labour. The administrative expenses were slightly up, mainly due to an increase in staff cost, motor expenses and accountancy and audit fees. As we did not have any exceptional items, we ended up with a healthy operating profit, which also brings the business into a positive total equity position. The company has built-up a healthy cash reserve to deal with potential headwinds and which it can use to trade more high value materials.

The shareholders, who also hold most of the long-term debt, have confidence in the business which allows us to invest significantly in plant and buildings. This will allow us to diversify the waste streams we process and mean we can process more material and use less labour per tonne of output. We foresee future costs pressure, due to inflation in labour and energy bills, and there is significant regulatory uncertainty related to the classification of various waste streams we deal with. There will also be continued regulatory pressure to increase storage and treatment standards which will require significant ongoing capital investment. We expect the ongoing capital expenditure to be required for the next 2 years.

On behalf of the board

Mr M Harvey
Director
8 November 2023
LONDON MINING ASSOCIATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Principal activities

The principal activity of the company continued to be that of treatment and disposal of non-hazardous waste.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 M Harvey
Mr P A Alexander
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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M Harvey
Mr P A Alexander
Director
Director
8 November 2023
LONDON MINING ASSOCIATES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LONDON MINING ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONDON MINING ASSOCIATES LIMITED
- 4 -
Opinion

We have audited the financial statements of London Mining Associates Limited (the 'company') for the year ended 28 February 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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:

LONDON MINING ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON MINING ASSOCIATES LIMITED
- 5 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

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 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 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.

In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, we:

 

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Companies Act 2006, the company's governing document and relevant tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements, including the Directors' report, remaining alert to new or unusual transactions which may not be in accordance with the governing document.

The most significant laws and regulations that have an indirect impact on the financial statements are the compliance with relevant employment law, environmental legislation and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

We identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

LONDON MINING ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON MINING ASSOCIATES LIMITED
- 6 -

Because of 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 occuring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Other matters which we are required to address

The comparative financial statements are unaudited.

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.

Mark Filsell FCA
Senior Statutory Auditor
For and on behalf of Knill James LLP
8 November 2023
Chartered Accountants
Statutory Auditor
One Bell Lane
Lewes
East Sussex
BN7 1JU
LONDON MINING ASSOCIATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
18,951,868
13,431,227
Cost of sales
(14,951,190)
(9,276,671)
Gross profit
4,000,678
4,154,556
Administrative expenses
(2,649,305)
(2,367,146)
Other operating income
-
0
277
Exceptional item
4
-
0
(1,649,706)
Operating profit
5
1,351,373
137,981
Interest payable and similar expenses
8
(32,394)
(31,846)
Profit before taxation
1,318,979
106,135
Tax on profit
9
135,581
(283,549)
Profit/(loss) for the financial year
1,454,560
(177,414)
LONDON MINING ASSOCIATES LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,646,419
2,079,827
Current assets
Stocks
11
599,302
547,605
Debtors
12
3,493,583
3,613,823
Cash at bank and in hand
1,201,567
348,973
5,294,452
4,510,401
Creditors: amounts falling due within one year
13
(2,706,942)
(2,678,825)
Net current assets
2,587,510
1,831,576
Total assets less current liabilities
5,233,929
3,911,403
Creditors: amounts falling due after more than one year
14
(4,528,346)
(4,557,320)
Provisions for liabilities
Deferred tax liability
17
-
0
103,060
-
(103,060)
Net assets/(liabilities)
705,583
(748,977)
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
705,483
(749,077)
Total equity
705,583
(748,977)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 8 November 2023 and are signed on its behalf by:
Mr M Harvey
Mr P A Alexander
Director
Director
Company registration number 07960455 (England and Wales)
LONDON MINING ASSOCIATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2021
100
(571,663)
(571,563)
Year ended 28 February 2022:
Loss and total comprehensive income
-
(177,414)
(177,414)
Balance at 28 February 2022
100
(749,077)
(748,977)
Year ended 28 February 2023:
Profit and total comprehensive income
-
1,454,560
1,454,560
Balance at 28 February 2023
100
705,483
705,583
LONDON MINING ASSOCIATES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
1,879,464
(364,397)
Interest paid
(32,394)
(31,846)
Income taxes refunded
4,164
27,747
Net cash inflow/(outflow) from operating activities
1,851,234
(368,496)
Investing activities
Purchase of tangible fixed assets
(1,016,428)
(1,377,804)
Proceeds from disposal of tangible fixed assets
32,000
27,200
Net cash used in investing activities
(984,428)
(1,350,604)
Financing activities
Repayment of borrowings
269,770
678,158
Repayment of bank loans
(139,221)
475,387
Payment of finance leases obligations
(144,761)
392,492
Net cash (used in)/generated from financing activities
(14,212)
1,546,037
Net increase/(decrease) in cash and cash equivalents
852,594
(173,063)
Cash and cash equivalents at beginning of year
348,973
522,036
Cash and cash equivalents at end of year
1,201,567
348,973
LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
1
Accounting policies
Company information

London Mining Associates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4, Invicta Park, New Hythe Lane, Larkfield, Aylesford, Kent, ME20 7FG.

