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Registration number: 02208177

Lh Agro (Uk) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2023

 

Lh Agro (Uk) Limited

Contents

Company Information

1

Director's Report

2

Accountants' Report

3

Profit and Loss Account

4

Balance Sheet

5 to 6

Notes to the Unaudited Financial Statements

7 to 12

Detailed Profit and Loss Account

13 to 15

 

Lh Agro (Uk) Limited

Company Information

Director

Mr R J Reed

Company secretary

Mrs R Reed

Registered office

12 The Broadway
St Ives
Huntingdon
Cambs
PE27 5BN

Accountants

D A Green & Sons
Chartered Certified Accountants
12 The Broadway
The Broadway
St Ives
Cambridgeshire
PE27 5BN

 

Lh Agro (Uk) Limited

Director's Report for the Year Ended 28 February 2023

The director presents his report and the financial statements for the year ended 28 February 2023.

Director of the company

The director who held office during the year was as follows:

Mr R J Reed

Principal activity

The principal activity of the company is the sale and distribution of electronic instruments and agricultural machinery

Small companies provision statement

This report has 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.

Approved and authorised by the director on 7 November 2023
 

.........................................
Mrs R Reed
Company secretary

 

Chartered Certified Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Lh Agro (Uk) Limited
for the Year Ended 28 February 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Lh Agro (Uk) Limited for the year ended 28 February 2023 as set out on pages 4 to 12 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.accaglobal.com/gb/en/member/standards/rules-and-standards/rulebook.html.

This report is made solely to the Board of Directors of Lh Agro (Uk) Limited, as a body, in accordance with the terms of our engagement letter dated 11 February 2008. Our work has been undertaken solely to prepare for your approval the accounts of Lh Agro (Uk) Limited and state those matters that we have agreed to state to the Board of Directors of Lh Agro (Uk) Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2009/
october/factsheet-163-audit-exempt-companies.html. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lh Agro (Uk) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Lh Agro (Uk) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Lh Agro (Uk) Limited. You consider that Lh Agro (Uk) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Lh Agro (Uk) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

D A Green & Sons
Chartered Certified Accountants
12 The Broadway
The Broadway
St Ives
Cambridgeshire
PE27 5BN

7 November 2023

 

Lh Agro (Uk) Limited

Profit and Loss Account for the Year Ended 28 February 2023

Note

2023
£

2022
£

Turnover

 

2,053,426

1,630,356

Cost of sales

 

(1,247,073)

(950,732)

Gross profit

 

806,353

679,624

Administrative expenses

 

(702,266)

(604,065)

Other operating income

 

-

7,500

Operating profit

 

104,087

83,059

Interest payable and similar expenses

 

(2,294)

(5,502)

Profit before tax

4

101,793

77,557

Tax on profit

 

(24,478)

(1,833)

Profit for the financial year

 

77,315

75,724

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Lh Agro (Uk) Limited

(Registration number: 02208177)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

93,070

121,180

Current assets

 

Stocks

6

298,330

326,140

Debtors

7

430,550

429,677

Cash at bank and in hand

 

96,867

47,241

 

825,747

803,058

Creditors: Amounts falling due within one year

8

(408,334)

(481,613)

Net current assets

 

417,413

321,445

Total assets less current liabilities

 

510,483

442,625

Creditors: Amounts falling due after more than one year

8

(15,332)

(24,789)

Net assets

 

495,151

417,836

Capital and reserves

 

Called up share capital

9

150,000

150,000

Retained earnings

345,151

267,836

Shareholders' funds

 

495,151

417,836

 

Lh Agro (Uk) Limited

(Registration number: 02208177)
Balance Sheet as at 28 February 2023

For the financial year ending 28 February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 director acknowledges his 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.

Approved and authorised by the director on 7 November 2023
 

.........................................
Mr R J Reed
Director

 

Lh Agro (Uk) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
12 The Broadway
St Ives
Huntingdon
Cambs
PE27 5BN
England

These financial statements were authorised for issue by the director on 7 November 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.

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.

Tax

The tax expense for the period comprises current 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 income 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.

 

Lh Agro (Uk) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

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

25% reducing balance basis

Fixtures and fittings

25% reducing balance basis

Motor vehicles

25% reducing balance basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Lh Agro (Uk) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

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 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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 10 (2022 - 7).