1.1
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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the treatment and disposal of non-hazardous waste services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.4
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:

ELV building
15 years straight line
Plant and machinery
25% reducing balance/15 years straight line/5% reducing balance
Fixtures, fittings & equipment
25% straight line
Computer equipment
33% straight line
Motor vehicles
25% 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 credited or charged to profit or loss.

LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

 

Work in progress is valued at the lower of cost and net realisable value.

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.

1.7
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.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

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.

LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
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 company 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 company 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.

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.

LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 company’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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases asset are consumed.

LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 15 -
1.14
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.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of sorted materials
18,951,868
13,431,227
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
15,357,002
10,769,008
Europe
2,583,976
1,883,035
Rest of World
1,010,890
779,184
18,951,868
13,431,227
2023
2022
£
£
Other revenue
Grants received
-
277
LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
4
Exceptional item
2023
2022
£
£
Expenditure
Write off of investment/loans
-
1,649,706
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(2,755)
25,203
Government grants
-
(277)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
-
0
Depreciation of owned tangible fixed assets
449,836
514,986
Profit on disposal of tangible fixed assets
(32,000)
(16,901)
Operating lease charges
300,000
100,000
6
Employees

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

2023
2022
Number
Number
22
22

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
816,274
692,194
Social security costs
78,729
67,862
Pension costs
13,821
12,255
908,824
772,311
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
60,000
60,000
Company pension contributions to defined contribution schemes
1,321
1,320
61,321
61,320
LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
7
Directors' remuneration
(Continued)
- 17 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
18,083
12,977
Other finance costs:
Interest on finance leases and hire purchase contracts
14,311
18,869
32,394
31,846
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(4,164)
(27,747)
Deferred tax
Origination and reversal of timing differences
(131,417)
311,296
Total tax (credit)/charge
(135,581)
283,549
LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
9
Taxation
(Continued)
- 18 -

The actual (credit)/charge 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:

2023
2022
£
£
Profit before taxation
1,318,979
106,135
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
250,606
20,166
Tax effect of expenses that are not deductible in determining taxable profit
255
2,793
Tax effect of income not taxable in determining taxable profit
-
0
(4,748)
Gains not taxable
(6,080)
-
0
Tax effect of utilisation of tax losses not previously recognised
(27,823)
-
0
Unutilised tax losses carried forward
-
0
185,114
Adjustments in respect of prior years
(4,164)
(27,748)
Permanent capital allowances in excess of depreciation
(107,697)
(301,171)
Depreciation on assets not qualifying for tax allowances
85,469
97,847
Utilisation of Non-trade loan relationship deficits
(194,730)
-
0
Change in deferred tax asset
(131,417)
311,296
Taxation (credit)/charge for the year
(135,581)
283,549
10
Tangible fixed assets
ELV building
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2022
317,445
3,651,183
32,187
10,199
42,500
4,053,514
Additions
618,730
365,276
10,065
1,524
20,833
1,016,428
At 28 February 2023
936,175
4,016,459
42,252
11,723
63,333
5,069,942
Depreciation and impairment
At 1 March 2022
22,731
1,914,404
19,954
5,972
10,626
1,973,687
Depreciation charged in the year
18,724
408,436
6,863
2,636
13,177
449,836
At 28 February 2023
41,455
2,322,840
26,817
8,608
23,803
2,423,523
Carrying amount
At 28 February 2023
894,720
1,693,619
15,435
3,115
39,530
2,646,419
At 28 February 2022
294,714
1,736,779
12,233
4,227
31,874
2,079,827
LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
10
Tangible fixed assets
(Continued)
- 19 -

Included in plant and machinery are some assets that are no longer used regularly, the depreciation rate has therefore been reduced to 5% reducing balance. The netbook value of these assets at the year end is £275,996 (2022 - £305,812).

11
Stocks
2023
2022
£
£
Raw materials and consumables
87,520
345,429
Work in progress
21,736
71,910
Finished goods and goods for resale
490,046
130,266
599,302
547,605
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,139,056
2,536,533
Other debtors
172,037
180,853
Prepayments and accrued income
1,154,133
896,437
3,465,226
3,613,823
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
28,357
-
0
Total debtors
3,493,583
3,613,823
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
149,407
139,221
Obligations under finance leases
16
149,407
144,831
Trade creditors
2,222,110
2,294,215
Taxation and social security
55,214
16,836
Other creditors
114,588
77,556
Accruals and deferred income
16,216
6,166
2,706,942
2,678,825
LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 20 -
14
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
15
186,759
336,166
Obligations under finance leases
16
186,829
336,166
Other borrowings
15
4,154,758
3,884,988
4,528,346
4,557,320

The obligations under finance leases are secured by fixed charges over the assets leased.