4

Profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

31,682

40,471

 

Lh Agro (Uk) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 March 2022

28,991

220,326

22,471

271,788

Additions

3,571

-

-

3,571

Disposals

(5,750)

-

-

(5,750)

At 28 February 2023

26,812

220,326

22,471

269,609

Depreciation

At 1 March 2022

-

129,603

21,004

150,607

Charge for the year

-

31,314

368

31,682

Eliminated on disposal

-

(5,750)

-

(5,750)

At 28 February 2023

-

155,167

21,372

176,539

Carrying amount

At 28 February 2023

26,812

65,159

1,099

93,070

At 28 February 2022

7,350

112,363

1,467

121,180

6

Stocks

2023
£

2022
£

Other inventories

298,330

326,140

7

Debtors

Current

2023
£

2022
£

Trade debtors

427,473

424,780

Other debtors

3,077

4,897

 

430,550

429,677

 

Lh Agro (Uk) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

15,083

63,856

Trade creditors

 

284,323

342,401

Taxation and social security

 

107,012

73,487

Other creditors

 

1,916

1,869

 

408,334

481,613

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

15,332

24,789

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

150,000

150,000

150,000

150,000

         
 

Lh Agro (Uk) Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

10

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

15,332

23,133

Hire purchase contracts

-

1,656

15,332

24,789

2023
£

2022
£

Current loans and borrowings

Bank borrowings

8,000

7,200

Hire purchase contracts

7,083

56,656

15,083

63,856

11

Related party transactions

Transactions with the director

2023

At 1 March 2022
£

Repayments by director
£

At 28 February 2023
£

Mr R J Reed

Loan (to)/from director - interest free, unsecured and repayable on demand

(4,897)

1,820

(3,077)

       
     

 

2022

At 1 March 2021
£

Repayments by director
£

At 28 February 2022
£

Mr R J Reed

Loan (to)/from director - interest free, unsecured and repayable on demand

(10,019)

5,122

(4,897)

       
     

 

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

76,545

45,000

 

Lh Agro (Uk) Limited

Detailed Profit and Loss Account for the Year Ended 28 February 2023

2023
 £

2022
 £

turnover (analysed below)

2,053,426

1,630,356

Cost of sales (analysed below)

(1,247,073)

(950,732)

Gross profit

806,353

679,624

Gross profit (%)

39.27%

41.69%

Administrative expenses

Employment costs (analysed below)

411,834

325,650

Establishment costs (analysed below)

105,311

95,241

General administrative expenses (analysed below)

151,363

141,030

Finance charges (analysed below)

2,076

1,673

Depreciation costs (analysed below)

31,682

40,471

702,266

604,065

Other operating income (analysed below)

-

7,500

Operating profit

104,087

83,059

Interest payable and similar charges (analysed below)

(2,294)

(5,502)

Profit before tax

101,793

77,557

 

Lh Agro (Uk) Limited

Detailed Profit and Loss Account for the Year Ended 28 February 2023

2023
£

2022
£

   

Turnover

Sales, UK

2,053,426

1,630,356

   

Cost of sales

Opening stock

326,140

174,624

Purchases

1,198,486

1,077,684

Closing stock

(298,330)

(326,140)

Freight and carriage

20,777

24,564

1,247,073

950,732

   

Employment costs

Wages and salaries

269,475

213,774

Staff NIC (Employers)

22,816

20,002

Directors remuneration

76,545

45,000

Directors NIC (Employers)

8,628

4,158

Staff pensions (Defined contribution)

8,466

7,590

Subcontract cost

21,610

33,338

Staff training

632

-

Staff welfare

3,662

1,788

411,834

325,650

   

Establishment costs

Rent

30,445

29,180

Water rates

298

360

Light, heat and power

2,820

2,410

Insurance

22,337

22,706

Repairs and renewals

49,411

40,585

105,311

95,241

 

Lh Agro (Uk) Limited

Detailed Profit and Loss Account for the Year Ended 28 February 2023

2023
£

2022
£

   

General administrative expenses

Telephone and fax

12,775

14,823

Computer software and maintenance costs

1,446

2,112

Printing, postage and stationery

3,927

3,620

Trade subscriptions

10,408

8,525

Charitable donations

1,246

1,636

Sundry expenses

-

43

Cleaning

1,820

1,820

Petrol or diesel

31,752

29,807

Motor insurance

1,564

-

Motor repairs and renewals

8,905

21,146

Travel and subsistence

28,430

13,924

Hotel accommodation

17,086

7,248

Advertising

29,490

33,527

Accountancy fees

1,150

1,109

Legal and professional fees

-

525

Leasing payments

1,364

1,165

151,363

141,030

   

Finance charges

Bank charges

2,076

1,673

   

Depreciation costs

Depreciation of plant and machinery (owned)

-

489

Depreciation of fixtures and fittings (owned)

368

2,527

Depreciation of motor vehicles (owned)

28,093

37,455

Depreciation of office equipment (owned)

3,221

-

31,682

40,471

   

Other operating income

Other operating income

-

7,500

   

Interest payable and similar expenses

Bank interest payable

-

553

Bank loan interest payable

676

-

Hire purchase interest

1,618

4,949

2,294

5,502