15
Loans and overdrafts
2023
2022
£
£
Bank loans
336,166
475,387
Loans from related parties
4,154,758
3,884,988
4,490,924
4,360,375
Payable within one year
149,407
139,221
Payable after one year
4,341,517
4,221,154

The long-term loans are secured by fixed charges over the assets which they are financing.

16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
149,407
144,831
In two to five years
186,829
336,166
336,236
480,997

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 21 -
17
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
406,101
(434,515)
-
Tax losses
-
(303,041)
462,872
-
-
103,060
28,357
-
2023
Movements in the year:
£
Liability at 1 March 2022
103,060
Credit to profit or loss
(131,417)
Asset at 28 February 2023
(28,357)
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
13,821
12,255

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100
20
Ultimate controlling party

The company does not have a recognised ultimate controlling party.

LONDON MINING ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
21
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit/(loss) for the year after tax
1,454,560
(177,414)
Adjustments for:
Taxation (credited)/charged
(135,581)
283,549
Finance costs
32,394
31,846
Gain on disposal of tangible fixed assets
(32,000)
(16,901)
Depreciation and impairment of tangible fixed assets
449,836
514,986
Movements in working capital:
(Increase)/decrease in stocks
(51,697)
38,550
Decrease/(increase) in debtors
148,597
(1,844,507)
Increase in creditors
13,355
805,494
Cash generated from/(absorbed by) operations
1,879,464
(364,397)
22
Analysis of changes in net debt
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
348,973
852,594
1,201,567
Borrowings excluding overdrafts
(4,360,375)
(130,549)
(4,490,924)
Obligations under finance leases
(480,997)
144,761
(336,236)
(4,492,399)
866,806
(3,625,593)
2023-02-282022-03-01falseCCH SoftwareCCH Accounts Production 2023.300Mr M HarveyMr P A AlexanderRuskin House Company Services Limitedfalse079604552022-03-012023-02-2807960455bus:Director12022-03-012023-02-2807960455bus:Director22022-03-012023-02-2807960455bus:CompanySecretary12022-03-012023-02-2807960455bus:RegisteredOffice2022-03-012023-02-28079604552023-02-28079604552021-03-012022-02-280796045512022-03-012023-02-280796045512021-03-012022-02-2807960455core:RetainedEarningsAccumulatedLosses2021-03-012022-02-2807960455core:RetainedEarningsAccumulatedLosses2022-03-012023-02-28079604552022-02-2807960455core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2807960455core:PlantMachinery2023-02-2807960455core:FurnitureFittings2023-02-2807960455core:ComputerEquipment2023-02-2807960455core:MotorVehicles2023-02-2807960455core:LandBuildingscore:OwnedOrFreeholdAssets2022-02-2807960455core:PlantMachinery2022-02-2807960455core:FurnitureFittings2022-02-2807960455core:ComputerEquipment2022-02-2807960455core:MotorVehicles2022-02-2807960455core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2807960455core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2807960455core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-2807960455core:Non-currentFinancialInstrumentscore:AfterOneYear2022-02-2807960455core:CurrentFinancialInstruments2023-02-2807960455core:CurrentFinancialInstruments2022-02-2807960455core:Non-currentFinancialInstruments2023-02-2807960455core:Non-currentFinancialInstruments2022-02-2807960455core:ShareCapital2023-02-2807960455core:ShareCapital2022-02-2807960455core:RetainedEarningsAccumulatedLosses2023-02-2807960455core:RetainedEarningsAccumulatedLosses2022-02-2807960455core:ShareCapital2021-02-2807960455core:RetainedEarningsAccumulatedLosses2021-02-28079604552022-02-28079604552021-02-2807960455core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-012023-02-2807960455core:PlantMachinery2022-03-012023-02-2807960455core:FurnitureFittings2022-03-012023-02-2807960455core:ComputerEquipment2022-03-012023-02-2807960455core:MotorVehicles2022-03-012023-02-2807960455core:UKTax2022-03-012023-02-2807960455core:UKTax2021-03-012022-02-280796045522022-03-012023-02-280796045522021-03-012022-02-280796045532022-03-012023-02-280796045532021-03-012022-02-280796045542022-03-012023-02-280796045542021-03-012022-02-2807960455core:LandBuildingscore:OwnedOrFreeholdAssets2022-02-2807960455core:PlantMachinery2022-02-2807960455core:FurnitureFittings2022-02-2807960455core:ComputerEquipment2022-02-2807960455core:MotorVehicles2022-02-2807960455core:WithinOneYear2023-02-2807960455core:WithinOneYear2022-02-2807960455core:BetweenTwoFiveYears2023-02-2807960455core:BetweenTwoFiveYears2022-02-2807960455bus:PrivateLimitedCompanyLtd2022-03-012023-02-2807960455bus:FRS1022022-03-012023-02-2807960455bus:Audited2022-03-012023-02-2807960455bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP